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Thai power company confident in Lao stocks
A major Thai power company has expressed confidence in its purchase of initial shares in the EDL Generation Public Company as it believes the Lao power sector has a bright future.
Ratch-Lao Managing Director Mr Jatuporn Soparaksa made the comment yesterday after the Vientiane-based company spent about US$30 million to purchase initial shares in EDL Generation, which were put on sale in mid-December.
Bangkok-based Ratch, the parent company of Ratch-Lao, spent about US$13 million on the same shares, meaning it owns about 81 million of the total issued 217 million shares of EDL Generation.
Mr Jatuporn said that before deciding whether to buy into the initial public offering, Ratch-Lao studied EDL Generation and learnt it had a valid 30 year power-purchasing agreement with Electricite du Laos.
“I visited a number of EDL Generation's power plants and found them to still be in good condition, while management of the company is also good,” he told Vientiane Times.
He said the power sector in Laos will continue to grow as the country has a lot of hydropower development potential. Similarly, demand for electricity in Laos and the region will increase in the future due to population and economic growth.
According to a report from the Ministry of Energy and Mines, Laos has the potential to develop power generation plants with a capacity of about 28,000 megawatts (MW). The main markets for Lao electricity are Thailand, Vietnam and Cambodia.
Demand for electricity in Laos has jumped about 10 to 15 percent annually as the economy continues its robust growth due to expansion of the processing industry, which includes cement factories and mining processing plants.
Mr Jatuporn said Ratch also hopes to share its experiences to contribute to the development of the power sector in Laos.
“As a shareholder, we will hold discussions with the management of the EDL to share our experiences,” he said.
Ratch is a major electricity producer in Thailand. The company expanded its business into Laos after realising the country has great potential for the generation of hydropower for export to Thailand.
The company has invested in a number of power projects in Laos, including the Hongsa lignite-fired power project in Xayaboury and Nam Ngum 2 power project in Vientiane province.
Mr Jatuporn expressed confidence in Laos' continued economic development and the stable value of the Lao kip.
The value of the Lao kip is about 8,000 kip per one US dollar and 266 kip per one Thai baht. Foreign investors must use Lao kip when making trades on the Lao stock exchange.
vientiane tímes
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