Gulf Energy Development Public Company Limited (GULF) has expanded its business to Vietnam through investments in solar and wind power projects with a total installed power generation capacity of approximately 460 MW. The first two solar power projects, TTCIZ-01 commenced commercial in March 2019 (installed power generation capacity of 68.8 MW) and TTCIZ-02 commenced commercial in April 2019 (installed power generation capacity of 50.0 MW). GULF foresees the rapid growth of electricity demand in Vietnam and has determined that the Mekong Wind Power Joint Stock Company (Mekong Project) has the potential to support Vietnam’s electricity demand in the future.
As such, on April 24, 2019, the Company’s Board of Directors’ Meeting resolved to approve the increase in equity investment in the Mekong Project through Gulf International Holding Pte. Ltd. (GIH) from 49% to 95%. On April 25, 2019, GIH will enter into a Share Purchase Agreement and Shareholders’ Agreement with Ms. Huynh Bich Ngoc, one of the founders of Thanh Thanh Cong Group (TTC Group), with total consideration at par value of approximately US$ 7 million (THB 223 million). The share transfer is expected to be completed after obtaining approval from relevant government authorities.
The Mekong Project is located in Binh Dai district, Ben Tre province, Vietnam with an aggregate installed capacity of approximately 340 megawatts, comprising of an offshore wind farm project (310 MW) and a solar farm project (30 MW). The projects will generate and sell electricity to Vietnam Electricity (EVN) for a term of 20 years. In this regard, the offshore wind farm project will commence construction in the third quarter of 2019 and will gradually commence commercial operation between 2021 and 2023. The solar farm project is awaiting approval by the Ministry of Industry and Trade of Vietnam.
Moreover, on April 24, 2019, GULF notified the Company’s Board of Directors’ Meeting have approved the establishment of its subsidiary, Bangkok Smart Energy Company Limited (BSE), with a registered capital of THB 999,000 in which the Company will hold 100.00% of registered shares. The subsidiary has been established as a holding company investing in the power distribution system and district cooling system for One Bangkok Project, which is located in Central Bangkok. Moreover, the Company plans to bring in the strategic alliances who have an intensive experience in the business to jointly invest in BSE. After the partnership, the Company’s shareholding percentage in BSE will be reduced to one third.