TERIM FINANCIAL Q2-99 (CORRECTED THE NOTE 7.2)

Electricity Generating Public Company Limited Page 13 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Investments in and loans to subsidiaries, associates and other companies 7. 7.1 Investments in and loans to subsidiaries, associates and other companies for the company's financial statements are as follows : Subsidiaries Type of business Rayong Electricity Generating Electricity Generating Company Limited Khanom Electricity Generating Electricity Generating Company Limited EGCO Engineering and Services Provide maintenance Company Limited service to power plants EGCO Joint Venture and Development Make business investment Company Limited in electricity industry EGCO Mining Company Limited Mining industry Associates AMATA EGCO Power Electricity Generating Company Limited Bangchak Power Company Limited Electricity Generating AMATA POWER ESCO Service Providing services to Company Limited power plants (formerly named as CM ESCO) ESCO Wood Company Limited Provide maintenance service to power plants Paid-up share % of Subsidiaries capital Interest Rayong Electricity Generating Company Limited 4,700,000 99.99 Khanom Electricity Generating Company Limited 4,850,000 99.99 EGCO Engineering and Services Company Limited 210,000 99.99 EGCO Joint Venture and Development Company Limited 447,720 99.99 EGCO Mining Company Limited 176,000 69.99 Associates AMATA EGCO Power Company Limited 1,350,000 29.70 Bangchak Power Company Limited 40,000 30.00 AMATA POWER ESCO Service Company Limited (formerly named as CM ESCO) 2,000 50.00 ESCO Wood Company Limited 20,000 45.00 Other companies Thai LNG Power Company Limited - 10.00 PMI International Company Limited - 10.00 The company only 1999 Cost Method Equity method Subsidiaries (Baht'000) (Baht'000) Rayong Electricity Generating Company Limited 4,700,000 6,009,737 Khanom Electricity Generating Company Limited 4,850,000 5,470,405 EGCO Engineering and Services Company Limited 210,000 114,015 EGCO Joint Venture and Development Company Limited 447,720 20,837 EGCO Mining Company Limited 124,800 105,176 Associates AMATA EGCO Power Company Limited 400,950 465,209 Bangchak Power Company Limited 12,000 11,986 AMATA POWER ESCO Service Company Limited (formerly named as CM ESCO) 1,000 20,413 ESCO Wood Company Limited 9,000 494 Total investments in subsidiaries and associates 10,755,470 12,218,272 Other companies Thai LNG Power Company Limited 37,499 PMI International Company Limited 300 Investment in Open-End Fixed Income Fund 600,000 Total investments in other companies 637,799 Loan to a subsidiary 25,200 The company only 1998 Cost Method Equity method Subsidiaries (Baht'000) (Baht'000) Rayong Electricity Generating Company Limited 4,700,000 3,466,343 Khanom Electricity Generating Company Limited 4,850,000 4,950,057 EGCO Engineering and Services Company Limited 210,000 138,450 EGCO Joint Venture and Development Company Limited 343,770 20,416 EGCO Mining Company Limited 100,400 94,370 Associates AMATA EGCO Power Company Limited 297,000 297,000 Bangchak Power Company Limited 12,000 12,000 AMATA POWER ESCO Service Company Limited (formerly named as CM ESCO) 1,000 1,000 ESCO Wood Company Limited 9,000 9,000 Total investments in subsidiaries and associates 10,523,170 8,988,636 Other companies Thai LNG Power Company Limited 37,499 PMI International Company Limited 300 Investment in Open-End Fixed Income Fund - Total investments in other companies 37,799 Loan to a subsidiary - The financial statements for the second quarter and the six-month period ended June 30, 1999 include shares of net gains totalling Baht 23.3 million and Baht 1.1 million, respectively, from the four associates (The second quarter and the six-month period ended June 30, 1998 : nil). The financial statements for such periods of these associates have not been reviewed by these companies' auditors. Unaudited Reviewed Electricity Generating Public Company Limited Page 14 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued 7.2 Investments in and loan to associates and other companies in the consolidated financial statements are as follows : Associates Type of business AMATA EGCO Power Electricity Generating Company Limited Bangchak Power Company Electricity Generating Limited AMATA POWER ESCO Providing services to Service Co., Ltd. power plants (formerly named as CM ESCO) ESCO Wood Company Limited Provide maintenance service to power plants Consolidation 1999 Paid-up share % of capital holding Associates (Baht'000) AMATA EGCO Power Company Limited 1,350,000 29.70 Bangchak Power Company Limited 40,000 30.00 AMATA POWER ESCO Service Co., Ltd. (formerly named as CM ESCO) 2,000 50.00 ESCO Wood Company Limited 20,000 45.00 Other companies Thai LNG Power Company Limited - 10.00 PMI International Company Limited - 10.00 Consolidation 1999 Cost method Equity method Associates (Baht'000) (Baht'000) AMATA EGCO Power Company Limited 400,950 465,209 Bangchak Power Company Limited 12,000 11,986 AMATA POWER ESCO Service Co., Ltd. (formerly named as CM ESCO) 1,000 20,413 ESCO Wood Company Limited 9,000 494 Total investment in associated companies 422,950 498,102 Other companies Thai LNG Power Company Limited 37,499 PMI International Company Limited 300 Investment in Open-End Fixed Income Fund 637,000 Total investments in other companies 674,799 Loan to an associate 32,490 Consolidation 1998 Paid-up share % of capital holding Associates (Baht'000) AMATA EGCO Power Company Limited 696,000 29.70 Bangchak Power Company Limited 40,000 30.00 AMATA POWER ESCO Service Co., Ltd. (formerly named as CM ESCO) 2,000 50.00 ESCO Wood Company Limited 20,000 45.00 Other companies Thai LNG Power Company Limited - 10.00 PMI International Company Limited - 10.00 Consolidation 