Mekong Utility Watch

Jasmine set to sell stake in Lao power project

October 13, 1999
THAI telecommunications company Jasmine International Plc yesterday said it had begun talks aimed at selling its 10 per cent stake in the Nam Thun 2 power project in Laos.

Jasmine president Songrit Kusomrosananan said the company had decided to dispose
of its holdings in the 900 megawatt power project, in which it has invested US$3
million, to focus on its core business at home.

He said the company believed it had little chance of winning a contract to build the
project’s transmitting line from Laos to the Thai border.

The Laos government holds a 25 per cent stake in Nam Thun 2. Other stakeholders
are Electricite de France with 30 per cent, Transfield (Australia) Co Ltd with 10 per
cent, Italian-Thai Development Plc with 15 per cent and Merril Lynch Phatra Securities
Plc with 10 per cent.

Meanwhile, the Electricity Generating Authority of Thailand will extend the power
purchase agreement on Laos’ Nam Ngum 1 power project by another 3-4 years after
it expired last month.

The contract will be amended based on the Small Power Producer model for the
supply of 120 megawatts of power which entered Thailand’s power system in 1972.

Sittiporn Ratanopas, a deputy governor of the authority, left for Laos yesterday to sign
the contract extension.

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