world bank documentdocuments.worldbank.org/curated/en/400391468132277… · · 2016-07-10this...

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The World Bank

FOR OMCIAL USE ONLY

Report No. 6660

PROJECT COMPLETION REPORT

THAILAND

BANG PAKONG THERMAL POWER PROJECT (LOAN 1690-TH)

February 20, 1987

Projects DepartmentEast Asia and Pacific Regional Office

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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FOR 0MCIL US ONLYTHE WORLD SANKWashrglon, D.C. 20433

U.S.A.

Offke of D0ietwvCew.IOVwaim EVAkitwan

February 20, 1987

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on Thailand Bang Pakong ThermalPower Project (Loan 1690-TH)

Attached, for information, is a copy of a report entitled "ProjectCompletion Report on Thailand Bang Pakong Thermal Power Project (Loan 1690-TH)"prepared by the East Asia and Pacific Regional Office. Under the modified systemfor project performance auditing, further evaluation of this project by theOperations Evaluation Department has not been made.

Attachment

This document has a restrited distnbutin and may be used by recipients only in the petrfomanceof their ofilcial duties Its contents may no othewis be disclosd without Word Bank autbountion.

FOR OMFCIUL USE ONLY

THAILAND

BANG PAKONG THERMATL POWER PROJECT (LOAN 1690-TH)


Table of Contents

Page No.

PREFACE ............................................. @0******* ... i

BAII C DA TA SHEET ................................................ 1

HICHLIGHTS he.Po.er.Sector...... .................................... 1

I* INTRODUCTION***ooo*oo.oooo*eeoe000* 9 1

The Power S e c t or.*oaoooooooo..ooo.**. 1The Borroweror r ow,e r ... 2

II. PROJECT IDENTIFICATION AND PREPARATION....................... 3

Project Preparation and Appraisalp..... 3Project Description.. .. ... o....... ............... oo...... 4Project Role in Thailand's Development Program*********m.. 4

III. PROJECT IMPLEMENTATION ............... .5

Loan Effectiveness and S tpr t. . . . 5Changes in Scope of Work 5Project Implementation.....0 ........... e.............. 5

6Project Completion 7Project Costs 7Disbursements........... o................... ............... 8Financing Ar r a n g e m e n ts.... 9

IV. OPERATING PERORF O R M AN.............. 10

System Growth and Operations........................... 10Plant Commissioning and Operationer.a....i.. on......... . 10Environmental M o n i t o r i n g 11

V. FINANCIAL PERFORMANCE ................ 12

12Financial Covenants and Operating Results*.*.********** 12

This document has a restticted distribution and may be used by recipients only in the performanceof their official duties. Its contents nay not otherwise be disclosed without World Bank authorization.

VI. PROJECT ACHIEVEMENTS AND ECONOMIC RE-EVALUATION.............. 14

Project Achievements................. ........ 14Powor R....ti....... ........ ,, . ..... 14Economic Re-evaluationooooooooo*oooooooo 15Least-cost Solution.oo....o.e......... o................. . 16

VII. BANK PERFORMANCE. ............. 16

Project Identification and Preparation,................... 16Loan Processing............ , . 16

Supervision ........ , , , , ... ~~16Working Relati onship...................... .,. ... ,.. 16

VIII. CONCLUSIONS ............... 17

ANNEXES

1. Bar Chart: Project Implementation, Plan and Actual............ 182. Actual Disbursements versus Appraisal Est imate, 193. Operating Results for the Period January-December 1985......5 204. Table 1s Income Statements -- Appraisal versus Actual alo...... 21

Table 2: Funds Flow Statements -- Appraisal versus Actual*.*.. 22Table 3: Balance Sheets -- Appraisal versus Actual ,, ,..... 23Table 4: Financial Indicators -- Appraisal versus Actual . 24

5. Economic Re-evaluation of the Bang Pakong Thermal Power Plant-General Assumptions... 25

6. Table 1: Economic Re-evaluation of the Bang Pakong Thermal PowerPlant -- Cost Summary 26

Table 2: Economic Re-evaluation of the Bang Pakong Thermal PowerPlant -- Costs and Benefits Streams .... ,......... 27

7? Least-cost Analysis .e......... ....... *...* . 28

APPENDIX A

Porrower C)31

MAP IBRD 19362 R (PRC)

THAILAND



Preface

This is the Completion Report for the project financed under thefifth loan to the Electricity Generating Authority of Thailand (EGAT) and theninth power loan to ECAT and its predecessor. The US$80 million loan whichbecame effective on May 23, 1980, was provided to finnce approximately 44Z ofthe foreign cost of a project comprising land procurement and site developmentof a power station at Bang Pakong that will ultimately consist of four gene-rating units, construction of civil works including power plant structures,and supply and erection of the first generating unit, and the associated230 kV switchyard, substations and transmission lines, and a study of futuregeneration and transmission projects. This report was preparad by the EastAsia and Pacific Projects Department, Energy Division. A first draft of thereport had been prepared by the Thermal Plant Construction Department of EGAT.

In accordance with the revised procedures for project performanceaudit reporting, this Project Completion Report was read by the OperationsEvaluation Department (OED), but the project was not audited by OED staff.

following standard procedures, OED sent copies of the draft reportto SCAT, the Government and the Co-financier for comments. Comments receivedfrom the Borrower have been reproduced as Appendix A to the report.

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PROJECT COMPLETION REPORT BASIC DATA SHEET

THAILAND: BANG PAKONG THERMAL POWER PROJECT (LOAN 1690-TH)

KEY PROJRCT DATA

AppraisalItem expectation Actual

Total Project Cost (US$ million) 296.8 279.0Cost Underrun (t) - 6.0

Loan Amount (US$ dillion) RO.0 80.0Disbursed 81).0 66.4Cancelled 13.6

Date Physical Components Completed _D_c_ 83_ - Jan 84Proportion Completed by Above Date (K) 100 100Proportion of Time Overrun (S) __ - 2Economic Rate of Return (%) 13 26Financial Performance - Worse during FY80, better during FY81, and somewhat below appraisal expectation for

the period FY82-84; fair.institutional Performance - Similar to appraisal expectation; fair.

OTHER PROJECT DATA

item Actual

First Mention in Files or Timetable 10/171/77Government's Application 11/16/18Negotiations n2/14/79Board Approval 04/24/79Loan Agreemnt Date WPM9/79Effectiveness Date 05/23/R0Closing Date 06/f30/85

Borrower Electricity Generating Authority of ThailandExecuting Agency Electricity Generating Authority of ThailandFiscal Year of Borrower October 1 - September 30Follow-on Project aNRe Thao Lae% lydroelectric Project

Loan Number 1770-THAmount (USS million) 80.0Loan Agreement Date 06/17/80

MISSION DATA

No. of No. of Date ofItem 1Month/Year Weeks Persons Man-weeks Report

Identification 09/77 1 1 1 10/17/77Preparation 01/78 1 1 1 I2/17/77Appraisal ___7_ _ 3 3 q 7)4-075/7T9

Total 5 11

Supervision I 03/81 2 2 4 04/15/R1Supervision II 03/7 7--- 2 6 05/l 1/82Supervision III 09/83 2 2 4 04/27/83Supervision IV 07/87Z 4 10/25/84Completion 05/85 1 2 -2 0626/86

Total 10_ 20

COUNTRY EXCHANGE RATES

Name of Currency (abbreviation) Baht (B)Year:

Appraisal Year Average 1979 Fxchange Ratet USSi - 20.25Intervening Years Average 1980-84 USS1 - 20.9Completion year average 1985 USSI * 27.n

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THAILAND



Highlights

A loan of US$80 million was made to EGAT in May 1980 to finance partof the foreign costs of constructing the Bang Pakong Thermal Power Project,including the associated transmission lines and a study of future power gene-ration and transmission projects (para. 2.06). The Bang Pakong Thermal PowerProject consisting of a 530 MW dual-fired (oil or natural gas) unit was com-missioned about 1 month behind schedule (para. 3.10). The unit has been gene-rating commercially since January 1984 (paras. 3.10 and 4.03). The actualproject cost (excluding interest during construction) was US$279 millionequivalent, about 6% below the appraisal estimate; the costs of the powerplant equipment were about one third lower and those of civil works about 80%hither than the appraisal estimate for these items (para. 3.12). The study onfuture power generation and transmission project, was completed in November1981, and EGAT has drawn both on its content and methodology continuouslysince (para. 3.08).

SGAT's peak generation rose from 2,255 MW in 1979 to 3,878 MW in1985. ECAT's energy sales increased by 64% during the period (12,934 GWh in1979 to 21,240 GWh in 1985).

The project will reduce Thailand's needs for imported fuel, and itsex vost internal economic rate of return of 26% confirms its economic viabil--ty paras. 6.01 and 6.04).

EOAT continues to be well managed (para. 4.02). After operatingcosts had been seriously affected by severe drought and the oil price rises of1979, the Government implemented substantial tariff increases in 1980 and 1981which helped to restore EGAT's financial viability (paras. 5.01-5.07).

THAILAND



I. INTRODUCTION

The Power Sector

1.01 Power in Thailand is supplied principally by three government enti-ties, the Electricity Generating Authority of Thailand (EGAT), the Metropoli-tan Electricity Authority (MEA) and the Provincial Electricity Authority(PEA). EGAT is responsible for generation and high vot.tage transmission tosupply bulk power to MEA, PEA4 and a small number of large industrial consum-ers. MEA is responsible for distribution in the greater Bangkok Metropolitanarea, and PEA for distribution throughout the rest of the country and forminor generation in certain isolated areas.

