Coal/Lignite & PowerGen

[GWR]

Ratchaburi in talks with China for investment in Lao power plant

YUTHANA PRAIWAN

Ratchaburi Electricity Generating Holding Plc is expected to soon finish negotiations with a Chinese state agency on a joint investment in the Hongsa Lignite power project in Laos. The project is currently a joint venture between Ratchaburi and SET-listed coal miner Banpu Plc. The Electricity Generating Authority of Thailand (Egat) is expected to sign a power-purchase agreement (PPA) with the project operator within this year after more strategic partners buy into the project, according to Thawat Vimolsarawong, Ratchaburi's deputy managing director. He declined to disclose further details.

The project has been delayed because the operators decided to triple the capacity to 1,800 megawatts from 600 MW planned earlier. This requires a higher capital investment of US$2.5 billion.

''To diversify risk, more strategic partners are needed, so we are now discussing with strategic partners to determine the appropriate stake held by each holder,'' Mr Thawat said.

In addition, he said, the Laotian government would take part in the project, which is located in northern Laos. Construction is expected to start early next year, and the plant is scheduled to start commercial operations by 2013.

About 1,500 MW out of the total capacity of 1,800 MW will likely be distributed to Egat through transmission lines connecting Laos and Nan province in Thailand.

The Ratchaburi-Banpu joint venture has also joined with partners in Laos to conduct a feasibility study to develop a 140-MW hydropower plant in Nam Bak.

The company recently entered an agreement to develop the $668-million Xe Pain-Xe Nam Noi power plant, in which it holds a 25% stake. Korea Western Power Co holds 25%, with SK Engineering & Construction holding a 26% stake and the Laotian government owning the rest.

Ratchaburi is poised to win a bid to build a new 1,600-MW plant that will distribute electricity to Thailand's national power grid through the government's 3,200-MW independent power producer (IPP) programme. The results will be announced by mid-2008.

The company reported a sharp 23.4% year-on-year drop in third-quarter revenue to 10.24 billion baht from 13.4 billion a year earlier, with a net profit falling 68% to 560 million baht.

Nine-month revenues fell 11.9% year-on-year to 34.52 billion baht, with net profit dropping 8.45% to 4.47 billion baht from 5.18 billion the previous year.

The poor performance was due mainly to the two-month closure of electricity generators for a major overhaul in the third quarter. The maintenance is scheduled every six years.

Next year, it expects revenue to improve thanks to additional capacity from Ratchaburi power plant. The first generator is scheduled to start operations in March and the second generator in June. The project is now in a test run.

Ratchaburi has a total power generating capacity of 3,645 megawatts, or about 15% of the country's installed capacity. It sells all of its electricity to Egat.

Ratchaburi shares (RATCH) closed yesterday on the SET at 49.75 baht, down 0.75, in trade worth 27.5 million baht.


Link may expire:
http://www.bangkokpost.com/Business/08Nov2007_biz32.php

[GWR]

Probably lignite rather than coal. See also today's previous post:

New coal mine found in Saravane

(KPL) Lao and Chinese coal miners have recently found a new coal mine in Saravane province is being interested among foreign investors.

The coal mine is a high potential resource of Saravane province, which estimated coverage at least 10 square kilometres.

Now a Chinese company has presented to investment in the exploitation about four square kilometres of coal mine.

According to a news source from the Planning and Investment Department of Saravane province told KPL news journalist that after having found a new coal mine in the province. Many foreign investors are interesting in the exploitation especially Chinese investor expected to take over this coal mine.

This new coal mine was found in Ta Oi district of Saravane province, which shares border with neighbouring Vietnam.

Mr Thongsay Bounthisa, Head of Industry and Mine Division of Saravan province disclosed yesterday that Chinese Chongya-Easy Company producing cement bases in Saravane province to take over the exploitation of this coal mine.

A recent discussion between Saravane authorities and Chinese Chongya-Easy Company that the Chinese company has already been authorised by Saravane administrative board. At moment the proposal of exploitation is under consideration of the government.
http://www.kplnet.net/english/news/edn6.htm

[GWR]

Thai power company to co-invest in Hongsa power plant in Laos

BANGKOK, Nov 20 (TNA) – Ratchaburi Electricity Generating Holding Plc (RATCH) is ready to proceed with its plan to co-invest in the Hongsa power plant project worth around US$2.6 billion in the Lao PDR.

Darunee Apinarasettha, Ratch's senior executive vice president in charge of accounting and finance, revealed that the board on Tuesday approved the planned investment in the coal-fired Hongsa power plant.

An agreement on the joint development rights will be signed by the tripartite investors including Ratchaburi with a stake of 40 per cent, Banpu Power with 40 per cent, and the Lao government with 20 per cent.

The board also approved a joint investment in a coal mining company with investors comprising RATCH with 37.5 per cent, Banpu Power with 37.5 per cent, and the Lao government with 25 per cent.

If Chinese investors decide to join in the investment projects, she said, the company's stake in the power plant and the coal mining firm would fall to 30 and 28.125 per cent respectively.

