NANCIAL STATEMENTS FOR THIRD QUARTER

(k) The two subsidiaries of the company entered into insurance agreements with two local insurers. These agreements are for the purpose of insurance on the power plants, a certain number of equipment, consequent loss, and third party liabilities, covering a period of 3 years commencing from 1 January 1999. The premium for such insurance for the first year was paid at US Dollars 1,167,885 and for the next two years at the agreed amounts on the condition that there will be no claims occurred in such periods. (l) A subsidiary of the company entered into spare parts repair service agreements with two suppliers. According to the agreements, this subsidiary has committed to have these suppliers repaired a certain number of spare parts specified in the agreements. These agreements, totalling Baht 49 million and GBP 895,438, are effective for a period of 2 years commencing from January 1999. Moreover, the two subsidiaries of the company also entered into gas turbine major parts repair service contracts with a supplier, previously an associate. According to the contracts, these two subsidiaries have committed to have this supplier repaired a certain number of spare parts specified in the contracts. These contracts, totalling Baht 14 million and Baht 36 million were effective for a period of 2 years commencing from May 2000 and January 2001, respectively. 15 Commitments and contingencies (continued) Service and Purchase Agreements (continued) (m) The two subsidiaries of the company entered into Long-term Part Agreement of capital spare parts with a supplier. According to the agreement, the two subsidiaries have committed to purchase a number of gas turbines specified in the agreements. The agreements, totalling US Dollars 42 million and US Dollars 16.12 million, are effective for a period of 6 years commencing from the agreement date. (n) A subsidiary of joint venture - Conal has a Management Service Contract with Conal Corporation which is an affiliated of joint venture - Conal. Under the Contract, Conal Corporation shall provide such subsidiary with legal services, audit services, treasury services, human resource development services and business development services for a yearly fee of Peso 2.5 million. The Contract is for a period of 5 years up to 2004, subject to renewal upon agreement by both parties. (o) A subsidiary of joint venture - Conal has a 10-year maintenance agreement to 2003 with a supplier for maintenance services on its power stations with a yearly basic fee of US Dollar 120,000 and DEM 127,000 for the 60.9MW and 42MW bunker diesel power stations, respectively, plus an additional amount calculated based on the energy produced. (p) A subsidiary of joint venture - Conal has existing Maintenance Agreements with a supplier. Under the agreements, the supplier shall provide maintenance services to the power plants of the two subsidiary of joint venture - Conal, over a period of 3 years up to 2001 for a yearly basic fee plus an additional amount calculated based on energy produced. Moreover, such subsidiary also has existing Management Support Agreements with a supplier. Under the agreements, the supplier shall provide the subsidiary with qualified power plant management staff who shall render management services, together with the subsidiary's own personnel, to the two subsidiaries of joint venture - Conal for specified fees. The agreements are for a period of 3 years up to 2001. (q) Under an Operations and Maintenance Agreement, a subsidiary of joint venture - Conal provides its customer with maintenance services on its 25 MWH power plant located in Socialist Republic of Vietnam for a yearly basic fee plus additional amount calculated based on energy produced. Others (r) On 7 April 2000, the company entered into the Shareholders Agreement with Electricity Power Development Company Limited, which was incorporated in Japan. According to the agreement, the company committed to subscribe 74% shares, totalling Baht 407 million, of a newly established company subsequently registered as EGCO Green Energy Company Limited. The payment of this subscription is subject to the incorporation and satisfaction of all conditions precedent in the agreement. EGCO Green Energy Company Limited was incorporated on 28 April 2000 with a registered share capital of Baht 74,000. (s) EGCOM TARA, a subsidiary has entered into a long-term loan agreement with the Industrial Finance Corporation of Thailand for the amount of Baht 300 million. The loan bears interest at the fixed rate. As at 30 September 2000, EGCOM TARA drawn down an amount of Baht 105 million. (t) As at 30 September 2000, joint venture - Gulf had commitments relating to building and equipment rental and service agreements which payments in 2000 to 2003 amounting to Baht 16.23 million. 16 Post Balance Sheet Events In October 2000, the company paid for the remaining balances of Nam Theun 2 Hydro Power Project amounting to US Dollars 6.75 million.