Title: Evaluating the implementation of EGAT International's corporate social responsibility policy for the Hat Gyi Dam project on the Salween River, Myanmar
Author: Nang Shinning
Year: 2011
Keywords: CORPORATE SOCIAL RESPONSIBILITY, EGATi, HAT GYI DAM, SALWEEN RIVER, TRANS-BOUNDARY PROJECT
Theme: Social Welfare
Advisor(s): Carl Nigel Middleton advisor
The full thesis available here.
Abstract: Rising electricity demand in Thailand is a key driving force for building new power projects in Thailand, as well as importing electricity from neighboring countries. One of the proposed projects in Thailand's 2010-2030 Power Development Plan is the Hat Gyi Dam, which is located on the mainstream Salween River near the Thailand-Myanmar border in Karen State, Myanmar.The Salween River is approximately 2,400 km long and is regarded as the longest free-flowing international river in Southeast Asia, originating on the Tibetan Plateau and flowing through China, Thailand and Myanmar. The Hat Gyi Dam project is a joint venture cooperation between EGAT International (EGATi), Sinohydro Corporation, the Department of Hydroelectric Power Plan (DHPP) of Myanmar government, and a local Myanmar private investor named International Group of Entrepreneur Company. As EGATi is a major shareholder, this thesis seeks to assess how EGATi has implemented its Corporate Social Responsibility (CSR) policy during planning of the project to date. The thesis main research question is “Has EGATi implemented its Corporate Social Responsibility and Corporate Governance policies for communities in Thailand in preparing the proposed Hat Gyi Dam project on the Salween River, Karen State, Myanmar”? Qualitative research methods have been applied in this study through a combination of in-depth interviews with villagers, semi-structured interviews with key informants and secondary database research. The research sites are the potentially affected communities living along the Salween River on the Thai side, namely Ban Mae Sam Laep, Ban Tha Ta Fang, and Ban Sob Moei, Mae Hong Son Province. EGATi CSR policy has three key components: Public Participation and Information Disclosure; Social Responsibility; and Environmental Responsibility.Regarding “Public Participation and Information Disclosure”, the findings reveal that EGATi has not disclosed complete project information in a timely, accurate, sufficient and transparent manner; For example, the project's Environmental Impact Assessment (EIA) report for the Myanmar side, completed in 2008, has not been made available to the public. Also, EGATi has yet to form a Tripartite Committee and has only weakly encouraged the communities and wider public to participate in its activities. Regarding “Social Responsibility,” EGATi has failed to build mutual understanding and trust with the communities. Regarding “Environmental Responsibility”, whilst EGAT has conducted an EIA report, it does not cover the scope of the entire potentially impacted areas in Myanmar and Thailand. Thai civil society have called on EGATi to conduct a new EIA which covers the entire scope of affected area, although a government subcommittee subsequently required EGATi to only undertake an Environmental Assessment that is not equivalent to Thailand's full-EIA legal standards.This legal ambiguity allows EGATi to claim that it has followed its CSR policy on Environmental Responsibility. While EGATi's CSR is ultimately voluntary, this thesis argues that EGATi has not followed its CSR policy in the case of the Hat Gyi Dam for a number of reasons, including because of the ambiguous laws for the trans-boundary project and its failure to gain the trust and cooperation of the local communities. In turn, communities oppose the Hat Gyi dam due to the value that the communities place on their livelihood and environment, their concerns with regard to their legal status as non-Thai citizens, the influential role of NGOs in the communities, and the strong belief of the communities that the Myanmar government supports the dam so as to clear ethnic groups from the area. The increasing demand for electricity in Thailand is a major driving force behind the creation of new energy projects, as well as the import of electricity from neighboring countries. One such project proposed in the Thailand Energy Development Plan (2010-2030) is the Hatgyi Dam, located on the Salween River near the Thai-Myanmar border in Kayin State, Myanmar. The Salween River is approximately 2,400 kilometers long and is the longest free-flowing river in Southeast Asia. It originates in the Tibetan Plateau and flows through China, Thailand, and Myanmar. The Hatgyi Dam project is a joint venture between the Electricity Generating Authority of Thailand International (EGAT International), Sinohydro Corporation, the Department of Hydroelectric Power Plan of Myanmar, and a local Myanmar private investor, the International Group of Entrepreneur Company. As EGAT International is the major shareholder, this research examines EGAT International's corporate social responsibility (CSR) policies during the project's planning phase and up to the present. The main question of this research is: “Did EGAT International implement its corporate social responsibility and governance policies towards communities in Thailand during the preparation phase of the proposed Hatgyi Dam project on the Salween River in Kayin State, Myanmar?” Qualitative research methods were employed, including in-depth interviews with villagers, semi-structured interviews with key informants, and research from secondary data. The research area comprised communities residing along the Salween River on the Thai side that are expected to be affected, namely Ban Mae Sam Laep, Ban Tha Ta Fang, and Ban Sop Moei, Mae Hong Son Province. EGAT International's Corporate Social Responsibility (CSR) policy comprises three components: public participation and disclosure, social responsibility, and environmental responsibility. Regarding “public participation and disclosure,” findings indicate that EGAT International failed to disclose project information fully and promptly, in a manner that was accurate, sufficient, and transparent. For example, the Environmental Impact Assessment (EIA) report on the Myanmar side was completed in 2008 but has not been publicly disclosed. Furthermore, EGAT International failed to establish a tripartite joint committee, merely providing minimal support for community and public participation in EGAT International's activities. Concerning “social responsibility,” EGAT International also failed to build understanding and trust with various communities. Regarding “environmental responsibility,” while EGAT prepared an EIA report, it did not comprehensively cover the anticipated impact areas in both Myanmar and Thailand. Thai civil society groups have demanded that EGAT International prepare a new EIA report that fully covers the entire impact area. However, a government subcommittee only requested that EGAT be held accountable for the substandard EIA report that did not meet Thai environmental impact assessment standards. Legal ambiguities have led EGAT International to claim that it has implemented its corporate social responsibility (CSR) policy regarding environmental responsibility, while EGAT International's CSR is largely voluntary. This research argues that EGAT International failed to comply with its CSR policy in the case of the Hatgyi Dam for several reasons, including the ambiguity of various laws regarding transboundary development projects and EGAT's failure to gain the trust and cooperation of local communities. Conversely, the communities opposed the Hatgyi Dam because they value their way of life and the environment. Their concerns relate to the status of non-Thai citizens, the role of influential NGOs in the communities, and the communities' strong belief that the Burmese government's support of the dam constitutes the displacement of ethnic groups from the area.
