CH. Karnchang secures deal for hydropower plant in Laos

Source : Bangkok Post

CH KARNCHANG signed an agreement with the Laotian government last week to develop the Bt20-billion Nam Bak hydropower plant. Plew Trivisvavet, executive chairman and chief executive officer, said yesterday that Nam Ngum 2 Power Co, the power-development arm, would work full speed on securing the power purchase agreement and construction contract from Nam Ngum 2 Power Co. Ch Karnchang was chosen because of its experience, expertise and successful track record in building in the Nam Ngum 2 and Xayaburi large-scale hydropower projects in Laos.  Construction is expected to start by the end of next year and take about four and a half years to complete. Of the Bt20-billion project value, Bt17 billion is for construction. Supamas Trivisvavet, managing director of CK Power, said Nam Bak would have 160 megawatts of installed capacity and could produce up to 744 gigawatt-hours per year. This project will enhance CKP's investment capacity and stable income generation. Nam Bak will add 160 megawatts to CKP's investment portfolio, which is poised to grow with the 120MW Bang Pa-In Co-generation Phase 2, scheduled for operation in 2017, and the 1.29GW Xayaburi plant. CKP's portfolio will jump from 754.5MW this year to 2.33GW in 2019. As for power projects already in operation, the Nam Ngum 2 hydroelectric plant, which started production in 2011, has recently reported above-average water inflow due to the monsoon season, resulting in full-capacity production.  The 117.5MW Bang Pa-In Co-generation Phase 1 commenced in June.  These two power plants will sharply boost CKP's revenue this year, the company believes.