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dam-l LS: Egat extends power purchase MoUs

The Nation / 13 August 1999

Business
Egat extends power purchase MoUs

   THE Electricity Generating Authority of Thailand (Egat) 
has extended the validity of its memoranda of understanding 
(MoUs) on power purchases from Nam Ngum 2 and Nam Ngum 3 
power plant projects in Laos by another two years, after 
they expired in June this year.
   An Egat source said a meeting of Thai and Lao officials 
on Aug 6 had also discussed the Thai proposal for power 
projects in Laos to enter into a power-pool system planned 
by Thailand's National Energy Policy Office. The system is 
expected to be operational by 2003-2004.
   Under the bilateral agreement, Thailand will buy 
electricity from power projects in Laos, which will have a 
combined capacity of 3,200 megawatts by 2008.
   The first stage of the programme will give a combined 
output of 1,883 MW, comprising Nam Thern 2 project (900 
MW), Nam Ngum 2 project (553 MW), and Nam Ngum 3 (430 MW).
   The second stage will bring an output of 1,380 MW from 
Sepian Senamnoi, Sekaman, and Hongsa lignite-burning power-
generation projects.
   All the projects will have to come under the planned 
power-pool system, details of which are currently being 
worked out.
   Negotiations for the first-stage projects are still 
under way, therefore the MoUs covering these projects had 
to be extended.
   At the last meeting on Aug 6, there was no conclusion on 
the electricity pricing for the three first-stage schemes, 
as the developers insisted that the Egat offer of 4.178 US 
cents per unit was too low to make the projects 
economically viable.
   Under the bilateral agreement, the first-stage projects 
will be commissioned for electricity supply to Egat in the 
year 2006.
   Egat insisted that the offer was comparable with the 
pricing in the "Independent power producers" (IPP) and 
"Small power producers" (SPP) programmes, which supply 
electricity to Egat.
   The Nam Thern 2 project developers are Transfield of 
Australia, France's electricity authority, Italian-Thai, 
Jasmine International and Merril Lynch Phatra.
   The Nam Ngum 3 developers are MDX Power and the Laos 
government. Nam Ngum 2 is being developed by Sri Uthong Co, 
Shlapak Development, Bilfinger and Berger, JM Voith, Noell 
and Siemens.





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Aviva Imhof
South-East Asia Campaigner
International Rivers Network
1847 Berkeley Way, Berkeley CA 94703 USA
Tel: + 1 510 848 1155 (ext. 312), Fax: + 1 510 848 1008
Email: aviva@irn.org, Web: http://www.irn.org
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