Thailand’s Glow Energy PCL, a subsidiary of French utility Suez SA, said September 15 its board approved plans to buy a 67.25 percent stake in the 152-MW Houay Ho hydroelectric project in Laos from Suez.
Glow Energy said a subsidiary would buy the stake in the Houay Ho plant for US$45 million from Stopper Finance B.V. and Suez-Energy Asia Co., which are subsidiaries of Suez-Tractebel.
The Houay Ho hydropower plant has paid up capital of US$50 million and has a 30-year contract with the Lao government. Its power is sold to Electricity Generating Authority of Thailand.
Tractebel and its Thai partner MCL acquired 80 percent of Houay Ho in 2001 from Daewoo Engineering and Construction of South Korea and Loxley of Thailand. Completed in 1999 on a build-operate-transfer basis, Houay Ho is the first privately funded hydro project in Laos.
Suez holds 80 percent of the hydropower plant. Thai industrial estate developer Hemaraj Land and Development PLC is keen to buy the other 13 percent from the French firm, Glow Energy Chief Financial Officer Suthiwong Suthiwong said.
Glow and Hemaraj have formed a joint venture, GHECO-One Co., which was chosen by the Thai government to build a 660-MW, coal-fired plant estimated to cost about US$1.15 billion.
Board action; correcting project spelling, MW.