Hydrotek has big plans for small hydro in Laos
Hydrotek Plc (HYDRO), the MAI-listed water company, wants to launch small hydropower plants worth 500 million to 1 billion baht in Laos in the near future.
Chief executive Slib Soongswang said the company will join Universal Adsorbents & Chemicals, the MAI-listed alternative energy and water management company, to explore possibilities in the neighbouring country.
“After being involved in the water business for 30 years, we think we should do more to provide utilities services such as electricity or alternative energy. If we can do that, it will create more value for Hydrotek,” he said.
The companies are interested in developing three small hydropower plants in Luang Prabang province.
They will spend at least six months next year to analyse project feasibility.
Electricity generated from the plants would be supplied to the Laotian government, Mr Slib said.
Hydrotek is also interested in providing tap water and desalination services in Indonesia next year.
“We’ll go to Bandung in West Java province in January to discuss more details about potential projects. Indonesia is an interesting market with a population of 242 million and still short of fresh water,” Mr Slib said.
Hydrotek may either invest in a turnkey tap water project or construct a desalination project.
The company may have to form a joint venture with an Indonesian partner if it wants to bid for project construction in the second half of 2013.
At home, Hydrotek has set a 300-million-baht budget to bid for five more tap water supply projects for municipalities nationwide.
Early this year, the company secured a 30-year concession to build and operate a tap water project for Chiang Mai municipality.
The project is in the design stage and construction will be finished by next year’s third quarter.
A 300-million-baht wastewater treatment project for an industrial estate in Myanmar will start construction next year and be completed in 2014.
Its revenue will be gradually booked to 7-8 billion baht within 30 years.
Mr Slib estimated Hydrotek’s revenue will rise by 30% next year from 1 billion baht expected this year.
Of the total, 90% will come from project construction and the rest from its investments and maintenance services.
Next year, 10% of revenue will come from international projects.