Power purchase deal for Burma on th

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Subject: Power purchase deal for Burma on the way 



27 May 1997 

Power purchase deal for Burma on the way 

PICHAYA CHANGSORN 

THAILAND is scheduled to sign a memorandum of understanding in July with Burma 
for the purchase of 1,500 megawatts of electricity by the year 2010, PM's 
Office Minister Sompong Amornvivat, said. 

It will be the first power purchase agreement directly between Thailand and 
its western neighbour. Thailand signed MoUs with Laos in 1993 and 1996 for the 
purchase 1,500 MW of power by 2000 and 1,500 MW by 2006, respectively. 

The announcement followed a visit by Prime Minister Chavalit Yongchaiyudh and 
Sompong, who is responsible for energy affairs, to Rangoon about three weeks 
ago. 

''This broad policy framework and scope for bilateral cooperation in the power 
sector will be formalised in a memorandum of understanding to be signed by the 
two governments in July," Sompong said. 

In the medium term, he said, the programme will concentrate on power purchases 
from small projects which are relatively easy to develop such as Nam Kok. Over 
the long term, the programme will more fully utilise the resource potential of 
Burma, the Salween river for example. 

According to the National Energy Policy Office, potential projects in Burma 
for electricity supply to Thailand include the 150 MW Nam Kok project to be 
developed by the consortium of MDX Plc, Italian-Thai Development Plc and 
Marubeni of Japan, and the 400 MW Hutyi project on the lower part of the 
Salween river. 

Preliminary studies started by the Burmese junta on 196 hydro-electric power 
projects indicate 38,000 MW of potential power supply capacity while the 
country's total technical potential for energy production is estimated at 
100,000 MW, NEPO said. 

Previously, the Petroleum Authority of Thailand signed gas sales contracts to 
purchase natural gas from Burma's two gas fields, which are scheduled to 
supply power plants in Ratchaburi from mid-1998 and 1999, respectively. 

With insufficient indigenous energy resources, Thailand's energy master plan 
has adopted its resource-rich neighbouring countries including Malaysia, 
Cambodia, Burma, Laos, China and Indonesia, as its sources of gas and 
electricity. 

The minister said preliminary discussion has also taken place with officials 
of Yunnan province in China. ''It is envisaged that Thailand will buy 1,200 MW 
from China's Jinghong project towards the end of the next decade," Sompong 
said. 

MDX and Yunnan Electric is undertaking a feasibility study for the hydro 
electric Jinghong project. Located 400 kilometres from the Thai upper North 
border, the Jinghong dam is expected to supply 1,200 MW out of its total 1,500 
MW output to Thailand. 

The Asian Development Bank estimates Yunnan has a hydro-electric power 
generating potential of 90,000 MW, comprising 40,940 MW from the Jinsha river, 
22,260 MW from Lancang river, 13,900 MW from the Nujang river and 12,900 MW 
from tributary river projects. 

For power purchases from Laos, the Electricity Generating Authority of 
Thailand has signed power purchase agreements with the 210 MW Nam 
Theun-Hinboun project, concluded power tariff talks with two other projects, 
namely the Houay Ho (143 MW) and Hongsa Lignite (608 MW), and is negotiating 
with the developers of the Nam Hgum 3 (460 MW) and Nam Ngum2 (615 MW) 
projects. The National Energy Policy Council is scheduled to approve the draft 
power purchase agreement for the Houay Ho project at its next meeting on June 
2. 

The Nation