1.02. EGAT's system at the end of FY84 compares with that of FY78 asfollows:

Table 1.1: EGAT'S SYSTEM FACILITIES

Average annualFY78 FY84 growth rate

Type of facility FY78-84 (Z)

Installed Capacity

7ydro 909.2 32.3 1,509.1 25.8 8.8Thermal 1,702.5 60.6 3,327.5 56.8 11.8Gas turbine 165.0 5.9 265.0 4.5 8.2Diesel 34.6 1.2 33.6 0.6 -0.5Combined cycle - - 720.0 12.3 -

Total 22811.3 100.0 5,855.2 100.0 13.0

Transmission Lines(Circuit-km)

Z3U kV 2t545 28.1 4,616 33.7 10.4115 kV 5,540 61.1 8,157 59.5 6.769 kV /a 985 10.8 932 6.8 -0.9

Total 9,070 100.0 13,705 100.0 7.1

Substations Capacity(MVA)

Z30 kV 2,439 59.1 6,039 65.0 16.3115 kV 1,403 34.0 2,867 30.9 12.669 kV 283 6.9 382 4.1 5.1

Total 4,125 100.0 9,288 100.0 14.5

/a Total circuit kilometers of 69 kV decreased due to conversion to 115 kV.

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The Borrower

1.03 The Borrower was EGAT, an autonomous entity established in 1968 by amerger of its predecessor, the Yanhee Electricity Authority (YEA) and twoother entities. EGAT, which accounts for almost all of the electricity gene-rated in Thailand, is a well organized and operated utility with a consider-able degree of autonomy. Its Board of Directors consists cf a Chairman andnot mo,.e than ten other members, including the General Manager. All Boardmembers, who ore appointed by the Council of Ministers, act in part-time capa-city, with the exception of the General Manager. EGAT's organizational struc-ture was streamlined in December 1985. It now has six Deputy General Managersresponsible respectively for thermal power plant and mine development, hydro-power and transmission system development, power plant operations, transmis-sion system operations, accounts and finance, and administration.

1.04 This was the fifth power loan to EGAT and the ninth to EGAT and itspredecessor. The loan for the first EGAT Power Project (Loan 655-TH) was madein Febrtary 1970 to help finan_e the power installation (3 x 125 MW) at theSirikit dam and the addition of Unit No. 3 (300 MW) at the South Bangkok ther-mal power plant. The second loan to EGAT was made in November 1971 for theSouth Bangkok Thermal Unit No. 4 Project (Loan 790-TH). The third loan wasmade in April 1974 for the first stage of the Ban Chao Nen Hydroelectric Proj-ect (Loan 977-TH). The fourth loan was made in September 1977 for the PattaniHydroelectric Project (Loan 1485-TH). A sixth loan was made in September 1980for the Khao Laem Hydroelectric Project (Loan 1770-TH).

1.05 The conclusions of the Project Performance Audit Report (PPAR) forthe first EGAT Power Project were that (a) the Sirikit units were implementeda few months earlier than envisaged, with a cost overrun of 4Z; (b) the SouthBangkok Thermal Unit No. 3 had a cost overrun of 3X and was completed sixmonths behind schedule mainly due to the need to repair the generator; (c) themajor objectives of the project had been met; and (d) EGAT complied with allcovenants and its financial performance was satisfactory.

1.06 The conclusions of the P'AR for the South Bangkok Thermal Unit No. 4Project were that (a) the major objectives of the project had been met;(b) the project was completed on time and within the original cost estimate;(c) EGAT's financial performance was satisfactory; and (d) some financialadvantage resulted from exercising an option to purchase duplicate generatingequipment provided in the contract for Unit No. 3.

1.07 The conclusions of the PPAR for the third project, the first stageof the Ban Chao Nen Hydroelectric Project, were that (a) the project was exe-cuted as planned and was completed according to the original schedule but at acost overrun of about 30% which was beyond the control of EGAT due to theworld fuel crisis and the resulting inflation; (b) the resettlement plan wascarried out successfully; (c) the Government succeeded in implementing tariffincreases four times; and (d) the financial position of EGAT and the sector asa whole was sound. The major lessons to be learned from that Project werethat an International Board of Consultants (IBC), which EGAT has retainedsince 1974 to advise on major hydroelectric projects, can be very effective inensuring adequate project design and implementation, and that an effective wayto conserve energy is through an appropriate energy pricing policy.

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1.08 The couclusions of the Project Completion Report (Report No. 5607)for the Pattani Hydroelectric Project were that (a) the project was completedabout two months ahead of schedule and at a cost slightly below the appraisalestimate; (b) the resettlement plan was carried out successfully; and (c) theseveral substantial tariff increases implemented by Government during 1980-81helped restore the financial viability of both EGAT and the sector as a wholebut that the financial condition of both should be kept under review as theimpact of the tariff increases gets increasingly neutralized by the risingcosts of electricity supply.

1.09 The conclusions of Project Completion Report (Report No. 6157) forthe Khao Laem Hydroelectric Project were that (a) the project was executedessentially as planned, with due regard to ecological and environmentalfactors (5) the resettlement program and the establishment of agriculturalcooperative societies were carried out successfully and (c) while civil costswere 17X higher than estimated at appraisal, additional geological investi-gations prior to commencing implementation of the project would not havereduced project costs nor advanced actual commissioning, and the decision toproceed with construction based on the available data had proved to be ajudicious one.

II. PROJECT IDENTIFICATION AND PREPARATION

Project Preparation and Appraisal

2.01 Two natural gas deposits were discoverd in the Gulf of Thailand in1971; the first by Union Oil about 560 km south of Bangkok and the second byTexas Pacific about 175 km southwest of Union Oil's discovery. Preliminaryestimates of reserves in the two gas field amounted to about 4.6 trillioncubic feet.

2.02 EGAT engaged consultants in 1977 to provide engineering services toevaluate various sites at which natural gas could be used for power genera-tion. The left side of the Bang Pakong River was eventually chosen. The sur-rounding area had a minimum of development and no resettlement problems wereinvolved as the site was relatively uninhabited. The site had a furtheradvantage in that the prevailing wind is in a favorable NE-SW direction sothat when fuel oil needs to be burnt, at times of gas supply shortageap sul-phurous deposits will generally occur only over the Gulf of Thailand.

2.03 The same consultants also provided engineering services for the pre-paration of equipment specifications, bid evaluation, detailed design, andconstruction supervision of the project.

2.04 On-site project preparation began in 1978 with soil investigations,groundwater exploration and the construction of access roads and bridges.

2.05 A power mission which visited Thailand i't September 1977, startedproject preparation by the Bank. The project was appraised during a powermission to Thailand in August/September 1978.

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Project Description

2.06 The project included the construction and installation of the firstunit of the Bang eakong thermal power plant located at the cmouth of the BangPakong river about 60 km southeast of Bangkok. The project comprised:

(a) land procurement and site development for the nstallation of fourthermal units, each of about 500-MW capacity,-

(b) construction of civil works including power plant st.ucture3 andbuildings, fuel supply handling and storage systems, cooling watersystem, make-up water, etc.;

(c) supply and installation of the boiler, turbo-generator and auxiliaryelectrical, and miscellaneous mechanical equipment for the firstunit;

(d) construction of the 230 kV Bang Pakong switchyard, Rangsit and BangKapi substations, and about 110 km of 230 kV double circuit trans-mission line to augment the existing 230 kV line from Siracha toBang Kapi;

(e) supply of construction equipment;

(f) engineering services; and

(g) a study of future generation and transmission projects.

Project Role in Thailand's Development Program

2.07 The project is an important part of EGAT's expansion program to meetThailand's rapidly growing energy and power demand for electricity, in part,resulting from the ongoing accelerated rural electrification program, and sub-stantial growth in the industrial sector. By being capable of using indige-nous natural gas as fuel for power generation, the project reduces Thailand'sdependence on imported fuels for electricity generation. In addition, thedual-fired design of the boiler allows for flexibility in the use of naturalgas as fuel, if and when need emerges for larger quantities of natural gas forindustrial and other purposes.

1/ The results of international competitive bidding were evaluated by theConsultants, who recommended that an order be placed for the mosteconomic bid. As a result, EGAT purchased a unit with a rating of550 MW.

III. PROJECT IMPLEMENTATION

Loan Effectiveness and Start-up

3.01 Board approval of the project took place on April 24, 1979. Theloan was signed on August 9, 1979, and became effective on May 23, 1980, fol-lowing the Government's agreement, in connection with Loan 1852-TH (Mae MohLignite Project) to carry out a Plan of Action to restore the financial via-bility of EGAT and the power sector as a whole (para. 5.04).

3.02 Project preparation and procurement for the major items were welladvanced by the date of Board approval. EGAT issued bidding documents, inaccordance with International Competitive Bidding procedures, for all majorplant items. The documents were issued in October 1978 and bids were openedon March 7, 1979. Contracts were signed on October 12, 1979, for the supplyof the electrical equipment, and on December 4, 1979, for the supply of theturbine generator, the main power transformer and for the water treatmentworks. The contract for the supply and erection of the Control and Informa-tion System was signed on February 15, 1980.

Changes in Scope of Work

3.03 The project scope remained essentially the same as described in theStaff Appraisal Report. In July 1979, the Bank agreed to EGAT's proposal toutilize part of the loan, as had been envisaged at the time of appraisal sub-ject to funds being available, for the supply and erection of an integratedthermal plant Operations and Maintenance Training Center. The contract withthe engineering consultants was extended to cover the design and engineeringof the Center. A contract for the supply and erect.cn of the Center's ControlRoom Simulator was signed on March 24, 1981. The construction of the Centerand the Simulator was completed in February 1983, about six months in advanceof the synchronization of the first generating unit.

