Electrical industry of burma/myanmar

PRESIDENT THEIN SEIN ORDERS SUSPENSION OF MYITSONE DAM PROJECT

Ba Kaung, Irrawaddy Online, 30/09/11. Edited. http://www.irrawaddy.org/article.php?art_id=22172

Burmese President Thein Sein has ordered a suspension of work on the controversial Myitsone dam project, in response to a mounting public outcry over the project, which critics say threatens the source of the Irrawaddy river. Thein Sein said in a letter to Parliament on Friday that construction of the 6,000-megawatt hydropower dam in Kachin State should be suspended because the project is against the will of the people and lawmakers.
In his letter, the president explained that the project had caused public concern since it could destroy the natural landscape of the Myitsone area and have an adverse effect on the livelihood of the people living downstream of the dam on the Irrawaddy river. “Our government, being elected by the people, has to take great consideration of public opinion. Accordingly, we have an obligation to respond to public concern with seriousness. Therefore, we will suspend the Myitsone project during the term of our government,” he said in the letter.
The 3.6-billion-dollar project has drawn widespread condemnation from environmental groups and the Burmese public, as concerns have mounted about the potentially disastrous impact of the dam on local communities and on Burma's largest river. Under an agreement signed in 2006 between the Chinese and Burmese governments, China's state-owned China Power Investment (CPI) corporation, in a joint venture with the Burmese Ministry of Electric Power No. 1 and Asia World, a Burmese-owned conglomerate, began construction work on the project last year.
Ninety percent of the electricity generated by the massive project, which has already displaced 12,000 people near the dam site, would be exported to China.
What measures Thein Sein took with the PRC governemtn in negotiating the agreement to suspend the project remained unclear, but he did say in his letter to the Parliament that the government would continue to negotiate and carry out other agreements related to the MoU on the Myitsone project without hampering friendly relations with the Chinese government.
News of the decision was greeted by opponents of the dam positively. “We welcome the president's decision, which reflects what he promised in his inaugural speech—that he would listen to the voice of the people,” said Myat Thu, a democracy activist in Rangoon who has been organizing a nationwide signature campaign calling for the scrapping of the project.
The Myitsone dam, located near the confluence of the Malikha and Maykha rivers at the source of the Irrawaddy, is part of a seven-dam cascade that represents a $20 billion investment by China, according to the International Rivers Network, an independent environmental group. The dam's reservoir will submerge important historical and cultural sites and inundate approximately 766 square kilometers of forested area, according to the group, which also said that it will cause irreversible damage to Burma's key river system as well as to downstream rice paddy communities.
Burma Rivers Network, an environmental group, called for continued pressure on the Burmese government and CPI to immediately cancel the six other dams planned on the Irrawaddy source rivers, which will have the same devastating impacts on the country. “Until the Chinese project holders publicly declare their cancellation of the Myitsone dam and pull out from the dam-site, we must assume the project is going ahead,” said Ah Nan, assistant coordinator of the group in a statement released on Friday.
The project has also exacerbated ethnic tensions in Burma's restive north. The ethnic Kachin Independence Army (KIA) has vowed to resist the project in any form since early this year, when it warned the Chinese government that the project could spark a civil war and should be canceled. The warning was followed by deadly armed clashes between the KIA and Burmese government troops near two China-run hydropower plants in Kachin State's Bhamo township.
La Nan, a spokesman for the KIA, described the president's move as a result of intense public pressure, but declined to declare it a victory. “We will wait and see, since it remains uncertain whether the project will be completely canceled or not,” he said.
Additional references

