Narong Sitasuwan, newly appointed managing director of Ratch, said yesterday that as Egat was not now to be privatised and listed on the Stock Exchange of Thailand it could face difficulty raising funds to finance new investment projects.

"If Egat opts to borrow to finance new plants, public debt could escalate, which could worry the Finance Ministry. The investment through Ratch, which is 45-per-cent owned by Egat, would be a possible option. This would not increase public debt," Narong said, adding that he would be discussing the option with the parent company soon.

Under the original investment plan, new power generation, totalling 13,000 megawatts, is scheduled to come on stream between 2011 and 2015.

Half of the investment for the new capacity is to come from Egat while the remainder will be put up for auction in which private companies will be invited to join.

Narong said that Ratchaburi would be happy to invest in either sector.

While the authorities are revising down new power demand in line with economic-growth forecasts, Ratchaburi is waiting for the final figures to find out which way to go.

"We believe that if Egat opts to invest through its units, Ratchaburi would be the first choice, rather than Electricity Generating Plc, of which it owns only 25 per cent.

But the slice given to Ratchaburi will be decided by Egat," he said.

Narong, who succeeded Boonchoo Direksathapon, whose term recently expired, said that during his period in office the company's business policies would not be changed.

Aside from seeking to invest in new plants, Ratchaburi is looking for opportunities to take 25- to 30-per-cent stakes in existing power plants, as well as in hydropower plants in neibouring Laos.

Ratchaburi has production capacity of 4,500 megawatts.

Watcharapong Thongrung

The Nation