3.04 A change in the planned source of boiler make-up water took placeduring the development of the scheme. It had been assumed that permissionwould be forthcoming to extract water for this purpose from an adjacent canalwhich drains the Klong Luang basin. Government decided that such an extrac-tion would be detrimental to the canal users and permission for extraction wasrefused. As a result EGAT constructed the Bang Phra and Bang Bao waterextraction and supply systems, including deep wells, reservoirs and a 40 kmpipeline to Bang Pakong, to supply make-up water to the project.

Project Implementation

(a) Physical Works

3.05 Civil works in the area of the boiler began in August 1979. Prog-ress of the work fell behind schedule when soft and unstable subsoil condi-tions were encountered which caused deviations and unacceptable settlement tothe driven concrete piles. These difficulties were resolved by modifying thefoundation design and adding extra concrete piles (para. 3.09). Piling forthe power plant area was completed in March 1981, and by November 1981 most of

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the structural steel had been erected. Erection of the boiler drum took placein September 1981. Generator installation began on site in April 1982, andwas completed in December 1982. Most of the installation work was performedby EGAT's own staff under the guidance of representatives of the equipmentsuppliers.

3.06 Blowing-out for steam-pipe cleaning took place in .June 1983 andsteam was first raised using natural gas on July 23, 1983. The unit was firstsynchronized to EGAT's system on August 10, 1983, two months behind the origi-nal schedule; and performance tests were completed in January 1984, about onemonth behind the appraisal targeto

3.07 Construction and installation of the 230 kV double-circuit transmis-sion line from Siracha to Bang Kapi were carried out by turnkey contract andwere completed in January 1984. Compared to the original schedule for thiswork, this constituted a delay of about 12 months which resulted largely fromthe contractor's poor performance in the manufacture and delivery of towersand his inefficient organization of the erection work on site.

(b) Study of Future Generation and Transmission Projects

3.08 As required under Section 3.06(a) of the Loan Agreement, EGAT con-tracted consultants to carry out a study of future generation and transmissionprojects together with an in-depth review of the load forecast. The consul-tants submitted their final report on November 3, 1981. The study concludedthat EGAT's forecasts of system total requirements were well within acceptabledeviations. The study identified long-term energy policy options and analyzedthese to produce several alternative least-cost development programs based onvarious scenarios of indigenous energy resource availabilities and importedfuel costs. The sensitivity of the several alternative programs to deviationsin cost of financing, capital costs, fuel costs, load growth and generatingreserve reliability standards was ascertained. The study's conclusions indi-cated the benefit of advancing the development of Mae Moh lignite-fired gene-rating units and delaying the construction of coal-fired power stations. Thestudy also indicated that the least-cost development plan should include gas-fired combined cycle generating units at Khanom and Bangkok. In the eventthat the amount of natural gas allocated for electricity generation isrestricted due to its use for other more economically beneficial purposes, thestudy recommended bringing forward the construction of coal-fired units atAo Phai. The study's findings were adopted for the EGAT Power DevelopmentPlan included in the Fifth National Economic and Social Development Plan(FY82-86)p however, macro-economic developments resulted in the need to post-pone some of these proposals (para. 5.01). EGAT has drawn on the methodologyand content of the study report continuously during the last several years.

Risks

3.09 The Staff Appraisal Report recognized only one risk to the project-- the uncertainty about the bearing capacity of the soil. The report men-tioned that 22 holes had been drilled and tested indicating satisfactoryresults and that the subsoil conditions were believed to be similar to thoseencountered at the South Bangkok thermal plant site. Nevertheless, this

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numier of test holes did not reveal the true general nature of the subsoil.Consequently, additional concrete piling, land fill cnd extra civil works wererequired for the power plant, the barge dock facility, the river front andgantry crane, resulting in substantially higher-than-estimated costs of civilworks (para. 3.12).

Project Completion

3.lq The construction of the first unit of the Bang Pakong power stationwas completed in November 1983. Following the satisfactory conclusion of theperformance tests and the handing over to EGAT of the power plant by the maincontractors the project was essentially completed in January 1984, about onemonth later than originally estimated (paras. 3.06 and 3.07).

Project Costs

3.11 The final project cost (excluding interest during construction) incurrent prices was US$278.95 million equivalent, of which US$138.81 millionwas the foreign exchange cost, and US$140.14 million equivalent the localcost. The appraisal estimate and the actual cost of the project are comparedbelow:

Table 3.1: PROJECT COST /a(US$ million equivalent)

Appraisal estimate ActualForeign Local Total Foreign Local Total

Land and land rights - 0.35 0.35 - 0.85 0.85Civil works 8.00 42.70 50.70 4.88 86.13 91.01Boiler plant package 63.96 14.33 78.29 42.19 7.59 49.78Turbo-generator plant package 43.85 12.04 55.89 31.06 9.53 40.59Auxiliary electro-mechanicaland miscellaneous equipment 31.96 7.75 39.71 25.96 1.59 27.55

Transmission lines and substations 21.03 10.63 31.66 17.44 10.82 28.26Engineering, consultancy servicesand supervision 9.00 7e34 16.34 9.39 2.41 11.80

Construction equipment 6.20 0.20 6.40 7.99 6.31 14.30Duties and taxes - 17.50 17.50 - 14.91 14.91

Total Project Cost 184.00 112.84 296.84 138.81 140.14 278.95

Interest during construction 19.42 17.15 36.57

Total Financing Required 158.23 157.29 315.52

/a In current prices.

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3.12 The actual project cost (excluding interest during construction) wasUS$17.9 million (6%) lower than the appraisal estimate. This net underrun ofUS$17.9 million resulted from an underrun of US$45.2 million in the foreigncost and an overrun of US$27.3 million in the local cost. Most of the foreigncost underrun relates to the power plant equipment (boiler, turbo-generatorand auxiliary equipment), the total cost of which was about 32% lower than theappraisal estimate for these items or about 14% lower than the base cost esti-mated at appraisal. The base cost had been estimated at mid-1978 prices basedon bidding information available for similar size power plant in the region.However, because of keen competition among suppliers, who at the time wereparticularly short of orders, very low fixed-price offers were received forthe supply of the power plant equipment. The resulting savings in the costsof power plant equipment were largely eroded by an increase of about 80%(US$40.3 million) in the total costs of civil works. The increase in thecosts of civil works was essentially in the local cost, which increased byabout 1002 (US$43.4 million), and relate to the inclusion in the project ofthe Operations and Maintenance Training Center and associated buildings(US$8.6 million), the water extraction and supply systems for boiler make-up(US$12.1 million), and the additional civil works (US$22.7 million) under-taken as a result of poor subsoil conditions (paras. 3.03-3.05 and 3.09).

Disbursements

3.13 A comparison of actual disbursements versus appraisal estimate isshown in Annex 2.

3.14 The actual allocation of the proceeds of the loan compared with theoriginal allocation in Schedule 1 of the Loan Agreement is given below.

Table 3.2: ALLOCATION OF THE PROCEEDS OF LOAN 1690-TH(US$ equivalent)

Category Original Actual

Auxiliary electrical, mechanicaland miscell&aeous equipment 27,000,000 26,068,763.58

Turbo generator plant package 36,500,000 30,947,888.17Engineering services 4,250,000 9,390,103.35Unallocated 12,25O,000

Total 80,000,000 66,406,755.10 /a

/a US$11,000,000 cancelled on July 10, 1984, and US$2,593,244.90 cancelledon January 10, 1986.

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Financing Arrangements

3.15 The actual financing of the project compared with that planned atthe time of appraisal is given below.

Table 3.3: PROJECT FINANCINGTUS$ million)

Financing Appraisal estimate Actualparties Items to be financed Foreign Local Total Foreign Local Total

IBRD Turbo-generator plant1690-TH package 43.8 - 43.8 30.95 - 30.95

Auxiliary electrical & mech-anical & misc. equip 32.0 - 32.0 26.07 - 26.07Engineering services 4.2 - 4.2 9.39 - 9.39

Subtotal 80.0 - 80.0 66.41 - 66.41

KFAED /a Boiler plant package 7.7 - 7.7 7.91 - 7.91Transmission lines andsubstations 14.3 - 14.3 10.94 - 10.94

Subtotal 22.0 - 22.0 18.85 - 18.85

Commercial Construction equipment 6.2 - 6.2 7.99 - 7.99Banks Civil works 8.0 - 8.0 4.88 51.88 56.76

Engineering & consultancyservices 4.8 - 4.8 - 0.58 0.58

Boiler plant package - - - - 7.59 7.59Turbo-generator plantpackage - - - - 9.53 9.53

Auxiliary electrical &mechanical & misc. equip. - - - - 0.90 0.90

Subtotal 19.0 - 19.0 12.87 70.48 83.35

Suppliers Boiler plant package 56.3 - 56.3 34.28 - 34.28Credits Transmission lines and

substations 6.7 - 6.7 6.50 - 6.50

Subtotal 63.0 - 63.0 40.78 - 40.78

EGAT All other local costs - 113.0 113.0 - 69.66 69.66

Interest during construction 19.42 17.15 36.57

Subtotal 19.42 86.81 106.23

Total 184.0 113.0 297.0 158.33 157.29 315.62

/a The Kuwait Fund for Arab Economic Development provided KD 6.0 million in the formof a loan to EGAT which was signed on July 5, 1979.

