The Kingdom’s largest private power-producer is also ready to invest in local projects or alternatively focus on power production with alternative fuels and overseas expansion, depending on whether the Electricity Regulatory Board’s ban on Egat’s subsidiaries joining in bidding along with independent power-producers stays in place.

Ratch managing director Boonchoo Direksathaporn said yesterday that the company this year aimed to explore investment potential in neighbouring countries, including the four projects in Laos. The projects in Laos would require Ratch to put in an initial Bt8 billion.

Ratch expects to sign contracts in a few months for the Nam Nguem 2 and Nam Nguem 3 dams in Laos.

The company will contribute Bt2 billion of the total investment of Bt30 billion for the 615MW Nam Nguem 2 project with completion expected by 2010. Ratch will sell the output to Egat Plc, its parent, at the rate of US$0.05 (Bt2) per unit.

The 460MW Nam Nguem 3 project will require Bt2 billion. The power will be supplied to Egat by 2013. Ratch will hold 25 per cent of the total, with the Laotian government, GMS, and Marubeni of Japan making up the rest.

Ratch expects to conclude the other two Laotian deals before the year end.

It also plans to invest in a hydropower plant in Burma and is conducting a feasibility study to invest in Cambodia for domestic consumption.

Supply and demand have to be thoroughly considered before any decision can be made, Boonchoo said.

Financing would not be a big problem as the company enjoys internal cash flow of Bt4 billion a year, and the board recently gave the nod to issue debentures worth up to Bt7.5 billion, though the company sees no need to sell any bonds this year, he said.

Regulators have yet to clarify whether Egat’s subsidiaries can bid

for power-generation projects if Egat reduces its stake in them to no more than 25 per cent, so Ratch has prepared two options to deal with the future decision, he said. Egat’s holding in Ratch stands at 45 per cent.

In case the regulators allow all power-producers to join the next round of bidding, the company has prepared a site for two power plants with the capacity of 700MW.

Each of the plants should require $600 million. The company is

also open to joining forces with other power-producers in the IPP bidding.

Watcharapong Thongrung

The Nation