SET-listed Ratchaburi Electricity Generating Holding Plc (RATCH), Thailand's biggest private power producer, has finalised a joint-venture with an Indonesian partner to develop a 275-megawatt gas-fired power plant on Sumatra.
Chief executive Kijja Sripatthangkura said the deal was done via Ratch's Singapore-based subsidiary, RH International Singapore and a local firm, PT Medco Power Indonesia (MPI). The new company is called PT Medco Ratch Power Riau (MRPR).
"MRPR was set up with total registered capital of 12 billion rupiah, or around 32.4 million baht, to operate the Riau gas-fired power plant," he said.
Mr Kijja added that total investment for the plant is worth US$300 million, 75% of which will come from loans and the rest will consist of capital from the two partners.
Ratch owns 49% of the Riau power plant, and the Indonesian partner the rest, said Mr Kijja.
"MPI is a leading power generating company in Indonesia, which will help strengthen Ratch's position in the country," he said.
The Riau gas fired power plant is located on the Indonesian Island of Sumatra. The plant will help secure Indonesia's power supply and eventually lend support to the country's economic growth.
Mr Kijja said MRPR has already signed a power-purchasing agreement (PPA) to sell power to the Indonesian state-owned utility, Perusahaan Listrik Negara (PLN), for 20 years.
The move to develop the Riau power plant in Indonesia is part of broader plans to secure 7,500MW from PPAs this year. An additional 1,058MW of power is needed for Ratch to reach that target.
Ratch has set aside capital expenditure of 10 billion baht for projects to increase the company's power-generating capacity through PPAs.
Ratch will further continue work on six projects in Thailand and abroad, including a 100MW small power plant at home and the Riau plant.
It will also continue operating the Xe Kong 4 hydropower plant in Laos, a coal-fired power plant in the Philippines and the Collinsville wind and solar farms in Australia.
Ratch posted a net profit of 6.1 billion baht in 2016, up from 3.8 billion in the previous year.
RATCH shares closed yesterday on the Stock Exchange of Thailand at 50 baht, down 25 satang, in trade worth 207 million baht.