INTRODUCTION The Association of Southeast Asian Nations (ASEAN) was established in August 1967 in Bangkok, Thailand by Indonesia, Malaysia, Philippines, Singapore, and Thailand. Brunei, Vietnam, Lao PDR, Myanmar, and Cambodia joined in subsequent years. There are currently ten Member States of ASEAN.1 As a network, ASEAN works to strengthen and stabilize economic growth in the region through a variety of methods, including collaboration and assistance between the member states. Presently, the most pressing issue in Thailand is the ASEAN Economic Community because it will spur the growth of many industries.2 The ASEAN Economic Community 2015 (AEC) will establish ASEAN as a single market and production base, which will make the region more internationally competitive. In order to do this, there will be free flow of goods, services, capital, and skilled labor. Facilitation of free flow between ASEAN countries will be accomplished through the elimination of tariffs; effectively, it will create the ASEAN Free Trade Area (AFTA). To make the region more competitive, infrastructure will be developed, with a focus on land and water transport, energy cooperation, and mining cooperation.3 The East-West Economic Corridor (EWEC) and the North-South Economic Corridor (NSEC), a network of highways and railways linking the Greater Mekong Sub-region (GMS) countries, including Myanmar, Thailand, Laos, Vietnam, Cambodia, and China, will allow for better transport of goods and people between countries. In other words, the economic corridors will increase intraregional trade.4 The government of Thailand has taken some of the tenets of AEC and incorporated them into the 11th National Economic and Social Development plan. The 11th national development plan focuses on: 1) strengthening and stabilizing the domestic economy, the agricultural base, and small and medium enterprises (SMEs); 2) strengthening economic capital; 3) upgrading production services based on technology and innovation; and 4) adjusting trends in trade and investment to respond to the market.5 This research focuses on development plans in Isaan region. Isaan is the least developed and the poorest region (by GDP) in Thailand and the main economic activity of the region is agriculture. 6 Consequently, Isaan has a lot of potential for development projects, including agriculture, potash mining, and energy. The main contribution of Isaan to national development is agriculture. Major cash crops will expand in order to meet with increased demand for food, commercial products, and energy. The agricultural regions include rice, rubber, sugarcane, and corn. To support industrial agriculture “About ASEAN,” accessed May 7, 2012, http://www.aseansec.org/about_ASEAN.html. “About ASEAN,” accessed May 7, 2012, http://www.aseansec.org/about_ASEAN.html. 3 “ASEAN Economic Community Blueprint,” ASEAN, 5-25. 4 Wiemer, Calla, “Economic Corridors for the Greater Mekong Subregion,” EAI Background Brief No. 479, September 15, 2009, 1-6. 5 “Summary of the Eleventh National Economic and Social Development Plan,” NESDB, vii. 6 P’Lertsak, exchange May 2, 2012. 1 2 1 are potash mining and irrigation projects. Potash is a mineral that is primarily used to synthesize fertilizers. The irrigation project is known by several names, but “Green Isaan” is the most common. Simultaneously, there are projects to increase sugarcane plantations in Isaan. To achieve energy security, the Thai government has invested in renewable energy, including nuclear, hydro, biomass, and solar. All of these development projects have the potential for wide impact on communities and the environment. 2 MINING What is Potash? Potash is the catch-all term for salts of potassium. Potassium is one of the three major nutrients for plant life along with nitrogen and phosphate. Therefore in many countries potash is used in the creation of chemical fertilizers and 95% of potash is used in the agricultural sector. The most useful compound of potash for chemical fertilizer is potassium chloride, or sylvinite. Another compound carnallite is also found in Thailand but is less potent.7 In Asia nitrogen and phosphate have been available from China and other surrounding countries but so far potassium and potash have been short in supply. In recent years there has been a great demand for potash in the United States, Brazil, India and the countries under ASEAN for potash. The annual demand for potash in Asia is as high as 18-20 million tones, which is currently imported from the Middle East, Canada, Russia, Germany and China8 for about $490 per ton. It has been predicted that the prices will rise to over $650 per ton by the end of 2012 as the demand increase9. Consumption is also expected to grow 3% annually as grain prices increase and the need for farmers to apply more chemical fertilizers increases10. Potash in Thailand Thailand has the third largest deposit of potash in the world, but the country currently imports between 400,000 and 455,000 tons of potash worth 3-4 billion baht each year, which is mainly used for the production of chemical fertilizers11. In 1999, the Thai government agreed to allow access to the potash in Udon, but Thailand’s Mineral Act guaranteed landowners’ property rights 350 meters beneath their homes, and the potash deposit was in many places just 100 meters beneath the surface. Due to community resistance, potash mining was stalled. In 2002, amendments to the Act passed by Thaksin’s business-friendly government gave rights to the mine without consent of the landowners on the surface. Now many of the companies petitioning to create mines are in the process of completing the EIA and HIA in order to receive a permit12. Due to the large potash deposits in Isaan, mining this resource will be an important way for Thailand to become economically competitive in the 2015 ASEAN Economic Community. “Potash Politics”, Business Report Thailand. 24 April 2011, http://www.businessreportthailand.com/thai-potash-politics-1262 (2 May 2012) 8 Praiwan, Yuthana, “Thailand to develop potash mines for chemical fertilizers”, Thailand Tonight. 