1. The Internal Meeting of HAPUA Working Group No. 2 Dr. Suthep Chimklai (Project Coordinator) Jakarta, Indonesia 25 February 2009

2. HAPUA Working Group No. 2 Jakarta, Indonesia25 February 2009 Brief of the Previous Meeting Work Undertaken in year 2007/2008 -Progress on 15 ASEAN Interconnection Projects -Action Plan of ASEAN Power Grid (APG) -Updates on Sub-Working Group’s Activities -Operation & Maintenance SWG -System Operations SWG -Planning & Interconnection SWG Other Matters -Progress Propose TOR for WG2 -New HAPUA Country Coordinator – Thailand -Next Meeting

3. Brief of the Previous Meeting

4. HAPUA Working Group No. 2 Jakarta, Indonesia25 February 2009 The 24 th Meeting of the HAPUA Council in Cebu, Philippines on 19 June 2008 Adopted the cancellation of SWG on Transmission Pricing Established System Operation Sub Working Group (SO SWG) under WG2 and lead by Indonesia TOR of WG2 need to be revised to accommodate establishing of System Operation SWG Brief of the Previous Meeting

5. HAPUA Working Group No. 2 Jakarta, Indonesia25 February 2009 The 9 th Meeting of the HAPUA Working Committee in Singapore during 1-2 December 2008 Follow-up Complete report on EMF Mitigation/Management, Blackout Recovery and Right-of-Way (ROW) Remark: All 3 complete reports were already submitted since 31 July 2008 All member countries to submit comments on the draft TOR for SO-SWG and assign representative to 1 st Meeting of SO- SWG. All member countries to submit the request data for AIMS The Committee agreed that the Special HAPUA Working Committee will be conducted in Feb. 2009 to endorse the final draft of the AIMS review and final report to be submitted to the next HAPUA Council The 10 th Meeting of WC and the 25 th Meeting of HAPUA Council will be held in May 2009 in Singapore Brief of the Previous Meeting

6. HAPUA Working Group No. 2 Jakarta, Indonesia25 February 2009 The 3 rd Meeting of APGCC in Singapore, 3 December 2008 Meeting requested HAPUA Secretariat to invite ACE and ASEC representative in future APGCC Meeting Meeting agreed HAPUA Secretariat to clarify with ACE and ASEC on the status EAEF (EC-ASEAN Energy Facility) and BIMP-EAGA (The Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area) Chairman informed that with the endorsement of SOME/AMEM, APGCC would be the ONLY body to undertake the implementation of APG Meeting informed that under the APAEC 2010-2015 i.e. Strategy No. 2; the subject of the ASEAN Fuel Policy and security of supply will be part of the strategy to be implemented. The Meeting took note of the need for WG2 to prepare the proposal to include the Scope of work and Cost on possibility of engaging external consultant to assist WG2 Brief of the Previous Meeting

7. HAPUA Working Group No. 2 Jakarta, Indonesia25 February 2009 The 3 rd Meeting of APGCC in Singapore, 3 December 2008 WG2 to clearly define the two levels of interconnection 1.Interconnection between two countries that will remain to be bilateral. 2.Interconnection that formed the backbone WG 2 role in preparing the common Grid Code of ASEAN Power Grid (Grid Code and Planning Criteria), the Code of Planning and Operation Rules The Committee suggested WG2 look into the existing operating model of the EU or North American as well as GMS model WG2 need to complete all engineering design and viability of the project before it can be tabled as financially viable. Next APGCC Meeting will be conducted back to back with HAPUA Council Meeting tentatively scheduled in June 2009 in Singapore Brief of the Previous Meeting

8. Work Undertaken in year 2007/2008

9. Progress on 15 ASEAN Interconnection Projects

10. Expected COD 1)P.Malaysia - Singapore Existing 2)Thailand - P.Malaysia Sadao - Bukit KeteriExisting Khlong Ngae - GurunExisting Golok - Rantau PanjangNewly Proposed 3)Sarawak - P. Malaysia 2013 4)P.Malaysia - Sumatra 2012 5)Batam - Singapore 2015 6)Sarawak - West Kalimantan 2012 7)Philippines - Sabah2015 8)Sarawak - Sabah - Brunei2015 9)Thailand - Lao PDR Roi Et - Nam Theun 22009 Udon - Nabong2011 Mae Moh - Hong SaUnder Negotiation 10)Lao PDR - Vietnam2010 11)Thailand - Myanmar 2014 12)Vietnam - Cambodia 2009 13)Lao PDR - Cambodia2010 14)Thailand - Cambodia Existing 15)Sabah - East Kalimantan Newly Proposed

11. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 1PENINSULAR MALAYSIA – SINGAPORE (Short term) TNB SPPG Commissioned in 1985. The interconnection is between Plentong 275kV Substation in Johor, Malaysia and Upper Jurong 230kV Substation in Singapore For year 2007, the availability of the interconnection has been at 99.82%.

12. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 2THAILAND – PENINSULAR MALAYSIA a)Sadao -Bukit Keteri (Short term) EGAT TNB The stage I interconnection is now used as a backup interconnection. b)HVDC Links between Khlong Ngae-Gurun (Medium term) The Stage II (HVDC) interconnection project (transfer capability of 300 MW) was completed in September 2001. The HVDC system comprises a 110km DC transmission line capable of transferring 300MW between a 275kV DC converter substation in Gurun, Kedah, Malaysia and a 230kV DC converter substation in Khlong Ngae, Thailand. Meetings have been held to study the upgrading of project from 300MW to 600MW. However based on the preliminary findings of the AIMS, the need to upgrade to 600MW is found to be feasible only in 2024. c)132kV Transmission Line between Golok Th - Rantau Panjang, Kelantan, PM Newly Proposed, The 1 st Meeting between TNB and EGAT is under preparation.

13. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 3SARAWAK – PENINSULAR MALAYSIA (Medium term) SESCo TNB Detailed technical studies are currently being undertaken in view of implementing the HVDC interconnection between Sarawak and Peninsular Malaysia for transferring 1600/2000 MW power from Bakun HEP to the TNB Grid system in Peninsular Malaysia. The 1 st stage of the 800/1000 MW power transfer is targeted for completion in 2013.

14. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 4PENINSULAR MALAYSIA - SUMATRA (Medium term) TNB PLN Detailed feasibility study carried out jointly by TNB and PLN in collaboration with Shaw PTI USA (now Siemens PTI USA). Study completed in December 2005. Results presented to Management of both TNB and PLN in February 2005. TNB and PLN have agreed to further study the financial viability of the project. Technical and financial studies have been done. Awaiting next level decision to steer the project forward. Joint Workshop between PLN, TNB and Japan Bank for International Cooperation (JBIC) held in Kuala Lumpur in September 14, 2006. There is an intention of JBIC to finance the said project. The detail engineering study is completed and seeking for financing support.

15. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 5BATAM - BINTAN - SINGAPORE - JOHOR (Long term) PLN SPPG TNB PLN has conducted a preliminary study on the project and the study result has been extended to both TNB (Malaysia) and Power Grid (Singapore) in the 12th ASEAN Interconnection Meeting for review. The Batam-Singapore interconnection has been identified by AIMS for completion by 2014 (1st Stage) Due to the power market reform in Singapore, the development of this interconnection project would depend on the private sector / third party participation. The detail engineering study is completed and seeking for financing support.

16. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 6SARAWAK – WEST KALIMANTAN (Medium term) SESCo PLN Both PLN and SESCo have completed the Basic Design Studies on the proposed interconnection. Line route survey from the Mambong substation in Sarawak to the interconnection point at the town of Serikin has been completed since the last quarter of 2003. AIMS recommended the interconnection in 2007 with maximum capacity of 300MW as an energy exchange scheme. The project has been studied in detail under the “Trans-Borneo Power Grid Interconnection Study” funded by EAEF. The Study considered an interconnection by the year 2008. Between 250- 350MW of power export by the year 2020 was considered. A follow-up meeting between SESCO-PLN was held in Jakarta in Dec 2004 to discuss the actions necessary to get the groundwork going. A meeting between SESCO and PLN was held in Kuching in Aug 2005 to discuss the further bilateral actions necessary to get the project going. As a result of the Aug 2005 meeting, SESCO developed the terms of reference for a proposed “Control and Operations of the 275kV Sarawak-West Kalimantan Interconnection” study to be jointly carried out. The Special Meeting of Energy Working Group of BIMP-EAGA in November 2006 in Bandung, West Java proposed an action plan for the project. The detail engineering study is completed and seeking for financing support.

17. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 7PHILIPPINES – SABAH (Long term) TRANS CO SESB The result of AIMS final report indicates that the project is technically feasible but not economically viable at 500 MW Transfer capacity. TRANSCO will propose further study with possible funding under EAEF. Under reviewing the project timeline

18. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 8SARAWAK – SABAH –BRUNEI DARUSSALAM a)SARAWAK - SABAH (Short term) SESCo SESB DES Under study by SESB as part of the Bakun - Sabah Interconnection. b)SABAH - BRUNEI DARUSSALAM c)SARAWAK - BRUNEI DARUSSALAM d)SARAWAK - BRUNEI- SABAH (Long term) AIMS recommended the interconnection of the Sarawak – Sabah - Brunei Darussalam systems in 2019 with maximum capacity of 300MW. The project has been studied in detail under the “Trans-Borneo Power Grid Interconnection Implementation Study” funded by EAEF. The Study considered an interconnection by the year 2008. Up to 250MW of power export by the year 2020 was considered. The Special Meeting of Energy Working Group of BIMP-EAGA in November 2006 in Bandung, West Java proposed an action plan for the project.

19. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 9THAILAND - LAO PDR a)Nam Theun 2 (920 MW) EGAT EDL The Power Purchase Agreement (PPA) Between EGAT and the developer of Nam Theun 2 Project was signed on November 8, 2003. The feasibility study of the transmission project on Thai side was submitted for approval from the Thai Government in February 2004. The interconnection project is expected to be completed in April 2009. COD 1 Nov. 2009 b)Udon Thani – Nabong  Nam Ngum 2 (597 MW)  Nam Ngum 3 (615 MW)  Nam Theun 1 (523 MW)  Nam Ngiep 1 (261 MW) COD 1 Mar. 2011 Under Negotiation c)Mae Moh 3 (Nan) - Hong Sa d)Mae Moh 3 (Nan) – Nam Ou Under Negotiation c)Roi Et –Savannakhet (Medium term) No progress. f)Ubol Ratchathani-Ban Sok (Medium Term) Pre-feasibility study completed in 2007 with ADB supports.

20. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 10LAO PDR – VIETNAMEDL EVN MOU has been signed by Vietnam and Lao PDR to carry out these projects. The Master Plan was approved by the Ministry of Industry of Vietnam. a)Ban Sok-Pleiku (Medium term) COD 2014/15 b)Nam Theum 2 - Ha Tinh (Medium term) Pending c)Nam Mo-Ban La (Medium term) Pending d)Xekaman3-Thach My (Medium Term) COD 2009 e)Luong Prabang – Nho Quan (Long Term) The connection is under study now and expected to be completed in 2009

21. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 11THAILAND – MYANMAR a)Hutgyi (7x185 MW) EGAT Feasibility Study completed mid 2007 Under the EIA study COD 2014 b)Tasang Under Negotiation for connecting lower dam (120 MW) to the Northern system of Thailand Under review pending financial support 12VIETNAM - CAMBODIA (Short term) Chau Doc – Phnom Penh EDL EVN Basic Design for Vietnam had been approved by EVN in 2002. EVN is started construction of 220 kV transmission line in mid 2003. The project of Vietnam side is completed in October 2006. The project is under construction and scheduled for commission in 2009

22. Progress on 15 ASEAN Interconnection Projects No.PROJECT DESCRIPTION UTILITIES INVOLVED STATUS 13LAO PDR - CAMBODIA (Short term) EDL EDC MOU already signed in 1999. Preliminary discussion and site visit has been made in 2001 by EDC/EDL. EDL is constructing the 115kV double circuit transmission lines to Ban Hat substation which is 26 km from the border area and will be completed in mid 2005. The PPA was signed in 2007 and COD in 2010. 14THAILAND - CAMBODIA (Short term) EGAT EDC Thailand and Cambodia have reached a conclusion on the revision of tariff structure. Transmission on both sides have been completed and Start energized on 22 November 2007 15Sabah - East KalimantanPLN SESB Newly Proposed

