Ratchaburi Holding Reports progress of 1,878-MW Hongsa Thermal Power Plant Project - signing 25-year concession agreement for electricity generation

Ratchaburi Electricity Generating Holding Public Company Limited (Ratchaburi Holding) has reported to the Stock Exchange of Thailand (SET) that Hongsa Power Co., Ltd. (HPC) and Phu Fai Mining Co., Ltd. (PFMC), both of which are joint venture companies with 40% and 37.5% respectively of equity acquired by Ratchaburi Holding are set to the operate Hongsa Thermal Power Plant project. The concession agreement was signed yesterday with the Lao PDR. (November 30, 2009).


According to the concession agreement, HPC will perform obtain a concession for electricity generation whereas PFMC will receive a concession for lignite mining from the Lao PDR. Both agreements have 25-year durations starting date of commercial operations for electricity generation and lignite mining.

Mr. Noppol Milinthanggoon, the President of Ratchaburi Electricity Generating Holding PCL., said that “the concession agreement signing between HPC and Lao PDR. is a significant milestone for the Hongsa Thermal Power Plant project, which is a joint investment by the Company, Banpu Group and LHSE (Lao Holding State Enterprise). This is an IPP with a high project value, which combined the expertise of the joint-ventures. Ratchaburi Holding has a proven record in IPP project development and management while Banpu Group has expertise in the coal mining industry and LHSE has long standing experience in electricity utility development in the Lao PDR. With the above mentioned factors, the Company strongly believes that this project will enhance the stability of the electricity system in both Thailand and the Lao PDR.”

Hongsa Thermal Power Plant is coal-fired using lignite as the primary fuel for electricity generation. It is a shared equity enterprise from Ratchaburi Holding with 40%, Banpu Power Co., Ltd. with 40% and Lao Holding State Enterprise with 20%. With a total installed capacity of 1,878 MW, the project has 3 units, 626 MW each, and it is expected to start commercial operation by 2015. According to the MOU signed on May 13, 2009, electricity of 1,473 MW will be sold to the Electricity Generating Authority of Thailand (EGAT) and approximately 100 MW will be sold to Electricite du Laos: EDL to support the power demands of the Lao PDR, the remainder will be used for the lignite mining operation and the project’s electricity generation.