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Cogeneration project secures Bt4.77-bn loan

The Nava Nakorn Electricity Generation Co (NNEG), a joint-venture between Ratchaburi Electricity Generating Co, Nava Nakorn, and PTT, has secured a Bt4.77-billion syndicated loan with a 20-and-a-half-year maturity period from Kasikorn Bank, Bank of Ayudhya, and TMB bank.

The loan will enable the company to proceed with the 122-megawatt Nava Nakorn Cogeneration power project.

The project is scheduled to start commercial operations in 2016.

Ratchaburi Electricity Generating Co has a 40-per-cent stake in NNEG and Nava Nakorn and PTT 30 per cent each.

PongdithPotchana, chief executive officer of Ratchaburi Electricity Generating Holding (RATCH), a major shareholder of Ratchaburi Electricity Generating Co, said that the Nava Nakorn Cogeneration power plant would cost Bt6.36 billion. The project has been funded with shareholders' capital of Bt1.59 billion, with RATCH contributing Bt636 million and long-term debt of Bt4.77 billion.

The fund will enable project development and construction as scheduled in the Power Purchase Agreement entered into with Electricity Generating Authority of Thailand (Egat). The funding deal marks a significant milestone for the project and ensures it will be completed for operations to serve the national power grid by June 2016.

"The Nava Nakorn Cogeneration project is in the pre-construction phase after receiving Environment Impact Assessment approval by the Office of Natural Resources and Environment Policy and Planning, which is regarded as a critical step for project development. It is in the process of final design of the power plant's main engines and equipment," Pongdith said.

"The first tranche will likely be withdrawn in June in order to pay for the project construction expected to start in the third quarter. We are confident that the Nava Nakorn Cogeneration project will commercially operate and distribute electricity to Egat, and generate additional income to RATCH from the second half of 2016," Pongdith said.

The Nava Nakorn Cogeneration project, located in Nava Nakorn industrial estate, is operated by NNEG.

Fired by natural gas, the project will generate 90 megawatt power for Egat, according to the 25-year Power Purchase Agreement. The remaining 32-megawatt electricity generation and 15 tonnes of byproduct steam per hour will be supplied directly to manufacturers in the Nava Nakorn Industrial Estate. In addition, the project was granted tax privileges from the Office of the Board of Investment for eight years.

At present, RATCH accounts for total installed capacity of 6,543MW, derived from operating and developing projects both at home and abroad. According to its investment structure, there is 4,834.05MW capacity of independent power producers and small power producers in Thailand, 102.45MW of domestic renewable projects and 1,606.5MW of international projects.


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