Govt cuts electricity to Chinese SEZ

Dispute over power concession deepens

Prime Minister Prayut Chan-o-cha yesterday confirmed that Thailand has temporarily cut the electricity supply to a Chinese special economic zone in Myanmar’s Kayin state at the request of the Myanmar government.

He went on to assure that the move won’t affect Thai citizens living along the Thai-Myanmar border.

At a cabinet meeting yesterday, Interior Minister Anupong Paojinda said the power cut, which began on Monday evening, will continue until further notice.

The special economic zone in question is located in Shwe Koko, in Myawaddy township, which lies across the border from Mae Sot district in Tak province. The area’s electricity supply is managed by a private company, which purchases its power supply from Thailand’s Provincial Electricity Authority (PEA). When its concession expired, however, Nay Pyi Taw refused to extend the contract, leading to the dispute.

The cuts came despite threats from the Border Guard Force (BGF) — a unit under Myanmar’s army, the Tatmadaw — to block the porous border leading to Mae Sot district if Bangkok agreed to Nay Pyi Taw’s request.

After Thailand suspended the electricity supply to the area, Myanmar households in the area went dark, but Chinese-owned establishments continued to operate using their own generators, a source said.

Activities at construction sites, however, ground to a halt as there was no electricity to power the equipment, the source said. Around 40% of the town had switched to diesel generators as of yesterday, but there was only enough fuel for another 2-3 days.

BGF leaders are reportedly negotiating with high-ranking figures within Myanmar’s military to get the government to ask Thailand to resume the electricity supply to the area, but the effort has not yielded results, another source said.

According to the chief of Mae Sot Police Station, Pol Col Monsak Kaeoon, there are a large number of Thais and other foreigners living in the special economic zone.

Banphot Kokiatcharoen, an adviser to Tak’s chamber of commerce and leading exporter in Mae Sot district, said the power cut won’t have a negative impact on border trade in Mae Sot.

He said the groups opposing the cut were negotiating with the Myanmar government over the matter.

Chaiwat Witthitthammawong, president of Tak’s industrial council, said while the power cut will have an effect on the PEA in terms of income, the impact on Myanmar villagers in the area would remain minimal as they are used to living without electricity.