Published on January 18, 2006

The privatisation ambitions of Egat Plc seem likely to be postponed further as the Consumers Protection Foundation has asked the Supreme Administrative Court to grant it an extension in submitting documentation supporting its opposition to the plan.

Pichai Chulapongsathorn, senior vice president of Egat, said the non-governmental organisation had requested that the court extend its submission deadline from January 9 to January 31, after which the court would consider the foundation’s points and ask Egat to respond within 15 days.

“So, we expect the documentation process to be completed in February,” he said.

The court is then expected to consider the case in March and April.

Pichai said if a ruling were made in favour of Egat, its initial public offering (IPO) could be reinstated, in accordance with its original plan.

However, the pricing of the IPO would have to be reconsidered by financial advisers, taking into account stock-market conditions at the time, he added.

Egat was slated to list in the local stock market last November, but its Bt40-billion IPO was suspended at the last minute after the court ordered the privatisation plan to be put on hold following a petition received from the consumer-activist group.

The Consumers Protection Foundation opposes the listing, because itsays the privatisation of Egat is against the public interest.

Nevertheless, to prepare for its stock-market listing, the Egat board at its meeting on January 27 is scheduled to appoint Chawal Thuengsaeng, a commercial co-financing officer for the Asian Development Bank, as its chief financial officer.

He will succeed Boonchoo Direksathaporn, who returned to Ratchaburi Electricity Generating Holding as managing director yesterday. Boonchoo had been seconded to Egat to prepare for the listing, but it is now unclear when it will finally take place.

Pichai said Chawal would assume the CFO post at Egat from February 1 or March 1 under a four-year contract.

Pichai insisted yesterday that if Egat’s IPO could not take place this year, it would not affect the agency’s investment plan, because it has enough retained earnings to fund expansion.

Meanwhile, Ratchaburi Electricity Generating Holding announced yesterday that its board had approved an agreement to purchase gas from PTT-Siam Exploration and Production Co Ltd and PTT Exploration and Production.

Under the agreement, Ratchaburi will be supplied with 400,000 cubic feet (11,327 cubic metres) of natural gas per day from the Pradotao Field for a starting base price of Bt26.65 per million British thermal units.

The gas will be used at the 2-megawatt power plant in Sukhothai, which will begin producing electricity at the end of this year and should generate Bt23.5 million in annual revenue.

Energy Reporters

The Nation

Post your comment to this story here