21 August 2007, http://thailandtonight.blogspot.com/search?q=Thailand+to+develop+potash+mine+for+chemical+fertilizers (3 May 2012) 9 Hill, Matthew, “Potash Prices Could Beat $650/t by the end of 2012”, MiningWeekly.com. 31 August 2012, http://www.miningweekly.com/article/potash-prices-could-beat-650t-by-end-2012-2011-08-31 (3 May 2012) 10 Praiwan, Yuthana 11 Praiwan, Yuthana 12 Bennett, Terri, Ferris, David, “Digging for Potash, Mining Companies Encounter and Iron Will”, Mining Watch Canada. 29 January 2007, http://www.miningwatch.ca/digging-potash-mining-companies-encounter-iron-will (4 May 2012) 7 3 Potential Sites for Mine Development Udon Deposit 1. Sakhon Nakhon Deposit 2. Korat Basin a. Chaiyphum Province b. Mahasarakham Province c. Korat Province d. Khon Kaen Province Potash in the Udon Deposit The deposit of Potash in Udon is split into two sections; the Sakon Nakhon basin in the north covers approximately 17,000 square kilometers and the Khorat basin in the south covers more than 30,000 square kilometers13. Currently the potash in the Khorat Basin is more sought after because Thailand’s Minerals Act only allows mining below 100 metres without surface property owner’s consent and the deposits in Sakon Nakhon are below this depth14. 13 Fuenkajorn, Kittitep, Intrinsic Variability of the Mechanical Properties of Maha Sarakham Salt. 8 November 2007, http://sutlib2.sut.ac.th/Sutjournal/Files/H115618f.pdf (May 6, 2012) Map included. 14 “Potash Politics” 4 Mining in the Khorat Basin Potential Mine in Chaiyphum Province Developer: ASEAN Potash Mining Co. The company is 71% owned by Thai investors including the Finance Ministry, TMB Bank and Bangchak Petroleum Plc. The remaining 29% stake is held by ASEAN member states including Brunei, Indonesia, Malaysia, the Philippines and Singapore15. The merging of all these countries creates the ASEAN Industrial Project with the purpose of utilizing the natural resources of each country for the benefit of the all ASEAN member states. The ASEAN Potash Mining Co. is a part of this over arching industrial project16. ASEAN has been working on the Bamnet Narong Mine Project in Chaiyphum since around 2009. The project experienced problems when ASEAN was no longer able to receive loan financing from Thailand’s Ministry of Finance due to difficulties finding reliable partners. Nothing happened until 2009 when the project was revitalized due to the increase of commodity prices. ASEAN plans to complete the EIA by 201317. Bamnet Narong Project18 Insert Map 16 square kilometer for mine. 160-meter depth The extraction plant and other buildings will be constructed on approx. 2 km2. The plant will begin by producing 500,00 tons. It is expected to reach up to around 1.1 million tons at its peak. Survey for Mining License in Khon Kaen and Mahasarakham19 Khon Kaen Developer :“ Company name that won’t translate¨ o Applied for a survey license at Baan Toom sub-district, Baan Wah subdistrict, Muang district, Baan Fang sub-district and Baan Lao sub-district for 10 plots of land, 100,000 rai Mahasarakham Developer: “company name” o Applied for the survey license in Nongmek sub-district, Baw Paan sub-district and Nachuak district. 2 plots of land, 20,000 rai Fernquest, Jon, “Thailand's fertiliser industry Aid to save Thailand's cash-strapped potash mine?”, Bangkok Post. 6 July 2009, http://www.readbangkokpost.com/easybusinessnews/industries/thailands_fertiliser_industry.php (6 May 2012) 16 ASEAN Potash Mining Public Company Limited. http://www.apmcnet.com/en/ (7 May 2012) 17 Chawla, Sukhjeet, Nuntapong, Tummakajorn, Promya, Prae, Larking, Chris, Victor, Rattanavong, Son, Le Duc, “Waking Up to its Potential. 4 November 2011, http://www.awrlloyd.com/workspace/uploads/publications/111104-mining-journal-waking-upto-its-potential-published-version.pdf (4 May 2012) 18 ASEAN Potash Mining Public Company Limited, “Mining Project > Production Procedures”. http://www.apmcnet.com/en/ (7 May 2012) 15 19 กลุ่มนิเวศวัฒนธรรมศึกษา, “จับตา 7 เหมืองโปแตชในอีสาน”, KNation.net. พฤษภาคม 2550, http://www.oknation.net/blog/print.php?id=32387 (10 May 2012) 5 Application for Mining Permit in Nakhon Ratchasima (Korat)20 Developer: “Thai Company Name” • Applied for permits in Khong district, Buayai district, Baan Luam district and Khamsakaesaeng district. o 280,000 rai, 28 plots of land Developer: “Company Name” • Applied for permits in Daan Chang sub-district and Buayai district. o 30,000 rai, 3 plots of land Mining in the Sakon Nahkon Basin Potential Mine in Udon Thani Developer: Thai Italian Company/ Asia Pacific Potash Corp (APPC) The Asia Pacific Corp (APPC) is a subsidiary of the Thai-Italian Company. The ThaiItalian Co. is a one-stop shop for infrastructure development of all industry. The company claims to “support the construction of the increasing market demand, ”and their main projects include the construction of airports, buildings, hotels, dams, tunnels, highways, bridges and large industrial plants. They also have experience in the processing and mining of coal, transit systems and telecommunications21. Potash mining is a new development for this company. Recent news reported that the Anglo-Australian mining giant BHP Billiton is prepared to pay north of 40 billion dollars for control of Canada’s Potash Corp (includes APPC)22. Somboon Mine Project (Udon Thani) • Mine life is 25 years • Will produce 2 million tons of potash a year23 • Of that total 400,000 tons are for domestic consumption. • 1.6 million tons will be exported to other countries in South-East Asia • The mine will be situated of 26,000 rai24 o 1500 rai will be used for the construction of the plant • Stores are at a depth of 350m • "World-class potash resource" due to "Its high-grade, shallow depth”. • APPC has surveyed the location and is conducting a (EHIA). A public hearing will follow this before the approval of the Industry Minister is sought out. • EIA is still processing.25 20 กลุ่มนิเวศวัฒนธรรมศึกษา, “จับตา 7 เหมืองโปแตชในอีสาน”, KNation.net. พฤษภาคม 2550, http://www.oknation.net/blog/print.php?id=32387 (10 May 2012) 21 Italian-Thai Development Co. Ltd., “Objectives and Activities”. http://www.itd.co.th/index.php/th/about-itd/coporate-objective 22 “Potash Politics” 23 Coumans, Catherine, “Backgrounder: Asia Pacific Resources in Thailand”, Mining Watch Canada. 