23. Action Plan of ASEAN Power Grid (2008-2015)

24. Activities Tentative Timeline 1.In accordance with the MOU on the APG, the HAPUA Council shall initiate the establishment of the ASEAN Power Grid Consultative Committee (APGCC) 1.1Establishment of the APGCC by the 24 th HAPUA Council Meeting √ By June 2008 √ 1.2Approval of the TOR by special Meeting of HAPUA Council √ By June 2008 √ 1.3Reporting of TOR to SOME/AMEM √ August 2008 in Bangkok, Thailand √

25. Action Plan of ASEAN Power Grid (2008-2015) Activities Tentative Timeline 2.Ratification or acceptance of MOU on ASEAN Power Grid by Member Countries √ By December 2008√ 3.Review the 2003 ASEAN Interconnection Master Plan Study (AIMS) By December 2008 3.1Interim report to be presented at the 9 th HAPUA Working Committee Meeting By December 2008 (Singapore) 4.Adoption of the revised AIMS by the 25th HAPUA Council as an updated reference document for Member Countries in implementing bilateral and/or multilateral power interconnection projects in ASEAN 2008-2015 By May 2009

26. Action Plan of ASEAN Power Grid (2008-2015) Activities Tentative Timeline 5.APGCC to establish task-groups for the following studies as specified in the MOU on the APG (subject to confirmation by APGCC): Subject to comment by Working Group 2, 5 & 6 5.1Harmonization of legal and regulatory framework for bilateral and cross-border power interconnection and trade WG 5 (proposed 2008-2010) 5.2Harmonization of common Technical standards codes or guidelines of the ASEAN Interconnection Projects in the areas of: 5.2.1Planning and Design 5.2.2System Operation 5.2.3Maintenance WG 2 (2008-2010) -PI SWG -SO SWG -O&M SWG

27. Action Plan of ASEAN Power Grid (2008-2015) Activities Tentative Timeline 5.APGCC to establish task-groups for the following studies as specified in the MOU on the APG (subject to confirmation by APGCC): Subject to comment by Working Group 2, 5 and 6 5.3Formulation of institutional and contractual arrangements for cross-border electricity trade to include Taxation, Tariff and Third Party Access (Wheeling Charge) WG 5 (proposed to 2008-2010) WG 2 to assist in third party access Draft TOR completed 5.4Identify and recommend Financing Modalities for realizing the APG WG 6 (proposed to 2008-2010)

28. Action Plan of ASEAN Power Grid (2008-2015) Activities Tentative Timeline 6.Implementation of various bilateral and/or multilateral interconnection projects and reporting of project progress to HAPUA Council and SOME/AMEM 2008-2015 7.HAPUA Council to adopt the key findings and recommendation of the studies carried out by APGCC for submission to SOME/AMEM, with the view to implementing power interconnection and electricity trading in ASEAN By 2014 8.Firm up the institutional and implementing arrangements to realize the ASEAN Power Grid (APG) Starting 2015

29. Updates on Sub-Working Group’s Activities

30. Operation & Maintenance SWG TNB has launched the website for sharing of the benchmarking parameters and the benchmarking guidelines O&M Benchmarking exercise to be concluded in the 4 th Meeting of O&M SWG during 19 th – 20 th August 2008, Selangor, Malaysia The best performer will share the success story with others during the HAPUA Technical Seminar organized by OM SWG tentatively by end of April 2009

31. Updates on Sub-Working Group’s Activities System Operation SWG SO SWG Leader: Indonesia Mr. Nur Pamudji, General Manager of Java Bali Transmission and Control Center email : n.pamudji@pln-jawa-bali.co.id Thailand Representative for SO SWG Mr. Sompol Uthaichalanonta Assistant Director, System Control and Operation Division, Electricity Generating Authority of Thailand 53 Moo 2 Charansanitwong Road, Bang Kruai, Nonthaburi 11130, Thailand Tel. : +66 2436 2102 Fax. :+66 2436 8390 email : sompol.u@egat.co.th