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IV. OPERATING PERFORMANCE

System Growth and Operations

4.01 The growth of EGAT's system and operations over the period FY78 toFY84 is summarized below:

Table 4.1: OPERATING STATISTICS

FY78 FY79 FY80 FY81 FY82 FY83 FY84

Installed capacity (MW) 2,811 2,883 3,241 3,839 4,070 4,976 5,855Peak generation (MW) 2,101 2,255 2,417 2,589 2,838 3,204 3,547Energy generated andpurchased (GWh) 12,372 13,965 14,754 15,960 16,882 19,066 21,066

Energy sold (GWh) /a 11,534 12,934 13,673 14,562 15,403 17,563 19,362System losses (Z) 6.8 7.4 7.3 8.8 8.8 7.9 8.1Annual load factor (2) 67.2 70.7 69.5 70.4 67.9 67.9 67.6No. of employees 15,930 17,301 20,316 23,233 26,769 30,077 32,157Sales per employee (MWh) 724 748 673 627 575 584 602Employee per MW instalbled 5.7 6.0 6.3 6.1 6.6 6.0 5.5Fuel consumptionOil (million liters) 2,521.1 2,459.7 2,993.4 2,7;8.4 1,628.1 1,770.6 1,742.4Lignite (millioi tons) 0.39 1.16 1.24 1.55 1.57 1.63 1.80Gas (million ft) - - - 1,171 44,338 50,505 69,672

/a Includes free-of-charge electricity supplied for street lighting.

4.02 EGAT continues to be well managed. Staff are well qualified andcompetent. The working climate and staff morale are excellent. Although thenumber of employees per megawatt installed has reduced over the projectperiod, and sales per employee have risen since 1982 the number of EGAT staffis high. The number of employees reflects the fact that EGAT (a) carries outmost of the field investigation work required for its future projects, (b)uses its own task force for installation of equipment in power plants andsubstations, and (c) operates its mines which have been expanded rapidly inthe last few years. EGAT's training program is adequate.

Plant Commissioning and Operation

4.03 Commissioning of the power plant began in February 1983. The gene-rating unit successfully delivered its rated capacity of 550 MW from Septem-ber 26 to October 13, 1983. Performance tests of the power plant and itsauxiliaries were conducted from January 17-26, 1984, and comprised six runsperformed burning fuel oil and five performed burning natural gas. The plantwas released to ECAT for commercial operation on January 26, 1984.

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4.04 The results of the performance tests can be summarized as follows:

(a) When firing on fuel oil, the steam grnerating unit met its designcapacity, and its performance efficiency conformed to the predictedvalvs within the accuracy of test conditions and instrumentation.The turbine-generator unit met its guaranteed heat rate. The dif-ference between the test heat rate and the predicted value was wellwithin the accuracy of test conditions and instrumentation error.The average net station incremental heat rate was 1,939 kilocaloriesper kilowatt-hour between the net generation loads of 275 MW and550 MW.

(b) When firing on natural gas, the steam generating unit met its designcapacity, and its performance efficiency exceeded the predictedvalues. The turbine-generator unit met its guaranteed heat rate.The average net station incremental heat rate was 2,101.4 kilocalo-ries per kilowatt-hour between the net generation loads of 275 MWand 550 MW.

4.05 Records of plant operations for the period January to December 1985are given in Annex 3.

Environmental Monitoring

4.06 EGAT recognized early in the life of the project that burning fueloil in the quantities commensurate with generating 550 MW could be injuriousto the environment. Consultants were employed to carry out an air qualitystudy in 1978 which indicated that a stack height of 122 m would ensure thatUnited States Environmental Protection Agency standards of sulphur dioxidecontent at ground level would not be infringed. In 1979, 1980 and 1981, theAsian Institute of Technology conducted thermal diffusion studies of the warmwater outflow likely to occur from the Bang Pakong site. The results wereused as criteria in the design of the power plant's intake and outfall struc-tures. Studies of the effects of the power station on the Bang Pakong riverhave also been carried out by the Institute of Inland Fisheries. Resultingfrom these studies, an Environmental Monitoring Program has been implemented

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since 1983. Indications are t t the project has had a negligible ef 5qct onthe air quality in the region,_ or on the aquatic life of the river._

Resettlement

4.07 No resettlement was involved as the site was uninhabited.

V. FINANCIAL PERFORMANCE

General

5.01 Energy sales during the period FY79-84 increased at an averageannual rate of 9.0% compared with the appraisal forecast of 12.2%. As aresult of increases in electricity prices, energy conservation measures andslower economic growth, energy sales grew only at an annual rate of 6.0X dur-ing the three-year period FY80-82. However, with higher economic growth andstable prices, energy sales increased 14.0% in FY83 and 10.2% in FY84.

5.02 Severe drought in 1979 affected hydro generation, forcing EGAT toincrease thermal generation, with corresponding increases in operating costs.The situation deteriorated further as fuel prices increased by 115% in 1979and EGAT was not permitted to implement adequate tariff increases. In FY80,EGAT experienced operating losses for the first time. To help EGAT solve itsliquidity problems, the Government implemented several tariff increases whichhelped restore EGAT's financial health (para. 5.04).

5.03 ECAT's comparative income statements, balance sheets, funds flowstatements and key financial indicators are presented in Annex 4.

Financial Covenants and Operating Results

5.04 Section 5.04 of the Loan Agreement and Section 3.02 of the GuaranteeAgreement, respectively, required that EGAT and the power sector as a wholeshall produce annual rates of return of not less than 7% in FY80 and FY81, andnot less than 8% in FY82 and fiscal years thereafter, on net revalued fixed

2/ A meteorological monitoring tower and its access have been constructed,and observations are being carried out by EGAT's Ecology andEnvironmental Division (EED).

3/ The EED have monitored the station's discharge and the results indicate athermal plume temperature well within the Department of Industry dis-charge water temperature standard. The quality of river water remainssuitable for aquatic life and the amount of disolved oxygen is Al above4 mg/l. The relatively small quantities of domestic wastewater from thesite have a biological oxygen demand of less than 20 mg/l. The resultsof cage fish culture experiments, in the river adjacent to the site,using Sea Perch (Lates Calcarifer) indicate they grow well with standardweight and are disease free.

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assets. One of the conditions to loan effectiveness was that EGAT and theGovernment take all measures, including without limitation, adjustment of Lhestructure or level of tariffs of EGAT, MEA and PEA to ensure that EGAT and thepower sector as a whole earn the rates of return that were specified for FY80.Towards this end, the Government tried to raise tariffs in November 1979 by asmuch as 71% for EGAT and 56% at sector level, but this increase was not poli-tically feasible. Despite these difficulties, the Government managed toincrease tariffs in February 1980 by 50% for EGAT and 38% for the power sectorpartially to cover fuel cost increases. Realizing that additional effortswere needed to restore EGAT's financial viability, a Plan of Action was agreedat the time Loan 1852-TH (Mae Moh Lignite Project) was negotiated. Under thatplan, tariffs were to be gradually adjusted to eliminate all oil subsidies byJanuary 1, 1981, and EGAT and the sector were to achieve annual rates ofreturn of not less than 2% in FY81 and 8% in FY82 and fiscal yearsthereafter. EGAT and the Government fully complied with this plan; oil subsi-dies were eliminated, and electricity tariffs were increased in 2 steps (Octo-ber 1980 and January 1981) by 43% at EGAT's level or 35% at sector level andfurther increased in April 1981 by 20% at EGAT's level or 19% at sectorlevel. Consequently, in FY81 EGAT earned a rate of return of 9.2%, comparedto the 2% covenanted for that year.

5.05 While EGAT's tariffs remained unchanged in FY82, a small reduction(4%) was implemented in April 1983 in line with the reduction in EGAT's oper-ating costs as a result of decreases in oil prices. Beginning with FY82 EGAThas been required to remit to the Ministry of Finance a portion of its netincome. The level of remittances to be made by EGAT is determined by the Min-istry of Finance on a year-to-year basis. For FY82 and FY83 EGAT made remit-tances of about 5% of its historical net income for those years. The level ofremittance for FY84 was increased to 10% of net income. Despite these remit-tances to the Ministry of Finance and the small tariff reduction in April1983, EGAT was able to earn in these three fiscal years rates of return inexcess of the 8% covenanted.

5.06 While the large rate increases of FY80 and FY81. had gone a long waytowards restoring the financial viability of EGAT and the sector, the impactof those increases has begun to gradually decline since FY83 as a result ofboth the April 1983 price reduction and the effect of inflation, and the ratesof return on revalued assets for FY85-86 are expected to be less than the 8%covenanted. However, a tariff study by consultants is being carried out forthe Government. The study, which is expected to be completed in 1986, isreviewing the financial prospects of the se,-or and is to recommend an appro-priate structure and level of tariffs to maintain the financial viability andself-sustaining growth of the sector.

5.07 The following outlines other financial covenants in the Loan Agree-ment and their compliance:

(a) EGAT would review before April 30 in each of its fiscal years theadequacy of its tariffs to meet the requirement set forth in therevenue covenant. This covenant was modified under Loan 2000-TH(Power Subsector Project) where EGAT is required to review quarterlythe adequacy of its tariffs. EGAT has monitored its tariffs on analmost continuous basis;

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(b) EGAT would maintain in its tariff schedules a provision for changesin fuel costs. This provision has been reflected since August 1,1977 in EGAT's, PEA's and MEA's tariff schedules but its implementa-tion has sometimes suffered delays (paras. 5.02 and 5.n34);

(c) EGAT's long-term debt should not exceed 1.5 times its equity, andits short- or medium-term debt should not exceed 15% of its totaldebt. EGAT has complied every year with both these covenants; and

(d) EGAT would: (i) submit to the Bank by April 1 of each year itsaudited financial statements and a report of such audit; and(ii) continue to employ qualified and experienced financial consul-tants. The financial reporting requirements have been met and EGATcontinues to employ Coopers and Lybrand as financial consultants.