For more information on CPIC’s Myitsone hydropower project see the following key articles in the compendium: ‘Agreement signed for Upper Kachin hydel projects’ (Myitson)’ (NLM: 02/01/07), ‘Prime minister updated on the Myitson hydropower project’ (NLM: 25/01/11), ‘China’s Investment in Kachin dams seen as cause of conflict’ (IRROL; 16/06/11), ‘CPI president responds to suspension of Myitsone agreement’ (Xinhua: 03/10/11) and ‘KDNG claims work continuing on CPI projects in Kachin State (IRROL: 05/03/12). For information on the Chipwenge hydropower project which was built to provide the electricity needed for the construction phases of the Myitsone and the Upper Cascades hydropower projects see: ‘Chipwi creek plant to power huge hydel project in Kachin state (Myanmar Times:24/03/08). For further information on the six Upper Cascades hydropower projects in Kachin State see: Appendix 32 (ELEP044). For reports on the environmental impact of all of CPIC’s hydropower projects in northern Kachin State see: ‘BANCA’S critical report on China-backed dam smothered’ (DVB: 18/07/11) and ‘China Power Investment EIA report on Upper Ayeyawady projects’ (CSPDR: G2011). For information on transmission of the power generated by these projects see Chinese engineers planning grid connection (IRROL: 23/01/10).

See below: ‘Public workshop held on environmental impact of Ayeyawady basin dams’ (NLM: 18/09/11).

‘Hydropower minister defends construction of Myitsone dam (IRROL: 12/09/11)

‘In defence of proposed hydropower dams in the Ayeyawady river basin’ (NLM, 09/08/11)

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Compiler’s note: The articles below are in reverse chronological order with the most recent at the bottom.

NLM, 01/10/11. Edited and abridged. http://www.burmalibrary.org/docs12/NLM2011-10-01.pdf

President Thein Sein has sent a message to the Pyithu Hluttaw and the Amyotha Hluttaw, as follows:- . . .

7. As the country has natural rivers and creeks to produce renewable energy, the Tatmadaw government made efforts to generate hydropower inviting foreign investments. Thanks to these efforts, the country has 23 more power stations with generating capacity of 2831 megawatts up from two hydropower plants and seven natural gas-fired power plants with total generating capacity of 529 megawatts.

8. In accord with the 30-year strategic plan for electricity, the country has the potential to generate electricity from 64 more hydropower projects and three coal-fired power plants with total power capacity of more than 40000 megawatts. Those projects include eight projects in the upper reaches of the Maykha and Malikha and the Ayeyawady confluence in Kachin State.

9. While the first phase of the Ayeyawady Myitsone hydropower project was being implemented with investment from the PRC, we note that there has arisen the following public concerns about the project.

(a) the natural beauties of the Myitsone, a gift of nature and a landmark not only for Kachin State but also for Myanmar may disappear;

(b) the possible loss of livelihoods for the people of the national races in villages upstream due to inundation;

(c) commercially-grown rubber and teak plantations which have been heavily invested in by private entrepreneurs may be destroyed;

(d) melting ice from snow-capped mountains in the far north, triggered by climate change, torrential rains or severe earthquakes, may destroy the Myitsone dam, claiming the lives and property of people in the towns and villages downstream from the dam; and

(e) there may be a devastating effect on the Ayeyawady River.

10. As our government is elected by the people, it must respect the people’s will. We have a responsibility to address public concerns in all seriousness. So construction of the Myitsone Dam will be suspended during the time of our government. Other hydropower projects that pose no threat will be implemented on the basis of a thorough survey of the electricity needs of the nation. I would like to inform the Hluttaws that coordination will be made with the neighbouring friendly nation, the People’s Republic of China, to accept the agreements regarding the project without undermining cordial relations.
Ministry of Foreign Affairs of the PRC, Spokesperson Hong Lei's Remarks, 01/10/11.

http://www.fmprc.gov.cn/eng/xwfw/s2510/t864761.htm

Question: The Parliament of the Union of Myanmar reportedly declared on September 30 that President U Thein Sein would shelve the Myitsone Dam project under China-Myanmar cooperation during his tenure.