17 September 2002, http://www.miningwatch.ca/backgrounder-asia-pacific-resources-thailand (6 May 2012) 24 Graham, Steve, “Udon Thani Potash Project”, Udon Thani News. 25 November 2011, http://www.udonmap.com/udonthaninews/udon-thani-potash-project/ (5 May 2012) 25 Coumans, Catherine 6 Potash in Wanon Niwat District26 Developer: China Ming Ta Potash Corporation Ltd. In 1976 to 1977, The Department of Mineral Resources did the survey for mineral in Wanon Niwat district, Phanna Nikhom district, and Sawang Daen Din district in Sakhon Nakhon province and found Carnallite and Sylvite potash mineral. In February 1979, according to the Mineral Act of 1967 the Ministry of Industry proposed that the Sakhon Nakhon and Korat basins begin the surveying process for potash mining. In April 1997, Prime Minister Chawalit invited the China Ming Ta Potash Corporation Ltd. to invest in the mining site. They signed on to the project that year. In 2004 the China Ming Ta Corp. applied for a surveying license in Wanon Niwat district for 120,000 rai on 12 plots of land. Later that year the Ministry of Industry had proposed that the area be opened up for mining but the processed hasn’t been started yet. Currently the Ministry of Industry is visiting the communities that will be affected by the dam in order to educate them about the incoming mine and gain their support. 26 กลุ่มนิเวศวัฒนธรรมศึกษา, “จับตา 7 เหมืองโปแตชในอีสาน”, KNation.net. พฤษภาคม 2550, http://www.oknation.net/blog/print.php?id=32387 (10 May 2012) 7 Map from Google Earth All potential potash mining sites in Isaan 8 IRRIGATION In past years the Isaan area has had major problems with drought and flood management. In the 2555-2559 Direction of Northeast Development under the Eleventh National Development Plan provided by the National Economic and Social Development Board (NESDB) water management plays a large role in the development of Isaan in regards the irrigation of cropland and the prevention of flooding.27 In regards to drought the current reservoir capacity is only 10.6 billion m3 and only 40% of the agricultural area in Isaan can be irrigated. With the current irrigation system only eight million rai of land is irrigated but around 73 million rai of land needs to be irrigated. The Royal Irrigation Department also expects tourism will increase to around 46 billion tourists. The demand for water is expected to increase from 11 billion m3 to 18 billion m3.28 In order to combat drought and the rising demand for water in Isaan the RID is trying to increase the capacity of reservoirs and the irrigational area this means that 0.55 million more rai need to be irrigated. This includes trying to make the system more efficient in regards to the prevention of flooding29. The RID created the Loei-Khong Chi Mun Project in May 2008 to irrigate the Isaan area and help with flood management. The RID has also proposed three new irrigation dam projects within the Isaan area. Loei Khong-Chi- Mun Project 30 The Khong, Chi, and Mun river basins cover 104 million rai of land and spread across 19 provinces. The Khong-Chi-Mun Diversion Project will take approximately 8 years to complete 27 Junkrajang, Suriya, Exchange with the National Economic and Social Development Board. 8 May 2012 RID Video, www.rid.go.th 29 RID Video, www.rid.go.th 30 RID Video, www.rid.go.th 28 9 and will cost around 806,377 million baht. There will be a total irrigation capacity of 17.9 million rai of land in the Chi and Mun River Basins and 4 million rai in the Khong River Basin 31. The project is called the “Diversion by Gravity Project” because dams (includes weirs and dykes) will block the Mekong river tributaries diverting water to the Chi and Mun River basins. The Mekong River is at a higher elevation therefore the water will naturally flow down through the canals and tunnels without support from pumping stations. The project involves four separate projects that will be completed over the eight-year span in six stages. Construction Projects32 1. Head Works a. Improvement of the Loei River mouth. b. 20km of dredging and re-forming the river to connect to the diversion tunnel. 2. Diversion Tunnels a. Tunnel from Chiangkhan (the opening point of the Loei River) to Lam Pha Niang, 79.5 km. b. Eleven tunnels from Chiangkhan to Huai Mo, 80km. c. Three tunnels from Nam Phong to Chi River, 2 km. d. One tunnel from lower Nam Phong River to Upper Lam Pao, 5 km. e. Two tunnels from upper Nam Phong River to lower Nam Phong River, 2km. 3. Main Irrigation Canals a. Total length of all canals is 1,350 km. b. Sri Boon Rueng- Chum Phuang- Ubon Ratchathani Canal i. 625 km ii. Irrigates upstream Chi and Mun River from the North to South. iii. Irrigates parts of Khon Kaen Province, Chaiyphum and Nakhon Ratchathani. iv. Irrigates east to west on the right bank of the Mun River, which effects Buri Ram, Surin, Si Sa Ket and Ubon Ratchathani. c. Sri Boon Rueng- Khao Suan Kwang-Lam Pao- Ubon Ratchathani i. 725km ii. Connected to tunnels at Hua Mo iii. Irrigate from east to west effecting Khon Kaen province, Kalasin, Mahasarakham, Roi Et, Yasothon, Umnod Chareun and Ubon Ratchathani. 4. Lateral Canals a. 4,130 km b. Cost of the lateral canal will include the development of hydro plants on the canals. Royal Irrigation Department: Office of Project Management, Khong-Loei-Chi-Mun, “Diversion by Gravity Project”. www.rid.go.th 32 RID,“Diversion by Gravity” 31 10 Implementation Stages33 The whole project should take eight years. Three years are initially needed for the feasibility study, environmental issues survey and the project approval application. The rest of the project is split into six phases of completion. 1. 1st-3rd year a. Improve the Loei River mouth. b. Development of the tunnel from Chiangkhan to Lam Pha Niang. c. Construction the irrigation system along the Mun and Chi River covering 1.5 million rai. 2. 2nd-4th year a. Development of the tunnel from Sri Boon Reung to Chaiyphum to Nakhon Ratchasisma covering 3.67 rai. rd th 3. 3 -6 year a. Development of the tunnel and irrigation system stretching across Sri Boon Rueng to Ubonrat to Lampao covering 2.66 rai. 4. 