Electricity Expansion of Power Business
Egco eyes 15-30% stake in Laotian power plant concessions
Bangkok Post, Wednesday, 25 August, 2004
Yuthana Praiwan
Electricity Generating Plc (Egco) is set to expand its power generation concerns in Laos by acquiring a 15-30% stake in hydroelectric concessions awarded to the private sector by the Vientiane government, according to Egco president Chalermchai Ratanarak.
Thailand signed a deal with Laos 10 years ago in which the Electricity Generating Authority of Thailand (Egat) agreed to buy power from six major generating projects proposed by Vientiane with a combined capacity of 3,000 megawatts.
The projects scheduled to come online in 2006 are Nam Ngum 2 (553 megawatts) and Nam Ngum 3 (430 MW). Due in 2008 are Hongsa Lignite (608 MW), Xe Pien-Xe Nam Noy (365 MW), and Xe Kaman (about 400 MW). Nam Theun 2 (600 MW), to be completed in 2009, is already 25% owned by Egco, a company spun of by Egat.
Once all the above plants are operational, total sales of power to Thailand will reach 3,000 MW, a level in line with the agreement reached a decade ago between the two countries.
Egco planned to secure stakes of 15-30% in each project in Laos , Mr. Chalermchai said.
The move would allow Egco, which has only two new power projects in the works, an opportunity to expand its capacity. They are the 1,400 MW Kaeng Khoi power plant in Saraburi, to be completed in 2008, and Nam Theun 2. He added Egco would not wait for the upcoming round of power contract bids for 2011 and beyond to expand its new capacity.
Egco shares closed yesterday on the Stock Exchange of Thailand at 70 baht, up 50 satang, in trade worth 22.8 million baht.
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