VI. PROJECT ACHIEVEMENTS AND ECONOMIC RE-EVALUATION

Project Achievements

6.01 The Bang Pakong Thermal Power Plant, the related transmission workand the Study of Future Generation and Transmission Projects were executed asplanned. The power pl!4nt has enabled EGAT to use natural gas, an indigenousenergy resource. This plant and the other generating plants recently con-structed at Bang Pakong have substantially reduced Thailand's dependence onimported fuel oils for electricity generation.

Power Market

6.02 EGAT's actual peak generation and energy sales compared with theapprais.1 forecast are as follows:

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Table 6.1: FORECAST AND ACTUAL PEAK GENERATION AND ENERGY SALES OF ECAT

Appraisal estimate ActualPeak Annual Energy Annual Peak Annual Energy Annual

generation growth sales growth generation growth sales growthFY (MW) (X) (cWh) (%) (MW) (X) (GWh)/a (X)

1979 2,425 13.4 14t065 12.6 2,255 7.3 12,934 12.11980 2,738 12.9 15,781 12.2 2,417 7.2 13,673 5.71981 3,232 18.0 18,475 17.1 2,589 7.1 14,562 6.51982 3p581 10.8 20,627 11.6 2,838 9.6 15,403 5.81983 3,960 10.6 22,601 9.6 39204 12.9 17,563 14.01984 4,329 9.3 24,604 8.9 3,547 10.7 19,362 10.21985 4,710 8.8 26,696 8.5 3,878 9.3 21,223 9.6

Average annualgrowth rate:PY80-85 11.7 11.3 9.5 8.6

Current Forecast1986 5,189 10.2 29,365 10.0 4,346 12.1 23,741 11.91987 5,617 8.3 31,i52 8.1 4,764 9.6 26,168 10.21988 6,012 8.1 34t211 7.7 5,162 8.4 28,352 8.31989 6,562 8.1 36,828 7.6 5,500 6.5 30,532 7.7

Average annualgrowth rate:

FY80-89 10.5 10.1 9.3 9.0

/a Includes free-of-charge electricity supplied for street lighting.

6.03 Actual growths of peak demand and generation, and energy sales inthe period FY79-85 were lower than the appraisal estimate due mainly to elec-tricity price increases and the economic slowdown during the period FY80-82.

Economic Re-evaluation

6.04 The internal economic rate of return for the Bang Pakong ThermalPower Project, calculated using updated information (Annexes 5 and 6) is 262,compared to 13% estimated at appraisal. The higher internal economic rate ofreturn results from (a) investment costs being lower (in real terms) thanthose estimated at appraisal, (b) the economic cost of natural gas being lower(in real terms) than that assumed at appraisal, and (c) benefits being higherthan those assumed at appraisal, as a result of (i) higher annual energy gene-ration due to the increase in the first generating unit's capacity from 500 to550 MW, and (ii) average tariffs (in real terms) being higher than thoseforecast at appraisal.

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Least-cost Solution

6.05 The Bang Pakong Thermal Power Project is confirmed to be a componentof EGAT's least-cost expansion program for discount rates up to 13% (Annex 7).

VII. BANK PERFORMANCE

Project Identification and Preparation

7.01 Since mid-1976 the Bank has been involved in many aspects of naturalgas utilization in Thailand. The Bank was originally called in by Governmentto provide advise on how to proceed with the gas purchase and the SecondNatural Gas Development Project (Loan 1773-TH). In 1977, the Bank was reques-ted by ECAT to assist in financing the Bang Pakong Thermal Power project andas a result the Bank gave early advice and guidance on several issues relatedto the procurement process including the use of international competitive bid-ding procedures, and the protection of the environment. This advice was actedon by EGAT and enabled project preparation to be well advanced by the time theloan was approved.

Loan Processing

7.02 The Staff Appraisal Report for the Bang Pakong Thermal Power Project(Report 2271-TH) was issued on April 5 1979 and the report and recommenda-tions of the President to the Executive Directors on April 12, 1979. The loanwas guaranteed by the Kingdom of Thailand, The Loan and Guarantee agreementswere signed on August 9, 1979. The loan became effective on May 23, 1980(paras. 3.01 and 5.04).

Supervision

7.03 The Bank carried out five supervision missions during the periodMarch 1981 to May 1985. Most of the supervision missions were carried out inconjunction with the supervision of other ongoing projects, or with sector orappraisal missions.

Working Relationship

7.04 The working relationship of the Bank with both the Government andECAT continued to be very good during project preparation, loan processing,and project implementation. Recommendations made by Bank missions wereaccepted or given due consideration.

Cofinancing

7.05 The Kuwait Fund for Arab Economic Development provided a Loan of KD6 million which partly financed the boiler plant package and the transmissionlineo and substations. The loan was signed on July 5, 1979.

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VIII. CONCLUSIONS

8.01 The construction of the Bang Pakong Thermal Power Station and theassociated transmission system was executed by EGAT essentially as planned andwith due regard to ecological and environmental factors. The project is prov-ing to be a successful one. I; was completed one month behind schedule at anoverall cost underrun of about 6%.

8.02 The actual costs of the power plant equipment were about one-thirdlower than had been estimated at appraisal, but the costs of civil worksnearly doubled because of additional site development work resulting fromworse than expected subsoil conditions and because of the inclusion in theproject of an operations and maintenance training facility and of a waterextraction and supply system for boiler make-up.

8.03 Both this project and the recently completed Khao Laem HydroelectricProject suffered from substantial civil works cost over-runs. This suggeststhat in the future very careful consideration should be given regardingwhether sufficient investment in sub-surface investigations have been madebefore embarking on major projects.

8.04 Several substantial tariff increases were implemented by Governmentduring 1980-81. This helped restore the financial viability of both EGAT andthe sector as a whole, and enabled EGAT to remit to the Ministry of Financeabout 5% of its net income for FY82 and FY83, and 10% for FY84. However, thefinancial condition of both EGAT and the sector should be kept under review asthe impact of the above-mentioned tariff increases has begun to decline.

BANG PAKON6 THERMAL PLANT UNIT IPROJECT IMPLEMENTATION PLAN AND ACTUAL

. # OF IS78~% O 197 i 19BO 1981 I e 19 82 1 98 3 % OFITEM DESCRIPTION PROJECT S

I BOILER AREA 56.819 a MEE

2 TURBINE AREA 1 7.B37 _ _ _

3 CONTROL STRUCTURE AREA 3.631

4 WATER TREATMIET AREA 2.095 50

- INTAKE AREA 4.679

6 CW. DISCHARGE |I's 1 31

ERCENTAGE O CIEUE 3-osaW - 4 o 3 _'I

0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~t0TOTAL 1U0 Ooo IAIO 0 O * o X o c o qee*eeo.inO

S PERCENTAGE Of SCT{EOUL E X _ _ e t , _ _ _ _ ,*IL @eO 0 td10 1 _CUMULATION ~ ~ ~~ci0 dd00 0~~ -:o~ a0~

111 _1T on a .0 . _.

PECETAGESli||ltlllo [] m || OF ACUA so P. IS!

- ! - SCHEDULED BAR SYNCHRONIZATION COMMERCIAL OPERATION_ ACTUAL BAR - SCHEDULE JUN. 1,1983 - SCHEDULE SEP. 1,1983 xSCHEDULED CURVE

- ACTM3L CURVE - ACTUAL AUG. 10,1983 - ACrUAh JAN. 26,1984

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ANNEX 2

THAILAND



Actual Disbursements Vs. Appraisal Estimate(US$ '000)

IBRD fiscal year Cumulative disbursementsand semester Appraisal estimate Actual

1980Dec 31, 1979 0.9Jun 30, 1980 1.5 -

1981Dec 31, 1980 4.0 3.4Jun 30, 1981 14.5 6.9

1982Dec 31, 1981 56.0 20.2Jun 30, 1982 71.5 38.3

1983Dec 31, 1982 72.0 4506Jun 30, 1983 72.5 46.6

1384Dec 31, 1983 73.5 4806Jun 30, 1984 80.0 /a 50.2

1985Dec 31, 1984 - 51.1Jun 30, 1985 - 61,3

1986Dec 31, 1985 - 66.4 /b

/a Loan closing date was extended once by twelve months to June 30, 1985.

/b US$11,000,000 cancelled on July 10, 1984; and US$2,593,244.90 cancelled onJanuary 10, 1986.

