By Emma Batha

LONDON, May 8 (Reuters) - A British medical aid agency working in cyclone-devastated Myanmar is converting a luxury cruise ship into a floating hospital to reach survivors in remote areas.

Merlin is taking over the upmarket river cruiser after all its own boats were destroyed in Cyclone Nargis, which slammed into Myanmar at the weekend. Up to 100,000 people are feared dead and 1 million have been left homeless.

The Pandaw IV, which normally takes tourists on sightseeing adventures along the Irrawaddy River, will be used to distribute clean water and medical supplies to survivors in the flooded Irrawaddy delta.

The coastal region was one of the worst affected areas as winds of 190 km (120 miles) per hour hammered the country on Saturday, flattening towns and ripping up roads. Vast areas are under water, making it very difficult for aid agencies to reach people.

The 55-metre river cruiser is due to arrive in the delta town of Laputta on Sunday after picking up supplies near Yangon.

"This boat will be a real life-saver," Merlin's chief executive Carolyn Miller said. "Its shallow draft means Merlin will be able to reach far more people, far more quickly. This is vital, given the risk of disease outbreaks heightens as every day passes."

Rooms off the main deck will be turned into clinics and emergency operation units. The cruiser will also distribute 14 medical emergency kits, each of which provides basic healthcare for 10,000 people for three months.

Merlin's emergency medical response manager Paula Sansom said they expected the death toll from the cyclone to rise sharply.

"Our logistics co-ordinator for the country says it's one of the worst things he has ever seen and he feels the damage and deaths are going to be a lot higher than are currently being predicted," Sansom said in London shortly before flying to Myanmar on Wednesday night.

SECOND WAVE OF DEATHS

But she added that the real picture was still very unclear because Nargis had destroyed communications.

The cyclone damaged Merlin's offices in the Laputta region and wiped out its medical supplies.

"The good thing for us is this boat will enable us to set up a base so we can concentrate on providing aid rather than getting our office up and running again. And it will give us a lot more freedom to reach people," Sansom said.

Sansom said outbreaks of disease, combined with poor nutrition and shelter, could trigger a second wave of deaths in the weeks to come.

Extreme flooding has left many water sources contaminated, increasing the risks of potentially fatal diarrhoeal illnesses. When the floodwaters stop moving the numbers of mosquitoes could rise and the amount of waste strewn around could encourage rats, she added. Poor shelters also put people at risk of respiratory infections.

Myanmar's military junta has been repeatedly criticised for placing tight restrictions on aid agency operations and limiting their movements. But Sansom said that Merlin had not had any difficulty getting visas or moving staff from Yangon to reinforce the team in Laputta.

"At the moment movement has been possible. We have not faced any problems," she said. "Our people are saying that the roads are open and clear so there are no problems there either. I think that's one of the things the government did first."

(Editing by Sanjeev Miglani)

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