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Fri, December 29, 2006 : Last updated 18:57 pm (Thai local time)



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Home > Business > Call for transparency in IPP bidding





Call for transparency in IPP bidding

Subsidiaries of the Electricity Generating Authority of Thailand (Egat) allowed to participate in bidding for independent-power-producer contracts should not be more than 10-per-cent owned by the state enterprise, in order to prevent conflicts of interest, suggest academics.

The proposal was raised yesterday at a public hearing in which non-governmental organisations commented on the lack of transparency.

Deunden Nikomborirak, a researcher at the Thailand Development Research Institute, urged the Energy Ministry to draw a contingency plan to accommodate any change in the electricity-generating structure. Environmental standards must be clear, plus the government should not bear costs from legal changes in the future, particularly in regard to the environment, but should encourage greater public participation and allow reviews in the power-purchase contracts.

Kasetsart University economics lecturer Dechrat Sukkamnurd said if the government wanted more coal to be used in generating power, it should set clear standards on coal quality and emission standards.

Viraphol Jirapraditkul, director-general of the Energy Policy and Planning Office, said the Energy Ministry was on course to toughen emission standards from coal-fired plants.

Energy Minister Piyasvasti Amranand said that while the opinions raised yesterday would be considered before the final bidding document was completed, the main criteria of the bid would lie in the generating cost as well as in public acceptance.

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