Solar Power (Korat 1) Company Limited

active

The Project is a facility of up to ThB230 million (approximately equivalent to US$7.1 million), to be used to invest equity in Solar Power Company Limited (“SPC”), a Thai developer of grid-tied megawatt-scale solar photo-voltaic (“PV”) projects, and the first four SPC solar farm projects in Thailand (the “Facility”). SPC is developing a pipeline of projects in Thailand and its first project is a green-field 6 megawatt peak (“MWp”) grid-tied solar photovoltaic power plant located in Nakhonratchasima, Thailand, developed as a special purpose vehicle (“SPV”), Solar Power (Korat 1) Company Limited (“SP(KR1)”). SPC has another 33 approved licenses for 6MWp solar farms which it also plans to develop as SPVs, subsequent to the successful operation of SP(KR1). SP(KR1) is expected to go into operation in the second quarter 2010 and the next three projects to be developed (SPC2, SPC3 and SPC4) are expected to start construction by July 2010. Both SP(KR1) and the subsequent solar farms will be developed under Thailand’s Very Small Power Project (“VSPP”) program which supports independent generators smaller than 10MW to sell power to the Provincial Electricity Authority (“PEA”), one of two government owned distribution companies. The power purchase agreement term for such projects is initially for five years with automatic renewal every five years.SP(KR1) is a green-field 6MWp grid-tied Photo voltaic (PV) power plant project located at Don Chompu in Non Sung district of Nakornratchasima province in Thailand. The project is being developed as a special purpose vehicle, Solar Power (Korat 1) Company Limited (“SP(KR1)” or the “Company”) by Solar Power Company Limited (“SPC” or the “Sponsor”). The SP(KR1) project involves installation of 29,160 fixed frame PV modules of 210 watt each (crystalline PV panels), 11 KV inverters, transformer, sub-station, 22 KV evacuation line (which connects to the grid), water treatment (de-ionization) plant, office and stores. The generated power will be evacuated/ connected to the rural grid at 22KV at a location immediately adjoining the SP(KR1) project site. SPC is also the engineering, procurement and construction (EPC) contractor for the Project. SP(KR1) has purchased 13.6 hectares of land for the project. The site has two parts, Area 1 comprised of 7.4 ha (46-1-12 rai) and Area 2 comprising 6.2 ha (38-1-94 rai). SP(KR1) purchased Area 1 from the principal shareholder of SPC, who had herself purchased that parcel of land more than 10 years ago. Further, SP(KR1) has purchased Area 2 land from 13 farmer land owners on a willing seller buyer basis. SPC is in the process of buying additional 21 hectares of adjoining parcels of land from farmers for installation of SPC Korat 2 project (a second 6 MWp grid tied), which has been awarded to SPC to be installed at the same/adjoining location. SPC proposes to develop Korat 2 project under a separate SPV. SPC was established in 1996 with the sole focus of developing grid-connected solar power projects through special purpose vehicles (SPV). SPC will be both the engineering, procurement and construction and also the operation and maintenance (O&M) contractor for each of the project SPVs. Further, SPC proposes to offer EPC and O&M services to other solar power project developers as well.