eng homeabout usmekong riversalween rivermun riverthai baan researchpublication
 

Egco seeks deals in Laos and Vietnam: Three power plants to be worth $1.9bn

YUTHANA PRAIWAN
Bangkok Post. 21 February 2008.

Egco Group Plc (Egco), the country's second largest private power
producer, is pursuing investments in three power plants in Laos and
Vietnam worth a total of $1.9 billion. Talks with a Chinese company,
the Vietnamese government and a Laotian state agency are expected to
be concluded this year, Egco president Visit Akaravinak said
yesterday.

He said that acquiring holdings in three power plants in Laos and
Vietnam was in line with a policy to invest more abroad in order to
meet its capacity expansion target of 5% a year.

The company lost an opportunity to expand its domestic power capacity
after failing to secure a new independent power producer (IPP) licence
during bidding late last year.

At the Nam Ou hydropower plant in Laos, Egco is negotiating for a
stake of between 25% and 30% with the project owner, Sino Hydro Co of
China.

Sino Hydro won a licence from the Vientiane government to build and
operate the 1,300-megawatt plant worth $1.6 billion.

Egco has already signed a preliminary agreement with the Chinese
company to acquire shares in the project.

''We will need to seek approval from the executive board for the
investment prior to any discussions with partners,'' Mr Visit said.

In Vietnam, Egco is talking with a prospective local partner to bid
for IPP ventures. It will propose a 200-MW coal-fired plant worth $260
million and a 100-MW hydroelectricity project worth $60 million.
Further details remain to be decided.

Egco has set aside a capital expenditure budget this year of 1.29
billion baht to finance its activities at the 523-MW Nam Theun 1 and
920-MW Nam Theun II plants in Laos, which are joint ventures between
Thai producers and the Electricity Generating Authority of Thailand.

Egco and Gamuda of Malaysia each hold 40% in Nam Theun I and the
Laotian government holds the rest. It is expected to start operating
in 2009.

Egco and the Laotian government each hold 25% in Nam Theun II,
Electricite{aac} de France 35% and the SET-listed contractor Italian-
Thai Development 15%.

Nam Theun II will be completed by 2014 and a power purchasing
agreement (PPA) is expected to be signed soon with Egat.

Locally, Egco will negotiate with the Energy Ministry and Egat to
extend its concessions at the Rayong and Khanom power generating
units, which are due to expire in 2013 and 2014 respectively.

Egat can choose to renew the concession or call new bids open to all
prospective operators.

The two plants currently account for 80% of Egco's total revenue.

Egco reported a consolidated net profit of 8.4 billion baht last year,
up 40% from 2006, driven mainly by additional power capacity from its
BLCP coal-fired plant that became fully operational last year. Egco
holds a 50% stake in the 1,434-MW plant, which generated nearly half
of last year's net profit.

The 50%-owned Kaeng Khoi power plant started to contribute income last
year at around 10% of net profit.

Egco shares closed yesterday on the Stock Exchange of Thailand at
98.50 baht, down 50 satang, in trade worth 145.2 million baht.

 
 

สมาคมแม่น้ำเพื่อชีวิต   138/1 หมู่ 4 ต.สุเทพ อ.เมือง จ.เชียงใหม่   50200
Living River Siam Association  138 Moo 4, Suthep, Muang, Chiang Mai, 50200   Thailand
Tel. & Fax.: (66)-       E-mail : admin@livingriversiam.org

ข้อมูลในเวปนี้สามารถนำไปเผยแพร่ได้โดยอ้างอิงแหล่งที่มา