Showing posts with label Hydroelectricity. Show all posts
Showing posts with label Hydroelectricity. Show all posts

Wednesday, May 16, 2007

Opposition criticizes the law to guarantee Chinese companies investments

15 May 2007
By Mondol Keo
Radio Free Asia

Translated from Khmer by Heng Soy

The opposition party has criticized a draft law proposed by the government for the approval by the National Assembly to provide government guarantee to 2 Chinese companies that will invest in hydroelectricity in Cambodia.

SRP MP Son Chhay told RFA on 15 May that among all the countries in the world, there is no country which forces its parliament to approve a law for the government to guarantee the payment of compensations to a company if that company’s investment encounters any problem.

Son Chhay added that normally, for foreign investment, all that is needed is an agreement between the parties involved or the ministry involved, there is no need for a law.

Son Chhay said: “This is not only opposite to the international business standards, it is also against our law. As a parliament, our duty is to draft laws for the state to govern the country, under the rule of law, and we also approve international treaties, agreements, and conventions. But when they (government) ask us to guarantee the Chinese loans for Chinese companies without any price bidding, without transparency, this is against the law.”

However, Chiem Yeap, the chairman of the finance, economy, and banking committee of the National Assembly, explained that this is normal, and other countries are also taking this step, especially, countries that are under development need foreign capital investment, and the law would be approved to provide confidence to foreign investors. Chiem Yeap believes that there is nothing wrong at all about such law.

Chiem Yeap said: “It is the duty of the state to guarantee so that it provides confidence to the foreign investors, and for them to invest in Cambodia.”

Nevertheless, Monh Saphan, Funcinpec MP, said the drafting of a law in order to obtain financial investment is not against the Constitution. However, the need for such law indicates that foreign investors do not trust the justice system in Cambodia.

Monh Saphan said: “Their (foreign countries) law is equitable, their court system is fair, therefore, the lenders have trust. [But] in our country, it is different, first, the application of the law is not done correctly, second, the court is unfair.”

This is the second time that the Cambodian National Assembly is forced to approve a law to guarantee payment to a Chinese hydroelectricity investment company.

The names of the 2 Chinese companies involved in the investment of hydroelectricity are: China Yunan, and Yunan Southeast Asia, and the investments made by these two companies amounts to $255 million.

Friday, May 04, 2007

A fishy deal: VN imports electricity for itself from China, but invests in hydropower plants in Cambodia and Laos instead

03/05/2007
Gov’t to remove energy monopoly, subsidies: minister
"In the immediate time, we plan to import electricity from China, make investment in hydropower plants in Laos and Cambodia, which will transmit electricity to Vietnam" - Vietnam Minister of Industry Hoang Trung Hai
VietNamNet Bridge - The Ministry of Industry (MoI) has submitted to the Prime Minister the national energy strategy by 2020 with the vision until 2050, which identifies the removal of monopoly and subsidisation as the key solution to the energy balance in the future.

Minister of Industry Hoang Trung Hai talked more about the strategy.

What has Vietnam been doing to ensure energy balance in current conditions?

Currently, we are exploiting and using primary types of energy, including coal, oil and gas, and hydropower. The 1991-2005 period witnessed the growth rate of 12.7% in the use of primary types of energy, and the figure is expected to increase to 47.5-49.5mil TOE by 2010.

What we have to do is to gradually decrease the use of primary types of energy, while trying to discover new kinds of re-creatable energy, including nuclear power, wind, solar energy and geothermic energy, in order to diversify energy supplies. In addition, these kinds of energy will help provide power for remote areas, where electricity transmission networks cannot reach.

In the immediate time, we plan to import electricity from China, make investment in hydropower plants in Laos and Cambodia, which will transmit electricity to Vietnam. We are also considering importing coal to run power generators, importing crude oil to make products for domestic consumption. These measures will help satisfy the demand for energy.

In terms of policies, the Government agrees to call for investment in the energy sector from all different economic sectors. The Government will gradually remove the monopoly on and subsidisation of power development, and apply a suitable pricing policy to encourage safe and economical use of energy. The suitable policies and steps will lead to the establishment of a competitive market for energy.

