RATCH Trembles after the Investigation Report on Dam Collapse Reaches Government

On August 22, 2018, Xinhua news reported the progress made in investigating the precise cause of the collapse of saddle dam D at the Xe-Pian Xe-Namnoy hydropower reservoir in Attapeu province has been reported to the government, but the detailed information about the investigation still has not been made to public.

There are 4 shareholders in the joint venture of this project, as the following:

1. SK Engineering & Construction Company Limited: 26% Stake
2. Korea Western Power Company Limited: 25% Stake
3. Ratchaburi Electricity Generating Holding Public Co., Ltd. or RATCH: 25% Stake
4. Lao Holding State Enterprise: 24% Stake

 

The aftermath of collapse has caused a fortune to all shareholders, including RATCH. Even though an insurance was made since the project started, the terms and conditions that were agreed upon may not cover if the investigation is against RATCH.

Questions are being raised due to the COD if the government claims all four shareholders to be at fault. Where will RATCH find an income to pay off its ฿22 billion loan from four banks (KTB, BAY, ExIM Bank and TCAP)