The Hongsa power plant has an annual power generation capacity of 1,653 megawatts and is located in Hongsa city, around 35 kilometres from Thailand's Nan province.

The plant, when completed, will be able to supply power of 1,470 megawatts to Thailand per year.

Currently, negotiations regarding an initial agreement for the Electricity Generating Authority of Thailand to purchase the power produced there is underway. It is expected that the plant will be able to operate commercially in 2013. (TNA)-E005

http://etna.mcot.net/view.php?id=1410

Related thread on the regional competition for Laos power gen:
http://www.angkor.com/2bangkok/2bangkok/forum/showpost.php?p=18273&postcount=82

[GWR]

Thailand signs MoU to buy more hydro and coal-fired power from Laos

BANGKOK, Dec 22 (TNA) -- Thailand will today sign a memorandum of understanding (MoU) with its neighboring Laos to buy more electricity from that country, according to Thai Energy Minister Piyasvasti Amaranand.

Mr. Piyasvasti said he would sign an agreement with the Lao industry and commerce minister in Vientiane to allow Thailand to purchase more hydropower from Laos to 7,000 megawatts from the initial 5,000 MW in 2015.

The increase in the power purchase will benefit both countries as Thailand will acquire more power at reasonable cost because Lao electricity is produced from both hydro and coal-fired power plants and is quite inexpensive for Thailand while Laos will earn money which can be used in developing its economy, Mr. Piyasvasti said. Bilateral relations will also become stronger.

Also, the state-run Electricity Generating Authority of Thailand (EGAT) will soon sign agreements with Laos to buy electricity generated from the Hongsa lignite-fired power plant which has a total capacity of 1,400 MW and from Nam Ou with 1,000 MW.

The Hongsa power plant project plans to sell power to Thailand from 2012 onward. Construction may start in late 2008 or early 2009 and is a joint venture between the Lao government and a Thai investor. It will have an installation capacity of 1,800 MW.

The Hongsa Lignite power plant is among several projects that will deliver electricity to Thailand under a Power Purchase Agreement with Laos. (TNA) --E111

Business News : Last Update : 12:04:07 22 December 2550 (GMT+7:00)
http://enews.mcot.net/view.php?id=1927

[GWR]

http://enews.mcot.net/view.php?id=1927

NA approves Hongsa power plant amid environment concerns

The Hongsa lignite-fired power plant project was yesterday given in-principle approval by the National Assembly, despite its concern the project could negatively impact the environment and livelihood of local people.

One of their main concerns was the health of people who lived in surrounding areas, as the plant will emit carbon dioxide as part of the electricity production process. The members encouraged the project to use clean technology as much as possible.

NA members urged the government to continue doing a detailed study on the negative and positive impacts of the project, whilst demanding reasonable compensation for the 367 families from five villages who would have to be resettled.

NA member for Champassak province, Mr Kisin Sinphan-ngam, said the living standards of the 367 families must be improved.

“They need to have enough land to support themselves,” he said.

“If they don't, this project will only increase their poverty.”

NA member for Khammuan province , Dr Bounnhong Khinsamone, said Laos had not reaped the full benefits of foreign investment in the past. He gave the example of companies that had promised to employ Lao workers, but later claimed local workers did not have the necessary skills and so imported foreign labour instead.

The Lao Holding State Enterprise General Manager, Dr Somboune Manolom, accepted the project would have some negative impacts but claimed the benefits would be far greater, boosting the country's economy while reducing poverty.

Electricity production will begin in 2013, with the project costing about US$3,900 million.

The country will receive more than US$2,500 million over a 25 year period through share dividends and taxes.

The Lao government will hold a 20 percent share in the project, worth US$196 million. About US$100 million of the value of the government's share will be borrowed from the EXIM Bank of China and the remainder from th e China Development Bank.

Almost 13 million tonnes of lignite will be excavated to supply the plant each year, totalling 325 million tonnes over the 25 years of the project concession.

There is estimated to be about 713 million tonnes of lignite in the 12sqkm of land allocated to the project. This is sufficient to continue fuelling the power station for an additional 25 years after the concession period ends.

The project is expected to create jobs for about 10,000 people, of which 80 percent will be Lao.

Local people will also benefit from infrastructure development including roads, schools, irrigation, hospitals, markets and electricity.

Villagers will not need to be resettled until the project commences work in the areas they live in.

The government has set up an environmental management committee to resettle villages affected by the project to ensure its effectiveness.

Article 9 of the electricity law stipulates that hydropower development projects with an installed capacity of more than 50,000 kilowatts must be approved by the NA.

The law on water and water resources further stipulates that any changes to water flow also need approval from the NA.

The Hongsa lignite project will have a generating capacity of 1,800 megawatts and will change existing water flow, meaning the project requires approval by the NA.

By Somsack Pongkhao
(Latest Update July 25, 2008)
http://www.vientianetimes.org.la/FreeContent/FreeContent_NA.htm