Mr. Bundit Sapianchai, BCPG President and CEO, said that the Company’s Board of Directors meeting on September 17, 2019, approved BCPG Biopower 2 Limited (BBP2), one of BCPG’s subsidiaries, to invest in a 69-MW hydropower project through an entire equity acquisition in Nam San 3A Power Limited, a listed company in Laos.
Through the investment, the Company will have a 27-year Feed-in Tariff contract with Électricité du Laos (EDL), which has started from commercial operation date on January 29, 2016.
BCPG will invest US$ 173 Million (or approximately 5,315 Million Thai Baht) in this project. Funds will be raised from the Company’s cash flow and from loans from leading financial institutions, while the profits are expected to be recognized immediately.
“The investment in hydropower project in Laos is in line with BCPG’s business growth strategy to expand into various types of renewable energy businesses in Asia. This will also enhance stability of the Company’s revenue throughout the year, as well as a steady dividend payment to shareholders. This investment also helps balance the diversity of the company’s renewable energy technologies apart from our solar business in Thailand and Japan, wind power business in Thailand and The Philippines, and geothermal power business in Indonesia.
“The company is confident that this investment will benefit our business of the company, while increasing opportunities in other potential renewable energy projects in the future, which will help reinforce BCPG’s sustainability growth”, said Mr. Bundit.