SouthEast Asia Energy Ltd has paid-up capital of Bt400 million and plans to increase its registered capital to Bt9 billion in the next five years. CH Kranchang, which holds a 28.5-per-cent stake in the company, will inject Bt2 billion.

Plew said that the company's business strategy was to increase its overseas revenue from zero now to 25 per cent of its total revenue within the next five years. The company expects overseas revenue of Bt5 billion from the Nam Nguem II hydroelectric project in Laos by the end of this year - around 15 per cent of its estimated total revenue.

Last week in Vientiane, the company signed a contract for the construction the 615-megawatt hydroelectric power plant, Nam Nguem II, worth Bt22.1 billion with SouthEast Asia Energy Ltd. Nam Nguem II will generate Bt5 billion in revenue to the company this year, Bt8 billion in 2007 and Bt9.1 billion in 2008.

SouthEast Asia Energy Ltd other shareholders include Electricte du Laos with 25 per cent, Ratchaburi Electricity Generating Holding Plc with 25 per cent and Bangkok Expressway Plc with 12.5 per cent. Shlapak Development Co and PT Construction & Irrigation Co Ltd hold 4 per cent each and one per cent is held by Team Consulting Engineering and Management Co Ltd.

Following the hydroelectric dam project, Plew said that the company was interested in joining bids to construct roads in Cambodia and infrastructure projects in Burma.

"We believe that our domestic business is stable now and we're ready to expand our investment overseas by joint ventures with local partners in each country," he said. "The company will increase its revenue from subsidiaries that invest in infrastructure projects from 5 per cent of its total revenue now to 20 per cent in the next five years."

 The company's subsidiaries include Bangkok Expressway Plc, Bangkok Metro Plc, Pathumthani Water Co Ltd and Thai Tap Water Supply Co Ltd. Its electricity firm, SouthEast Asia Energy Ltd, has a 25-year concession from the Lao government to produce hydroelectricity at Num Nguem II.

 In the domestic market, the company plans to bid on the government's mega-projects, especially three new railway systems worth Bt150 billion.

CH Karnchang Plc currently has Bt20 billion worth of projects in hand - won in recent bids or that are currently being built. The company will join bids to construct government and private projects worth up to Bt50 billion and expects to win half of them.

"When the government opens bids for three new railway systems this year, we expect our share to be 25 per cent of the total value of Bt150 billion," Plew said.

Plew said that the company had annual cash flow of Bt3 billion, enough to manage all of its construction projects but not increase its registered capital.

However, if the company wants to support any challenging project outside of its business plan, it is ready to issue bonds worth up to Bt3 billion, as approved by its shareholders last year, Plew said.

The company recorded revenue of Bt5.5 billion and net profit of Bt811 million in the first quarter of this year. In all of last year it took in revenue of Bt14.9 billion and logged a net profit of Bt684 million.

Somluck Srimalee

The Nation

Vientiane