You have mentioned the need to have suitable policies to develop a competitive energy market. Could you please give more details about the issue? Which difficulties will we face in ensuring an energy balance?

The investment capital for the energy sector will be a big challenge. There will be two problems: first, how to get enough capital for power development which can meet the demand for development, and second, power pricing.

We have to satisfy the demand for energy for production and household consumption. Only by doing this can we ensure the sustainable development of the economy, thus successfully attracting foreign investors.

In order to reach that end investment in the power sector must bring suitable profit to investors, which means that power pricing should be reasonable to stimulate investment, which will help provide enough power to the national economy.

An unsuitable pricing policy will not encourage people to invest in the energy sector, which also means that the national economy will not have enough energy to run on.

(Source: Lao dong (Hanoi))

Thursday, April 19, 2007

Hydroelectric dams endanger Cambodia's river people


UPROOTED: The entire village, once nestled on the bank of the Sesan, moved about 100 metres inland to higher ground in 2000. The old site of the Kanat Douch village flooded in 2006 following sporadic releases of water from upstream dams.

04/18/2007
Source: NGO Forum on Cambodia
Posted by Peak Online


Powell River Peak reporter Luke Brocki travelled to Cambodia and Vietnam after winning a fellowship administered by the Jack Webster Foundation and funded by the Canadian International Development Agency.

The second installment in his series of development-related stories looks at the lives of indigenous minority groups along the Sesan River in Cambodia's Ratanakiri Province. Brocki gathered data from personal accounts, academic studies and history books to explain the impacts of Vietnamese dam construction on downstream village communities.

Sesan struggles
"Yesterday morning, we could see the sand," says the village elder. "For the last two weeks, the river was so dry we could ride motorcycles to the other side."

We're standing on the sunny shores of the Sesan River in the jungle of Cambodia's Ratanakiri Province, on a large tributary of the Mekong River recognized in Vietnam for its hydro power potential. Two other rivers, the Sekong and Srepok, join the Sesan in Cambodia before flowing into the Mekong; together they contribute about 20 per cent of the Mekong's water. For comparison, all of Thailand contributes about 10 per cent.

"And during the rainy season, riverbanks cannot contain the water," says elder Kosal Teouy of the Kanat Douch village. "We moved the village up here in 2000, afraid of being swept away by the sporadic releases of water from the upstream dam."

Teouy's village is one of 12 in the area that abandoned the riverbank for the safety of the surrounding hills. The fears of the villagers proved justified; the site of the old village flooded in 2006.

"The water at the moment is clear, but it looked murky and mixed with oil over the last year and during dam construction," Teouy tells me through a translator.
A large group of wet children chase each other around the shore, while another couple of youngsters push a long and narrow wooden boat around the calm water with a long oar, like gondoliers.

"The children get a rash when they swim in the river; their skin gets red and itchy," he tells me when the group passes us.

The water is also no longer drinkable. The village gets its drinking supply from a well, recently dug by a German non-governmental organization (NGO). "It's very difficult to find food to eat," Teouy says. The main diet consists of rice and salt, with traces of fish, meat and wild vegetables when available.

The villagers are used to seasonal fluctuations of the water table and even to flooding during the wet season, but since the dam construction, the river levels have been changing frequently and erratically. Diurnal fluctuations of the water table have made fishing and farming difficult, if not impossible.

The basin's entire ecosystem is in danger, with many varieties of riverine plants having dwindled because of unnatural flooding, and bird and turtle nests having been swept away.

"We've made several requests to the government to stop dam construction, but the government doesn't respect the demands of the people. The situation is becoming worse and worse."

