Yala Power Project

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Gulf Yala Green Company Limited (GYG) was developing the Yala Power Project, a parawood- fueled biomass power plant, with 20.2-MW installed capacity, in Lam Mai Subdistrict, Muang District, Yala Province. This 1.5 billion baht (US$36 million) project signed a power purchase agreement with the state-owned utility Electricity Generating Authority of Thailand (EGAT) in June of 2003. Yala Power was one of 14 pilot projects initiated and supported by the Office of Energy Policy and Planning, aimed at encouraging the utilization of agricultural waste to produce power. GYG was 95% owned by Gulf Electric Public Company Limited (GEC), a joint venture between partially divested Electricity Generating Company (EGCO) of Thailand (50%), Japan Electric Power Development Company Limited (EPDC or J-POWER) (49%) and Mit Siam (1%). The other 5% of the project was owned by Asia Plywood Company Limited. 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%). As for the 1.5 billion baht investment budget, 1.05 billion was derived from a loan from the Bank of Ayudhya, while the remaining 450 million baht came from shareholders. The loan agreement was signed May 2003 and GYG had a first draw down of debt on August 28, 2003. This power plant had also been selected to receive financial support from the government's Renewable SPP Program. As of end 2003, GYG had finished land filling and begun the construction. Progress was delayed however, and construction was suspended for 6 months in April 2005 following unrest in the southern border provinces. Construction was expected to be completed by September 2006. None None