MAltG PAFOC TRMtAL PIE8 PRlJECT (LOAN 1690-TE)

PROJECT CoMMON R T

Operating Results for the Period - Janary to Deceaber 1985

January Fabruary March April MIY JIMl 3%1 August September Octobr bvenbaer December

Gross generation (kWb) 195,823,667 - 233,299,667 243,536,166 257,069,167 226,995,833 234,629.833 255,392,000 261,833,980 255,347,840 236.762,320 228,973,600

Station servlee (kWh) 10,309,997 729,000 11,067,063 11,138,700 11,661,125 10.184,195 11,637,077 12.241,577 12,392,660 12.070,040 11,577.910 11.828.240

Net sneration (kWh) 18513,690 -729,000 222,232,604 232,397,466 245,408,042 216,811,638 222.992,756 243,150,423 249,441,320 243,277,600 225,31,410 217.065,360

Capacity factor (t) 47.86 - 57.01 61.50 62.82 55.47 57.34 62.41 66.05 62.40 60.04 55.96

SchFdule outage (fours) 96.52 672.00 67.41 - - 63.23 - - - - - -

Forced -tage (sours) - - - - - - - - - - 1.09

Net genaratton (Fours) 647.08 - 679.19 720.00 744.00 656.37 744.00 744.00 720.00 744.00 718.91 744.00

RalinbLlity (S) 100.00 - 100.0 100.00 100.00 100.00 100.00 100.00 Ioo.no 100.00 99.84 100.00

Av*tlability (Z) 86.09 - 90.90 100.00 100.00 91.20 100.00 10.00 100.00 1O0.n0 99.84 100.00

PIel consumption

litural gas (ft'i 1,723,076,846 - 2,081,653,297 2,105,070,345 2,368,014,117 2,046.391,392 2,133.034,052 2,329,299.226 2,30%,955,7,4 2,244,636,269 2,07A.061.143 2.005,477.477

Fuel oil (liters) 1,542,590 - - 6.560.000 - 2,437,710 - 61,159 - 1,229,079 74.922 31.910

Lub oSl (liters) - -- - 2,559.530 - - - - -

Fuel rate

Groas (Debthkwh) 0.86 - 0.85 0.82 0.86 0.96 0.85 0.85 0.82 0.83 0.82 0.82

Met (Bebt/hUh) 0.91 - 0.89 0.85 0.91 1.01 0.89 0.89 0.86 0.87 o.86 0.86

Note: Fual oil coats 8 4.130/liter (Jennary-September); I 4

.115/liter (October-December).Lubricating oil coats 3 6.6071/iterNatural gas costs 8 87.3784/NBtn.

THAILAND



Electricity Generating Authority of ThailandComparisn of Appraisal Forecasts with Actual - Income Statements

(Baht million)

Years ending September 30 1979 1980 1981 1982 1983 1984 1985 /eAppr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual

Energy sales (GW`h) 13,137 12,934 14,735 13,673 16,996 14,562 19,180 15,403 21,032 17,563 22,989 19,362 25,023 21,196Sales increase (Z) 14.1 12.3 12.2 5.7 15.3 6.5 12.9 5.8 9.7 14.0 9.3 !9.2 8.85 13.2Average tariff (B/kWh) 0.560 0.559 0.717 0.752 0.799 1.303 0.797 1.434 0.799 1.397 0.846 1.375 0.845 1.37

Operating RevenueEnergy revenue 7,360 7,224 10,563 10,286 13,581 18,969 15,287 22,088 16,796 24,539 19,451 26,630 21,149 29,033Other operating revenue (31) - (33) - (34) - (35) - (35) - (36) - (36) (132)

Total Operating Revenue 7,329 7,244 10,530 10.286 13,547 18,969 15,252 22.088 16,761 24,539 19,415 26,630 21.113 28,901 1

Operating ExpensesFuel and purchased power 4,698 4,497 5,675 8,074 7,620 11,780 6,949 12,832 7,440 13,835 7,596 15,265 8,213 15,055Operation & maintenance /a 1,160 1,083 1,341 1,323 1,672 2,166 1,879 2,704 2,183 3,456 2,609 3,763 3,049 4,860Depreciation /b 957 1,066 1,213 1,419 1,636 1,700 2,135 2,081 2,378 2,2?7 3,215 2,542 4,172 3,262

Total Operating Expenses 6,815 6,646 8,229 10,816 10,928 15,646 10,963 17,617 12,001 19,518 13,420 21,570 15,434 23,177

Net Income Before Interest 514 578 2,301 (530) 2.619 3,323 4.289 4.471 4,760 5,021 5,995 5.060 5,679 5,724

Interest charged to operations 543 498 678 633 950 1,702 1,357 1,937 1,909 1,666 2,598 2,017 3,342 3,203

Net Operating Income (29) 80 1,623 (1,163) 1,669 1,621 2,932 2,534 2,851 3,355 3,397 3,043 2,337 2.521

Income from lignite mine /c - - - - - - - - - 115 - 176 - NA.Other income - 14 - 20 - 35 - 39 - 21 - 827/d - NA

Net Income Before Tax (29) 94 1,623 (1,043) 1,669 1,656 2,932 2,573 2,851 3,491 3,397 4,046 - NA

Income tax (remittance) - - - - - - - 190 - 250 - 532 - NA

Net Income After Tax (29) 94 1,623 (1,043) 1.669 1,656 2j932 2.383 2,851 3,241 3,397 3,514 _ NA

/a Includes staff bonus.7 On revalued fixed assets.77 Beginning with FY83, the intracompany sales of lignite by EGArTs Lignite Mine Department to EGAT's electricity operations are based on a

transfer price which approximates the economic price of lignite and is currently in excess of its cost of production. This lignite pricingarrangement resulted In an internal profit of B 115 million in FY83 and B 176 million in FY84.

/d Includes net adjustment of about B 773 million between EGAT and PTT regarding price escalatlon/price discount for supply shortfall with |trespect to natural gas supplied by PTT to EGAT up to September 30, 1983.

/e Provided by EGAT in December 1986 but still subject to audit and reconciliation with numbers for earlier years.

THAILAND



Electricity _Aerating Authority of ThailandComparison of Appraisal Forecasts with Actual - Funds Flow Statements

(Eabt million)

Years ending September 30 1979 1980 1981 1982 1983 1984 1985Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual

SOURCES OF FUNDSInternal SourcesNet income after tax (29) 94 1,623 (1,043) 1,669 1,656 2,932 2,383 2,851 3,241 3,397 3,514 2,337 2,521Add:Interest charged operations 543 498 678 633 950 1,702 1,357 1,937 1,909 1,666 2,598 2.017 3,342 3,203Depreciation 957 1,066 1,213 1,419 1,636 1,700 2,135 2,081 2,378 2,227 3,215 2,542 4,172 3,262Other noneash charges - 114 - 176 - 602 - 527 - 492 - 733 - 1,518

Total Internal Sources 1,471 1,772 3,514 1,185 4.255 5,660 6,424 6,928 7.138 7,626 9,210 8,806 9,851 10,504

Equity contrlbutions 232 462 639 1,202 960 423 787 1,045 797 2,442 1,037 992 1,300 335Borrowings 5,620 2,124 8,016 6,153 11,106 8,319 8,311 9,819 8,964 9,084 11,435 8,002 13,214 10,034 NDeferred liabilities - 93 - 93 - 93 - 125 - - - - - -

TOTAL SOURCES OF FUNDS 7.323 4.451 12.169 8,633 16,321 14,495 15,522 17,917 16,899 19,152 21,682 17,800 24,365 20,873

APPLICATIONS OF FUNDbCapital InvestmentCapital expenditures 6,838 3,376 10,382 8,340 12,964 10,789 10,140 12,705 11,102 12,683 14,346 9,460 16,252 8,116Interest during construction 315 331 593 564 1,555 664 1,388 1,092 1,752 1,375 1,866 1,472 2,063 865

Total Capital Investment 7,153 3.707 10,975 8,904 14,519 11.453 11,528 13,797 12,854 14,058 16,212 10,932 18,315 8.981

Debt ServiceInterest 543 498 678 633 950 1,702 1,357 1,937 1,909 1,666 2,598 2,017 3,342 3,529Repayment of debt 445 705 483 797 923 867 1,366 1,169 2,123 1,434 2,874 5,556 4,103 7,885

Total Debt Service 988 1,203 1.161 1.430 1,873 2,569 2.723 3.106 4,032 3,100 5.472 7,573 7,445 11,414

Inerease (decrease) in workingcapital (818) (459) 33 (1,701) (71) 473 1,271 1,014 13 1,986 (2) (725; (186) (472)Other - - - - - - - - - 8 - 20 (1,209) 950

TOTAL APPLICATIONS OF FUNDS 7,323 4,451 12.169 8.633 16.321 14,495 15.522 17,917 16,899 19,152 21,682 17.800 24,365 20,873

I.1

THAILAND



Electripc$t Generatina Authority of T!ailandComparison or AraWI Forecasts w th Actual - saiance Sheets

(Baht million)

Years ending September 30 1979 1980 1981 1982 1983 1984 1985Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Appr. Actual Aapr. ActuaT

ASSETS7r-ed Assets

Plant in service 36,963 33,930 41,289 45,848 52,113 56,643 63,168 66,239 75,267 71,866 101,117 87,202 112,772 115,901Less: Accumulated depreciation 9,187 10,161 10,951 13,787 13,244 16,421 16,137 20,126 19,521 22,422 23,907 25,467 29,513 31,754

Net Operating Plant 27,776 23,769 30,338 32,061 38,869 40,222 46,995 46.113 55.746 49.444 77,210 61,735 83,259 84,524

Work in progress 5,310 7,830 14,176 10,719 20,348 12,164 23,947 19,380 28,492 26,619 23,370 20,872 36,097 11,725Deferred lignite mining expenditure - 400 - 582 - 984 - 1.367 - 1,613 - 2,140 - 2,833Insurance fund - 20 - 41 - 197 - 429 - 971 - 1,398 - 8,361

Current Assetscash 126 107 14 61 124 77 820 999 876 944 604 809 - 974Receivables 1,471 1,783 2,112 2,511 2,716 4,000 3,057 3,858 3,359 4,674 3,890 5,000 4,229 5,375Inventories 554 450 619 846 781 1,296 947 1,626 1,129 1,763 1,516 2,044 1,691 1,734

