Siam Power Generation Co. Ltd.

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Siam Power Generation developed a 450 MW gas-fired combined cycle plant at the Rayong Industrial Estate (previously the SSP Industrial Estate) in Ban Khai, Rayong Province. The project was to sell 60 MW of power to the Electricity Generating Authority of Thailand (EGAT) under a 25-year power purchase agreement signed in March 1997, once the first 150 MW of the plant became operational. The remaining 90 MW of power was to be sold to G Steel Ltd (one of the companies in the industrial park). Fuel was provided by the Petroleum Authority of Thailand (PTT) under a 20-year fuel supply agreement for the delivery of 90-million cubic ft/day of natural gas. The plant was to operate under the Small Power Producers program, which encourages sale of excess power from plants to EGAT. Siam Power Generation was originally owned by a consortium of local firms (SSP Property 30% and SSP Holdings 30%), Nippon Plant Management (20%), Siriboon Holdings (5%) and other shareholders (15%). In November 2005, M-Power TT Ltd. purchased a 55% stake in Siam Power Generation from E Power (Thailand) for US$22 million, financed by bank borrowings. M-Power TT was in turn owned by Melewar Industrial Group Bhd. (75%, Malaysia) and Transturbo Engineering Sdn. Bhd. (25%, Malaysia). By 2005, the remaining 45% of Siam Power was owned by BKK Partners Ltd. (Thailand). It was initially expected that the first 200 MW would become available in 1998, with the full 450 MW available by 1999. Gas Turbines, SA (France), a subsidiary of GEC-Alsthom, and Kolon Engineering and Construction (South Korea) were selected as the turnkey contractors. However, the project faced significant delays following a shareholder dispute. By 2005, the project had been divided into an initial 150 MW phase (20% completed by November 2005) expected to be completed by mid 2007 and a second 300 MW phase to be completed by 2009.