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At about 7pm Sunday evening, two men on a motorbike threw two grenades into the Egat camp where some 40 workers lived, the source said. The bomb killed Saman (family name unknown) instantly and injured others but the number of injuries remains unclear.

The Hat Gyi dam is part of a series of dams which Thailand and Burma have planned to build on the Salween River since 2005 in order to generate 10,000 megawatts of electricity. The Hat Gyi will be the first to be completed in five or six years, with a capacity of 1,200 MW.

The remaining Thai workers at the construction site are reportedly on their way home due to fears for their safety.

The dam has been opposed by a number of people, notably armed groups along the border between Thailand and Burma. Sunday's bomb was not the first.  In May, a bomb exploded at the site when workers were washing up after work. Two bombs were planted but only one exploded.

The Burmese junta State Peace and Development Council accused the rebel group Karen National Union of being responsible for the explosion.