Friday, April 21, 2006

Thailand Samart branching out ventures in Cambodia

Samart signs power pact

KOMSAN TORTERMVASANA
Bangkok Post

Branching out from its air traffic control venture in Cambodia, Samart Corporation is now looking to the electricity business with an investment of 850 million baht for a power plant in Cambodia to supply a Siam Cement (SCC) plant there. A power purchase agreement was signed yesterday by Cambodia Air Traffic Services, a Samart subsidiary, and Kampot Cement, a joint venture of SCC and Cambodia's Khaou Chuly Group.

The power plant will be located inside the cement complex with total capacity of 23 megawatts.

Samart president Watchai Vilailuck said the plant would be operated by Kampot Power Plant Co, registered in Cambodia with US$5 million in capital and 100% owned by Cambodia Air Traffic Services.

He said that the 10-year power supply contract with Kampot Cement would generate 2.4 billion baht in earnings to Samart, which is known mainly as a communications equipment company.

Samart expected to begin realising earnings from the plant next year, he said.

Mr Watchai said Samart had projected total group revenue of 23 billion baht this year but with the power supply business, the figure was adjusted to 25 billion baht. Of the total, 10 billion baht would be derived from investment abroad.

With growing demand for electricity in Cambodia over the next three to five years, Mr Watchai forecast the company's investments abroad would soon account for more than 50% of total revenues.

He said the power plant in Cambodia would be constructed by Wartsila of Finland.

Samart shares closed yesterday on the Stock Exchange of Thailand at 8.00 baht, down five satang, in trade worth 31.14 million baht.

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