Total Current Assets 2,151 2,340 2,745 3,418 3,621 5,373 4,824 6,483 5,364 7,381 6,010 7,853 5,920 8,083

TOTAL ASSETS 35,237 34,359 47.259 46,821 62.838 58,940 75,766 73,722 89,602 86.028 106,590 93,998 125,276 115.149

EOUITY AND LIABILITIES

P-afU-in capital 4,355 5,362 4,994 5,594 S,954 5,325 6,741 6,378 7,538 8,819 8,575 9,724 9,875 12,466Retained earnings 3,507 3,658 5,130 2,615 6,799 4,271 9,731 6,654 12,582 9,895 15,979 13,409 18,316 21,028Revaluation surplus 8,383 9,293 10,049 14,129 11,869 15,374 14,201 20,034 17,021 18,486 20,366 20,040 24,999 17,960

Total Equity 16,245 18,313 20,173 22.338 24,622 24.970 30,673 33,066 37.141 37,200 44,920 43,173 53,190 51,454

x-Term DebtLion-itermdebt 16,797 13,313 24,330 18,857 34,5t3 26,613 41,458 32,896 48,299 41,572 56,860 41,964 65,971 51,053Less: Current maturities 483 827 923 906 1,366 1,198 2,123 1,396 2,874 2,443 4,103 2,622 - 1,837

Long-Term Debt (Net) 16,314 12,486 23,407 17,951 33,147 25,415 39.335 31,500 45,425 39,129 52,757 39,342 65,971 49,216

Insurance reserve - 20 - 41 - 197 - 429 - 971 - 1,398 - -Deferred liabilities - 579 - 672 - 765 - 890 - R82 - 863 - 606Consumers contributions 6 - 6 - 6 - 6 - 6 - 6 - 6 -

Current LiabilitiesPayable 2,189 1,891 2,750 4,207 3,6,7 4,904 3,629 5,965 4,156 4,732 4,804 5,589 5,504 5,314Bank overdraft - 190 - 706 - 1,257 - - - - - - 605 -Current maturities 483 827 923 906 1,366 1,198 2,123 1,396 2,874 2,443 4,103 2,622 - 4,885Staff bonus payable - 53 - - - 234 - 336 - 421 - 479 - -Income tax (remittance) payable - - - - - - - 190 - 250 - 532 - -

Total Current Liabilities 2,672 2,961 3,673 5,819 5,063 7,593 5,752 7,887 7,030 7,846 8,907 9,222 6,109 10,199

TOTAL EQUITY AND LIABILITIES i5,237 34,359 47,259 46,821 62,838 58,940 75,766 73,722 89,602 86,028 106.590 93,998 125,276 115,149

- 24 -ANNEX 4nTable 4r

THAILAND



Electricity Generating Authority of ThailandComparison of Appraisal Forecasts with Actual - Financial Indicators

1978/79 1979/80 1980/81 1981/82 1982/83 1983/84 1984/85 /a

Average Revenue per kWhTBaht)Appraisal 0.56 0.72 0.80 0.80 0.80 0.85 0.85Actual 0.56 0.75 1.30 1.43 1.40 1.38 1.37

Rate of Return (%) /bAppraisal 2.1 7.9 7.6 10.0 9.3 9.0 7.1Actual 2.7 (1.9) 9.2 9.9 10.0 8.3 6.5

Annual Contribution toConstruction (%) /cAppraisal 11.3 20.1 17.7 27.1 24.5 21.4 14.2Actual 17.4 16.7 25.5 28.5 25.1 18.3 (4.9)

Debt as % of Equity PlusLong-Term DebtAppraisal 50.8 54.7 58.4 57.5 56.5 55.9 55.4Actual 42.1 45.8 51.6 49.9 52.8 49.3 51.0

Current RatioAppraisal /d 0.8 0.8 0.7 0.8 0.8 0.7 1.0Actual 0.8 0,6 0.7 0.8 0.9 0.9 0.8

Operating RatioAppraisal 93.0 78.1 80.7 71.9 71.6 69.1 73.1Actual 92.0 105.2 82.5 79.8 79.5 81.0 82.8

Debt Service Coverage /eAppraisal 1.5 3.0 2.3 2.4 1.8 1.7 1.3Actual 1.5 0.8 2.2 2.2 2.5 1.2 0.8

/a Provided by EGAT in December 1986 but still subject to audit and reconciliation with numberfor earlier years.

/b Net income before interest minus income tax (remittance), divided by average net fixedassets in operation.

/c Total funds from internal sources, minus/plus increase/decrease in working capital otherthan cash, minus total debt service divided by total capital investment (including interestduring construction).

/d Current maturities of long-term debt have been included under current liabilities and theappraisal forecasts have been adjusted accordingly.

/e Total funds from internal sources divided by total debt service.

- 25 -ANNEX 5

THAILAND

BANG PAIONG THERMAL POWER PROJECT (LOAN 1690-TH)


Economic Re-evaluation of the Bang Pakong Thermal Power Plant

General Assumptions

Project Data

Installed capacity 550 MW

Annual plant factor 75%

Annual average generation 3,615 GWh

Peaking capability 550 MW

Average heat rate 2,300 Kcal/kWk

Project Cost (net of escalation, duties and taxes)

In current prices B 5,390.3 million

In constant 1985 prices B 5,957.4 million (Annex 6, Table 1)

Operation and Maintenance Costs

Bang Pakong Thermal Power Plant B 135.2 million/year

Associated Transmission System B 8.3 million/year

Fuel Cost (net of taxes)

Natural gas B 71.09/MBtu

Evaluation of Benefits

Benefits consist of an energy benefit derived from an annual genera-tion of 3,615 GWh and have been valued based on the average tariff of B 1.3712kWh for FY85.

- 26 -

ANNEX 6Table 1

THAILAND



Economic Re-evaluation - BanA Pakong Thermal Power Plant Cost Summary(Baht ukillion)

Expenditures Index used by Expendituresin current EGAT for asset Constant 1985 in constant

FY prices revaluation price factor 1985 prices

1978 20.3 6.682 0.601 33.7

1979 121.0 14.577 0.689 162.6

1980 410.2 20.692 0.830 494.2

1981 1,168.0 5.104 0.872 1,339.4

1982 2,565.2 7.817 0.941 2,726.0

1983 818.1 -1.768 0.924 884.7

1984 240.4 0.145 0.925 260.7

1985 56.1 7,881 1.000 56.1

Total 5,390.3 5,957.4

- 27 -

ANNEX 6Table 2

THAILAND



Economic Re-evaluation - Cost and Benefits Streams

Bang Pakong costs /a Bang Pakong energy Bang Pakong benefitRevenue Revenue Net

FY Investment 0 & M Fuel Total Generation Sale /b (Current price) (1985 price) benefit… ---- (B million) ---- - (GWh) -= -------- (B million) -------- (B million)

1978 33*7 33.7 -33.71979 162.6 162.6 -162.61980 494.2 494.2 -494.21981 1,339.4 1,339.4 -1,339.41982 2,726.0 2,726.0 -2,726.01983 884.7 2.0 112.4 999.1 150 138.0 192.5 208.3 -790.81984 260.7 143.5 2,542.5 2,946.7 3,584 3,297.3 4,517.0 4,883.2 1,924.91985 56.1 143.5 2,345.8 2,542.5 3,615 3,325.8 4,560.3 4,560.3 2,014.91986 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01987 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01988 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01989 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01990 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01991 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01992 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01993 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01994 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01995 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01996 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01997 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.01998 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,0i1.01999 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02000 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02001 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02002 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02003 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02004 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02005 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02006 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.02007 143.5 2,345.8 2,489.3 3,615 3,325.8 4,560.3 2,071.0

Internal economic rate of return a 25.846

/a In 1985 prices.

/b Losses of 82 have been assumed.

- 28 -

ANNEX 7Page 1

THAILAND

BANG PAKONG THERMAL POWER PLANT PROJECT (LOAN 1690-TH)


Least Cost Analysis

Alternative Sequences

1. The least cost analysis has been made on a program basis. Thefollowing three sequences, each of which satisfies the current projecteddemand, have been compared:

Year Sequence A Sequence B Sequence C

1983 Bang Pakong No. 1 Bang Pakong No. 1 Bang Pakong No. 1(550 MW) (300 MW) (300 MW)

1984 - Bang Pakong No. 2 Bang Pakong No. 2(300 MW) (300 MW)

1985 Khao Laem Khao Laem Gas Turbines(3 x 100 MW) and (3 x 100 MW) and (2 x 100 MW) andBang Pakong No. 2 Bang Pakong No.3 Bang Pakong No. 3(550 MW) (550 MW) (550 MW)

2. Associated transmission facilities are taken into consideration inthe comparison. Capital and O&M costs for projects common to all threesequences are not included with the exception of their effects in the fuelcost calculation.

Capital Cost

3. All capital costs are in 1985 prices. Taxes, duties and interestduring construction are excluded. The capital cost for the various projectsare as follows:

Capital cost(MB)

Bang Pakong No. 1 (550 MW) 5,407.0Bang Pakong Nos. 1 & 2 (2 x 300 MW) 9,396.0Gas turbine (2 x 100 MW) 1,879.2Khao Laem Hydro 8,803.6

- 29 -

ANNEX 7Page 2

Operation and Maintenance Costs (OEM)

4. The estimated O&M costs for the different power plants are:

O&M costs(MB/year)

Bang Pakong No. 1 (550 MW) 135.2Bang Pakong Nos. 1&2 (2 x 300 MW) 234.9Gas turbine (2 x 100 MW) 56.4Khao Laem hydro (3 x 100 MW) 132.1

The costs of the transmission system are assumed to be 1.5% of the capitalcost.

