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Economy June 27, 2014 00:00

By The Nation

Three engines propel economic growth

It is expected that three economic engines – private consumption, private investment and public spending – are driving the economy at a greater pace, said Fiscal Policy Office director-general Somchai Sajjapong.
Private consumption improved month-on-month in May, reflecting a 2.3 per cent rise in value-added tax at constant prices that rose for the first time in three months. 
The figure was based on a 5 per cent increase in imports that expanded for the first time in 15 months. 
May’s public spending accelerated, with a 13.3 per cent rise in budget disbursement, compared to a 5.6 per cent increase in budget disbursement the previous month.
However, the Manufacturing Production Index contracted 4.1 per cent in May due mainly to shrinkages in automobile, jewellery and food industries. 
AES, EGCO in stake deal 
The AES Corporation has entered into an agreement to sell 45 per cent of its interest in Masin-AES Pte Ltd, its wholly-owned subsidiary to Electricity Generating Plc (EGCO Group) for US$453 million.
The sale includes indirect stakes in the following: the 630 MW Masinloc coal-fired power plant that has been in operation since 1998; expansion of the existing Masinloc facility; and approximately 60 MW of potential energy storage projects in advanced development. 
After the sale, AES will own a 51 per cent net stake in Masinloc, EGCO will own 41 per cent, and the International Finance Corporation will retain 8 per cent. 
MoU for power plant 
Egat International has signed a memorandum of understanding with Vietnam’s Ministry of Industry and Trade to build a 1,200 megawatt coal-fired power plant at the Quang Tri Special Economic Zone in central Vietnam. 
The build-own-transfer project involves a 25-year power purchase contract, scheduled for commissioning in 2021.
Logistics investment 
Tiger Distribution and Logistics Co Ltd, a logistics subsidiary of the Saha Group, will invest more than Bt300 million in local logistics and warehouse facilities within the next three years to serve business expansion.