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VietNamNet Bridge – Thailand’s Ch Karnchang (CK) – contractor of the Xayaburi controversial hydroelectric project in Laos, said that it sees a clear way for the Xayaburi dam and hopes to sign construction and power purchase contracts for the 110 billion baht project within 30 days.
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The Bangkok Post quoted CK’s Chief Executive, Plew Trivisvavet, as saying “that the Laos government has already decided to build the dam, and brushed aside speculation the project could be scrapped amid concerns voiced by other countries in the region about the potential impact on the Mekong River ecosystem.”
“We expect to receive an official notification from the Laos government within one to two weeks to carry on with the project,” he said at CK’s annual shareholders meeting last week.
The Mekong River Commission (MRC) has expressed concerns about the possible environmental effects of the Xayaburi project, but acknowledges that the final decision will be made by Laos.
Laos’s officials for their part have passed on MRC concerns to CK, but the firm says environmental issues have been fully taken into account in the design of the “run-of-river” dam.
“The MRC does not yet have a say on whether the project will proceed or not,” Plew said in Bangkok.
The Electricity Generating Authority of Thailand (Egat) is expected to take up 95% of the power generated by the Xayaburi project. CK has committed to sell power from the 1,280-megawatt hydroelectric plant at a price of 2.19 baht per kilowatt-hour.
“We are aiming to sign the power purchase agreement and construction contracts worth 76 billion baht, as well as loan agreements with banks to finance the project, within 30 days. After the signing, we will begin construction immediately,” Plew said.
An investigation by Thailand’s Sunday Post found CK trucks and laborers already were working at the site despite the lack of formal approval for the project to proceed.
Plew acknowledged that road construction at the site, located 80 kilometers from Luang Prabang, had already started. He added that CK would build a new town for villagers in the area, including hospitals and schools.
Of the total project cost, up to 8 billion baht has been budgeted for work to minimize the environmental impact of the dam, including 4 billion baht for fish ladders to enable migration and boat locks.
Somkuan Watakeekul, managing director of South East Asia Energy, the company overseeing the engineering work, said it will pay around one billion baht to 424 households forced to relocate. He denied reports that villagers were being paid compensation of just 450 baht to leave the area.
“We have paid around one billion baht as compensation. It is the responsibility of the Laos government to manage the compensation program,” Somkuan said.
“Apart from fish, the run-of-the-river design will mitigate any impact on other parts of the environment, such as the forest; and money will be spent on improving the well-being of the local community.”
Last week, Thai Energy Minister, Wannarat Wannarat Charnnukul, said that Thailand would continue promoting the plan to purchase electricity from the Xayaburi project.
Thais also protest the Xayaburi project
The Bangkok Post on April 22, quoted Watchara Phethong, Democrat MP for Bangkok and spokesman for the house panel, as saying “that the Committee on political development, mass communications and public participation under the Thai house panel opposed the dam project, which it believes would adversely affect riverside residents and the environment.”
Some other members in the committee called for Thailand to ask Laos to abandon the Xayaburi project.
The committee on political development, mass communications and public participation said the government should explain the project to the public, said Democrat MP for Bangkok Boonyod Sukthinthai.
The government should bring the proposed power purchase contract to parliament so MPs could examine it. The panel would investigate state-run Krung Thai Bank over its role in granting a loan to Ch Karnchang, the contractor, Mr Boonyod said.
On April 19, people in eight provinces in Thailand signed a petition and sent it to the ASEAN Intergovernmental Commission on Human Rights (AICHR), protesting the Xayaburi project. They were afraid that the $3.5 billion project would harm eight provinces in northeastern Thailand.
Sripapha Phetmeesri, of the AICHR, said she would ask the commission to examine the practices of Ch Karnchang Plc, which is set to build the dam in conjunction with the Laos government.
She said the AICHR has no authority to directly examine human rights violations of any company in Southeast Asian countries. However, it can be done through a channel of the AICHR's corporate social responsibility (CSR) framework, which will be endorsed by the commission next month.
"We will not look into the details on how people living along Mekong River will suffer as a result of the dam construction," she said. "But we can examine whether the project's owner, contractor and loan providers have gone against the principle of CSR, which covers the issues of environmental impacts and basic human rights protection."
Vietnam and Cambodia worry of the dam project
On April 23-24, Vietnamese Prime Minister, Nguyen Tan Dung paid a visit to Cambodia. Mr. Dung and his counterpart discussed issues of mutual concerns, including the construction of hydropower dams on the Mekong River, including the Xayaburi project.
They expressed their deep concern over the harmful and serious impacts from this project on the living environment and livelihood of people along the river.
They expected countries along the river, firstly Laos, Cambodia, Thailand, Vietnam and the Mekong River Council to carefully discuss and to reach a consensus before building hydropower works on the main flow of the Mekong River, for the sustainable development of the people in the low basin.
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