Saha Cogen Co. Ltd.

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Saha Cogen Co. Ltd, is developing a 122-megawatt plant at the Saha Industrial Park in Sriracha, Chon Buri. Saha Cogen Co. Ltd. is a consortium comprised of Saha Group (51%) and Zurn Industries (49%). National Energy Production Corp and Jurong Engineering Ltd are the primary contractors. Operational Energy Group, a subsidiary of Zurn Industries, will be responsible for operational and maintenance activities for the project. Ishi-Kawajima-Harima is the equipment supplier. The plant is being developed under the Small Power Producer (SPP) Program that encourages the sale of excess output to EGAT. A power-purchase-agreement was signed on March 25, 1997 with the Electricity Generating Authority of Thailand (EGAT) to sell 90-MW of the plant's 122-MW output. The remaining 32-MW steam energy generated by the project will be used by industrial customers at the Saha Group Industrial Park. Project cost is Baht 2.8 billion (US$108.6 million). Thai Investment and Securities Plc. was the arranger for this project. In 1999, Covanta Energy (previously known as Ogden) acquired a 74% stake in Saha Cogen; the remaining 26% is held by the Saha Group. In second quarter 2001, Saha Cogen raised financing Bt3.5bn (approximately US$81.4m) in a dual currency financing agreement with four Thai financial institutions. This will be used to readjust the company's bath-to-US dollar ratio and to expand the existing power plant to 132 MW. Lenders include Thai Farmers Bank, Bank of Ayudhya, the Industrial Finance Corp. of Thailand and Tisco Finance. The loan has a 12-year tenor and is divided into two tranches: a Bt 1.96bn tranche and a US$30.2m tranche. None None