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Pipeline firm in plea to Queen (r)
- Subject: Pipeline firm in plea to Queen (r)
- From: ausgeo@xxxxxxx
- Date: Thu, 05 Jun 1997 17:22:00
June 4, 1997
BANGKOK POST
YADANA PROJECT
Pipeline firm in plea to Queen
Builder says project should follow roads
Yuwadee Tunyasiri, Suebpong Unarat and
Veera Prateepchaikul
The company building the Yadana gas pipeline has petitioned Her Majesty the
Queen to have the project re-routed, a source said yesterday.
Prasit Supsakorn, chairman of the Tasco Mannesmann joint venture, wrote to the
Bureau of the Royal Household on March 24, suggesting an alternative route
along highways 3272 and 323i.
In his letter, Mr Prasit said the slightly longer route would spare the
environment in Kanchanaburi and avoid conflict with conservationists. He
maintained the detour route would be worthy.
The petition prompted the bureau to ask the prime minister to consider the
project carefully.
In the petition, Mr Prasit pointed out the existing route would cut a 50km
strip 21m wide through national forest reserves, destroying the environment.
He also said protests against the project by environment-conscious people
might disrupt construction to the point the project would not be completed in
time as specified in the contract with Burma.
The source said it was strange the chairman of the company contracted by the
Petroleum Authority of Thailand (PTT) was unaware of the pipeline route and
its environmental impact in the first place.
The source suspected Tasco wanted the deal with PTT re-negotiated because it
was afraid it could not complete the project in time and thus be fined by PTT
for breach of contract due to the opposition against the project.
Under the contract, Tasco would be fined 3.66 million baht a day for the delay
but not more than 365.9 million baht in total.
Tasco, said the source, offered a bid of 3,659 million baht for the contract,
about 726 million baht lower than the closest contender.
If the pipeline was re-routed, Tasco would stand to benefit on two points:
firstly, the construction period would be extended and the company would not
have to pay the fine and, secondly, the company would earn more from the PTT
because of the extended route.
Tasco Mannesmann is a joint venture between Mannesmann Demag AG of Germany and
Tipco Asphalt of Thailand.
Meanwhile, Gen Chavalit Yongchaiyudh urged groups opposed to construction of
the pipeline to meet and work out measures to minimise the environmental
impact.
After yesterday's cabinet meeting, Gen Chavalit said he did not want the issue
to develop into conflict. Non-governmental organisations opposed to the
project, including a group of prominent Thai and foreigners led by Sulak
Sivaraksa, the social critic, should discuss with concerned agencies ways to
solve the problem, he said.
Gen Chavalit also expressed concern Burma would impose a daily fine of 45
million baht if the pipeline was not completed by July next year.
Korn Dabbaransi, the industry minister, has assigned the PTT to gather details
of the project and environmental protection measures so he can discuss the
matter with Chucheep Harnsawat, the agriculture minister.
It was the previous government that signed a contract with Burma to complete
the pipeline by July next year, he said. "If the pipeline is re-routed,
construction may not be completed by July next year," Mr Korn said.
Whether the pipeline would be re-routed or not depended on talks with Mr
Chucheep, he said.
On Monday, Mr Chucheep said the PTT had not obtained permission to build the
pipeline through Kanchanaburi forests. He said the ministry would have to
consider if the project would have adverse effects on the forests. The PTT, he
said, would be asked to clarify its proposed environmental impact mitigation
plan before approval could be made.
The agriculture minister confirmed he had assigned Pitiphong Phuengboon,
deputy permanent secretary for agriculture, to talk to the PTT, the Industry
Ministry and National Environment Board.
He said the ministry wanted details on the route of the pipeline from the PTT.
"There have been petitions from various groups over environmental concerns. We
will have to check if the claims are true. We will also see what the PTT has
done to minimise the impact," Mr Chucheep added.