Year 2010

 October

Glow upbeat Gheco-1 will start on schedule next year

By NALIN VIBOONCHART

Glow Energy, the country's first independent power producer (IPP) as the operator of the Gheco-1 coal-fired power plant, is confident the project can start operations on schedule in November next year, even though it has to follow the procedure set out under Article 67 (2) of the Constitution.

Glow's vice president for finance and investor relations, Natthapat Tanboon-ek, last week said the company had anticipated that the power plant might be categorised as a project harmful to the environment well before the Natural Resources and Environment Ministry finalised the list.

The company therefore readied itself in the first quarter to follow the Article 67 (2) process and started the first steps of health-impact assessment (HIA) a few months ago.

Glow expects to hold the final public hearing, a crucial part of the HIA process, in December. It will then submit the HIA report to the ministry in January and expects the whole process to be complete before the scheduled operational date in November 2011.

"We are confident our project |will not be delayed from the schedule. We're now constructing Gheco-1, so we have time to follow all that |is required under Article 67(2)," he said.

Natthapat said foreign investors in the company had been worried about whether the harmful-activities list would be crystal clear. But now that a clear list has been published, they are again confident about investing in Thailand.

Despite the additional requirements for getting Gheco-1 up and running, Glow still plans further investment in the power-plant business if the Electricity Generating Authority of Thailand opens the |next round of IPP bidding in accordance with the new national Power Development Plan, he added.

He also said Glow was waiting for a final decision on construction of a 200-megawatt coal-fired power plant in Vietnam. This is expected to be finalised next year.

The company earlier approached Siam Cement Group (SCG), the country's largest industrial conglomerate and which will invest in a petrochemical complex project in Vietnam next year, about Glow handling power generation for the project.

SCG is in the process of concluding the project finance for the huge petrochemical complex. This is targeted for completion by year-end so that construction can commence next year.

Natthatpat said Glow's overseas business expansion would follow that of its industrial clients. If they go abroad and want Glow to provide electricity for their operations, the company is willing to invest overseas as well.

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By The Nation (Thailand)

October 26, 2010

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