Eastern Water ups resources

Eastern Water ups resources

SET-listed Eastern Water Resources Development and Management Plc (EASTW), a state-majority-owned water supplier, has increased its raw water resources by almost 53% to 318 million cubic metres a year to ensure supply for the Eastern Seaboard during the dry season.

Chief executive Wanchai Lawattanatrakul yesterday called the move part of the company's 5-billion-baht investment plan from 2009-17 to secure raw water for the region.

Eastern Water has signed a water management agreement with the Royal Irrigation Department to manage raw water in Rayong province, bringing water from the Prasae reservoir to the Khlong Yai reservoir. The 1.68-billion-baht project, called Line One, previously operated from 2006-10 but ended due to a lack of public participation.

Mr Wanchai said Line One could now supply Eastern Water with an estimated 40 million cu m annually, with another 70 million cu m added about mid-year.

The company is also accelerating its 2.6-billion-baht Line Two water pipeline project, now expected to start operation about mid-year, a year ahead of schedule.

As a result, combined raw water allocated for Eastern Water by the Royal Irrigation Department is expected to reach 110 million cu m annually by mid-year, enough to supply the Eastern Seaboard with water through 2019.

The region's economy is growing rapidly due largely to booming industrial estates and tourism.

Some of the raw water will be supplied to major consumers such as the Provincial Waterworks Authority, households, businesses and farmers.

The Line Two system is expected to be approved by the department soon.

Eastern Water estimates raw water demand in its service area could increase by two-thirds from present levels to 500 million cu m per year by 2025.

The company also plans to secure an additional 160 million cu m of raw resource for rising demand in the coming years by connecting its existing water pipelines with the Rayong River via Khlong Chaiyachet and purchase raw water from local suppliers.

Eastern Water achieved revenue of 4.3 billion baht last year, up by 8.8% from 2013, for a net profit of 1.33 billion, down slightly. Revenue growth of 5.81% to 4.55 billion baht is expected this year.

EASTW shares closed yesterday on the SET at 11 baht, down 10 satang, in trade worth 2.46 million baht.

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