Nonthaburi - RATCH Group Public Company Limited (RATCH) announced its success in the acquisition of a 110-MW gas-fired cogeneration power plant with 10-ton per hour steam production. The project is located in the south of Nava Nakorn industrial zone in Pathum Thani province. The 5.726-billion-baht project is operated by Navanakorn Electric Company Limited under the 25-year Power Purchase Agreement with Electricity Generating Authority of Thailand (EGAT), commencing the operation since October 31, 2013.
The company entered into the Share Purchase Agreement to acquire the ordinary and preferred shares of Navanakorn Electric Company Limited (“NNE”) at 99.97%, totaling 1.998 billion baht. As a result, RATCH becomes the major shareholder and takes full accountability for this SPP power plant’s management. RATCH’s management team will effectively take control of the power plant’s operation by this October.
Mr. Kijja Sripatthangkura, RATCH CEO, revealed that the acquisition of the NNE power plant is regarded a key step of achievement according to our growth strategy. The investment will help strengthen our cash flow and financial stability due to this brownfield project has already commenced operation with almost 20-year remaining period of the Power Purchase Agreement with EGAT.
“The Navanakorn cogeneration project will generate the immediate income to our cash flow. The 90-MW generating capacity is distributed to EGAT, whilst the remaining of electricity generation and steam will be sold to industrial customers residing in Nava Nakorn industrial zone. The company also plans to expand its industrial customer base as well as extend the generating capacity in the future. Regarding the capital investment, RATCH has set aside the cash flow and being well equipped with financing loan at the proportion of 35 to 65 for this acquisition of which the deal is expected the completion by this September”, said Mr. Kijja.
Mr. Kijja also added that the successful acquisition of the NNE power plant will increase the company’s commercially generation capacity to 7,047.54 MW. The steam and excess power generation from the electricity sales under the EGAT’s PPA will be sold to various industrial customers, whose demand for electricity and steam is growing. This will help make the energy systems in Nava Nakorn industrial zone strengthened and stable.