4th-6th year a. Development of the tunnel and irrigation system stretching across Nakhon Ratchasima , Surin, Lampao and Yasothon covering 4.01 rai. th th 5. 5 -7 year a. Development of the tunnel and irrigation system stretching across Surin, Ubon Ratchasima and Yasothon covering 4.01 million rai. th th 6. 6 -8 year a. Irrigation in the upstream, right bank of the Mun River covering an area of 2.05 million rai. Three Potential Dam Constructions 1. Pa Kao Hao Dam (no information currently exists) 2. Pong Khun Pet 3. Lamdone Yai Pong Khun Pet34 Future Location: Lam Chiang Ta River (a tributary of the Chi and Mun River), Chaiyaphum Province. Status: This dam is not yet built. It was proposed in 1964 by the Royal Irrigation Department as a part of the Upper Chi River Development Project Received budget approval in 1989. The villages to be affected by this project include: Ban Gang Gratuang, Ban Huay Top Nai, Ban Mai Huay Hin Phone, and Ban Bong Wien. In 1994, The Chiang Tha Preservation Group was formed and in 1995, several members of the Chiang Tha Preservation group formed the small protest village of Ban Huay Top Nai Noi. This preservation group has been fighting the implementation of the Pong Khun RID,“Diversion by Gravity” ENGAGE, “Chiang Tha Preservation Group”. 2011, http://globalgrassroots.files.wordpress.com/2011/02/pkp-finallastsmall.pdf (4 May 2012) 33 34 11 Phet project nonviolently for 21 years. The project is currently stalled, but the RID received a “Preparation Budget” in May 2011 to continue with the project Lum Dome Yai35 Location: Dechudom District, Ubon Ratchatani Province Status: Proposed irrigational dam that would irrigate the area of 212,500 rais of land. In 1991, RID hired TEAM Consulting Engineering and Management Co., Ltd. (initially named TEAM Consulting Engineers Co., Ltd.) and TA & E Consultants Thailand to conduct the feasibility and the EIA, which had been done in the year 1997. Currently, the feasibility and the EIA are being reviewed by the Office of Natural Resources and Environmental Policy and Planning and the Ministry of Science and Technology. Villagers joined with the Assembly of the Poor and demanded that the government stop the project. The cabinet came out with a solution on April 29th, 1997, for the project to be delayed and a committee to be setup to include people's participation in the decision making process. Benefits of the Project36 895,000 households 3,580,000 people Farmers in the area will have an annual income of about 37,944 baht. Agricultural production will increase by 42.54 million tons/year. The present production is 20.30 million tons/year. The plan will benefit 228 districts and 1,760 sub-districts Flood mitigation o Intercept drainage canals upstream Transporting across area will be cheaper due to the new canal system. 35 36 Waiting for Ajaan John RID, “Diversion by Gravity” 12 37 Total irrigation numbers for the provinces in Isaan. Complete map of the irrigation project in the Khong, Chi and Mun river basins. 37 RID,“Diversion by Gravity” (both chart and map) 13 Maps from Google Earth The Khong-Chi-Mun Irrigation Project, potential irrigation dams and the existing hydropower dams in Isaan. 14 ENERGY Global Context The ASEAN Plan of Action for Energy Cooperation 2010-2015 (APAEC) outlines strategies and plans for cleaner energy generation in ASEAN countries for the purpose of energy security and sustainability within the region. APAEC 2010-2015 focuses on seven projects: a) ASEAN power grid, b) Trans-ASEAN Gas Pipeline, c) Coal and Clean Coal Technology, d) Renewable Energy, e) Energy Efficiency and Conservation, f) Renewable Energy, g) Regional Energy Policy and Planning, and h) Civilian Nuclear Energy.38 38 “ASEAN Plan for Energy Cooperation,” ASEAN, 2. 15 National Context The EGAT Power Development Plan (PDP) for 2010 reflects the concerns expressed in APAEC. The PDP 2010 is a 20-year plan (2010-2030) that prioritizes the increase of energy supply for the country through sustainable methods and renewable resources. Thailand invests millions in imports of fossil fuels, and according to EGAT, more than 70% of the country’s power generation comes from fossil fuels.39 Fossil fuels are a finite resource, and an increased demand has led to price fluctuation. In addition, power plants that use fossil fuels greatly contribute to climate change due to carbon dioxide emission. To ensure energy and economic security, EGAT’s PDP focuses on developing clean energy including nuclear power, hydropower, and biomass power plants. 39 “Summary of Thailand Power Development Plan,” EGAT, 48. 16 NUCLEAR POWER Nuclear energy is considered clean and renewable energy. According to EGAT, there are five potential sites for nuclear power plants. 5 Potential Sites for Nuclear Power Plants40 1. Ubon Ratchathani: Possibly Sirindhorn District 2. Nakhon Sawan 3. Trad 4. Suratthani 5. Chumporn Although EGAT publicly listed these five provinces as potential sites, there was a plan to build a nuclear power plant in Kalasin Province. In March 2011, protesters protested outside the Yang Talat District office.41 Each power plant has a planned annual capacity of 1,000 MW, and by the end of 2030, it is projected that 10% of Thailand’s power generation will come nuclear power plants.42 Nuclear Power Plant Unit #1 1,000 MW in 2020 Nuclear Power Plant Unit #2 1,000 MW in 2021 Nuclear Power Plant Unit #3 1,000 MW in 2024 Nuclear Power Plant Unit #4 1,000 MW in 2025 Nuclear Power Plant Unit #5 1,000 MW in 2028 The key players and administrative bodies are as follow: 43 Cherid, Kalayanamitr, “Status of Nuclear Energy Project in Thailand,” Project Environmental Division, EGAT, March 12, 2012, 16. 41 “Kalasin people rally against nuke plant,” Bangkok Post, published March 15, 2011, http://www.bangkokpost.com/breakingnews/226826/kalasin-people-against-nuke-plant. 42 “Summary of Thailand Power Development Plan,”50. 40 17 44 43 Cherid, 3. Karasuddhi, Pricha, “Thailand’s Preparation for Starting a Nuclear Power Program,” Nuclear Power Program Development Office, Ministry of Energy, accessed May 11, 2012, 8. 