PM on defensive over Stung Nam dams

Following fierce criticism about possible vested interests in the Stung Nam hydropower scheme, Prime Minister Prayut Chan-o-cha has tried to allay concerns, saying the project will benefit both Thailand and Cambodia.

The dams have come under the spotlight ahead of Gen Prayut’s visit to Cambodia today after the premier ordered a delay on deciding whether to buy electricity and fresh water from Phnom Penh.

“It won’t benefit anyone in particular. If we want to buy water, investment costs will increase. They will have to study it and decide if they can do it. It’s not about construction firms getting a cut from building the dam and the water distribution system,” Gen Prayut said.

He criticised the media for speculating about who would benefit from the hydropower project, saying if the government goes ahead with the scheme, it will comply with regulations.

“I don’t know anyone or any firm or any family. There are no vested interests. If I don’t approve it, it’s over. If it is not submitted to the cabinet for approval, it’s over. This is the way we work,” he said.

Under the proposal, the government would buy electricity from the 24-megawatt Stung Nam project at 10.75 baht per unit, but it would also receive 300 million cubic metres of fresh water annually.

While much of the criticism focuses on the relatively high price of electricity, part of it has turned to the country’s need to build a water distribution system worth several billion baht.

Gen Prayut said the investment in the Stung Nam project has been discussed for some time as a potential water supply for the eastern region.

“This government has taken it up for consideration and found there is a lot to review. First there is the construction of a small power plant and we need to determine if it’s necessary. On this aspect alone, it’s inadequate [to invest in].

“But there is a supply of water and we have to weigh this up. But if the water comes with a high price, users will be affected. So we need to find a suitable approach,” he said.

Gen Prayut said there are delicate issues concerning the Stung Nam scheme to be discussed and worked out and he does not want them to hurt bilateral ties.

Earlier, Prasert Sinsukprasert, deputy chief of the National Energy Policy Office, said the investment plan is being suspended pending a review into the country’s demand for water after the Agriculture Ministry claimed there was sufficient water supply for the next 12 years.

According to Mr Prasert, the project suspension has nothing to do with a conflict in policy, but rather unclear information about the water supply.

Meanwhile, Gen Prayut and his Cambodian counterpart Hun Sen are expected to sign a joint statement on peace and development cooperation and an agreement to alleviate double taxation, or taxation by both countries.

The first document demonstrates the intention of the two countries to broaden their cooperation under a partnership for peace and development, according to the regime.

The second will benefit the private sectors of the two countries and promote further investment between the Thailand and Cambodia.

Gen Prayut and Hun Sen will also preside over the inauguration of the Cambodian-Thai Friendship Park located in the centre of Phnom Penh which will serve as a symbol of the friendship between the people of the two countries.

Gen Prayut will also pay a courtesy call on Samdech Vibol Sena Pheakdei Say Chhum, Cambodia’s Senate president, and lay a wreath at the statue of the late Cambodian king Norodom Sihanouk.

Joining the visit are deputy prime ministers Gen Prawit Wongsuwon, Adm Narong Pipatanasai and ACM Prajin Juntong and several cabinet ministers.