Ratchaburi Electricity Generating Holding PCL.
161
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
40
Management Service Agreement
On 27 February 2004, the Company entered into the Management Service Agreement with Ratchaburi
Power Company Limited, a jointly-controlled entity whereby the Company will receive management
fee from Ratchaburi Power Company Limited amounting to U.S. Dollars 2.5 million per year for the
period of 25 years and 3 months commencing from the commercial operation date of the first unit of
Ratchaburi Power Company Limited with total contract value of U.S. Dollars 63.12 million.
Agreements in relation to investments in Chubu Ratchaburi Electric Services Company Limited
On 29 September 2005, the Company and Chubu Electric Power (Thailand) Company Limited entered
into the Shareholders Agreement to set up Chubu Ratchaburi Electric Services Company Limited and
made the first payment of paid-up capital in proportion of each equity holder totaling Baht 10 million.
In addition, under this Shareholders Agreement, should Chubu Ratchaburi Electric Services Company
Limited require additional funding exceeding its registered capital, the Company agreed to provide
financial support in the form of shareholder loans or any guarantees to Chubu Ratchaburi Electric
Services Company Limited in proportion of the Company’s shareholding of 50%. There are no
specific amounts of financial supports specified in the agreement. As at 31 December 2013, the
Company has not provided any loans or guarantees according to the agreement.
Agreements in relation to Nam Ngum 2 Power Plant
On 26 May 2006, The Company entered into the Service Agreement with Nam Ngum 2 Power
Company Limited, a subsidiary of a jointly-controlled entity for the Project development, Construction
and Operation and Maintenance Agreement whereby the Company will receive management fee from
Nam Ngum 2 Power Company Limited amounting to Baht 25 million per year commencing from the
commercial operation date until the end of the concession period under the concession agreement.
On 25 September 2009, RATCH-Lao Services Company Limited entered into the Operation and
Maintenance Agreement of the hydroelectric power plant with Nam Ngum 2 Power Company Limited.
The contract is valid from 1 July 2009 until the end of the concession period under the concession
agreement. In consideration thereof, EGAT will act as the subcontractor for the operation and
maintenance of dam and powerhouse while RATCH-Lao Service Company Limited will provide
building maintenance, facilities and other management services. The initial operation and maintenance
services fee are approximately Baht 3,200 million, which will be adjusted by the rates as stipulated in
the agreement. On 26 September 2009, RATCH-Lao Services Company Limited entered into the
Subcontract Agreement on operation and maintenance of such hydroelectric power plant with EGAT
whereby EGAT will operate and provide general maintenance services to Nam Ngum 2 Power
Company Limited. The contract is valid from 1 July 2009 until the concession period under the
concession agreement with initial approximate contract price of Baht 2,000 million, which will be
adjusted by the rates as stipulated in the agreement.
On 3 September 2012, RATCH-Lao Services Company Limited, a subsidiary, entered into the Major
Maintenance Agreement with Nam Ngum 2 Power Company Limited. The contract is valid from 3
September 2012 for a period of 7 years. In consideration thereof, EGAT will act as the subcontractor
for the preventive maintenance services to the core business to testing electricity generator,
maintenance and consulting services while RATCH-Lao Service Company Limited will provide
facilities and other management services. The initial operation and maintenance services fee are
approximately Baht 459.74 million, which will be adjusted by the rates as stipulated in the agreement.
On 4 September 2012, RATCH-Lao Services Company Limited entered into the Subcontract
Agreement on preventive maintenance services with EGAT whereby EGAT will operate and provide
preventive maintenance services to Nam Ngum 2 Power Company Limited with initial approximate
contract price of Baht 337.15 million, which will be adjusted by the rates as stipulated in the
agreement.
Notes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