What is China's comment?
Answer: The Chinese Government always supports Chinese enterprises cooperating with enterprises of other countries based on the principle of mutual respect, mutual benefit and equality, requires them to perform duties and fulfill obligations in strict accordance with laws and regulations of the host country and urges relevant government to protect the legal and legitimate rights and interests of Chinese enterprises. The Myitsone dam is a jointly invested project between China and Myanmar that has gone through scientific verification and strict examination of both sides. Relevant matters arising from the implementation of the project should be handled appropriately through bilateral friendly consultation.
Ba Kaung, IRROL, 03/10/11. Abridged. http://www.irrawaddy.org/article.php?art_id=22183

In referring to the fact that the Myitsone project has gone through “strict examinations” by both sides, the Chinese government is attempting to consolidate the findings of an environmental impact assessment report published last month by state-owned China Power Investment (CPI), the main investor in the scheme. The report says that a majority of the Burmese population support the project, and goes on to claim that the social and environmental impact from the dam—which will submerge at least 40 villages and displace 10,000 local people—is limited and containable. “According to the surveys, 80.4% of interviewees were [of] the opinion that the hydropower development could bring more job opportunities and higher incomes to local people, 62.8% of the interviewees were [of] the opinion that the hydropower implementation could significantly promote development of local economy, and most of the interviewees were supportive of the country’s development and the project construction,” the report said. The CPI report indicated that although the original confluence of the the two rivers, the N'mai and the Mali, would be the site of the projected megadam, the company would divert the rivers to form a new confluence further upstream. “After Myitsone dam is completed, the Myitsone confluence will be moved upward and a new confluence will be formed. The natural landscape combined with a human landscape and supported by the improved structure will boost the growth of tourism sector in the basin,” it said. Grace Mang from International Rivers Network, an independent environmental group based in Thailand, said that there is an inconsistency in the report itself, and that it downplays the dam's impact on local biodiversity. “The report's assumptions have been that if the animal or plants can be moved from the reservoir area, then there will be no impact,” she said. “But biodiversity cannot be protected by simply transplanting different ecological systems into another area.” She added that the latest pictures of the dam indicated that Stage 2 of the five stages of construction had been completed ahead of the announcement of the project's suspension.

Reuters, 07/10/11. Condensed.

http://thestar.com.my/news/story.asp?file=/2011/10/7/reutersworld/20111007154128&sec=reutersworld

Myanmar's vice-president, Tin Aung Myint Oo, will visit China to discuss the suspension of a controversial dam built and financed by Chinese firms, a senior Myanmar official said on Friday. "The visit is expected to take place in the middle of this month after President Thein Sein returns home from India on Oct. 15," a government official said. The official purpose of the vice-president's visit to China is to attend the opening of a China-ASEAN Exposition from Oct. 21 to 26. "However, he will meet Chinese leaders on the sidelines of the Expo to explain the shelving of the Myitsone megadam," the official said. The halting of the controversial dam has been seen as another sign of change in Myanmar, where a nominally civilian government was installed this year after half a century of oppressive military rule. The deal to build the dam was arranged under the military regime. Vice-President Tin Aung Myint Oo and former military ruler Than Shwe were reported to be backers of the dam. Tin Aung Myint Oo will be accompanied on his visit to China by cabinet members, including a minister with responsibility for electric power, and leading business people, including Tun Myint Naing, chairman of Asia World Construction Co, a major subcontractor on the dam project.

NLM, 08/10/11. http://www.burmalibrary.org/docs12/NLM2011-10-08.pdf

President Thein Sein received PRC Ambassador Li Junhua at his office in Nay Pyi Taw on 07/10/11. Also present at the call were Foreign Affairs Minister Wunna Maung Lwin and EPM-1 Zaw Min as well as officials of the Chinese embassy. At the meeting, they held cordial discussions on further strengthening friendly ties between the two countries and matters of mutual interest.

