INFRASTRUCTURE
BECL keen on non-toll deals
Expressway operator seeks to diversify into power, water as new sources of long-term income for when concessions end
Bangkok Expressway Plc will continue expanding beyond highways to other types of infrastructure, including power and water-treatment plants, to ensure a steady revenue flow, executive board vice-chairman Supong Chayutsahakij said last week. "We have to find new businesses to stabilise our income after our concessions to operate expressways expire," Supong said. Bangkok Expressway operates two stretches of expressway: the 27.1 kilometre Chalerm Mahanakorn and 38.5km Si Rat expressways. The former connects Bang Na-Trat in east Bangkok to Din Daeng in the city's north and Dao Kanong in the south to Thon Buri. The latter connects upper areas of Bangkok to Rama IX Road. The company has 30-year contracts to operate both sections of highway. The contracts may be renewed twice for a period of 10 years each time. Supong said that the company would continue to invest in infrastructure projects that have long-term potential. Its first investment apart from its highway projects was the purchase of a 12.5-per-cent stake in Southeast Asia Energy Ltd, which has a concession to operate the Nam Ngum II hydropower project in Laos. A contract was signed last month for the dam to provide 615 megawatts of hydropower at Bt1.99 per unit to the Electricity Generating Authority of Thailand from 2013. The Nam Ngum II hydropower project will generate long-term income for the company and an up to 10 per cent return on investment, Supong said. Bangkok Expressway recorded a net profit of Bt413 million in the first quarter on revenues of Bt1.7 billion. Somluck Srimalee The Nation Vientiane
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