REPORTS ON PROGRESS OF PROJECTS

Electricity Generating Plc. (EGCOMP) reported that it has made a future plan for its main business by participating in a bid for an amount of 2,300-3,300 megawatts under the Independent Power Producer Project (IPP) in the second phase with the Electricity Generating Authority of Thailand (EGAT). This bidding will begin around late in 1997 or early in 1998. The company has eyed at a few locations for the power plant. Besides, the company has a plan to support the Small Power Producer Project (SPP), particularly in projects that are worth investing. Moreover, EGCOMP has a plan to expand its investment into related businesses and other main businesses. The projects under feasibility studies are as follows: 1. Project of a center to import and transport coals for uses as fuels for private power plants that will emerge in the future, which will require a prudent study on the suitablity of the project and location 2. Investments in foreign countries such as construction of integrated power plant including running and maintenance in Indonesia Progress of EGCOMP's projects: 1. Power plant of Amata-Egco Power Co., Ltd., which is located in the Bangpakong Industrial Park 2, progressed in the first phase with the first 55-megawatt gas turbine generator scheduled for a test-run to distribute electricity around late in May 1997. The 2nd generator of the same capacity will be on its test run around late in July 1997. Then the heat recovery, steam generator, and steam turbine generator with the capacity of 55 megawatts, as well as the integrated thermo power system will be installed, and will completed around May 1998. The capacity in the first phase will total 165 megawatts, requiring an investment of Bt4.5 billion. A total of 90 megawatts will be sold to EGAT under the deal to trade electricity power with small generators. The remainder wil be sold to customers in the industrial park. On the second phase, to be constructed at the same area, will require an investment of Bt3.5 billion for a production capacity of 210 megawatts. It is presently awaiting for the conditions and proposals from bidders to be finalised for selection of 2 successful candidates. 90 megawatts of the power will be sold to EGAT under the agreement to trade electricity power with small producers. The electricity distribution is expected to be possible around July of 1999. 2. Egco Engineering & Service Co., Ltd., an EGCOMP subsidiary, has joined an investment with CMS Generation Investment Company One to establish CMS Co-Energy Service Co., Ltd. to run generators and do maintenance for private electricity generators, both small and large companies. The company has in March 1997 signed a contract to run generators and power plant with a capacity of 165 megawatts of Amata-Egco Power Co., Ltd. This contract last for 6 years, and the company is now ready to operate the power plant in the first phast. 3. Egco Engineering & Service Co., Ltd. has signed a joint investment contract with John Wood Group of England on February 1997. This was to found Esco Wood Co., Ltd. who will construct a gas-turbine repair plant in Rayong. The joint venture is presently under way to apply for its investment promotion certificate. Initially, the company will repair only parts, but will later expand to repairs of bodies and gas turbine. Expectedly, the repair plant should be completed in October 1997. This electricity power repair plant, worth Bt60 million, is going to be the first in Thailand. 4. The project of Bangchak Power co-generating thermo power plant, which uses off-gas from oil refinery from Bangchak oil refinery factories as the main fuel, is presently in the process to seeks fuel as well as surveying and concluding EPC Contractor contract.