44 18 45 Burns & Roe Asia Ltd conducted feasibility studies of nuclear power plants. They performed the pre-project activities, including energy economics evaluation, site studies and evaluations, technology evaluations and infrastructure needs analysis. The feasibility report should have been submitted to the Thai government for approval in January 2011.46 The report is not accessible online. Burns and Roe Asia, Ltd. 11th Fl., CRC Tower, All Seasons Place 87/2 Wireless Road Lumpini, Phatumwan Bangkok 10330, Thailand Tel: +662 126 9100 As of January 2008, an official from EGAT stated that four companies presented to the executives and nuclear power committee. Another foreign company was to make a presentation, but the EGAT official declined to state the name of the company.47 The four companies and their backgrounds are listed below. Information was accessed on May 3, 2012 from their respective websites 45 Karasuddhi, 9. Patchimpattapong, Apisit, “Thailand’s Nuclear Power Plant Feasibility Study,” Nuclear Energy Division, EGAT, June 5, 2010, 14, 23. 47 Chitsomboom, Ploy. “Four firms eye Thai nuclear power plant project,” Reuters: January 2008, accessed May 2, 2012. 46 19 AREVA French public multinational industrial conglomerate HQ: Courbevoie, Paris Industry: Mining, Energy Known for nuclear power Products: Uranium, Electricity 3 reactors available: EPR™ REACTOR: THE VERY HIGH POWER REACTOR (1,650 MWE) ATMEA1 REACTOR: 1,100 MWE PRESSURIZED WATER REACTOR KERENA REACTOR: 1,250 MWE BOILING WATER REACTOR GENERAL ELECTRIC CO American multinational conglomerate corporation HQ: Fairfield, Connecticut, USA Operating Segments: Energy, Technology Infrastructure, Capital Finance, Consumer & Industrial GE Hitachi Nuclear Energy (aka Hitachi-GE Nuclear Energy, Ltd in Japan): provides advanced reactors and nuclear services 4 types of reactors available: Advanced Boiling Water Reactor (ABWR): Output power: 1350 to 1460 MW net ESBR Nuclear Reactor: Output Power: 1520 MW net GNF 2 Nuclear Fuel Assembly: Designed for Boiling Water Reactors (BWR) PRISM Sodium-Cooled Reactor: New design MITSUBISHI CORPORATION Japanese trading company HQ: Marunouchi, Chiyoda, Tokyo, Japan Business Sections: 7 in total including Energy Business Group Mitsubishi Company (Thailand) Ltd. is a wholly-owned Thai subsidiary of Mitsubishi Corporation, a general trading company of Japan. Thai-MC Company Limited, on the other hand, is a joint venture between Mitsubishi Corporation and Mitsubishi Company (Thailand) Ltd. Including the two companies, Mitsubishi Corporation has made business investments in more than 100 companies in Thailand. Through these investments, or through the business operations of related enterprises throughout the world, it is their mission to continue their contribution to the sustainable development of the Thai economy. Mitsubishi Company (Thailand) Ltd. Head Office: 968 24th-26th Floor, U-Chuliang Foundation Building, Rama 4 Road, Silom, Bangrak, Bangkok, Thailand 10500 Telephone +66-2-632-4100 Facsimile +66-2-632-4199 Haadyai Office: 5 Preedarom Road. Haadyai, Songkhla 90110, Thailand Telephone +66-74-244900 Facsimile +66-74-234265 20 Thai-MC Company Limited Head Office: 968 24th-26th Floor, U-Chuliang Foundation Building, Rama 4 Road, Silom, Bangrak, Bangkok, Thailand 10500 Telephone +66-2-632-4100 Facsimile +66-2-632-4199 Haadyai Office: 5 Preedarom Road. Haadyai, Songkhla 90110, Thailand Telephone +66-74-244900 Facsimile +66-74-234265 TOSHIBA CORPORATION Japanese multinational corporation HQ: Shibaura, Minato, Tokyo, Japan Has an Infrastructure Systems Group > Power Systems Company > Nuclear Energy Systems & Services Division; Thermal & Hydro-power Systems & Services Division Types of Reactors: Next Generation BWR Plant (ABWR-II) Advanced Reactor (SCPR, LSBWR) Fusion Reactor Fast Breeder Reactor (FBR) 21 BIOMASS (SUGARCANE) & SOLAR POWER As of 2010, electricity generated from renewable sources does not greatly contribute to Thailand’s total power generation capacity. However, the PDP 2010 estimates that by 2030, 5.7% of the country power generation will come from renewable energy sources (excluding nuclear power and hydropower) like biomass, wind, and solar.48 This section focuses on biomass and solar power because Thailand’s biomass and solar power plants are privately owned. Energy generated from these small power producers (SPPs) is sold to the government. The government either has a contract with the power plant for a specific amount of energy per year, or the power plant will sell as much as it wants to the government.49 50 The National Renewable Energy Laboratory of the U.S. Department of Energy provides a definition of biomass as follows: “Biomass is organic matter available on a renewable basis. Biomass includes forest and mill residues, agricultural crops and waste, wood and wood wastes, animal wastes, livestock operation residues, aquatic plants, fast-growing trees and plants, and municipal and industrial wastes.”51 There are many sources for biomass. According to the PDP 2010, the three main sources are sugarcane (bagasse), rice husks, and wood and wood residue. Of the 53 biomass projects under construction, 29 of those will use rice husks and bagasse as energy sources. Of the 65 biomass projects under consideration, 37 of those will use wood and wood residue as energy sources.52 “Summary of Thailand Power Development Plan,” 95. “Summary of Thailand Power Development Plan,” 41. 50 “Summary of Thailand Power Development Plan,”41. 51 Papong et al., “Overview of Biomass Utilization in Thailand,” accessed May 11, 2012, 2. 52 “Summary of Thailand Power Development Plan,”102. 