CKPower Plc (CKP), the power generation arm of constructor CH Karnchang Plc, is planning to acquire additional ordinary shares worth 21.5 billion baht in Luang Prabang Power Co (LPCL) to support the construction of a third hydropower dam in Laos.
The planned purchase was reported to the Stock Exchange of Thailand (SET) on Wednesday by CPK managing director Thanawat Trivisvavet.
LPCL is the developer and operator of a new hydropower dam near Luang Prabang on the Mekong River in northern Laos.
The acquisition of 0.26 million ordinary shares from PT Sole Co (PTS) will bring CKP's total shareholding to 50%.
Mr Thanawat said the purchase follows an agreement between LPCL and a commercial bank on seeking financial support for LPCL and PTS.
The plan is scheduled for final approval by CKP shareholders on Nov 24.
The company earlier announced it would support the project with a bank guarantee of 98.1 million baht.
The bank guarantee was approved following a memorandum of understanding signed by CKP and the state-run Electricity Generating Authority of Thailand (Egat), which will buy electricity from the hydropower plant.
The development cost of the new dam is estimated at 150-160 billion baht, according to Muntana Auekitkarjorn, CKP's deputy managing director for corporate planning.
Construction started recently after a two-year delay caused by the Covid-19 pandemic.
The project is located at Houygno village, about 25 kilometres from Luang Prabang.
It is a run-of-the river dam, designed to have an electricity generation capacity of 1,460 megawatts.
The new dam is part of CKP's goal to increase its total capacity from renewable energy sources by 2.8 gigawatts within three years, up from 2.1GW at the end of last year.
CKP earlier developed the Nam Ngum 2 Hydroelectric Power Plant, with installed capacity of 615MW, and the 1,285-MW Xayaburi Hydroelectric Power Plant.
Mr Thanawat said the company expect to see almost 95% of total power generation capacity come from renewable energy in the next five years.
It will push ahead with six new power plant projects, covering solar, wind and water energy, in Thailand and overseas.
CKP plans to sharply increase its solar power capacity from 29MW to 330MW and double wind power capacity to 700MW.