"Running a power plant and selling electricity to the state is of course a stable business. This should enhance TPI's strength in the long run," Piti Yimprasert, CEO of the country's largest debt-ridden firm, said last week.

TPI holds a sizeable piece of vacant land next to its refinery that was earmarked for the first round of bidding by independent power-producers (IPPs), but TPI failed to win a contract, and it has not been used.

TPI also has a port where coal can be unloaded.

Piti expects that the terms of reference for the second round of IPP bidding will be completed and announced next year.

Since the electricity-generating plant would be located within the refinery compound, it should not face opposition problems. TPI is now studying ways to mitigate the environmental impact.

"The company is confident that it can build a plant at a competitive cost," he said.

TPI has a policy of streamlining its operations. It has set up an asset-management unit to sell off its non-core businesses.

"It will take about a year and a half to complete the divestment," he said, adding that the targeted businesses included petrol stations, its stake in the Chiva-Som spa and resort and land it no longer needed.

TPI may also lay off some redundant workers out of its head count of 8,000.

"I believe that over the next few years TPI overall will gradually get better and regain the trust of investors," he added.

Watcharapong Thongrung

The Nation