Mr. Plew Trivisvavet, Chairman of the Executive Board and Chief Executive Officer of CH. Karnchang Public Company Limited revealed that CH. Karnchang Group had achieved an agreement to develop the Nam Bak Hydroelectric Power Project in the Lao PDR. Nam Ngum 2 Power Company Limited which is the subsidiary of CK Power Public Company Limited signed the the Project Development Agreement with the Government of Lao on August 8, 2013. From now on, we will work at full speed to finalize the Power Purchase Agreement and Construction Contract. For the construction work, Nam Ngum 2 Power Company Limited will engage CH. Karnchang Public Company Limited as the contractor since CH. Karnchang has experience, expertise and successful track record for building the large-scale hydropower projects in the Lao PDR namely the Nam Ngum 2 Hydroelectric Power Project and Xayaburi Hydropower Project. Nam Bak construction is expected to start by the end of 2014 with the approximate project value of 20,000 billion baht and construction value of approximately 17,000 million baht.
Dr. Supamas Trivisvavet, the Managing Director of CK Power Public Company Limited revealed that Nam Bak Hydroelectric Power Project has 160 megawatts installed capacity and can produce electricity up to 744 GWh. per year or approximately 50% of Bhumibol Dam. The construction will take about 4.5 years. Hydropower is a clean and renewable energy, highly beneficial to the people and the environment. More importantly, this project will enhance CKP's investment capacity and stable income generation. Nam Bak will add 160 megawatts to CKP's investment portfolio, which is poised to grow with the 120 megawatts Bangpa-In Cogeneration Phase 2 scheduled to be in operation in 2017 and the 1,285 megawatts Xayaburi Hydropower Project. CKP's portfolio will jump from 754.5 megawatts in 2013 to 2,319.5 megawatts in 2019.
As for projects already in operation, the Nam Ngum 2 Hydroelectric Power Project, which started its electricity production since 2011, has recently reported above average water inflow due to the monsoon season resulting in a full capacity production. CKP's 117.5 Megawatts Bangpa-In Cogeneration Phase 1 has also recently commenced in June. These two power plants will significantly boost CKP's revenue in 2013. To prepare for the AEC in 2015 and sustainable growth, CKP is currently studying a number of Hydropower projects in the Lao PDR as well as other power projects in Thailand and the region. CKP is confident that we have development experience, expertise and financial strength to successfully develop these projects soon.