to set up joint venture company

Electricity Generating Plc (EGCOMP) will today sign a memorandum of understanding with Union Textile Industries Plc (UT), Union Energy Co, and British Gas Co to set up a company to construct a power and steam generating plant. The plant will have a production capacity of 100 megawatts, of which 20 megawatts will be sold to Union Textile Industries Plc. The remaining 80 megawatts will be sold to the Electricity Generating Authority of Thailand (EGAT) in line with the SPP (small power producer) program for at least 20 years. UT will hold a 26% stake in the new company, while Union Energy holds 25%, British Gas holds 25% and EGCOMP holds 24.5%. The registered capital of the new company will be determined later. The power plant to be constructed will be the combined cyble plant using the natural gas as the energy for the cogeneration of electricity and steam. The plant will be located within the factory of UT, at Bang Pu, Samut Prakarn provicne. The project will require an investment of about Bt2,000 million. The construction which will be commenced round mid 1996, will take 2 years. The joint venture will earn an annual income from the sale of electricity and steam of about Bt900 million. Translated by the Nati