MEKONG REGION: With China, Thailand, Burma Work on Salween Dams
Prime Minister Thaksin Shinawatra signed an agreement in October with the Burmese government for joint investment in the construction of hydropower plants linked to the Salween dams, according to the Ministry of Energy sources.
The Thai Electricity Generating Authority of Thailand (EGAT) will lead the effort and persuade the Thai private sector to join them.
An initial development plan is being studied, which will enable EGAT to choose four to five feasible sites for the power plants with combined capacity of over 10,000 megawatts including in Tanaosri (Taninthayi) in Prachuab Kirikhan province with the capacity of 600 megawatts, the upper-border Salween river with the capacity of 5,600 megawatts, the lower-border Salween river near Mae Hong Son province with the capacity of 900 megawatts, Hatyi, the border of Tak province with the capacity of 600 megawatts and Tasang dam in Burma.
“During the meeting of the Thai-Chinese Economic Cooperation Committee, the visiting Vice Prime Minister of China, Madam Wu Yi, informed her Thai counterpart that Sinohydro Corporation, a leading dam construction company in China is interested in investing in the Salween project and the plan is being explored,” said the source.
Krasri Kannasutra, EGAT’s governor, estimated that every one megawatt of power produced may cost one million dollars in investment. In total, EGAT must have at least 4 trillion baht (10 billions dollars) at its disposal, and the governor suggested using the stock market to raise funds. He confirmed that Sinohydro has already met with the Permanent Secretary of the Ministry of Energy, Cherdpong Siriwit, and has expressed interest in investing in this project.
The governor said that Thailand will be the sole buyer of the power. He added that in terms of investment, hydropower costs the least compared to other fuels, including natural gas. Though each unit of power produced by natural gas costs 5 cents, fluctuation of oil prices may affect its price which is poised to rise incessantly. He added that hydropower has the potential to meet current and future demand, while production cost will stay the same for at least 50 years. (Matichon Daily, Oct. 12, 2005).








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