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Published on February 21, 2008

President Visit Akravinak said the company failed in bidding for independent-power-producer (IPP) contracts last year and this would affect results in three to six years' time.

"If we want to keep revenue growth at 7 to 10 per cent, according to our operation plan, we must increase our production capacity by an average of 300 to 400 megawatts per year. However, there are no new projects to produce electricity in the period from 2010 to 2013, so the company must seek investment opportunities in neighbouring countries as well as in the domestic market," he said.

At present, Egco is talking with two or three local companies with production capacities of 40 to 50MW as well as several hydropower firms in Laos in a bid to buy shares. It also plans to bid for an IPP contract in Vietnam involving a 200MW plant, extend its investment in the Philippines through its joint venture Conal and seek power-plant investment opportunities in Indonesia, Visit said.

Egco is also negotiating with the Electricity Generating Authority of Thailand to extend power contracts involving its Rayong and Khanom plants.

In a worst-case scenario in which it is unable to pursue any of its plans, Egco's revenue from 2010 to 2013 will not grow, Visit said. However, sales and profit might not drop significantly because it can still generate revenue from its BLCP  plant.

Watcharapong  Thongrung

 The Nation