Ratchaburi commences Hongsa Power Plant project

Ratchaburi Electricity Generating Holding PCL. recently signed a shareholder's agreement with its joint ventures to establish Hongsa Power Co., Ltd. and Phu Fai Mining Co., Ltd. for the development of coal-fired Hongsa Power Plant project in Lao PDR.

Ratchaburi Electricity Generating Holding PCL. joint-venture partners are Banpu Power Co., Ltd. and Lao Holding State Enterprise.

"The Company and its two joint-ventures currently signed the shareholders agreement to set Hongsa Power Co., Ltd. and Phu Fai Mining Co., Ltd., where the head offices are located in Vientain, Lao PDR," stated Mr. Noppol Milinthanggoon, Managing Director of Ratchaburi Electricity Generating Holding PCL. (RATCH).

With a registered capital of US$100,000, Hongsa Power Co., Ltd. operates for electricity generation concession whereas Phu Fai Mining Co., Ltd., with a registered capital of US$50,000, aims for lignite mining concession.

Hongsa Power Co., Limited's registered capital of US$100,000 is divided into 10,000 ordinary shares valuing US$10 per share. The Company initially has 40 percent of project investment while Banpu Power Co., Ltd. and Lao Holding State Enterprise has 40 percent and 20 percent of investment respectively. The registered capital of US$50,000 of Phu Fai Mining Co., Ltd. is divided into 5,000 ordinary shares valuing US$10 each. Ratchaburi initially holds 37.5 percent of this project whereas Banpu Power Co., Ltd. and Lao Holding State Enterprise hold 37.5 percent and 25 percent respectively.

Located in Hongsa Sub-District, Chaiyaburi District in Lao PDR, Hongsa Power Plant is an electricity generating project using lignite as a primary fuel and its installed capacity is approximately at 1,878 MW. With a 40 percent stake of Ratchaburi, the Company has 751 MW increased from project's proportion capacity. Moreover, this project is set to sell electricity to Thailand.