32. Updates on Sub-Working Group’s Activities System Operation SWG TOR for SO SWG Objectives To establish a common reference guide for system operation practices and standards among ASEAN utilities in preparation for the establishment of the ASEAN Power Grid (APG) Functions and Responsibilities To establish a common reference guide for system operation practices and standards among ASEAN utilities To benchmark operation performance among ASEAN utilities To exchange system operations experiences among members for best practices To exchange information on the equipment standard at the point of interconnection To exchange information on computer system performance (hardware and EMS software)

33. Updates on Sub-Working Group’s Activities System Operation SWG TOR for SO SWG Action Plan Organize Power System Operators Workshop annually, every 2 nd Quarter Annual Meeting to monitor and guide the Progress of Deliverables, every 4 th Quarter Milestones 2009.To look at other interconnected utilities guidelines, for example NERC, EU and then determine the relevant references for ASEAN. 2010.To establish the criteria for the benchmarking of SO performance among ASEAN countries 2011.To develop the first draft of common reference guide 2012.To issue the first version of common reference guide for SO practices and standards

34. Updates on Sub-Working Group’s Activities Planning Interconnection SWG ASEAN Interconnection Master Plan Study (AIMS) Objectives To harmonize planning criteria in transmission system planning among ASEAN countries To pursue AIMS and the realization of APG To perform activities (upon its ability) in promoting the power interconnection and trade To identify barriers that would obstruct the implementation of electricity trading in ASEAN countries Study Period: 2008-2025

35. Updates on Sub-Working Group’s Activities Planning Interconnection SWG ASEAN Interconnection Master Plan Study (AIMS) Regional power development plan Objective Function (present value at 2007) Plan without new exchange interconnections 227,476 MUSD Plan with new interconnections 226,244 MUSD save1,232 MUSD or 3,015 MW generating capacity

36. Updates on Sub-Working Group’s Activities Planning Interconnection SWG ASEAN Interconnection Master Plan Study (AIMS) 11 Interconnection Projects : 1.Thailand - Lao PDRHVAC (PP) 5474 MW 2009-2015 2.Thailand - Lao PDR HVAC (EE) 600 MW 2014 3.Thailand - CambodiaHVAC (EE) 300 MW 2014 4.P.Malaysia - Sarawak HVDC (PP) 2000 MW 2014-2015 5.Sabah - Philippines HVDC (EE) 500 MW 2015 6.Sarawak - W. Kalimantan HVAC (EE) 100 MW 2016 7.P.Malaysia - ThailandHVDC (EE) Upgrading to 600 MW 2017 8.P.Malaysia - Sumatra HVDC (EE) 600 MW 2017 9.Thailand - Neighboring CountriesPP 12890 MW2017-2024 10.Lao PDR - Neighboring CountriesPP 260 MW2021-2025 11.Vietnam - Lao PDR*HVAC (PP) 1887 MW2007-2016 (* AIMS-I Study)

37. Other Matters

38. Propose Revised TOR for WG 2 3.Scope of Work for Transmission Working Group 3.2Routine Works during the Year 3.2.8To establish criteria for the benchmarking of system operations performance among ASEAN countries and report annually, in the form of documents 3.2.9Exchange experiences and technology in system control and operation. 3.3Works with Specific Schedule 3.3.2Review/update ASEAN Interconnection Master Plan (AIMS) based on technical and economic point of view at the appropriate time frame. 3.4Sub-working Groups 3.4.2A sub-working group on System Operations will be established for exchanges of information, technology and experiences. The sub-working group will meet on an annual basis.

39. Other Matters New HAPUA Country Coordinator - Thailand Mr. Sahust Pratuknukul Deputy Governor - Policy and Planning Electricity Generating Authority of Thailand 53 Moo 2 Charansanitwong Road, Bang Kruai, Nonthaburi 11130, Thailand Tel.+66 2436 3010 Fax+66 2436 3091 Email:sahust.p@egat.co.th

40. Other Matters Venue: Lao PDR Target Date: March 2009 (to be reconfirmed by Lao PDR) Next Meeting of WG 2