SPECIAL REPORT
Energy firms reaching out to communities

While money is the most important factor defining the success of a large-scale investment project like a power plant, also on an investor's must-do list today is community acceptance.
This must be obtained before launching any project if mishaps are to be avoided later. The Electricity Generating Authority of Thailand (Egat) and other private operators recognise this, following better human-rights protection in Thailand which gives more weight to citizens' claims against major development projects. In particular focus are power plants, given the large investment involved as well as the level of pollution emitted. No matter whether they are old plants or new ones to be erected under the 2007 Power Development Plan, they are all now subject to tighter public scrutiny. Egat governor Kraisri Karnasuta admitted that the kick-starting of power-plant construction today and in the past are two completely different matters. "Now, there is a lengthy process to win public acceptance before a power plant can be constructed," he said. "Though Egat has never ignored visiting the communities nearby for mutual understanding, such visits are now more frequent than in the past." Community acceptance was once not a key factor, but now it plays a very important role for Egat. And more activities are planned to promote peaceful coexistence between power plants and villagers. Kraisri is in favour of the draft bill on energy, which stipulates the collection of funds from power plants to develop nearby communities. While natural-gas power plants are subject to the contribution of one satang per unit of power and coal-fired plants two satang, Kraisri said the requirement adds to operating costs. "However, it is minimal if the money ensures long-term coexistence between the power plants and the communities." Rayong Refinery president Chainoi Puankosoom said that though the company has taken care of communities since the pollution problems in Map Ta Phut, where its refinery is located, caused the company and others under the PTT Group to revise their community-care programme. While each company once carried out the task separately, now they form joint teams to explain problematic issues to communities. "We need to admit that today we must put greater focus on communicating with the community. We have to be clearer on what we are doing and how we have been tackling environmental policies. Right now, communicating with society and communities has become more serious," Chainoi said. He added that though the pollution problem at Map Ta Phut was not caused by Rayong Refinery, the company was also being held responsible. It plans to reduce sulphur emission by 30-40 per cent in one year through an investment of billions of baht. The process requires the installation of desulphurisation equipment and the use pf low-sulphur crude oil. Aromatics (Thailand) president Permsak Shevawattananon said safety and the environment were in the company's focus from the start, as petrochemical plants involve huge investment. They are also required to follow the ISO14000 environment standards, which are tightened from time to time. "Actually, the environmental cost is not huge compared to raw materials, which are the highest cost in the petrochemical business," he said, adding that large-scale plants in Map Ta Phut should not be held responsible for toxic emission as they strictly follow regulations. Visit Akaravinak, president of Electricity Generating (Egco), said that under current circumstances investors needed to return more to society. This year, Egco has laid out 15 social projects, which will require a budget of Bt80 million, up from Bt50 million last year. "Since its inception, Egco has launched social projects and this has been our key policy. As a power generator, we need a good image in terms of environmental protection to ensure the public that wherever we are, we do not neglect the environment. We understand that profitability alone will not ensure our survival," Visit said. Communicating with communities is a priority and it must be done one or two years ahead of investment, mainly through contacts with local administrative bodies to get actual data on the areas where the investment projects are to be located, he said. "This process requires more attention before power-plant construction work starts," he added. "It's extremely different from 20 or 30 years ago. Then, when you wanted to start a power plant, you could just go ahead with the plan."
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