Subject: research reactor
The Nation

Questions linger on reactor construction

   Kamol Sukin interviews Kriengsak Bhadrakom, secretary-general of the Office of Atomic Energy for Peace (OAEP), about the Canadian prime minister's visit to Thailand and the ongoing controversy surrounding his agency's construction of a research reactor.
   Science Minister Yingphan Manasikarn said Canada's Prime Minister Jean Chretien had asked why a
Canadian company, AECL, was not short-listed as a potential builder of Thailand's research reactor.

   What kind of information did you prepare for Yingphan on this issue?

   I don't think the Canadian government still questions the research reactor bid. Canada has known about
it since last April when we chose the US-based company General Atomics (GA). The company took back its  Bt150 million bank guarantee and the government accepted our rejection and never complained to the
OAEP about our decision.

   Discussions between Thailand and Canada should be about a future nuclear power plant, rather than
about past problems which have been cleared up. Possible topics for talks about nuclear power plants
include further studies for the project. We can talk about cooperation and support [for studying a
nuclear power plant project] from Canada to Thailand.

   In fact, the Ministry of Foreign Affairs suggested raising the issue of working with Canada on a joint
   nuclear power plant project at a meeting last year. But we decided that we're still not ready to start
   the project.

   What condition made GA win over Canada's AECL and the other companies?

   First, AECL wanted to limit the fine for any delay caused by the company to not more than five per
   cent of the contract price, but [Thailand] wanted it to be unlimited.

    Normally, the compensation a company must pay is set at 0.1 per cent of the contract price per day. Second, AECL wanted to limit the potential compensation for any damage to the project, while we
wanted them to pay the full, real cost of any damage which occurred.

   There were seven companies out of the original 11 which passed the pre-qualification selection
   process. Later, Japan withdrew, maybe because they believed they could not win the contract as their
   bid was too high.

   GA was one of three companies which said they would take responsibility for all pre-operation damages,
   while Canada's AECL, and the companies from France and Germany refused and rejected the terms. The other two companies which were selected at this stage were from China and Argentina.

   What is the exact cost of the reactor and how much higher is it from the original proposal approved by
   the Cabinet in 1993?

   The current cost, which is awaiting Cabinet approval, is about Bt3.3 billion. But I cannot tell you
   the first proposed cost that was approved in 1993.

   Why do you need to seek Cabinet approval again?

   The best I can say is that the contract with GA is higher than the proposed project cost already approved by the Cabinet. Let's say the former cost was between Bt2 million to Bt3 billion.

   What is the next step for the nuclear power plant project?

   We first scheduled a meeting of the national committee which was established to conduct the feasibility study for the nuclear power plant project. But the committee was abolished following the end of the Banharn government. We were informed about the abolition in December and I've submitted [a request] to the Chavalit government to re-establish the committee.

    All the proposed members are the same [as previously].
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