By an OGJ Online Correspondent
Bangkok, April 2, 2001 Electric Power Development Co. (EPDC), the majority state-owned Japanese utility concern, has stepped up its investment portfolio in Thailand.
The firm has acquired a 20% stake in TLP Cogeneration (TLP Cogen), a Thai energy firm that is going to embark on a 3.25 billion baht ($75.67 million) gas-fired combined cycle cogeneration facility on the Thai eastern seaboard.
The stake, bought for at 78.1 million baht, will build on EPDC’s power generation interest in the kingdom in alliance with Electricity Generating PLC (EGCO), the country’s first independent power producer, which is aggressively boosting its power assets through acquisitions.
EPDC, owned 66.7% by the Japanese government, already has a joint venture agreement in place to develop a $15 million renewable power project based on paddy husks in the northeastern province of Roi Et.
EPDC’s acquisition of TLP Cogen, which will develop a 106 Mw power plant in Rayong, completes CLP Cogen shareholding’s restructuring recently engineered by EGCO that allows the installed scheme to get off the ground.
EGCO recently gained full ownership in Thai LNG Power Corporation Ltd. (TLPC), the parent firm of TLP Cogen, and in the process took full control of TLP Cogen. Late last month, EGCO, with the Electricity Generating Authority of Thailand (EGAT) and CLP group of Hong Kong being major shareholders, resolved to sell 10 million shares in TLP Cogen to EPDC at 7.81 baht/share, resulting in a 1.81 baht/share in capital gains.
EGCO’s ownership in TLP Cogen was reduced to 80% from 100%. TLP Cogen has reached an agreement to sell 60 Mw of its electrical power to the EGAT for 21 years beginning in January 2003, when the plant is due to start commercial operation. The remaining electrical output and steam will be sold to private industrial users in the Rayong Industrial Park.