Thai EGCO sees SE Asia expansion growth

By Ploy Chitsomboon and Wilawan Pongpitak

BANGKOK (Reuters) - Thailand's Electricity Generating PCL EGCO.BK wants to invest more in power plants abroad, its president said on Monday, as it seeks to boost long-term growth after being blocked from expanding at home.

Thailand's second-biggest private power firm expects overseas power plants to account for 30 percent of its total capacity in 2009 from 17-18 percent now, Visit Akaravinak told the Reuters Global Energy Summit from Bangkok.

"We have a very strong focus in expanding in this region," Visit, 60, said in an interview.

"In doing that, we have shifted our investment strategy to building up more overseas growth over the next 4-5 years."

EGCO, among the losing bidders for several new power projects tendered by the government last year, is looking to invest in Southeast Asian countries to boost its capacity, Visit said.

"There is rising demand in this region, Laos, Vietnam, Cambodia. We can't just pin our hopes on the local market business," Visit said.

EGCO and Hong Kong-based One Energy, which owns 22.4 percent of EGCO, are bidding for a contract to build a 1,200 megawatt coal-fired power plant in Vietnam, he said.

The $1.3 billion power plant was expected to come on line from 2010-2013, Visit said, adding further details would be finalized later this year.

In Cambodia, EGCO also planned to take a 40-60 percent stake in a smaller coal-fired plant in the port of Sihanoukville with a cost of $120-$130 million, and may decide this year whether to go ahead, Visit said.

The firm, partnered with Ratchburi Holding RATC.BK and Italian-Thai ITD.BK, are looking to invest in Cambodia's 3,660 MW Koh Kong power plant, now under feasibility study, Visit said, targeting the plant to begin operations in 2014.

The firm has interests in 14 power plants with combined capacities of about 3,876 MW, accounting for about 11 percent of the country's generating capacity.

NAM THEUN 2 PUSH

EGCO, 25.4 percent owned by state-owned Electricity Generating Authority of Thailand, plans to boost total capacity by an average 7-8 percent a year, with a 5-year budget of about 6 billion baht ($185 million), or $30-37 million a year, Visit said.

But in the near term, EGCO expected the 1,070 MW Nam Theun 2 hydropower plant in Laos, the next major earnings driver, to comes on stream in December 2009, Visit said.

"Once completed, Nam Theun 2 will be a great long-term push for accelerating our company growth," he said.  Continued...