48 49 22 Development of biomass projects might include expansion of sugarcane plantations in the region. In terms of wood, teak, rubber trees, and eucalyptus plantations are major sources of wood. Teak is concentrated in the northern region of Thailand, but rubber and eucalyptus plantations are widespread throughout Isaan.53 Industrial agriculture will expand to meet energy demands. Thailand is quickly becoming one of the world’s leading sugar-exporting countries. Sugar production has become one of the government’s top priorities especially in the northeast region.54 During the year 2009-2011, the Ministry of Industry’s goal was to increase the output from 11.8 tons per rai to 15 tons per rai.55 Last year, 6.3 million tons of sugar were exported and that number increased to 9.3 million tons of . The milling and refining sector is comprised of independent, government, and private companies. The government owns 3 mills while independent organizations own 15 mills. Thai RoongRuang group is the largest sugar mill owner with 7 mills in operation. There are 47 mills in operation throughout Thailand, with 19 mills in Isaan alone and two mills proposed to be built in the near future. MitrPhol Sugar Company in Kalasin province and Khonburi Sugar in Korat are both undergoing sugar expansion.56 New sugarcane plants are proposed in Loei province and Chaiyaphum province. It is predicted that a lot of sugarcane processing plants are expanding to include biomass plants.57 1) Nong Bua Lam Phu: - Erawan Sugar Company (biofuel too) - Factory Location: 111, Moo 12 Tambon Naklang, Naklang Distric Nong Bau Lam Phu Province, Post code 39170 - Registered capacity: 8,117/Tons/day - Method of purification: Raw sugar by defecation, refined sugar unknown 2) Udon Thani: - Rerm Udom Sugar Factory Co, Ltd - Factory location: 11 Moo 6, Nongsrapla District Amphur Nonghan, Udonthani - Registered capacity: 20,582 Tons.day - Method of purification: Raw sugar by defecation, plantation white sugar by defecation carbonation and ion exchange, refined sugar by carbonation and ion exchange resin 3) Ban Phon Group --(Kaset Phol) -- Factory location: 9 Moo 9, Pako district, Amphe Khumphawapee Udornthanee 41370 --Registered capacity: 10, 211 Tons/day --Method of purification: Raw sugar by defecation, plantation white sugar by defecation, refined sugar 53 Papong et al,, 3-4. http://www.fao.org/DOCREP/005/X0513E/x0513e24.htm 55 http://thailand.prd.go.th/view_news.php?id=3612&a=2 56 http://www.nationmultimedia.com/business/Khonburi-Sugar-to-boost-output-capacity-30175789.html 57 http://www.ocsb.go.th/upload/download/uploadfile/23-6589.pdf 54 23 4) Udon: -Kumphawapi -Factory location: 73 Moo 11, Kumphawapi District Ampur Kumphawapi, Udornthani 41110 - Registered capacity: 12,000 Tons/day -Method of purification: Raw sugar by defecation, plantation white sugar by defecation carbonation and Resin, Refined sugar by defecation carbonation and Resin 5) Kalasin - E-saan Sugar Industry Company - Factory location: 99 Moo 9, Wangsammo-Khammuan Samraan District, Amphur Samchai Kalashin 46180 - Registered capacity: 15,000 Tons/day - Method of purification: Raw sugar by defecation, plantation white sugar by carbonation, refined sugar unknown 6) Khon Kaen: - Khon Kaen Sugar Industry Public Company - Factory location 43 Moo 10, Numphong-Kranuan Road, Amphur Numphong, Khon Kaen 40140 - Registered capacity: 20,400 Tons/Day - Method of purification: Raw sugar by defecation, plantation white sugar by carbonation and ion exchange, refined sugar by carbonation and ion exchange 7) Chiayaphum: - Mitr Phu Khieo Mill (also Ruam Kaset), Mitr Phol Sugar Corp (United Farmer & Industry Company Limited) - Factory Location: 99 Moo 10, khok Sa-ard District Amphur Phukieo, Chaiyaphum 36100 - Registered capacity: 18,00o tons/day - Method of purification: Raw sugar by defecation, plantation white sugar by carbonation, refined sugar by carbonation 8) Khon Kaen: - Mitr Phu Viang mill, Mitr Phol Sugar Corp - Factory location: 365 Moo 1, Maliwan Road Amphur Nongrua, Khon Kaen 40210 - Registered capacity: 20,000 Tons/day - Method of purification: Raw Sugar by defecation, Plantation white sugar by Talofloc, refined sugar by unknown 9) Mahasarakham: - Wangkanai - Factory location: 222, Moo 9, Kosum-Sarakham Kang Kae, Kosumpisai Mohasarakham 44140 - Registered capacity: 15,453 Tons/day - Method of purification: Raw sugar by defecation, plantation white sugar by carbonation and resin, refined sugar by carbonation and resin 10) Kalasin: Mitr Phol Kalasin Sugar Co., Ltd (future expansion) - Factory location: 99 Moo 1, Boakhao- Phontong Road, Somsaard District, Amphur Kuchinarai -Registered capacity: 20,000 Tons/day 24 - Method of Purification: Raw sugar by defecation, plantation white sugar by carbonation and ion Exchange Resin, Refined Sugar by carbonation and Ion Exchange Resin 11) Mukdahan: - Saharuang - Factory location: 76 Moo 8, Bangsaiyai District, Amphur Muang, Mukdaham 49000 - Registered Capacity: 14,000 Tons/day - Method of purification: Raw sugar by defecation, Plantation white sugar by carbonation, refined sugar.. 12) KohRat: http://www.wangkanai.co.th/business_en.htm#b1_th_4 - Angvian Industry Company, Limited (Ratchasima Sugar Factory), under Wangkanai Group - Factory location: 223, Moo 1, Nivetratana Road, Amphura Kaengsanamnang Nakhonratchasima 30440 - Registered capacity: 36,000 Tons/day - Method of purification: Raw sugar by defecation, Plantation white sugar by carbonation, Refined sugar by carbonation and resin 13) Buriram: http://www.buriramsugar.com/ - Buriram Sugar Factory Co, LTD under Ram Sugar Co., LTD - Factory location: 237 Moo 2, Hinlekfai District, Amphur Khumuang Burirum 31190. - Registered capacity: 12,000 tons/day - Method of Purification: Raw sugar by defecation, Plantation White sugar by defecation, and refined sugar. 14) Koh Rat: Korach Industry Company, Ltd. (biogas also!) - Factory location: 111 Moo 18, Nongravang District Amphur Pimai Nakhonratchasima 30110 - Registered capacity: 24,000 Tons/day -Method of purification: Raw sugar by defecation, plantation white sugar by carbonation, refined sugar by carbonation and ion exchange 15) Koh Rat: New York Sugar Company -Khonburi Sugar -Factory location: 289 Moo 13, Amphur Kornburi, Nakhonratchasima 30250 - Registered capacity: 20,500 Tons/day -Method of purification: Raw sugar by defecation, plantation white sugar by carbonation and Ion Exchange, Refined Sugar by carbonation and Ion Exchange. 