TLP Cogeneration Company

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TLP Cogen Company was established in December 1997. It was the operator of a 105-MW, combined-cycle cogeneration power plant, a joint venture between Thailand's partially private Electricity Generating Company or EGCO (40%), its wholly owned-subsidiary, Thai LNG Power Corporation or TLPC (40%) and the Electric Power Development Company of Japan (J-POWER) (20%). EGCO thus held 80% of TLP Cogen by holding a 40% share directly and holding the remaining 40% share through TLPC. EGCO was set up in May of 1992 as a holding company to divest some of the assets of the state-owned Electricity Generating Authority of Thailand (EGAT). In November 1994, EGCO floatated 204 million shares, or 51% of the company, at 22 baht each, raising US$178.5 million and effectivley making it a privately run company. The shares made their debut on the Thai stock market in January of 1995. Although EGAT retained a 48% interest in EGCO, the company was to be run as a separate entity and was to be out of the EGAT's sphere. In July of 1998, Hong Kong utility firm China Light and Power Co. Ltd. (CLP Power) acquired a 14.9% stake in EGCO for US$241 million. EGAT then owned 25% of EGCO. As of 2004, the stake holders of EGCO were EGAT (25.41%), CLP Power (22.42%), Thai investors (30.09%), and foreign investors (22.08%). TLP Cogen signed a 21-year power purchase agreement (PPA) with EGAT in the fourth quarter of 1998 which was originally set to begin March 2000. Electricity was distributed to industrial users in Rayong Industrial Park with a total signed PPA of 45.85-MW while electricity of 60-MW was distributed to EGAT under the PPA at a rate of $5.69/kW month in capacity and 4 cents/kWh for energy. The project was developed under Thailand's Small Power Producers Program (SPP). Total cost of the project was approximately US$79.4 million (Yen 10.2b). In March 2001, US$29.4 million and Bt1.22b (US$28.4 million) were raised through loans provided by a syndicate of banks including Krung Thai Bank, Thai Military Bank and the Industrial Finance Corp of Thailand. Construction began in April 2001 and commercial operations began in January 2003. None None