Greater Mekong Subregion

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GMS Sector Activities
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GMS Countries Chart Concrete Work Plan for Developing Cross-Border Power Trade in the Subregion (Guangzhou, PRC, 18-19 November 2003)

The Ninth Meeting of the Experts Group on Power Interconnection and Trade (EGP-9) and the 10th meeting of the Subregional Electric Power Forum (EPF-10), were held in Guangzhou, PRC on18-19 November 2003. These back-to-back energy meetings were held to discuss the progress of GMS countries in preparing their power systems for cross-border power transactions and to chart the work plan for accelerating the development of the policy and institutional framework for regional power trade. The meetings were co-hosted by China Southern Power Grid Co. (CSG) of the PRC, the ADB and the World Bank.

The EGP-9 meeting took stock of the power sector policy reforms and institutional restructuring in the GMS countries, and promoted better understanding of long term sector investment plans, financing needs and power tariffs as these relate to cross border transactions. The EPF-10 meeting meanwhile, held a session on the Regional Power Trade Coordination Committee (RPTCC) to follow up on the nomination of RPTCC members and the ratification by GMS countries of the Inter-Governmental Agreement on Regional Power Trade (IGA). The RPTCC will supervise the formulation of the Regional Power Trade Operating Agreement (PTOA), which will harmonize rules for technical coordination, cross-border pricing and institutional arrangements for power trade; the PTOA will be formulated under an ADB-funded technical assistance study. The energy meetings showed the commitment of the GMS countries to move forward in developing the regional power market, and reiterated the commitment of both the ADB and World Bank to support both hard and soft aspects of GMS power market development. It was announced that the next meeting would be held in Thailand.

For more details, please view entire proceedings of EGP-9 and EPF-10.

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GMS Countries Prepare for the Next Steps to Further Advance Regional Power Trade (Yangon, Myanmar, 10-11 October 2002)

Back-to-back energy meetings were held in Yangon, Myanmar on 10-11 October 2002, to prepare the next steps to further advance regional power trade in the GMS, after the expected signing of the Inter-Governmental Agreement on Regional Power Trade in the GMS (IGA) during the GMS Summit on 3 November 2002. The meetings, the 8th for the Experts Group on Power Interconnection and Trade (EGP-8) and the 9th for the Subregional Electric Power Forum (EPF-9), were co-hosted by the Ministry of Electric Power (MOEP) of the Government of Myanmar, and the ADB.

The EGP-8 meeting reviewed, and subsequently adopted, the guidelines for the establishment of the Regional Power Trade Coordination Committee (RPTCC). Under the RPTCC guidelines adopted by the EGP-8 meeting, the EPF would act as the RPTCC until a more formal set-up is agreed upon entry into force of the IGA. The role of the RPTCC is critical, being the regional body that will eventually coordinate preparation of the study on the Regional Power Trade Operating Agreement (PTOA). The PTOA is expected to provide the operational guidance for the conduct of GMS power trade. The proposed PTOA study was well received by GMS members, who all agreed on the composition of the Steering Committee, country coordinators (from which PTOA Project Manager would be elected), team of counterpart staff and the advisory panel. The EGP-8 meeting also took note of the progress of power sector development in the GMS countries, which would contribute to enabling conditions for future GMS power trade.

The EPF-9 meeting meanwhile, discussed the progress towards the signing of the IGA and the EPF was requested to help expedite the IGA ratification process by GMS members. Also during EPF, the World Bank team presented the study for options in GMS future power market, focusing on the experiences and lessons from the South American power market. The World Bank team then scheduled consultation missions in each GMS country to determine the readiness of GMS members for regional power trade. They were aided by disseminating a questionnaire to collect the needed information on GMS members' power sector characteristics.

For more details, please view entire proceedings of EGP-8 and EPF-9.

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GMS Countries Close to Finalizing Both the Master Plan on Power Interconnection and the Agreement on Power Trade (Chiang, Mai, Thailand 29-30 May 2002)

GMS energy experts and officials met in Chiang Mai, Thailand on 29-30 May 2002, to undertake the second review of the draft Final Report of the study on the Regional Indicative Master Plan on Power Interconnection in the GMS (the "Master Plan"). This was the seventh meeting of the Experts Group on Power Interconnection and Trade (EGP-7), and co-hosted by the National Energy Policy Office (NEPO) of Thailand and the ADB. The meeting enabled the GMS countries to move closer to the final form of the Master Plan with a consensus on the most realistic least cost generation and transmission scenario for the subregion. The EGP further discussed and agreed on future next steps for the Master Plan, including its updating, disclosure, and possible funding for transmission interconnection sections identified in the Final Report.

Moreover, the GMS energy experts and officials provided updates on their respective Governments' actions to prepare for the signing of the Inter-Governmental Agreement on Regional Power Trade (IGA). The signing of the IGA, tentatively scheduled during the 11th GMS Ministerial Conference in Phnom Penh in September 2002, has since been moved to the GMS Summit of Leaders on 3 November 2002. The IGA, which was being developed with the support of the World Bank, would provide the overall framework and coordination mechanisms to promote, and maximize benefits from power trade in the subregion. Some GMS countries have indicated their readiness to sign the IGA, while the others indicated some progress later, but all GMS members indicated they still needed cabinet-level approval for the IGA.