Ba Kaung, Irrawaddy Online, 10/10/11. Edited and abridged.

http://www.irrawaddy.org/article.php?art_id=22239

Burma and China have resolved a dispute over the recent suspension of the Chinese-backed Myitsone hydro-power dam project in Kachin State, according to a Burmese presidential adviser who said that Burma may have to compensate China for its suspension of the Myitsone hydropower project. During a meeting with the PRC ambassador to Burma on 08/10/11, Burmese President Thein Sein briefly explained his reasons for making the decision, according to presidential adviser Dr Nay Zin Latt. “It is not good for Burma or any other nation to rely too much on relations with just one country. We must forge friendly ties with all nations,” said Nay Zin Latt. He added that the Myitsone dam issue had been thoroughly settled by both sides, but that Burma might have to compensate China, probably in the form of granting economic concessions to its giant resource-hungry neighbor. “I don't think we will have to pay them billions of dollars,” he said, without specifying what kind of economic concessions Burmese leaders agreed to offer. It also remains unclear if the project has been canceled completely, because in his original announcement, Thein Sein only said it had been suspended for the remainder of his term in office, which expires in 2016. Meanwhile, it is believed that work is still continuing on six other hydro-power dams in Kachin State connected to the Myitsone dam project.

dpa, 10/10/11. Edited and abridged.

http://www.monstersandcritics.com/news/asiapacific/news/article_1667810.php/

China's Foreign Minister Yang Jiechi and his Myanmar counterpart, Wunna Maung Lwin held talks in Beijing today on Myanmar's decision to scrap the controversial Myitsone dam and hydroelectric project. The two agreed to 'properly settle matters' relating to the dam project, the Chinese Foreign Ministry said in a statement quoted by state media. Reports said the two sides had conducted 'thorough consultations' on the dam project, but they did not say how they planned to settle their differences following Myanmar President Thein Sein's cancellation of the project last month. China earlier called for Myanmar to protect the 'legitimate rights and interests' of Chinese firms involved in building the dam.

Sann Oo, Myanmar Times, 17/10/11. Excerpt. http://mmtimes.com/2011/news/597/news59707.html

With regard to the suspension of the Myitsone dam project ordered by President Thein Sein on September 30th, U Ko Ko Hlaing, an adviser to the president on political affairs, told The Myanmar Times the government was legally obligated to follow contracts signed by the State Peace and Development Council. “The new government cannot neglect this [contract], according to the law. The new government has responsibility to solve this issue. In the president’s statement, [he said] both countries would continue with their friendly relations. On the other side, the government has a responsibility to respect the people’s desires and also the government has a duty to fulfil the rights of the Chinese company. “In such a complicated situation, the government will have to solve this issue gently. I expected the government will find a suitable solution for all sides.”

Lawi Weng, IRROL, 17/10/11. Edited and condensed. http://www.irrawaddy.org/article.php?art_id=22271

Two weeks after the announcement by Burma’s president of the suspension of the controversial Myitsone hydroelectric dam project, there is still little to suggest that CPI, the Chinese state-owned company behind the project, is preparing to pull out. “There are still Chinese workers at the dam site and they are still working on a road connecting it to the Chinese border,” said Awng Wa of the Kachin Development Networking Group (KDNG). A statement issued by the KDNG claimed that “equipment and supplies for the project remain in place, security restrictions continue for local residents, and destructive gold mining in the planned Myitsone dam reservoir area is ongoing.” The statement also alleges that CPI recently told local staff of their project partner, Asia World, not to remove any equipment, as work would resume after the rainy season, despite the suspension announcement. According to Awng Wa, after Thein Sein ordered a suspension of work on the dam on Sept 30, residents of the village of Aung Myay Tha Yar whose land had been confiscated to make way for the project attempted to return to their homes, only to be told that they were not permitted to enter the “restricted area.” Pho Zaw, a Kachin border trader from Myitkyina, said that work has only been stopped in areas that are accessible to the public. Farther upstream on the two rivers that converge at Myitsone, construction of six other dams continues “night and day,” he said. According to the KDNG statement, Chinese workers are also still carrying out land survey work south of the Myitsone dam site and are continuing construction of a supply road linking the Myitsone dam site to the Chinese border town of Tengchong.

