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NNEG concluded EPC contract for construction of 60-MW expansion phase to serve customers’ power demand in Nava Nakorn industrial zone after the 6.4-billion-baht debentures offering achieved

10 September 2018 - Nava Nakorn Electricity Generating Co., Ltd. (NNEG), the joint venture between Ratchaburi Electricity Generating Co., Ltd., a subsidiary of Ratchaburi Electricity Generating Holding PCL., holding 40% stake, Nava Nakorn Public Company Limited, and Global Power Synergy Public Company Limited or GPSC with 30% stake of each, announce to start the construction of the 60-MW expansion phase of NNEG power plant, with 10-ton/hour steam. This 3.105-billion-baht project was scheduled to commercially operate in 2020, thus increasing NNEG electricity and steam production capacity to 185 megawatts, with 40-ton/hour steam.

Air Chief Marshal Dr. Nopporn Chandawanich, NNEG Chairman, said that with the synergy of the three partners, the expansion phase was consistently progressing towards the construction stage. The generated electricity of 60 megawatts, with 10-ton/ hour steam will be directly distributed for three industrial customers in the Nava Nakorn industrial zone. It is projected that revenues from the expansion phase will be around 1.3 billion baht per year.

For its project funding, it was raised from debenture offering. Recently, NNEG has achieved issuance of 6.4-billion-baht debentures in multi-tranche offering with amortization structure of 3-year with interest rate of 2.68%, 5-year with interest rate of 3.00%, 10-year with interest rate of 3.85% and 16-year with interest rate of 4.22% for all institutional and/or major investors. The three appointed joint lead underwriters included Bank of Ayudhya PCL, Kasikornbank PCL and TMB Bank PCL. The debentures were rated “A-” with stable outlook by Fitch Ratings (Thailand). Also capital derived from the debenture offering will be used for loan repayment besides the expansion phase support.

Moreover, NNEG has entered into the Engineering, Procurement and Construction Contract (EPC) among IHI Corporation, Jurong Engineering Limited, and Thai Jurong Engineering Limited to be responsible for completing this expansion phase. The construction will be started in September and scheduled commercial operation in August 2020.

Located in Nava Nakorn industrial zone, Pathum Thani, the gas-fired NNEG power plant is a Small Power Producer (SPP). Its first phase with 125 MW installed capacity and 30-ton/hour steam was commercially operated on June 3, 2016, by distributing 90-MW electricity to the Electricity Generating Authority of Thailand (EGAT) under the 25-year Power Purchase Agreement, and the remainder of electricity and steam serving industrial plants in Nava Nakorn industrial zone. Also 60-MW electricity and 10-ton/hour steam capacity of the expansion project of NNEG will produce for supply to industrial customers directly.

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