The EGP-7 meeting also tackled the initial draft guidelines for the establishment of the Regional Power Trade Coordinating Committee (RPTCC), the high level body identified in the IGA, to actively coordinate the implementation of regional power trade. It also discussed the initial components of the study for the Regional Power Trade Operating Agreement (PTOA), such as technical coordination and institutional framework. This will be synchronized with the World Bank's study on options for the power market structure. To provide more useful perspectives for power trade, representatives of the power industry and donor community presented on existing arrangements for power interconnection and trade.

For more details, please view entire proceedings.

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GMS Energy Officials and Experts Hold Back-to-back Meetings in Hanoi, Viet Nam to Review Power Interconnection Plans and to Finalize Power Trade Arrangements in the GMS (December 2001)

Energy experts and officials from the six countries comprising the Greater Mekong Subregion (GMS) met in Hanoi, Viet Nam from 13 to 19 December for the back-to-back energy meetings under the GMS program. The meetings, namely, the Sixth Meeting of the Experts Group on Power Interconnection and Trade (EGP-6), and the Eighth Meeting of the Subregional Electric Power Forum (EPF-8), were jointly organized by the Ministry of Industry of the Socialist Republic of Viet Nam (SRV) and the Asian Development Bank (ADB).

The EGP-6 meeting reviewed the Draft Final Report of the Study on the Regional Indicative Master Plan on Power Interconnection in the GMS (the "Master Plan Study), which was undertaken to harmonize the subregion's transmission planning and operational practices to promote power trade. The EGP-6 agreed that after consideration of comments, which mainly concerned power demand/ supply options, transmission development scenarios, institutional/ regulatory issues, and financing, the Master Plan Study would be finalized in the EGP-7 meeting in mid-2002 in Bangkok. The EGP-6 meeting also reviewed and finalized the revised work plan for 2002-2005, which was generally in relation to implementation of the GMS Policy Statement on Regional Power Trade ("Policy Statement"). Since the GMS Ministers endorsed the Policy Statement during the 9th Ministerial Conference (Manila, January 2000), the EGP has spearheaded the conduct of workshops to facilitate power interconnection and trade with the assistance of the World Bank. Two workshops have already been held, which dealt with the institutional, regulatory and commercial aspects of power interconnection. The third workshop, on financing issues, was held in the same venue right after the EGP-6 and EPF-8 meetings, from 17 to 19 December 2001.

For EPF-8, each GMS country presented developments in their power sector policies and generation and transmission programs, which enabled each country to check on the consistency of their power development plans, with the plans for subregional power interconnection and trade. The EPF meeting also undertook a thorough review of the Inter-Government Agreement on Power Trade (IGA-PT). The IGA-PT, which was being developed with the support of the World Bank, would provide the overall framework and coordination mechanisms to promote, and maximize benefits from power trade in the subregion. After arriving at a consensus on the proposed changes, the EPF-8 meeting adopted the draft IGA and submitted it for signing in the 11th GMS Ministerial Conference in 2002.

For the entire proceedings, email: gms@adb.org

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GMS energy experts meet to review findings of the ongoing Study on the Regional Indicative Master Plan for GMS Power Interconnection, and to finalize the draft of the Inter- Governmental Agreement on Power Trade (June 2001)

The fifth Meeting of the Experts Group on Power Interconnection and Trade (EGP-5) was held in Kunming, Yunnan Province, People's Republic of China (PRC) from 19 to 21 June 2001. The EGP-5 meeting was held primarily to review the Interim Report of the Regional Indicative Master Plan Study for GMS Power Interconnection and provide further directions for the study, particularly on the assessments of the long-term demand and its supply options for the Master Plan. It will be recalled that the study is being undertaken to prepare the subregional transmission master plan and harmonize transmission planning, design and operational practices to promote subregional power trade. More specifically, the Master Plan Study includes assessment of GMS power demand and generation and transmission plans, updating of power interconnections based on revised forecasts, formulating an indicative master plan, and identifying the institutional and regulatory issues for implementation.

During the first two days of EGP-5 meeting, the consultants, M/s Norconsult of Norway, presented findings of the Interim Report of the Master Plan, which included the demand and supply options, potential interconnection candidates, technical coordination requirements, and institutional and regulatory aspects. In each of these presentations, the GMS delegates and members of the Advisory Panel provided numerous substantive comments and additional information that were not covered by the Interim Report. The discussions also provided opportunities for both consultants and GMS delegates to agree on steps to facilitate the completion of the Master Plan Study. Also, the GMS delegates submitted proposals for updating work plan of the EGP during 2002 - 2004 and it was agreed to solicit more proposals from the GMS members focusing on the power sector activities with regional/ cross-border themes.

The later part of the EGP-5 meeting was devoted to the review of the 4th draft of the Inter-Governmental Agreement on Power Trade in the GMS (IGA-PT) under the agreed Policy Statement at 1999. The IGA-PT, which is being developed with the support of the World Bank, will provide the overall framework and coordination mechanisms to promote power trade in the subregion that would maximize the benefits from subregional power interconnection and trade. It was agreed that the draft IGA-PT would be submitted to the forthcoming Subregional Electric Power Forum (EPF) in November-or December 2001 for the endorsement at the GMS Ministerial Meeting in 2002.

For the entire proceedings, email: gms@adb.org

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