Compiler’s note: The KDNG report, dated 14/10/11, referred to in the IRROL news item above is titled, ‘An Update on the Irrawaddy Myitsone Dams Project’. It can be found on the Burma Rivers Network site: http://www.burmariversnetwork.org/images/stories/documents/An%20Update%20on%20the%20Irrawaddy%20Myitsone%20dams%20project%20by%20KDNG.pdf. This 13-page report has many recent, excellent photos of the Myitsone project site. One of the photos shows the entrance to the area of the China Gezhouba Group, which has a contract for the diversion tunnels for the Myitsone project.
Reuters, 22/10/11. Edited and abridged.

http://www.burmanet.org/news/2011/10/21/reuters-wen-says-china-myanmar-should-stick-to-their-word/

China and Myanmar should keep their word to implement joint projects, China’s premier was quoted as telling a top official from the country’s southern neighbour, hinting at unresolved differences over the suspension of the Chinese-backed Myitsone dam “Implementing important China-Myanmar cooperative projects is in the interests of both countries,” Premier Wen Jiabao told Myanmar’s Vice-President Tin Aung Myint Oo, according to the People’s Daily, the newspaper of China’s ruling Communist Party. “The two countries should earnestly work to implement the consensus on projects reached by the countries’ leaders, fulfill their promises … and guarantee the healthy development of China-Myanmar cooperation.” The Myanmar vice-president was visiting China with leaders of the Association of Southeast Asian Nations (ASEAN) ahead of the China-ASEAN Expo in the southern city of Nanning.

Ba Kaung, IRROL, 27/10/11. Edited and abridged. http://www.irrawaddy.org/article.php?art_id=22338

Nearly a month after Burma's President Thein Sein announced the suspension of the controversial Myitsone dam project in Kachin State, Chinese workers have begun returning to China. On 27/10/11, La Nan, KIA spokesperson, said that Chinese workers were leaving the project site and that there were no signs of construction. “Chinese workers are leaving the site through border gates in Kachin State. We also learned that the construction materials stored for the project, such as cement and fuel, are being sold to local businessmen,” he said. “But we don't know if this means the project is just suspended or canceled,” he added. A similar report was made by the Rangoon-based Eleven Weekly journal this week. On 24/10/11, The Global Times, a Chinese government mouthpiece, described Burma's decision to suspend the Myitsone project as a move to garner short-term political gain at the expense of business, adding that “the whimsical change will inevitably send troubling signals to potential investors.”

NLM, 17/12/11. Edited. http://www.burmalibrary.org/docs12/NLM2011-12-17.pdf

U of M Vice-President Tin Aung Myint Oo received Chairman Lu Qizhou of China Power Investment Co in Nay Pyi Taw on 16/12/11. Also present at the call EPM-1 Zaw Min, Director- General of the President’s Office Min Zaw and officials. Accompanying Chairman Lu Qizhou were PRC Ambassador Li Junhua and CPI company officials. During the call, there was cordial discussion about matters relating to the generating of hydro electricity and cooperation in mutual interests.

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GAS EXPORT DEAL SPARKS 24-HOUR ELECTRICITY COMMITTEE IN ARAKAN

NLM, 28/09/11. Edited. http://www.burmalibrary.org/docs12/NLM2011-09-28.pdf

At the session of the Pyithu Hluttaw (Peoples’ Chamber) of the Parliament on 27/09/11, U Ba Shein of Kyaukpyu constituency said he had learned that natural gas from the Shwe gas field would be processed at a plant being built near Malakyun village, 6 miles southwest of Kyaukpyu. He asked whether there was a plan to generate electricity for Kyaukpyu using some of this gas, and whether electricity would be supplied to Kyaukpyu through the national power grid.
Energy Miniister Than Htay replied that natural gas refined at the station near Malakyun would be sent to China by pipeline and that under contract arrangements it could not be used for other purposes. Although the initial capital costs of gas power plants are cheaper than those of hydropower plants, the costs of producing electricity from natural gas are greater than from hydropower.
The Minister said that EPM-1 had plans to produce enough electricity [for Rakhine State] from hydropower projects under development at Thahtaychaung, An, Laymyo and Saidin. Moreover, EPM-2 had plans to set up a 230-KV power grid and main power stations [in the Rakhine]. On completion, the hydropower projects in Rakhine State would not only supply electricity to the Rakhine, but also to the national power grid. While it was not possible to supply electricity to Kyaukpyu through the use of of natural gas from the Shwe project, in the future, arrangements could be made to build a power plant that would use natural gas from the fields offshore of the Rakhine.
Additional references
See above: ‘Shwe gas will electrify Rakhine State: Minister’ (MT: 23/01/12)
See below: ‘Local suppliers using new rate structure for electricity charges’ (Myanmar Times:12/09/11)