16) Surin: - Surin sugar company ltd, under Korach Industry Co. - Factory location: 246 Moo 13, T.Prue A.Prasat. P.Surin 32140 Thailand. - Registered capacity: 16,000 Tons/day - Method of purification: Raw sugar by defecation, plantation white sugar by carbonation, refined sugar unknown Two proposed mills: 1. KSL (Khon Kaen Sugar) in Loei Approved in 2010/2011 To be built in the next year or two 25 Bo Ploy Project - Expand sugar mill capacity & invest in ethanol plant & power plant - Sugar factory to produce 28,000 tons/day - Ethanol factory 200,000 LPD - Power plant to GRID: 20 MW/biogas Expand sugar mill capacity & power plant in Loei - Waiting for EIA - If approved, plant to start 2014 - Sugar factory capacity: 16,000 tons/day - Power plant to generate GRID 10 MW 2. Mitr Phol in Chiayapum A list of a few biomass plants in operation in Isaan is included.58 1. Buriram Location: Buri Ram Operator: Advance Bio Power Co Ltd Configuration: 1 x 9.5 MW Operation: 2007 Fuel: Rice Husk Support came from Danish Energy Agency 2. CGC Plant Location: Nakhon Ratchasima Operator: C Gigantic Carbon Co Ltd Configuration: 1 x 2.76 MW Fuel: Coconut shell and wood 3. Roi Et Location: Roi Et Operator: Electricity Generation Public Co Ltd Configuration: 1 x 9.8 MW Operation: 2006 Fuel: Rice Husk Financial support came from Industrial Finance Corp of Thailand (IFCT) and Office of Board Investment (BOI) 4. Surin MGP Location: Prasart Surin Operator: Mungcharoen Green Power Co Ltd Configuration: 1 x 9.9 MW Operation: 2007 Fuel: Rice Husk MPG was developed, invested, implemented, operated, and maintained exclusively by a group of local rice millers and has a 21-year contract with EGAT. “Biomass Power Plants in Thailand,” last update August 15, 2009, http://www.industcards.com/biomassthailand.htm. 58 26 Solar power plants will also be privately owned. According to Renewable Energy World, Solar Power Co Ltd (SPC) have several solar power projects in development in Isaan. The SPC plans to build 34 solar plants in northeast of Thailand, with nine solar plants predicted in Nakhorn Ratchasima, ten in Khon Kaen, three each in Buriram, Surin and Nakorn Phanom, two each in Sakon Nakorn and Udorn Thani, and one each in Nong Kai and Loei districts. Of these, there are several currently under constuction: two in Nakorn Phanom, one each in Khon Kaen and Sakorn Phanom and seven in Nakhorn Ratchasima.59 SPC’s project in Nakhon Ratchasima (KR1) has been successful. The 6.123-MW solar farm project is located in Don Chomphu sub-district, Non Sung District, Nakhon Ratchasima Province. The project began in 2008 and received loans from Kasikorn Bank PCL. It uses polycrystalline solar panels from Japan’s Kyocera Corporation and inverters from Germany’s SMA Solar Technology. The major shareholders of KR1 are SPC, IFC, the Environment for Energy Foundation, and Thai Fa Power Company Limited. The KR1 model has been successful and SPC plans on spreading the model throughout Isaan.60 These 34 projects are planned to total 204 mega-watts and will be modeled after the KR1 plant. In November 2010, International Finance Company (IFC), a member of the World Bank Group, invested $1.1 million for a 9% equity stake in two of SPC’s planned solar plants following a $1.7 million investment in SPC’s first 6.1 MW solar plant in Nakhorn Ratchasima in June 2010, known as Solar Power (Korat 1) Company Limited (KR1).61 As of February 2012, another solar power project was completed in Nakhon Ratchasima. It is the biggest solar farm in Thailand to date. Wilcox, John, “Thailand joins solar fast lane,” Renewable Energy World (April 10, 2012,) accessed May 3, 2012, http://www.renewableenergyworld.com/rea/news/article/2012/04/thailand-joins-the-solar-fast-lane. 60 Wilcox, John, “Thailand joins solar fast lane,” Renewable Energy World (April 10, 2012,) accessed May 3, 2012, http://www.renewableenergyworld.com/rea/news/article/2012/04/thailand-joins-the-solar-fast-lane. 61 Wilcox, John, “Thailand joins solar fast lane,” Renewable Energy World (April 10, 2012,) accessed May 3, 2012, http://www.renewableenergyworld.com/rea/news/article/2012/04/thailand-joins-the-solar-fast-lane. 59 27 1. Nakhon Ratchasima Solar Farm62 Location: Nakhon Ratchasima Province Area: 20 hectares Capacity: 7.5 MW; or approximately 10,500 MW annually Construction: Sonnedix Group, an independent power producer (IPP) Supplier of Solar Modules: First Solar Inc. Support: Assyce Fotovoltaica and Ch. Karnchang Group From PDP 2010, these are the numbers associated with solar and biomass power plants in the country for the next 20 years.63 There are many other biomass and solar power plants in Isaan and Thailand. Fuel Type Projects Under Consideration Projects Approved Projects Signed Projects Under Construction Solar 135 94 291 51 Biomass 65 36 201 53 62 Wilcox, John, “Thailand joins solar fast lane,” Renewable Energy World (April 10, 2012,) accessed May 3, 2012 , http://www.renewableenergyworld.com/rea/news/article/2012/04/thailand-joins-the-solar-fast-lane. 63 “Summary of Thailand Power Development Plan,”102. 28 POWER LINES The projected demand increase has led to a series of development projects within Thailand and neighboring countries. To connect the power plants and transfer electricity, Thailand has a series of transmission lines with different voltage capabilities. Changes and expansion to the power grid are included in the PDP 2010.64 1. Upgrading the transmission system that serves the Greater Bangkok Region 2. Expanding the EGAT transmission system to Laos to facilitate energy transfer Nam Ngum 2 Hydropower Plant: Connects the hydroelectric dam to Udon Thani Substation 3; Length is approximately 80 km; Projected completion was 2010 Theun Hinboun: Construct a new Nakhon Phanom Substation and new other substations; Projected completion is 2012 Hongsa Lignite-Fired Thermal Power Plant: Planned for completion in 2014 3. Expanding the EGAT system to Myanmar and Malaysia 4. Expanding to include future plants, including nuclear power plants and coal-fired power plants 64 “Summary of Thailand Power Development Plan,”54-57. 