Ratchaburi Electricity Generating Holding Plc (Ratch) is seeking business partners to set up a joint venture to bid for a project under the government's Independent Power Producer's (IPP) programme.

The company said forming a new joint venture was its latest move to overcome restrictions imposed on the Electricity Generating Authority of Thailand (Egat) and its subsidiaries, preventing their participation in IPP bidding. Companies in which Egat holds more than a 25-per-cent interest are affected by the Electricity Regulatory Board's restriction.

Ratch is a 45-per-cent owned Egat subsidiary.

Ratch's managing director, Narong Sitasuwan, said that as well as monitoring details of conditions, requirements and terms of reference for the IPP programme, his company was seeking clarification of its position from the regulatory board because the situation has changed following the cancellation of Egat's plan to list on the stock exchange.

Meanwhile, Ratch is talking to its business partners - including Chevron, the Banpu group, and the Japanese-based Chubu group - in case it still has no right to independently participate in the IPP programme.

"We hope that we can participate in the bidding on our own because the purpose of establishing Ratch was to generate power - as a Thai-owned company operating in Thailand," Narong said.

"If Ratch cannot join the bidding, it will have to invest in the power business overseas, instead."

Ratch has already invested in a 153.75-megawat hydropower plant in Laos, which is expected to begin supplying electricity this month. Returns on the investment are not expected until 2015. In addition, the company is negotiating investments in other power projects, including the acquisition of shares or assets of prospective power producers.

Yesterday, Ratch announced a growth rate of 16.22 per cent in its electricity sales in the first quarter. However, net profit was down by 10 per cent to Bt1.93 billion, or earnings per share of Bt1.33 each.

Narong said the company's results for the whole year would not be less than those from last year, but it would not show much growth because sales from the 350MW Ratchaburi Power Plant will not begin until 2008.