Ratchaburi Electricity Generating Holding Plc (RATCH) yesterday signed an agreement with its joint venture partners of Hongsa Power Plant project in Lao PDR to set up two companies to support the operations of the lignite-fired power plant in the future.
Noppol Milinthanggoon, managing director of RATCH, disclosed that the company and its partners, Banpu Power Co., Ltd. and Lao Holding State Enterprise (LHSE) which would invest 40 and 20 percent respectively in the power plant project, agreed to set up Hongsa Power Co., Ltd. to operate the power plant and Phu Fai Mining Co., Ltd. to operate coal mining for the plant.
The head offices of both companies will be located in Vientaine.
RATCH, which would also invest 40 percent in the power plant project, and Banpu Power will each hold 40 percent of the stake in Hongsa Power Co., Ltd. while LHSE holds the remaining 20 percent of the stake in the new company, with a registered capital of US$100,000.
For Phu Fai Mining Co., Ltd., with a registered capital of US$50,000, RATCH and Banpu Power will each hold 37.5 percent of the stake while LHSE holds 25 percent.
RATCH managing director Noppol said, “The company will invest a total of 58,750 dollars in the establishment of the two new companies. And the agreement signing has indicated the readiness and good preparation for the development of Hongsa Power Plant as a future power generating project for Thailand.”
The Hongsa power plant, located in Hongsa sub-district of Chaiyaburi District, Lao PDR, is expected to cost about US$3.9 billion for the construction which will start this year.
When completed in 2013, the lignite-fired power plant will be capable of generating up to 1,800 megawatts of electricity by using lignite coal about 13 million tonnes a year. Most of the electricity produced, about 1,500 megawatts, will be sold to the Electricity Generating Authority of Thailand.