1998 Cost method Equity method Associates (Baht'000) (Baht'000) AMATA EGCO Power Company Limited 297,000 297,000 Bangchak Power Company Limited 12,000 12,000 AMATA POWER ESCO Service Co., Ltd. (formerly named as CM ESCO) 1,000 1,000 ESCO Wood Company Limited 9,000 9,000 Total investment in associated companies 319,000 319,000 Other companies Thai LNG Power Company Limited 37,499 PMI International Company Limited 300 Investment in Open-End Fixed Income Fund - Total investments in other companies 37,799 Loan to an associate - The financial statements for the second quarter and the six-month period ended June 30, 1999 include shares of net gains totalling Baht 23.3 million and Baht 1.1 million, respectively, from the four associates (The second quarter and the six-month period ended June 30, 1998 : nil). The financial statements for such periods of these associates have not been reviewed by these companies' auditors. Unaudited Reviewed Electricity Generating Public Company Limited Page 15 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Long-term loans 8. The long-term loans are loans in US Dollars and Thai Baht of the two subsidiaries as follows : Consolidation 1999 1998 (Baht'000) (Baht'000) Long-term loans in US dollars 16,174,945 19,265,259 Long-term loans in Thai Baht 2,627,000 2,893,250 18,801,945 22,158,509 Less: Current portion of long-term loans (1,272,931) (1,248,777) 17,529,014 20,909,732 The long-term loans of Rayong Electricity Generating Company Limited are the loans under the Master Agreement, Credit Agreement and Institutional Loan Agreement, each dated November 30, 1994 and the long-term loans of Khanom Electricity Generating Company Limited are the loans under the Master Agreement and Bank Credit Agreement, each dated June 3, 1996. The loan information of the two subsidiaries is summarised as follows : Outstanding balance Total facilities as at June 30, 1999 (million) (million) Loans of Rayong Electricity Generating Company Limited USD 93 65.1 USD 48 33.6 USD 141 141.0 Baht 3,550 2769.0 Term of repayment Interest rate (years) (% per annum) 10 LIBOR plus a certain margin 10 LIBOR plus a certain margin 15 8.85% 12 MLR minus a certain margin Unaudited Reviewed Electricity Generating Public Company Limited Page 16 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Outstanding balance Total facilities as at June 30, 1999 (million) (million) Loans of Khanom Electricity Generating Company Limited USD 100 88 USD 165 145.2 Baht 225 (not yet be drawdown) Term of repayment Interest rate (years) (% per annum) 12 LIBOR plus a certain margin 12 LIBOR plus a certain margin 15 MLR minus a certain margin Rayong Electricity Generating Company Limited entered into an interest rate swap agreement to convert a floating interest rate based on LIBOR plus a certain margin, to fixed interest rates of 8.12% and 8.22% per annum for 2 tranches of loan amounts of US Dollars 93 million and 48 million, respectively. The agreement is effective from November 30, 1994 to December 7, 2004. On May 9, 1996, Khanom Electricity Generating Company Limited entered into the interest rate swap agreement to convert a floating interest rate based on LIBOR plus a certain margin to a fixed interest rate of 8.0275% per annum for the loan amount of US Dollars 165 million. In addition, there is a currency and interest rate swap agreement to convert the loan amount of US Dollars 100 million with a floating interest rate to Thai Baht currency at a fixed interest rate of 11% per annum. As a result, the balance of this loan as at June 30, 1999, amounting to US Dollars 88 million, equals to Baht 2,220 million. These agreements are effective from June 19, 1996 to June 14, 2008. The Master Agreements of both subsidiaries have certain clauses which state that cash reserves are to be provided from the proceeds of sales of electricity for repayment of principal and interest due within one year, and other conditions as described in notes 5 and 6 to the financial statements. Also, a reserve for exchange risk shall be provided as described in the same note. In addition, the PPAs, the Asset Purchase Agreements, the Major Maintenance Agreements, insurance policies, and other related agreements with the lenders have been assigned as collateral in accordance with the conditions under the Master Agreements. Unaudited Reviewed Electricity Generating Public Company Limited Page 17 Notes to the interim company financial statements and consolidated financial statements - June 30, 1999 continued Debentures 9. Consolidation 1999 1998 (Baht'000) (Baht'000) Debentures 10,096,128 10,420,138 Less: Current portion due within one year (989,228) (324,010) 9,106,900 10,096,128 The debentures of Rayong Electricity Generating Company Limited are under the Master Agreement and Debenture Holder Representative Appointment Agreement No. 1 and No. 2, each dated November 30, 1994. The debentures of Khanom Electricity Generating Company Limited are under the Master Agreement and the Statements of the Terms and Conditions Regarding the Rights and Obligations of the Issuer and the Debentureholders which were dated June 3, 1996 and June 19, 1996, respectively. The debenture information of the two subsidiaries is summarised as follows : Outstanding balance as at June Term of 30, 1999 repayment (Baht million) (years) Rayong Electricity Generating Company Limited Debentures No. 1 2,500.0 5,7,10,12 Debentures No. 2 780.0 1-12 Khanom Electricity Generating Company Limited Debentures 6,816.1 15 Interest rate Due date (% per annum) Rayong Electricity Generating Company Limited Debentures No. 1 11.25% Dec.7, 2006 Debentures No. 2 11.25% Dec.7, 2006 Khanom Electricity Generating Company Limited Debentures 11.5625% June 14, 2011 Unaudited Reviewed (more)