The politics of power
Cambodia's young democracy hasn't yet been the catalyst for change. Reigning prime minister Hun Sen was appointed to government by Vietnam while Cambodia was under Vietnamese military occupation in the late 1970s. Initially with the Khmer Rouge, Hun Sen changed sides and was selected for a leadership role in the rebel government Vietnam was installing in Cambodia after overthrowing the murderous Khmer Rouge regime in 1978. He ruled as a despot until 1991, when the Paris Peace Accords mandated democratic elections. His party, the Cambodian People's Party (CPP), went on to win the 1993, 1998 and 2003 elections. Today, the CPP has a majority in the National Assembly of Cambodia, but governs in coalition with the royalist Funcinpec party, which won 20 per cent of the national assembly's 123 seats in 2003.

Various political opponents accuse Hun Sen of being a puppet of Hanoi due to his past ties with the North Vietnamese, but he defends the charges with claims that he represents only the Cambodian people. More recent political opponents outside the country accuse him of being a corrupt dictator who controls the country by force.

Kanat Douch is beginning to despair. This group of a few dozen villagers is by no means alone. More than 55,000 people have suffered severe impacts to their health and livelihoods because of upstream dam construction along the Sesan. For these indigenous groups, the nightmare began with the completion of Vietnam's US$1 billion Yali Falls Dam, about 80 kilometres upstream from Cambodia's border. Construction on the 720-megawatt dam began in 1993 and was completed in 2000, funded by loans from Russian and Ukrainian governments. Since then, the World Bank last paid for an electrical transmission line that transports power from the dam south to Ho Chi Minh City.

By 1993, Vietnam had a fledgling environmental law that called for mandatory environmental impact assessments (EIAs) of major investment projects, including large-scale hydroelectric dams, but the law lacked regulations and guidelines to govern transboundary issues. Thus, downstream impacts of the Yali Falls Dam, now known to extend through Ratanakiri and as far as Cambodia's Stung Treng Province, some 300 kilometres downstream, were not investigated in the EIA. Construction pressed on and six other dam sites have since been identified for the upper Sesan River Basin; most of them are complete and operational today.

Development gone wrong
Since about 2000, flurries of studies and reports have been emerging as academics, local advocates and members of the media noticed downstream impacts.

According to a 2002 briefing paper by the International Rivers Network, the worst erratic releases of water occurred while the dam was under construction from 1996 to 2000, resulting in flash flooding downstream, causing deaths of at least 36 people and hundreds of thousands of livestock, and destruction of rice fields, vegetable gardens and fishing gear totaling about US$800,000.

In late 2005, the NGO Forum on Cambodia released a report documenting serious violations of international law under the 1995 Mekong River Agreement. The agreement calls for immediate cessation of transboundary harms as soon as victims speak out and for the resolution of disputes within a timely manner. That dialogue is only now beginning.

A 2007 paper co-authored by Canadian Ian Baird and Australian Andrew Wyatt, about to be published in the International Journal of Water Resources Development, examines transboundary impacts in detail in the Sesan River Basin. Baird and Wyatt identify as challenges the failure to implement standard international planning processes and the failure to follow due process in dam planning, construction and operation, despite the availability of international expertise and funding. "Weak technical and financial capacity on the part of the downstream country, Cambodia, has allowed the politically dominant upstream country, Vietnam, to impose its national interests on downstream communities in Vietnam and Cambodia," they stated.

Forging connections
A key figure on the front lines of the human rights battle, Kim Sangha, came to Ratanakiri six years ago. He planned to stay for one year, but became involved with a local NGO-3SPN, the three S-rivers protection network.

The 38-year-old Phnom Penh native couldn't leave once he saw the problems these indigenous groups were facing, and the hopelessness that was settling in after years of denial and inertia from powerful people able to effect change. Now coordinator of 3SPN, Kim spends his days visiting local villages and educating villagers about their rights to voice concerns and bring their problems to the attention of Cambodia's young democratic government.

"Our role is to report the concerns of the people and build up a local movement," he says in an interview in Kanat Douch village. "We organize many events and workshops, let villagers and officials debate the issues."

Kim fights for the demands of the villagers: bringing back the natural flow of the river, compensation for their losses and a guarantee of their safety in the future through a strong communication system.

"Right now, the villagers' participation in the projects is very limited," he says. "In Vietnam, they have policies for resettlement programs with compensation. In Cambodia, nothing."