‘Arakan reps raise electricity supply questions in parliament’ (NLM: 15/03/11)

‘Rice husks used to power urban wards’ (Myanmar Times: 23/08/10)

‘Sai Tin hydropower project plans announced’ (NLM: 28/01/09)

‘Mini-hydro facilities slated for dams in Kyauktaw township’ (NLM: 26/11/08)

'Bangladesh, Myanmar to sign hydropower deal' (Xinhua: 15/07/07)

'Thahtay creek dam and other hydropower projects in Arakan' (NLM: 20/04/06)

‘Sittway power company plagued by diesel deficit’ (Narinjara News, 25/03/03)

Narinjara, 23/11/11. Edited and condensed. http://www.narinjara.com/details.asp?id=3177

Authorities have added extra police in all main places and streets of Sittwe to ward off further demonstrations demanding 24-hour electricity. A Sittwe resident said the police have tightened security, especially around the Arakan State parliament building, the U Oattama Memorial Park, Lawkanandar Pagoda and at main street junctions in the city. An activist of the 24-hour electricity committee said the police and plain-clothes military intelligence agents were keeping a close watch on some campaigners. He said the group had had to suspend a demonstration scheduled for the 21st of November but would continue their movement after security eased. The movement is gaining wider support not only from the general public but also from members of political parties, as well as government officials in the state.

Narinjara, 22/11/11. Edited and condensed. http://www.narinjara.com/details.asp?id=3173

Over ten campaigners for 24-hour electricity in Arakan State were detained by police in Sittwe by police overnight for interrogation about their activities in a campaign for 24-hour electricity in Arakan State, said an activist who evaded detention. The arrests came as National Day was being celebrated in the Arakanese capital. Among those detained briefly was Ma Khaing Khing, a government school teacher who was questioned about her role in the campaign, and then released. A police team raided the hotel where some campaigners were staying and seized many campaign T-shirts, posters, and equipment. U Aung Mrat Kyaw, Arakan State parliament legislator, confirmed detention of the campaigners. "They were interrogated separately in different police stations in Sittwe. I heard there has been no harassment and that they are being interrogated about their campaign." he said. The campaign for 24-hour electricity in Arakan, generated by natural gas extracted from Arakan, is now spreading in the state after Union Minister for Energy U Than Htay said in Pyithu Hluttaw that natural gas obtained from the Shwe natural gas fields will be exported to China through a natural gas pipeline, and can not be used in Arakan State due to provisions in the bilateral agreement signed with China. On 26th October, a group of youth in Rathidaung, 20 miles north of Sittwe, staged a protest by wearing anti-Shwe Gas T-shirts. Police forced them to take off the T-shirts and threatened them with punishment it they conducted such activities in the town again. The campaign is being carried out by youths in several towns across the state, including Kyauk Pru, Rambree, and Taungup.

Narinjara, 17/10/11. Edited and condensed. http://www.narinjara.com/details.asp?id=3135

A youth group in Arakan State has started a campaign demanding that electricity be supplied on a 24-hour basis throughout the state with power generated by gas found in the state. The campaign reportedly started on 12 October and is particularly focused on Kyaukpru township, the site of the Shwe gas project. "We have focused our campaign especially in Kyaukpru township where we have stuck many posters to stir up the local people on the islands of Madae and Malar in Kyaukpru township, and at many places in the nearby townships of Ramree and Taungok, as well," said a youth involved in the campaign. Campaign posters are being spread to rural villages across Arakan State. The group started their campaign for 24-hour electricity after Union Energy Minister Than Htay told parliamentarians in Nay Pyi Taw that the current government had no plans to use gas from offshore Arakan fields to generate power for people in the state.

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