RETA 6440 - Facilitating Regional Power Trading and Environmentally Sustainable Development of Electricity Infrastructure in the Greater Mekong

Subregion
THE INTER-GOVERNMENTAL MEMORANDUM OF UNDERSTANDING (DRAFT)

RATIONALE FOR KEY REVISIONS OF THE MOU

12th Meeting of the RPTCC Bangkok, Thailand, 28-29 March 2012
Prepared by: Michel CAUBET

RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

RATIONALE FOR KEY REVISIONS OF THE MOU RATIONALE

To achieve the best results expected, the Regional Power Coordination Centre (RPCC) shall operate without any interference from the Member Countries. It shall be an Independent Legal Entity, i.e. it shall have privileges and immunities as other international organization. To ensure privileges and immunities for the RPCC, the MOU shall be signed by the highest Authorities, i.e. signed by the Representatives of the GMS Governments. Therefore, the Inter-Utility MOU is changed in an Inter-Governmental MOU with some significant changes.

RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

RATIONALE FOR KEY REVISIONS OF THE MOU

Some of the significant changes to shift from Inter-Utility MOU to InterGovernmental MOU: The Preamble:

Necessity to define the Signatories to the IG-MOU and the objective of the GMS Governments.
Necessity to recall and highlight the commitment of the GMS Countries in developing the regional power trade (their previous commitment IGA, MOU-1 and MOU-2). Necessity to develop a regional power trade organization, to recall its objectives and to indicate that the GMS Governments are convinced that there is a need to establish a regional institution that shall perform its activities in collaboration with the TSOs, Power Authorities and National Power Utilities, as basis for the establishment of the RPCC.

RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

RATIONALE FOR KEY REVISIONS OF THE MOU

The Articles: Creation of new Article 1: Establishment of RPCC, defining the objective of the IG-MOU, i.e. establishment of the RPCC with its Board and Technical Groups as regional power trade institution, by the GMS Governments. New Article 2: Principles and Objectives. Here the subject is related to principles and objectives of the RPCC as regional institution. New Article 3: Hierarchy of the documents governing the RPCC. Replacement of the IU-MOU by IG-MOU; change in the precedence order: IG-MOU arrives before the Guidelines for the RPTCC and MOU-1 & 2 because the IG-MOU defines in details the nature, role and responsibilities of the RPCC with its Board and Technical Groups. New Article 4: Definitions. Insertion of additional definitions such as: Annexes, Board of RPCC, Contracting Parties, Host State, IGMOU, and Member States.

RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

RATIONALE FOR KEY REVISIONS OF THE MOU

The Articles: New Article 5: RPCC Membership. Here it is important to mention that the members of the RPCC are not the GMS Member Countries but the TSOs, Power Authorities and National Power Utilities of the GMS Countries, performing the functions of a TSO. The current list of the Members is attached as Annex 1 of the IG-MOU. New Article 10: Board of RPCC. The RPCC shall have a board, whose members are defined in Article 5 (TSOs) and are different than the Signatories of the IG-MOU. New Articles 11, 12, 13 and 14: Technical Groups. It is necessary to establish Technical Groups as part of the regional organization. They are established by the Board of RPCC. New Article 15: RPCC. Highlight of the role and responsibility of the Executive Director as legal representative of the RPCC. Insertion of a paragraph defining the privileges and immunities that the GMS Member States shall accord to the Executive Director and the Staff of RPCC. The Headquarters agreement shall specify the privileges and immunities to be enjoyed by the RPCC.
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RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

RATIONALE FOR KEY REVISIONS OF THE MOU

The Articles: Replacement of old Article 19: Amendments by new Article 21: Review and Amendments. The GMS Governments are the only ones who have the authority to amend the IG-MOU. Cancellation of old Article 20: Assignment. No need for the IGMOU. Article 24: Signatories. Now the signatories are the Representatives of the GMS Governments. The Annex 1: New Annex 1: List of the Electricity Entities, Members of the RPCC. Necessity to identify clearly who are the Members of the RPCC at the date of signature of the IG-MOU.

RETA 6440 / GMS Regional Power Trading and Environmentally Sustainable Development

THANK YOU VERY MUCH FOR YOUR ATTENTION