His latest focus is on creating strong regional linkages between the villages in Ratanakiri to help villagers communicate and make them understand their rights. "Every year, we organize about 25 commune workshops to bring people together and dispense new information about dam construction and action plans for the villages. We need to push government on this issue."

Cambodia's minister of environment, Mok Mareth, was not immediately available and did not return my messages by deadline. Kim's luck was a little better.

"We talk with government often, but still don't know if the political will is there to help us," he says. "There were talks around equitable benefit sharing, which is a very good message given by government, but the government desires to develop economically. Sometimes this looks like a game they play to build more dams in the region and sell power around the country."

But Sangha refuses to lose hope. When asked about his source of motivation, he says he's driven by the promises of choice in a democratic society.

"There's a new election every five years," says Sangha. "Something has to change. We don't yet have a real democracy, but if we want one, it will have to happen through mobilization of the people. The children of government officials go to the United States, United Kingdom and Australia to learn about democracy. Maybe they'll use the new ideas. I hope it won't come to a revolution, but we have to fight for the people."

TIMELINE OF DAM IMPACTS

November 1993: Construction begins on the US$1 billion Yali Falls Dam.

1996: Major flooding hits northeastern Cambodia, including Ratanakiri and Stung Treng provinces. Dam construction begins to alter the flow of the Sesan River.

1998: The Yali Falls Dam reservoir is completed.

1999 to 2001: Water releases, spills and surges from the Yali Falls Dam cause a series of deaths and other downstream damage in Vietnam and Cambodia.

Early 2000: Reports of surges and deaths appear in the media. The Mekong River Commission (MRC) Secretariat begins an investigation.

April 2000: MRC involvement leads to steps for advanced warnings of water releases. Independent consultants draft a report reminding Vietnam about its international obligations, calling for remedial efforts and compensation for affected communities. Vietnam never accepted, finalized, or officially published the draft.

April 2002: The Yali Falls Dam officially opens.

November 2002: A Vietnamese official acknowledges water releases and apologizes for downstream impacts.

June 2005: Villagers from Ratanakiri send a petition to the Cambodian government, again listing their demands for action surrounding the dam. They have yet to receive compensation.

Currently: Frontline local NGOs (non-governmental organizations), in partnership with philanthropic giants such as the McKnight Foundation, Oxfam Australia and Oxfam America, continue to educate and mobilize indigenous minorities to fight government and end the injustice.

Friday, April 13, 2007

Chinese hydro firms move on Cambodian projects

13 April 2007
International Water Power & Dam Construction

Work has begun on the Stung Atay hydro power plant in Cambodia and a related transmission development.

The US$190M project is expected to produce some 465GWh annually while the transmission network, being constructed at a cost of US$113M, will connect Phnom Penh, Kampong Chhnang, Pursat and Battambang.

China Yunnan Corp for International Techno-Economic Cooperation and Yunnan Southeast-Asia Economy and Technology Investment Industrial Co are to develop both projects on a build, operate and transfer basis, Chinese state media reports.

Friday, March 09, 2007

China transforms Cambodia's electricity

By Cheang Sokha
Phnom Penh Post, Issue 16 / 05, March 9 - 22, 2007

Chinese companies are bringing a huge change to Cambodia's electricity supply, transforming it from dependence on local generators to a nationwide grid of hydroelectricity. Three power stations are being built now, and another three are planned.

Youn Heng, Deputy Director of the Evaluation and Incentive Department at the Council for the Development of Cambodia (CDC), said China is the main engine for Cambodia's hydropower development, and is investing huge capital compared with other countries.

"We can see that many hydropower development projects are from China," Heng said. "China has invested nearly a thousand million dollars in this sector."

He said China had invested in building a hydroelectric power plant at Kirirom in Kampong Speu, the $280 million Kamchay dam in Kampot, and a $400 million hydropower dam on the Steung Atai in Koh Kong province.

Heng said that besides hydropower, Chinese companies had invested in a variety of projects, such as infrastructure, textiles, mines and agriculture.

