Thai Polycons, a full-service construction company, has budgeted Bt4.2 billion to Bt4.5 billion to built three power plants in Laos as part of its plan to expand its energy business domestically and abroad.
Company president Chainarong Chanpalangsri told The Nation that its power-plant business under the name TPC Power Holding Company was in the process of expanding its production capacity in Laos.
“We are waiting to make a power purchase agreement with the Laotian government for two of our projects and as soon as the paperwork is done, we will begin the construction work,” he said.
The company has three projects in Laos. A memorandum of understanding has been signed for two of them, in Sainyabuli (Xayaburi) and Phongsaly provinces, and a power purchase agreement is being processed. An MoU is yet to be signed for third project in Oudomxay province.
TPC Power expects to produce at least 80 megawatts of electricity in Laos once construction of the three projects is completed. The construction in Sainyabuli and Phongsaly is expected to start next year.
In Thailand, TPC Power is now producing 9.9MW at its plant in Nakhon Si Thammarat and it has started to generate revenue for the company already, since it has sold Bt190 million worth of electricity, Chainarong said.
As part of the expansion, TPC Power plans to use the money it earns as power producer to build three more plants in Nakhon Sawan, Samut Sakhon, and Nakhon Si Thammarat for the first phase of its plan. Projects in Nakhon Sawan and Samut Sakhon have been approved and were granted a factory establishment licence and the first phase of construction is in progress, while the project in Nakhon Si Thammarat province is still awaiting government approval.
Chainarong estimated the construction cost for Phase 1 at Bt2.1 billion to Bt2.4 billion, depending on land price. He said it should be ready to commercialise by the third quarter next year. All up, the plants in Phase 1, when completed, should be able to produce 40MW of electricity per year, he said.
For the second phase of the company’s production-expansion plan, TPC Power is looking into the possibility of building three more power plants in the South of Thailand.
Apart from expanding its production capacity, TPC Power is preparing to register with the Stock Exchange of Thailand in the second or third quarter.