Cabinet's OK sought for Egat funding
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The Finance Ministry will seek Cabinet backing for an Bt11-billion line of credit for the Electricity Generating Authority of Thailand (Egat) to increase its liquidity and management efficiency.
The proposal will be put to the mobile Cabinet meeting in Chon Buri tomorrow. Of the total credit line, Bt5 billion is earmarked to support Egat investment projects and the remainder set for a rollover of loans.
Approval would allow Egat to further its operations after a short-term credit line of Bt10 billion was approved in May last year. That sum is due to expire on July 9.
Egat’s credit line comes under a trust receipt and call loan practice to borrow from special financial institutions and/or commercial banks that offer it a low interest rate. Moreover, the ministry has not guaranteed Egat’s principle or interest in any of its borrowing to allow the agency to maximise management efficiency.
A source at Government House said Egat still needed to use the credit line to ensure its liquidity and working capital. It is expected that Egat’s operating expenses in the 2012 fiscal year will reach Bt36.73 billion, as fuel costs which have to be paid at the end of every month won’t match with income gained early next month.
“Egat the government’s major state-run enterprise which needs to have a reserve to ensure urgent expenditure, as well as to smooth operations,” the source said.
