BCPG assumes Nam San 3B Power in $113m deal for hydropower plant and transmission line system in Laos
BCPG Plc, the renewable power arm of Bangchak Corporation Plc, has taken over Nam San 3B Power Sole Co, operating a hydropower plant and transmission line system in Laos in a deal worth US$113 million (3.45 billion baht).
The hydropower plant generates 45 megawatts, starting operation in 2015 with a 27-year concession. Electricite du Laos is the power buyer.
Bundit Sapianchai, president and chief executive, said BCPG invested through its wholly owned BCPG Indochina Co (BIC), acquiring all shares owned by Laos-based Phongsubthavy Roads and Bridges Construction and Irrigation Co (PSG).
“BCPG entered into a share purchase agreement with the seller and made the transaction legally,” he said.
“The sources of funding for this asset acquisition will come from cash on hand and loans from commercial banks.”
This deal is its second takeover of a hydropower plant. The first project is the Nam San 3A with power generation of 69MW, located in Xiangkhouang, Laos.
The Nam San 3A project was acquired in September 2019 in a deal worth $174 million (5.32 billion baht).
Mr Bundit said BIC will make a joint investment with the seller to construct and operate the transmission line system and substation from Nam San 3A and Nam San 3B to connect with the substation, owned by Vietnam Electricity (EVN).
The line will run 79 kilometres.
In January, Nam San 3B entered into a power purchase agreement with EVN and the purchased electricity is expected to start transmission to EVN in 2022.
“This is a big step for BCPG in its business expansion in renewable energy,” said Mr Bundit.
The Nam San 3B facility posted revenue from electricity distribution of 396 million baht in 2017 and 467 million in 2018.
PSG is also developing a 400MW hydropower plant and is looking to combine with the Nam San transmission line to sell electricity to EVN.