Green snags to buying Burma power

[ausgeo@xxxxxxx]

02 Jul 1997 

The Nation
 
Green snags to buying Burma power 

BY WATCHARAPONG THONGRUNG 

ENVIRONMENTAL concerns in Burma ­ which is scheduled to sign a memorandum of 
understanding with Thailand on power supply on Friday ­ may lead the 
Electricity Generating Authority of Thailand to consider buying electricity 
from China as an alternative, according to Egat Governor Preecha Chungwatana. 

Preecha said Egat does not have high expectations for buying electricity from 
Burma because power and power transmission projects in that country are likely 
to face environmental problems. According to the MoU, Thailand has tentatively 
agreed to buy 1,500 megawatts of electricity from Burma. 

Citing the pipeline project to import gas from Burma as an example of problems 
faced by the Petroleum Authority of Thailand, he said it is difficult for 
power projects in Burma to materialise as transmission lines for this 
electricity have to be built through Burma's rich forests before they can 
reach the Thai border. 

''If we buy electricity from Burma, the problems that will be faced by Egat 
will be as severe as those currently faced by PTT which is running into strong 
opposition from environmentalists. If transmission lines for Burmese 
electricity are to be built, they have to be located in the northern region 
where forests are even richer," he said. 

Unless environmental problems are resolved, Egat will not push to buy 
electricity form Burma and will consider other alternatives such as buying 
from China which has already sent a list of potential projects to Egat for 
consideration. 

The MoU to be signed with Burma resulted from a recent trip by PM's Office 
Minister Sompong Amornwiwat to Rangoon. 

Preecha said the MoU will be modelled on the document signed with Laos. After 
signing the MoU, Burma will send a list of projects which will be developed to 
Egat. Egat will then negotiate with project developers. Both sides will sign a 
head of agreement and power purchase agreement, respectively, if terms and 
conditions are accepted. 

Under the MoU, Thailand will buy electricity from 2007 and 2008. There is no 
specific requirement on sources of energy which will be used in Burmese power 
projects but most are expected to be hydro-power schemes like those in Laos. 
Projects are likely to be located on the Kok and Salween Rivers. MDX and 
Italthai are among the Thai firms which have conducted feasibility studies. 

Preecha said the MoU is a starting point for energy cooperation and it can be 
scrapped if there is no progress in developing projects.