Bun Narith, Deputy General Director of the General Department of Energy at Ministry of Industry, Mines and Energy (MIME) said that on February 9 the Council of Ministers contracted the China Yunan Corporation for International Techno-Economic Cooperation to develop the Steung Atai hydropower dam. And the Yunan Southeast Asia Economy and Technology Investment Industrial Co Ltd has been contracted to install electricity transmission lines from the Steung Atai to Phnom Penh, Kampong Chhnang and Pursat, and to Battambang, Banteay Meanchey and Siem Reap provinces.

Narith said a Steung Atai feasibility study is nearly complete and dam construction will begin soon.

"The firm will take four years for the development and will produce 120 megawatts," Narith said, "The power link from Thailand to Siem Reap is not enough because the province is more developed and requires more power."

CDC's Heng said he had not seen the company proposals yet but had learned that the companies had signed a Memorandum of Understanding with MIME.

MIME's Narith said that besides the $400 million investment on the Steung Atai, the company is also studying the feasibility of building other dams in the area, near the junction of Koh Kong, Kampong Speu and Pursat provinces. These would be on the Steung Russei Chrum, Steung Chhay Areng and Steung Ta Tai. If these dams are built they and the Atai will produce 852 megawatts.

Son Dara, general secretary of Koh Kong province, said local people will receive adequate electricity from the project and it has the potential to attract more investment to the province.

Dara said a Japanese company had studied the feasibility of developing hydropower in Thmar Baing district and a Thai company of developing the Steung Me Teuk near the border.

"If approved by CDC they will produce 500 megawatts," Dara said.

Keo Remy, a Sam Rainsy Party parliamentarian, said Cambodians will have adequate electricity eventually, but the price will remain high because the capital investment in hydropower was high. Nevertheless, it should be cheaper than oil-produced power.

Friday, February 23, 2007

PPPost Business in brief

Phnom Penh Post, Issue 16 / 04, February 23 - March 8, 2007

Chinese hydro to power Phnom Penh

Chinese companies plan to build a hydropower plant and transmission network to generate enough electricity to meet Cambodia's growing demand, which the Ministry of Mines and Energy says has been rising 15 to 20 percent per year. On February 16, two Chinese companies and the Cambodian government signed agreements to build a $190 million plant in Battambang province, which Deputy Prime Minister Sok An said would generate 465 million kilowatt-hours of electricity per year. He said the $113 million transmission network would connect Phnom Penh, Kampong Chhnang, Pursat and Battambang.

Oil eyes on reserves

Cambodia's oil reserves are attracting companies from Japan, South Korea, China, Malaysia, Singapore, Kuwait, Australia and France. Government officials are reporting an increase in applications from oil companies to tap the country's energy reserves, which international research suggests could contain up to two billion barrels (320 billion liters) of oil and 280 billion cubic meters of gas. Cambodia could earn up to $6 billion a year over the next two decades from these reserves. The country's gross domestic product is now $5 billion a year.

US hot on trademark

The US Patent and Trademark Office (USPTO) says Cambodia, as a World Trade Organization member, needs to toughen its trademark infringement laws. Keo Remy, deputy chief of a parliamentary committee overseeing financial and economic matters, said the USPTO had met with the committee urging Cambodia to create more laws to safeguard the commercial environment and especially trademark problems, according to DPA. Remy told the USPTO that, although trademark violations such as pirated CDs were a problem, Cambodia was a transit point rather than a major producer of goods violating trademark laws.

Viets go for rubber

The Vietnam Rubber Corporation (VRC) will plant 4,000 hectares of rubber trees in Cambodia this year. According to Vietnamese press, VRC will invest $4 million in funding, seedlings and equipment. The planting comes under a bilateral cooperation plan between the Vietnamese and Cambodian governments, and is part of a larger project to plant 100,000 ha of rubber trees in Cambodia.

Aussies seek gold

The Australian gold and base metals company Southern Gold (SG) has signed a joint venture agreement over two exploration areas owned by Cambodian company Greystoke. Australian press reported that, with the latest agreement, SG was now exploring five tenements in Cambodia, totaling an area of 1,155km2.