Narrative
Full Description
Project narrative
Thailand-based, publicly-held Energy Absolute (EA) Public Company Limited is the parent company for the following separate project companies: 1) Nayangklak Development Co., Ltd. (“NYKD”), 2) Pongnok Development Co., Ltd. (“PND”) 3) Nayangklak Wind Power Co., Ltd. (“NWP”), 4) Benjarat Development Co., Ltd. (“BJRD”), and 5) Banchuan Development Co., Ltd. (“BCD”). These subsidiaries are responsible for designing, financing, implementing, and maintaining five separate wind farms: Hanuman 1 (45MW), Hanuman 5 (48MW), Hanuman 8 (45MW), Hanuman 9 (42MW), Hanuman 10 (80MW) in Thailand. In 2017, China Eximbank provided debt financing to one or more of EA's project companies for the 260MW Hanuman Wind Farm Project. The proceeds of the China Eximbank loan appear to have been used by the borrower(s) to finance several commercial contracts between PowerChina and Energy Absolute (EA) Public Company Limited. The face value of this loan and its borrowing terms are unknown. However, it is known that the loan was supported by a Sinosure credit insurance policy. The purpose of the project was to construct a 45MW wind farm in Thebsathit District, Chaiyaphum Province (Hanuman 1), a 48MW wind farm in Thebsathit District, Chaiyaphum Province (Hanuman 5), a 45MW wind farm in Thebsathit District, Chaiyaphum Province (Hanuman 8), a 42MW wind farm in Thebsathit District, Chaiyaphum Province (Hanuman 9), and an 80MW wind farm in Bamnetnarong District, Chaiyaphum Province (Hanuman 10). PowerChina was the EPC contractor responsible for implementation. The project commenced on or around April 25, 2018. It was completed on January 23, 2019. The electricity output from the project was expected to be sold to the Electricity Generating Authority of Thailand (EGAT), per the terms of a power purchase agreement (PPA) that was signed on September 25, 2013.
Staff comments
1. This project is also known as the 260MW Hanuman Wind Farm Phase II Project. The Chinese project title is 泰国EA二期风电工程总承包项目. 2. Energy Absolute (EA) Public Company Limited is a Thailand-based, publicly-held company engaged in renewable energy businesses. It was founded as Pure Energy PLC in 2008 with 50 million baht and construction of a biodiesel plant at Kabinburi Industrial Estate, Prachinburi Thailand. By 2011 increased capital to THB 305 million and began operational and investment expansion into renewable energy generation with the EA Solar Company Limited and the 8 MW solar PV farm at Lopburi. The company holds NYKD and NWP via Wind Nayangklak Co., Ltd. (“WNYK”) in the amount of 99.99 percent of WNYK’s authorized capital. The company holds PND and BJRD via Wind Progressive Co., Ltd. (“WPGS”) in the amount of 99.99 percent of WPGS’s authorized capital. The company holds BCD via Wind Tossaphum Co., Ltd. (“WTSP”) in the amount of 99.99 percent of WTSP’s authorized capital. It is unclear which project company (companies) benefited from a China Eximbank loan. This issue requires further investigation. 3. The estimated face value of the loan ($106,728,293) is drawn from the Lowy Institute's Southeast Asia Aid Map (https://seamap.lowyinstitute.org/analysis/climate-development-finance-southeast-asia/).