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Ratch negotiating power-plant joint ventures here and abroad

Ratchaburi Electricity Generating Holding is negotiating for seven joint ventures with independent and small power producers (IPPs and SPPs), renewable-energy projects and related businesses both here and abroad to drive its corporate value to Bt282 billion, the equivalent of 9.7 gigawatts, by 2023.

The projects at home are a co-generation power plant and two refuse-derived-fuel power plants.

The overseas projects are two solar farms in Japan, a gas-fired, combined-cycle power plant in Myanmar and a 230-kilovolt transmission line in Cambodia.

The board of directors has resolved to participate in the seven investment projects and the agreements will be concluded at year-end.

Chief executive officer Pongdith Potchana said yesterday that this year the company would receive more revenue from three power-plant projects - the Tri Energy plant, which was wholly acquired at the beginning of this year, Ratchaburi World Co-generation Unit 1, and the Songkhla biomass plant.

Ratch is negotiating for seven joint-venture projects that would generate corporate growth in terms of installed capacity and revenue.

The projects would also assure its leadership in the power-generating business in Thailand and its competence to penetrate into new markets, such as Japan, Cambodia and Myanmar.

Ratch is also focused on expanding its related businesses, including high-tension transmission lines. Successful negotiation of the project in Cambodia would drive the company to be a Thai energy pioneer that invested in Cambodia and led it to become the integrated energy company in the Asia-Pacific region, as envisaged.

The negotiations for joint-venture businesses with a 100-megawatt SPP co-generation plant in Ratchaburi and two refuse-derived-fuel power plant projects in Nong Khai and Samut Prakan are expected to come to success very soon.

These projects were initiated in response to the National Council for Peace and Order's policy to promote renewable-energy development and the recycling of waste for power generation that will help ensure electricity security.

"It is feasible that Ratch will reach agreement on joint venture solar-power projects in Japan for a total of 39.8MW that will pave the way for other JV projects in that country.

"The project in Myanmar is also one of our major investment targets," Pongdith said.

The company is qualified to submit a final proposal for bidding on a 200MW gas-fired, combined-cycle power plant in Mandalay and the result will be revealed in October, he said.

In the first half of this year, Ratch netted Bt4.2 billion, equivalent to earnings per share of Bt2.91. Revenue amounted to Bt27.02 billion, of which sales and service revenue was Bt21.6 billion. Revenue from profit shared with jointly controlled entities was Bt690.62 million.

Interest income was Bt120.22 million and dividend income Bt145.66 million.

At the end of the first half, Ratch's assets had reached Bt98 billion and retained earnings Bt45.58 billion.


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