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dam-l Transfield denies dam project threat (fwd)
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From owner-irn-mekong@igc.org Tue Oct 14 11:03:22 1997
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Date: Tue, 14 Oct 1997 18:29:26 +1000
From: aviva@irn.org (Aviva Imhof)
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Subject: Transfield denies dam project threat
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Australian Financial Review, Thursday October 2 1997
Transfield denies dam project threat
by Hans van Leeuwen
The economic viability of Australian engineering firm Transfield's $US1.5
billion ($2.1 billion) joint venture hydropower project in Laos may have
been undermined by Thailand's economic slowdown, according to a coalition
of environmental groups.
But Transfield has denied the claim, saying the project - the Nam Theun 2
"megadam" - is still set to go ahead and be profitable.
The groups, led by Greens Senator Bob Brown, said the original estimates of
annual revenue of $US176 million from Nam Theun 2 had been downgraded to
just $38 million per year.
The groups said revenue relied on exporting energy to Thailand, where
demand for energy was slackening due to the economic crisis, and the
deregulated electriccity market had caused prices to fall.
But Transfield's Nam Theun 2 project director, Mr David Iverach, said the
project was certain to go ahead.
"It's the most financially viable of any of the undeveloped hydro sites in
Laos, and probably South-East Asia," he said.
Thailand's downturn was likely to have ended by the time the project was
completed; and in the medium term a country with the same population as
France but only one-seventh the energy consumption was likely to continue
increasing demand.
The World Bank is considering whether to guarantee the project, but is
under considerable pressure from environmental groups worldwide to turn it
down.
The groups said that if the bank pulled out of the guarantee, then - in the
context of the downgraded revenue projections - the project would become
too economically risky.
But Mr Iverach said the financial basis of the project would not be
affected by the World Bank's decision. Transfield was more concerned with
the bank's decision on whether to endorse the project on environmental,
social and economic grounds. The decision is expected soon.
"We do not want to be involved in a project that hasn't been rigorously and
independently evaluated," he said.
****************************************************
Aviva Imhof
Mekong Program Coordinator
International Rivers Network
1847 Berkeley Way, Berkeley CA 94703, USA
Tel: + 1 510 848 1155 Fax: + 1 510 848 1008
http://www.irn.org
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ADDRESS: 29/10 Carr St, Waverton NSW 2060, AUSTRALIA
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