Bangkok--18 Dec--Ratchaburi Holding
Today, Ratchaburi Electricity Generating Holding Public Company Limited (The Company) (SET symbol: RATCH) and other project developers of Nam Ngum 3 hydroelectric project consist of MDX Lao Company Limited and Marubeni Corporation have signed and entered into the Memorandum of Understanding (MOU) concerning the power purchasing of Electricity Generating Authority of Thailand (EGAT) from Nam Ngum 3 Power Project in Lao PDR with EGAT at the Government house, having the representative of Lao PDR’s Government as a witness. Nam Ngum 3 hydroelectric project is worth $708 million or 26,900 million baht with a total capacity of 440 megawatts (MW) to supply the electricity to Thailand under a 27-year power purchase agreement. The commercial operation is expected to take place in 2013.
Mr.Narong Sitasuwan Managing Director of Ratchaburi Electricity Generating Holding Public Company Limited said that since April 2005, we signed the first Memorandum of Understanding (MOU) concerning the development of Nam Ngum 3 hydroelectric project with the other developers; MDX Lao Company Limited and Marubeni Corporation. Now, EGAT is agreed on the power tariff rate of Nam ngum 3 project and has already signed and entered into the Memorandum of Understanding (MOU) concerning the power purchasing of Electricity Generating Authority of Thailand (EGAT) with the all project developers.
Now then, we and other developers are discussing the detail of the shareholders Agreement that we plan to invest 25% stake, raising our production capacity by another 110 megawatts. Other shareholders include MDX Lao Company Limited plan to invest 27% stake and Marubeni Corporation plan to invest 25% stake, for another 23% stake will be invested by the Lao PDR’s Government. After that, we can discuss the Power Purchase Agreement (PPA) with EGAT. We believe that we can complete both agreements within next year. The project will be completely constructed within 5-6 years and can be generated power in 2013.
Mr.Narong added that in respect to Nam Ngum 3 hydroelectric project we further invest 2,018 million baht sourced from our company’s operating cash flow in this project on periodical basis. We expect the revenue contribution from the project in 2013.
“Nam Ngum 3 hydroelectric project is one of our investment schemes of producing power abroad and selling back to Thailand according to the our company’s policy besides Nam Ngum 2 hydroelectric project in Lao PDR, and responds to our company’s vision of to be the leading investment company in power generation business in this region with public trustfulness. Both Nam Ngum hydroelectric projects success could lead on benefits to Thailand about bringing low production costs and not fluctuate as much as daily fuel price; enhance non-fuel operating activities; and allocate the risks of reliability on fossil fuels, such as natural gas, oil, and coal, for the power generation in Thailand. “
Ratchaburi Holding’s information
Ratchaburi Electricity Generating Holding Public Company Limited is a leading investment company in power generation business with a total capacity of 3,995 MW, deriving from its investment in many power plant projects both in Thailand and oversea countries. Ratchaburi Holding has a capacity portion by equity own in each projects as follows: The current commercial operating plants are 3,645-MW Ratchaburi’s power plants and 350-MW Tri Energy’s power plants in Ratchaburi province. The ongoing projects are a 350-MW Ratchaburi Power’s power plant in Ratchaburi province, a 1.75-MW power generation from flared gas project in Sukhothai, and a 153.75-MW Nam Ngum 2’s Hydro power plant and a 110-MW Nam Ngum 3’s Hydro power plant in Lao PDR. In 2013, Ratchaburi Holding will have a total production capacity of 4,610.50 MW.
Learn more about Ratchaburi Holding, visit our web site at www.ratch.co.th
Information for media contact:
Mookpim Chulpongstorn / Saowanee Rattanakit
Tel: 0 2978 5223-4 Fax: 0 2937 9541
Public Relation Department of Ratchaburi Electricity Generating Holding PCL.
E-mail: [email protected] , [email protected]