Power plans seek funds [in Indo-China]

A conference in Vietnam on the Power Sector in Indochina and Myanmar in September 1995 is reported. The current power scenario in Vietnam and future government hopes and plans were outlined. In 1994 Vietnam had a total installed capacity of 4470 MW, of which 63% was hydropower. By 2010 it is hoped to increase total capacity to 18,000 MW with the hydropower contribution reduced to 50%. It is hoped to attract the US$20bn required to finance this development from investment by international organizations and private operators. However, problems exist in the form of uncertainties in Vietnamese law with respect to foreign investment and Vietnam's non-convertible currency. Vietnam is keen to attract hard currency but reluctant to let it out of the country as foreign companies would wish to do with their profits. Myanmar has been further to go than Vietnam in developing its huge hydropower resources to meet growing demand for electric power. About 40% of the country's peak demand of 550 MW is generated by hydropower but this represents only 1% of the total hydropower resource. Demand is expected to rise to 1500 MW by 2000. Again foreign investment is being sought. As in Vietnam, though, the question of an inconvertible currency arises. In addition, the subsidised low tariff in Myanmar promises only a low rate of return and the country is fighting high inflation. (U.K.)