29 HYDROPOWER The PDP 2010 separates hydropower projects into two categories: small and big. Small hydroelectric plants will take place at existing dams of the Royal Irrigation Department.65 This paper focuses on the big hydropower plants that are planned. As of December 2009, about 11% of Thailand’s power generation comes from hydroelectricity.66 While there seems to be few hydroelectric power plants in progress within the country, there are major plans for Lao PDR. On December 22, 2007, the Government of Thailand and the Government of Lao PDR signed a Memoranda of Understanding to extend import capacity to 7,000 MW. According to the PDP 2010, these are the hydropower projects in Laos that will provide electricity for Thailand: “Currently, there are 2 commissioned projects namely Theun Hinboun (214 MW) and Houay Ho (126 MW), and 3 PPA signed projects which are under construction, Nam Theun 2 (920 MW), Nam Ngum 2 (597 MW) and Theun Hinboun - Extension Phase (220 MW). Besides, there are 2 Tariff MOU signed projects; Hong Sa (1,473 MW) and Nam Ngum 3 (440 MW).”67 The map of Thailand’s power system provided by EGAT in the PDP 2010 shows that only 4 dams are future projects: Nam Ngum 2, Nam Ngum 3, Nam Ngiep 1, Nam Theun 1, and Nam Theun 2. Connected to those dams are power lines that crossover to Thailand as mentioned in the Power Lines Section. These projects are under different stages of completion. 1. Nam Ngum 2 Dam68 Project Owner: Ch. Karnchang Public Co Ltd Project Period: July 2005-December 2009 “Summary of Thailand Power Development Plan,” 40. “Summary of Thailand Power Development Plan,” 73. 67 “Summary of Thailand Power Development Plan,” 22. 68 “Detailed Design of Nam Ngum 2 Hydroelectric Power Project,” accessed May 10, 2012, http://www.ceat.or.th/2010/index.php/energy/386-detailed-design-of-nam-ngum-2-hydroelectric-power-project.html. 65 66 30 2. 3. 4. 5. Consulting Firms: TEAM Consulting Engineering & Management Co Ltd; ATT Consultants Co Ltd Developer: South East Asia Energy Ltd Nam Ngum 369 Owned by: - GMS Lao Company, a subsidiary of GMS Power of Thailand (27%) - Ratchaburi Electric Generating Holding PCL of Thailand (25%) - Axia Power, a subsidiary of Marubeni Corporation of Japan (25%) -The Lao Holding State Enterprise (LHSE) of the Lao PDR (23%) • Thai investors include Ch Karnchang, Ratchaburi, Bangkok Expressway Plc and GMS (Thailand), which also have stakes in Nam Ngum 2 and Nam Ngum 3. These projects have a combined installed capacity of 1,075 megawatts. • Vattenfall Power Consultant • Financed by Asian Development Bank (ADB) • The Nam Ngum 3 Power Company (NN3PC) intends to award three main construction contracts and may award other supporting contracts as necessary to complete the project. • Will employ approximately 3,000 to 4,000 workers over a five-year period: based at the dam site and the power station site. -Construction will take approximately 5.5 years. Nam Ngiep 1 Dam70 Project Sponsors: Kansai Electric Power Co. Inc.; EGAT International Company Limited; Lao Holding State Enterprises Financed by ADB Capacity: 290 MW Under consideration Nam Theun 1 Dam71 Location: Pak-Kading District, Bolikhamsay Province, Lao PDR Construction: Phonesack Group Ltd (a Lao company) Status: Unknown Nam Theun 2 Dam72 Status: Completed in 2009 About 93% of the electricity generated by the plant would be exported to Thailand. The remaining 7% of electricity produced would be available for domestic consumption. Capacity: 1,070 MW Financial support from World Bank, ADB, European Investment Bank (EIB) - Ital-Thai PCL construction “Nam Ngum 3 Project Overview,” accessed May 11, 2012, http://www2.adb.org/projects/namngum3/overview.asp. 70 “Nam Ngiep 1 Hydropower Project,” accessed May 10, 2012, http://pid.adb.org/pid/PsView.htm?projNo=41924&seqNo=01&typeCd=4. 71 “Construction of Nam Theun 1 takes shape,” updated March 12, 2012, accessed May 10, 2012, http://app02.laopdr.gov.la/ePortal/news/detail.action?id=29566&from=search. 72 “Nam Theun 2 Hydroelectric Project,” updated August 13, 2008, http://www2.adb.org/Projects/Namtheun2/default.asp. 69 31 Under the Mekong Mainstream Dams Project, there are two dams that are proposed on the Mekong River on the Lao-Thai border. The project is a series of hydroelectric dams on the main body of the Mekong (from China to Vietnam) that will generate electricity for the GMS. 73 1. Pak Chom Hydroelectric Dam74 Location: Pak Chom District, Loei Province Status: Projected to be built in 2017 Estimated Capacity: 1,000 MW; 80 km2 max reservoir area 2. Ban Koum Hydroelectric Dam75 Location: Khong Chiam District, Ubon Ratchathani Province Status: Projected to be built in 2017 Construction: Italian-Thai Asia Corp Holdings under Charoen Energy & Waters Asia Co Ltd. Construction on the Thai side has not began due to public opposition, but it has began on the Lao side Estimated Capacity: 1,800 MW; 133 km2 reservoir “Mekong Mainstream Dams,” accessed May 9, 2010, http://www.internationalrivers.org/campaigns/mekongmainstream-dams. 74 “Save the Mekong,” accessed May 9, 2012, http://www.savethemekong.org/issue_detail.php?sid=21. 75 “Save the Mekong,” accessed May 9, 2012, http://www.savethemekong.org/issue_detail.php?sid=21. 73 32 CONCLUSION Our research has indicated that future development plans for Isaan will be a long-term project. The sugarcane factories in Isaan take up several rai of land and they require a 100km radius to grow the crop. With 19 factories spread throughout Isaan, this consumption of land impacts food sovereignty and forestland and requires vast amounts of irrigated water. According to the map, the irrigated canals all move towards mines. Along with irrigation, the sugar crops will need chemical fertilizers, which increases the demand for potash. These projects will be continually changing and there is much more development projects to further research. This paper is the beginning; we have countless factual information and statistics. However, the next steps would involve looking into the people connected with these development projects, including company members as well as politicians. We have heard that development in Isaan is closely tied to the political scene with corporate power often influencing such decisions. In the next couple of years, many of these projects will be implemented with the coming of ASEAN. After conducting all of this research on development, the next question is: what is the alternative to economic development in Isaan? We hope with this compilation of research, and future CIEE student involvement, that this will help prepare and be a resource for NGOs, communities, and villagers in fighting against future development projects that will be detrimental to residents of Isaan. 33