Thailand: Egco funds 7 new power projects

Thailand: Egco funds 7 new power projects

ELECTRICITy Generating (Egco) Group has budgeted more than Bt30 billion this
year for seven power projects both in Thailand and overseas, according to
company president Chanin Chaonirattisai.

Six of the projects are under construction and scheduled to start commercial
operations between this year and 2019, including three small power producer
(SPPs) projects - Xayaburi in Laos and San Buenaventura and Masinloc Unit 3
in the Philippines.

In addition, share transfers for the Salak and Darajat geothermal power
plants in Indonesia are in progress and expected to be complete this
quarter.

The Bt30-billion investment budget does not include new projects Egco Group
is attempting to acquire or four other overseas projects under development.

Of the four projects under development, two are hydropower projects in Laos
- the Pak Beng project, which is waiting for the Mekong River Commission's
approval, and Nam Thuen 1, which is awaiting the attorney-general's review
of the power purchase agreement.

The third overseas project under development is Units 3 and 4 of the Star
Energy geothermal power plant in Indonesia, which is in the process of
electricity-price negotiation with state-owned power company PLN.

The fourth project is the Quang Tri coal-fired power project in Vietnam, for
which the price of electricity is also under negotiation with the Vietnamese
government.

Chanin said there were potential investment opportunities in Thailand as
well. It sees renewable SPP/VSPP (very small power producer) projects as the
most attractive, as these enjoy private-sector participation as well as
being supported by the government.

The group aims to grow Egco Group's renewable-energy portfolio to 30 per
cent by 2026. The group now has 16 operating renewable-source power plants
with total equity contracted capacity of 751 megawatts, accounting for 18
per cent of the company's total equity contracted capacity.

As of last December, Egco Group was operating 24 power plants with total
equity contracted capacity of 4,122MW in five countries - Thailand, Laos,
the Philippines, Indonesia and Australia. There are six projects under
construction with total equity contracted capacity of 869MW and one project
in the share-transfer process with total equity contracted capacity of
128MW.

Last year the group completed construction of two power projects, which
started commercial operations as scheduled. They were the 930MW Khanom Unit
4 power plant in Nakhon Si Thammarat and the 80MW Chaiyaphum Wind Farm.

The company also invested in three projects overseas last year. These
included the acquisition of 8.05 per cent additional indirect ownership in
Masinloc Power Partners Co in the Philippines, which boosted its share
ownership in Masinloc to 49 per cent.

This year, Egco Group aims for at least 10 per cent return on equity for its
shareholders.

"We still focus on the power business, which is our core expertise, and we
see great opportunities for business expansion, especially in overseas
markets where the company has a strong presence. The Philippines will be our
flagship market, followed by Laos and Indonesia. The company will also seek
investment opportunities in other countries such as Vietnam and Myanmar,"
Chanin said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://www.nationmultimedia.com/news/business/corporate/30307420?utm_source=
feedburner&utm_medium=email&utm_campaign=Feed%3A+Nationmultimediacom-Busines
s+%28NationMultimedia.com+-+Business%29

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com