Hemaraj Energy and Gulf MP Sign Joint Venture Agreement for Five SPP Projects Located at Hemaraj Industrial Estates

Total investment represents THB 34,000 Million (USD 941 million) for a consolidated capacity of 630 MW, to be fully operational by 2017

Bangkok, 22 January 2016 – Hemaraj Energy Co., Ltd., a subsidiary of Hemaraj Land And Development Public Company Limited, has signed a joint-venture agreement with Gulf MP, a JV between Gulf Energy Development Co., Ltd. and Mitsui & Co., Ltd. to develop five Small Power Plant (SPP) cogeneration projects at Hemaraj Industrial Estates.

Hemaraj Energy holds 25.01% equity, while Gulf MP owns 74.99% equity in each SPP project. The total investment for the 5 SPP projects represents THB 34,000 million (USD 941 million). With a production capacity between 120-130 MW each, two SPPs will be located at Hemaraj Eastern Seaboard Industrial Estate (Hemaraj ESIE) and the other three at Eastern Seaboard Industrial Estate (ESIE). Operations are expected to begin as follows:

Gulf VTP	130 MW	May 1, 2017
Gulf TS 1	130 MW	July 1, 2017
Gulf TS 2	130 MW	September 1, 2017
Gulf TS 3	120 MW	November 1, 2017
Gulf TS 4	120 MW	January 1, 2018

In addition, a sixth agreement between the two companies will be signed in 2016 for a joint investment of THB 6,400 million (USD 177 million) in Gulf NLL2 which is also a SPP cogeneration project.

“These important investments aim to ensure reliable power generation for our industrial clients, enabling their operations to run smoothly. Moreover, this will continue to make Thailand attractive to local and foreign investors,” said Mr David Nardone, President & CEO of Hemaraj Land And Development Plc. “Investing in the development of power utilities has also been an integral part of our strategy with leading international firms to broaden our recurrent revenue base and increase our company’s earnings,” he added.

Mr. Sarath Ratanavadi, CEO of Gulf Energy Development, declared: “Our company strategy is to create joint ventures with solid partners to support the sustainable economic development of the country. We are confident that our partnership with Hemaraj, a leading player in the rise of industrial estates for many years, will enable us to reach this objective.”

The new joint venture will reinforce Hemaraj’s position in Utilities, which aims to have a third of the company’s operating revenues. The signing ceremony, held on December 23, was attended by executives from the two companies (please see picture below)

Dr. Somyos Anantaprayoon, Chairman of the Board of Directors and of the Executive Committee of Hemaraj (center left), exchanges the Joint Venture agreement with Mr. Sarath Ratanavadi, CEO of Gulf Energy Development (center right). Also present at the official signing ceremony were Ms. Jareeporn Jarukornsakul, Vice-Chairman of the Board of Directors and of the Executive Committee of Hemaraj (5th left) and Mr. David Nardone, President & CEO of Hemaraj (4th left); Mrs. Porntipa Chinvetkitvanit , President of Gulf Energy Development (5th right), Mr. Boonchai Thirati, Director (4th right) and Mr. Ratthapol Cheunsomchit, Senior Executive Vice President of Gulf Energy Development (2nd right).