BKKPOST : Ratchburi Expansion into ASEAN Energy Scene

[Dr.Samai Jai-Indr]

RATCH to shop closer to home after Australian bid

• Published: 23/11/2009 at 12:00 AM
• Newspaper section: Business

Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's largest private power producer, has begun exploring acquisition opportunities in neighbouring countries in addition to its ongoing bid to acquire Australian power plants, says senior vice-president Prachuab Ujin.

The SET-listed power producer is conducting a feasibility study to acquire hydropower units in Indonesia and Vietnam where the owners have approached overseas investors. One reason is that the opportunities to set up new plants locally are limited, said Mr Prachuab.

Perusahaan Listrik Negara (PLN), Indonesia's state-owned utility, has shouldered huge losses from subsidising electricity bills, forcing it to offload its existing assets.

"We are interested in the hydro units because the cost is cheaper (than other types of power plants) which are up for sale because they will give us attractive returns," said Mr Prachuab. "We are aiming for double-digit return on investments for every project we spend money on."

Ratchaburi has cash on hand of about 7 billion baht to expand overseas. However, additional bank loans will be sought to pursue investments, he added.

Mr Prachuab said the company was also bidding to acquire three coal-fired and combined-cycle power plants in western and eastern parts of Australia. The Australian owner is in financial trouble and wants to sell 11 plants with combined generating capacity of 1,000 gigawatts.

"We have chosen only units that will give us reasonable returns. These have a capacity of around 200-300 megawatts each. We are also looking at more power units owned by separate owners," he said.

Ratchaburi has developed four power plants in Laos and is now negotiating tariffs with the Electricity Generating Authority of Thailand. They are expected to be operational between 2013 and 2016.

The company also holds equal shares with Banpu Plc, Asean's top coal miner, in the Hongsa Lignite coal-fired power plant in Laos.

Shares of RATCH closed on the SET on Friday at 37 baht, unchanged, in trade worth 44.68 million baht.

--
Dr.Samai Jai-Indr
Energy Standing Committee
House of Representatives