Potential investors at a public hearing on the second bidding round of the independent power producer (IPP) scheme also said the government was not yet clear on how to establish the committee to oversee the bidding.

They also commented that the bid timing was not appropriate and that the Energy Ministry's plan to buy power from bid winners for only three years would put the two subsidiaries of the Electricity Generating Authority of Thailand (Egat) at an advantage.

One energy company executive said it was inappropriate for an interim government to carry out bidding for such a large-scale project. "The bidding could be annulled as the power-purchase agreement will be signed by the next government," he said.

"Moreover, the preliminary criteria are unclear and investors on the whole are concerned about the approval for the subsidiaries of Egat and PTT Plc to join the bidding.

"In addition, the committee to ensure fairness is not clear. This could lead to disputes that could be forwarded to the Administrative Court later on," he said.

The Supreme Administrative Court recently overturned the ruling of an arbitration panel on a dispute between the state and concessionaire iTV, even though the TV station operator's concession stipulated that disputes should be resolved by an arbitration panel.

The president of Gulf Electric Co Ltd, Sarat Rattanawade, also felt that the authorities had not given enough importance to measures to resolve possible conflicts between the state and IPP investors.

"If the disputes are to be solved by arbitration panels, we have seen that their rulings can be overturned by the Administrative Court," he said.

Chuenchom Sangarasri Greacen, an independent energy researcher, noted that problems of local residents to be affected by the power plants had not yet been addressed. The investors could be more positive if the problems were tackled first.

However, Masahide Taragaya, a director of Electric Power Development, reiterated his company's interest in bidding for the project and added that it was also looking for a partner. "We see opportunity despite high competition," he said.

The company is interested in investing in a coal-fired power plant, but wants the government to set out a clear public-relations strategy to clear public misunderstanding about the environmental dangers, he said.

The opinions gathered from yesterday's public hearing will be taken into account when the Energy Ministry drafts the bid document. Another public hearing on the issue is scheduled for December 28, when academics, consumer groups and non-government agencies are invited.

Discussed at yesterday's hearing were the ministry's proposals to buy power

for a period of three (2011-2013) or

five years (2011-2015), the amount of power to be purchased and Egat's role in the bidding.

Energy Minister Piyasvasti Amranand said that his ministry was of the opinion that Egat should be barred from the IPP bidding but should be allocated a portion of the new power generated. However, whether the ratio should be half of the new power capacity would be finalised later.

"Egat's subsidiaries should be allowed to join the bidding as the more the bidders, the higher the benefits to consumers. We just have to make sure that the bidding criteria are fair to all," he said.

Energy Reporters

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