Pak Beng hydroelectric power project

Editorial Staff

Execution of the Power Purchase Agreement for Pak Beng hydroelectric power project worth 100 billion baht in Lao PDR to president The Stock Exchange of Thailand

Reference is made to Gulf Energy Development Plc’s notification to the Stock Exchange of Thailand on April 25, 2022, whereby the company and China Datang Overseas Investment Co., Ltd. (“CDTO”) under China Datang Corporation Ltd., a state-owned enterprise and leading energy company of the People’s Republic of China with over 170,000 megawatts of installed power generation capacity covering 13 countries worldwide, have entered into a Tariff Memorandum of Understanding (Tariff MOU) with the Electricity Generating Authority of Thailand (“EGAT”) for the development of the Pak Beng Hydroelectric Power Project (“Pak Beng project”). The Pak Beng project, which is located on the Mekong River in Pak Beng district, Oudomxay province, Lao PDR, has an installed capacity of 912 megawatts, and will produce and sell all of the electricity it generates to EGAT.

Ms. Yupapin Wangviwat, deputy chief executive officer and chief financial officer of the Gulf Energy Development Plc said the company would like to provide notification that on September 13, 2023, Pak Beng Power Company Limited, a joint venture in which the company and CDTO hold 49% and 51% equity stake, respectively, to operate the Pak Beng project, has entered into a Power Purchase Agreement with EGAT for a period of 29 years from the commercial operation date with an average electricity tariff of 2.7129 Thai Baht per kilowatt-hour.

The Pak Beng project has a total investment cost of approximately 100 billion baht and is currently in the process of securing loans from financial institutions, with the financial closing expected to be completed by the end of 2024. Construction is expected to take approximately 8 years to meet the scheduled commercial operation date in 2033.

The Pak Beng project has received approval from the government and National Assembly of Lao PDR, and it has signed a concession agreement with the Lao PDR government on August 11, 2023. The Pak Beng project is one of the projects under the Memorandum of Understanding between Thailand and Lao PDR regarding cooperation on the development of electrical energy in Lao PDR (MOU) to promote decarbonization and increase the deployment of clean energy during the energy transition period. Under the MOU, electricity will be purchased from power projects developed in Lao PDR and transmitted through the cross-border electricity transmission system.