SET-listed Eastern Water Resources Development and Management Plc (EASTW), a supplier of raw and tap water to Thailand’s industrial zones, has announced it may revise its five-year investment plan through 2020 to focus solely on its core water business.
Director Wanchai Lawattanatrakul yesterday said the new board would propose suspension of investment in a new power plant and focus only on the company's core business of water supply.
The new board is scheduled to convene next Monday, at which time the company could finalise the plan and announce it to the media, he said.
Under the new plan, Eastern Water would spend 5 billion baht to expand both domestically and internationally.
Mr Wanchai played down the company's previous ambitious plans to cut the cost of production by building its own power plant, saying this was an area the company was not proficient in.
"The company had intended to cut its energy costs, which account for about 40% of our overall operating expenses, by building our own small power plant," he said.
"However, we find ourselves rethinking how keen we are on power plant projects.
"We now believe it would be better to adjust the plan to the current situation, and the new board of directors believes the company should focus instead on the government’s 350 billion baht worth of water management megaprojects."
Mr Wanchai said Eastern Water had earmarked 2 billion baht to invest in water-infrastructure projects in other Asean members, particularly Myanmar, Laos, Cambodia and Vietnam.
The company wants to supply raw and tap water to these fast-growing economic zones ahead of the Asean Economic Community, which is set to kick off late this year.
Eastern Water late last year started a feasibility study into possible Myanmar operations, Mr Wanchai said.
Results so far indicate the company should spend 1 billion baht on projects in cities with high growth potential such as Pegu, Myanwaddy, Payee and Yangon.
Eastern Water hopes to capitalise on the growing economies in such cities, which already have dense populations and high water demand.
Besides Myanmar, the company plans to build infrastructure to supply raw and tap water to major cities in Laos, Cambodia and Vietnam.
Feasibility studies have already been conducted for these countries.
The other 3 billion baht of the new investment budget would be spent domestically, mostly on the government's 350-billion-baht water management megaprojects, Mr Wanchai said.
EASTW shares closed yesterday on the SET at 11 baht, up 10 satang, in trade worth 8.06 million baht.