Wealth Capital offers six-fold return

President Kaweephong Hirankasi told reporters yesterday that his company aimed to raise Bt750 million from the public, which would receive preferred shares that offer some interest annually prior to the commissioning of its planned municipal solid waste (MSW) power plants.
“We are ready to obtain the PPAs (power purchase agreements) that will be opened to tender (by the government) in September,” he said.
At the signing of an agreement between his firm and MBT Engineering and Consultant (MBTEC) held at the Conrad Hotel in Bangkok, Kaweephong confirmed the information on the brochures distributed to reporters and other guests at the event.
The brochures claimed the firm would provide an “initial return” equivalent to 6 times on investment to people subscribing to its shares within three years.
He said during the initial phase, Wealth Capital would invest Bt4.5 billion-Bt5 billion to develop three major MSW power plants in the Northeast and Central region.
Of the total equity funding of Bt1.5 billion, the firm may invest about half and the other half by the public.
The three waste-to-energy plants, which will have combined power generating capacity of 24 megawatts, will use more than 1,500 tonnes per day of municipal waste. They are expected to commence operations in 2019.
The company plans to launch an initial public offering either in Thailand or offshore in the following year.
Supant Mongkolsuthree, former chairman of the Federation of Thai Industries. also presided at the signing ceremony.
MBTEC president Panyawat Uthaipat said Wealth Capital would be responsible for seeking funding while his firm would take charge of developing the projects, acquiring the rights to use municipal waste from local communities, holding public hearings and obtaining other permits.
MBTEC had 20 years of experience in the waste-to-energy business, which helped it to develop technologies that are appropriate to the conditions of Thai waste. The firm has registered two petty patents on the matter.
MBTEC also has a joint venture with a Chinese firm, Holley, to develop a MSW power plants in Udon Thani.
Puncharat Nithikunthanawat, director of Wealth Capital, said in a statement that the expected internal rate of return on the firm’s MSW power projects would be “in excess of 30 per cent”.
The planned MSW power plants will produce electricity, methane and liquid fertiliser. It would also generate revenue of Bt350 per tonne from collecting waste, equivalent to Bt5.25 million per month.
The government is promoting waste-to-energy projects to help reduce the garbage problem, since only 19 per cent of the county’s 2,490 landfills are found operating in line with a proper standard.
However, due to difficulties with opposition from local communities, waste collection and technical issues, only a few waste-to-energy plants are in operation to date.