Fuel Cost

5. The fuel costs of the alternative programs are calculted by anenergy balance study on a system basis, taking into consideration the follow-ing factors:

(a) maximum generation or energy capability of various plants;

(b) scheduling of energy generation according to merit order operationso as to minimize fuel costs; and

(c) characteristics of system load.

6. Fuel costs used in the analysis for various thermal plants are asfollows (March 1986):

Average Distillateheat rate Heavy oil Natural gas oil(kcal/kWh) (B/Liter) (Us$/MBtu) /a (B/Liter)

Bang Pakong (550 MW) 2,300 3.824 2,633(300 MW) 2,350 3.824 2.633

South Bangkok 2,508 3.800 2.633 -Gas turbine (100 MW) 3t250 - - 5.5899

/a Based on cost of natural gas at B 83.0/MBtu.

-30

ANNEX 7Page 3

Results Analysis

7, The total present worth of the three alternatives at differentdiscount rates are as follows:

Discount rate Sequence A Sequence B Sequence C(B million) ------

8 31,299.91 35,413.42 32,564.5810 26,083.97 29,752.11 26,700.0012 22,108.84 25,417.87 22,299.4114 19,014.43 22,026.83 18,922,53

8. Sequence A is a lower cost solution than Sequence B for all discountrates up to 150X. Sequence A is a lower cost solution than Sequence C fordiscount rates up to 13.26X, demonstrating that the Bang Paking Thermal PowerProject is economically justified on a program basis when the opportunity costof capital is at or below 131.

Sensitivity

9. Sensitivity tests for variations in fuel cost have been made and theresults are shown below:

Equalizing discount rateFuel cost variations A vs B A vs C

Base case Above 1502 13.26111 p.a. increase over the life of the project Above 150% 13.3522Z p.a. increase over the life of the project Above 150% 13.45X32 p.a. increase over the life of the project Above 1502 13.55Z

i 31

APPENDIX APage 1 of 3

olectricity Gerating Authority of TailadNONTHABURIt THAILANDp oAula: U@AA NOMT"BURI

MzrnAX: TN v lI

No. EGAT 24200/ 5676 December Ai, 1986

The International Bank forReconstruction and Development

1818H Street, N.W.Washington D.C. 20433U*S.A.

Attention : Mr. Brain ShieldsChief of The Energy, Infrastructure and Urban Development Div.Operations Evaluation Department

Sirs.

Re : Project Completion Report on Thailand - Bang PakongThermal Power Project Unit I (Loan 1690-TH)

With reference to letter No. 259/86 dated November 27, 1986of the World Bank Regional Mission in Bangkok, as well as our telexNo. 24200/556S4 dated Dec. 16, 1986, we are pleased to forward to youherewith our cmwnents on your a.m. draft Project Completion Report (PCR)as follows:

1. Page -iii-, Highlights : In the second paragraph, the TEXTfigure of EGATvs energy sales in 1985 should be corrected frcm CORRECTED21,223 Gwh to 21,240 Gwh.

2. Ppge 8, Table 3.2 - Allocation of the Proceeds of Loan : TEXT

The actual amount of Category I - Auxiliary electrical, CORRECTEDmechanical and miscellaneous equipment should be increased fromU.S.$ 25,960,617.57 to 26,068,763.58; and likewise, the actual amountof Category II - Turbo generator plant package should be reduced fromU.S.$ 31,056,034.18 to 30,947,888.17. This is because the expenses onservices for Control Roam Simulator at the total amount of U.S.$ 108,146.01should be charged to Category I instead of Category II as already advisedto you by our letter No. EGAT 22102/44201 dated August 29, 1985.

The actual amounts of these two categories-in page 9, TEXTTable 3.3 - Project Financing, should also be changed correspondingly.coRREcTED

... /2

APPENDIX A- :32- Page 2 of 3

3. Page 11, Environmental Monitoring, Para 4.06 : The phase TEXT"and from an in-depth two-year Environmental iing Prgram given by CORRECTEDa consulting firm to many of EGAT staff" in the sentence proceeding thelast sentence should be deleted. This is because there is no Environ-mental Training Program in the scope of Loan 1690-TH.

4. Annex 4, Table 1, 2 and 3, Comparison of Appraisal Forecastswith Actual -7Income Statement, - Funds Flow Statements, - Balance SheetsThe actual Figures of these 3 tables should be revised in accordance withthe revised tables enclosed to this letter. NO CORRECTION MADE 1)

S. Annex 6, Table 2 - Economic Re-evaluation - Cost and BenefitsStreams : Wehaive revised few of the figures in the table and the resulton the internal economic rate of return should be 25.84% instead of 25.77%(See marked-up page). TEXT

CORRECTED6. Annex 7, Page 3 - Sensitivity : The Equalizing discount rate

A VS B shown as 15Ol in all case of Fuil Cost variations should be shownas "above 150%". TEXT

CORRECTEDFor clarity, we are enclosing the copies of the marked-up pages

of your draft PCR mentioned in our above comments for your perusal.

Yours sincerely,

Paopat Jayi naliikornDeputy General Manager, Thermal Power

and Mine Development

Encl.cc. : Mr. Quill Hermans

Chief, World Bank Regional Mission in BangkokUdom Vidhya Bldg. 5th Floor,956 Rama IV RoadBangkok 10500, Thailand

1) FIGURES WERE AUDITED AND APPROVED BY EGAT IN KHAO LEM HYDRO PCR OFAUGUST 1985, FIGTRES SUBMITTED BY EGAT IN DECEMBER 1986 FOR.FY 84/85 ARE INCLUDED FOR INFORMATION SUBJECT TO RE'ONCILIATIONWITH DATA OF PREVIOUS YEARS.

- 33 -APPENDIX APage 3 of 3

FACSIMILE MESSAGE

82818 INTB*tK THBKK JAN 22 1147

20838 MINSTEN TR

ATTN: MR. BRIAN SHIELDSCHIEF OF THE ENERGY INFRASTRUCTURE E URBAN DEVELOPMENTDIV. OF THE OPERATION EVALUATION DEPARTMENT

RE: PROJECT COMPLETION REPORT ON THAILAND - BANG PAKONGTHERMAL POWER PROJECT (LOAN 1690-TH)

PLEASED TO INFORM YOU THAT WE FIND THE DOCUMENT VERY INFORMATIVE

AND USEFUL AND WOULD LIKE TO COMMEND THE BANK MEMBERS INVOLVED

FOR THE EXCELLENT PRESENTATION IT IS NOTED THAT ALTHOUGH THE

PROJECT WAS 6 PERCENT LOWER & ERR WENT UP TO 26 PERCENT A

NUMBER OF FACTORS SEEMED TO HAVE CONTRIBUTED THE MOST

SIGNIFICANT ONE BESIDES THE TARIFF WAS CERTAINLY THE EQUIPMENT

COST WHICH WAS A-THIRD OFF ( A FIGURE BEYOND ANYBODY'S IMAGIN-

ATION) HAD THESE NOT BEEN THE CASE AND WITH THE CIVIL COST UP

BY 80 PERCENT THE CONCLUSION COULD HAVE BEEN ENTIRELY

DIFFERENT FOR FUTURE PROJECTS IT WOULD BE WORTH TO INVESTI-

GATE IN GREATER DEPTHS THE CIVIL WORKS SIDE TO AVOID

REPETITION OF THE EVENT.

WITH BEST REGARDS

BANYAD BANTADTAN

MINISTER OF SCIENCE, TECHNOLOGY AND ENERGY

100`1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~LCHINA

p / ~B U R M A C5+ |euM > \ N qK'! ^ ~~~~~~~Chiongroi .(.'\., .t

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KHOA LAEM PROJECT 8 UP & ASoroburi , ZI ~ C3p60 MW NMrWhePn T H A I L A N D

K. n hch,rbur, -/LIL ATEUSjELECTRICITY GENERATING AUTHORITY OF THAILAND

IEG{dN X ?1HIntA L POWER PLANT DispndernFCeure

Rotchoburs T Sorriut Songkhooburt 2 X 35f) MW iExisting Construction Project Project

Photchaburi SirochPho 4 mna

KANG KRACHAN DAMA NewBcsos-tS*oh 230 KV TransmYission LtnesAndaman Cop19 Mw O- Power Plant )Bang Lomung 11 _ lKV Transmission Linest.t h I 69 KV Tronsrr sston Lines

1.5, Cho Amrri Rra Sono _ _t_l_2_M

I 4/ * Chonthobuum ~ ~ ~69 KV Transmission LinesSe A , H 'j \+ \ tt ChoAm {>S -0 , 230 KV Substations

Sea . ; ? liE X X Ptonbun ittohip 2 \ . > Tst ' ^ llS 115KV Substationsi IP onbtni Trot( A 69 KV Substations

/ - 0 0 Thermol Power Plonts11 E3 N O O Hydro Power Plonts

. Prochuop Khiri Khim

'~~~~~ _;_/¢ ~~~~~~Rivers> j // E PiRegion Boundaries

, j // Internotionol Boundories

0 50 100 200 300t~~~~~~~~~~~~~~~~~~~~~~~~~ //

.J6* Gulf of Thai/and KILOMETERS

) 1t 0 50 100 200

MILES

-,, LANG SUAN PROJECTRC- T 3x45 MW .,

,/URA THAjNi\ -- v Sai Noi °--' |Thermol 30M -. 1

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