Nam Ngum 2 Hydro Power Plant

Active

In May 2006, Nam Ngum 2 Power Company Limited (NN2) began the development of the Nam Ngum 2 Hydro Power Plant project, a 615 MW hydro dam on the Nam Ngum River. The project consisted of three 205MW hydroelectric turbines and generators (total capacity 615MW). The dam was to be constructed under a 25-year build, own, operate and transfer contract. Up to 95% of the power from the project was to be exported to Thailand, under a 25-year year power purchase agreement between NN2 and the Electricity Generating Authority of Thailand Plc (EGAT). The remaining 5% was to be used for domestic consumption. NN2 was subsidiary company of SouthEast Asia Energy Limited (SEAE) and was setup to assume the rights and privilages under the Concession Agreement and the Power Purchase Agreement. SEAE was a joint venture between Slapak Group (USA, 4 %), Electricite de Laos (EdL, 25%), C.Kanchang (Thailand, 28.5%), PT Construction & Irrigation Co. (Lao, 4%), Ratchaburry (Thailand, 25%), Bangkok Expressway PCL (Thailand, 12.5%), and TEAM Consulting Engineering and Management Co., Ltd. (Thailand, 1%). In March 2012, Thailand's Thai Tap Water Supply Company (TTW) aquired 30% stake in CK Power Ltd., which held 28.5% equity in SEAE, the controlling share. TTW payed Baht 2.73 billion (US$89.3 million) for the equity. Thai construction company Ch. Karnchang owns equity in both TTW and CK Power (38%). In July 2006 a revised PPA was signed with EGAT. The EPC contract was awarded in September 2006, to Mitsui and Co and Toshiba Corporation, valued Yen 11 billion (US$533 million). The PPA was 30 years. The plant was commissioned in December 2009. Maintenance was done by Ratch-Lao Services under a 27 year operations and maintenance agreement, signed in June 2009. The power is evacuated with a 500kV line connecting to EGAT at Udon Thani. The PPA had a tariff of Baht 1.99/kWh (US$49.99/MWh), signed in May 200. Financial closure was reached in May 2006 when C.Kanchang entered into an Equity Contribution Agreement with SEAE and NN2, other shareholders and lenders of SEAE. The projected cost for the project was US$760 million in 2006, but increased to $900 billion in 2009. Banks invovled were Krung Thaibank, TMB Bank, Siam City Bank. The financing comprised of a Bt15,003 million tranche, a $180 million tranche, and a 25 year guarantee facility with an initial amount of $25 million. http://deals.pfie.com/pfideal.asp?dealnumber=2006943158 Power in Asia, CK Power gets new owner, 1 March 2012.