Source - The Nation Website (Eng)
June 08, 2006

Development projects in the greater Mekong sub-region, with a particular focus on power plant projects in Laos, might find it difficult to receive funding from France unless they meet environment protection standards.

Country director of the French Development Agency (AFD), Laurent Demey, said the agency is keen to offer monetary assistance for building power plants in Laos and Cambodia, "but a decision would be made only if we are satisfied the projects will not damage the environment".

He refused to specify any of the projects.
AFD has financially supported projects such as the Nam Theun II dam project in Phnom Penh, Laos, and renovation of the Siam Reap airports in Cambodia and the Phu My II hydropower project in Vietnam.

The agency is currently looking to finance a 9km railway project in Laos, connecting Tha Na Laeng to the capital city of Vientiane.

AFD experts hope to complete a feasibility study of the US$13million (Bt496 million) to $15 million track by the end of this year and approve the project by the first quarter of next year.

The project, if undertaken, will be phase two of the total 12.5km rail link between Thailand's Nong Khai and Vientiane. Thailand has provided Bt197 million for the first 3.5km sector from Nong Khai across the Mekong River on the Friendship Bridge to Tha Na Laeng.

AFD has plans to support rubber plantation projects in Cambodia and rural development projects in Vietnam. The agency has organised a regional seminar from yesterday until tomorrow for 30 representatives from the public and private sectors in the region to exchange thoughts on financing the project.

Key elements that can determine success and failure of these projects are balancing benefits between private and public sectors. Governments in the region tend to bank too much on private investment, which looks forward to maximising profit, Demey said.

Dealing with development projects in countries falling in the Mekong region is difficult, he said. In Vietnam, financiers need to deal with state identities to complete a project while in Cambodia and Laos, balancing the benefit between the private and public sectors is the key, he added.

Supalak Ganjanakhundee
The Nation

 

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