August 1, 2022
Matter: The business plan of the company
To the attention : Chairman, The Stock Exchange of Thailand
As some news outlets recently reported, the Treasury Department expects to sign the lease agreement for the main water supply lines in the East Coast region with the winner of the second bid on August 3, 2022. Thereby, Eastern Water Resources Development and Management Public Company Limited (the “Company“) would like to point out that this problem is related to the dispute that the company filed a complaint against the selection committee of the private company responsible for managing and operating the main water distribution network in the eastern zone (“Private Company Selection Committee“) appointed by the Treasury Department to the Central Administrative Court on September 23, 2021. The Complaint was later amended to add the Ratchaphatsadu Land Committee to the list of defendants on March 23, 2022, as the Selection Committee of the private company appointed by the Treasury Department has issued the order to rescind the selection of the private company to manage and operate the main water supply pipeline systems in the east coast region and issued a new request of proposals, as well as Ratchaphatsadu Land Committee’s resolution approving the selection of in accordance with the new RFP, which would result in damages to the company. The complaint is still under review by the Central Administrative Court. When the Central Administrative Court issued its verdict, the case can be appealed to the Supreme Administrative Court Moreover, even after the signing of the contract of the disputed project, but the private company’s selection procedure is later found not to be in accordance with the law, the administrative court will still have the power to revoke the procedure, and that if the company determines that it has suffered damages, it would have the right to bring an action for damages.
Currently, the company uses the water network to manage water distribution in Rayong, Chon Buri and the region of Chachoengsao province has a total length of 512 kilometers, of which 135.90 kilometers are leased pipes from the Department of Trésor, and the other 376.10 kilometers invested by the Company including several pumping stations connecting the main water resources of the East zone, these are not the subject of an ongoing dispute. Accordingly, the Company continues to operate as usual. In addition, the Company is in the process of developing the water network, including the construction of additional pumping stations to meet current and future growing water demand, particularly in the Eastern Economic Corridor (EEC).
Nevertheless, the Company has started to implement projects in accordance with the plans for the development of the main water supply and distribution pipeline network in the East Coast with the construction of an additional 120 kilometers of
pipelines with a capacity of 350,000 cubic meters per day (CMD) connecting the water network and enhancing water security to maintain customer base and support demand growth arising from the expansion of the industrial sector in accordance with the government’s EWC policy. Moreover, the Tubma reservoir project was developed to guarantee raw water supply reserves, prevent water shortage during drought and establish water service stability for customers. Currently, the project has completed construction and is currently capable of storing 12 million cubic meters (MCM) of raw water reserves. These projects ensure that the Company has plans to manage the situation so that the Company is able to supply water to the East Coast region with continued efficiency.
In addition, the company extends from the raw water sector to comprehensive water services for various industrial areas, government and private agencies both inside and outside the CEE area. These services include tap water supply, industrial water supply, water recycling services and waste water treatment services. For tap water, reclaimed water and waste water services, the Company currently has contracts to provide services to the Provincial Waterworks Authority (PWA), Local Government Organizations (LGOs), Industrial Estates and factories using state-of-the-art technologies in the production, maintenance process and distribution of piped water, as well as engineering services, to more than 200,000 water users. Currently, the Company operates 12 concessions, with contract terms ranging from 15 to 30 years, with none of the larger concessions expiring in a short period of time. In addition, the Company is likely to be entrusted with the extension to operate the existing concessions. With regard to industrial water services, the Company has developed projects to generate long-term revenue by installing industrial water production systems and strictly controlling the quality of water delivered to customers in accordance with requirements. specific to each industrial customer. Currently, the Company has an industrial water production capacity of more than 100,000 CMD to meet the demands of industries in various industrial areas, and has started to supply industrial water to customers. Contract terms vary from 15 to 30 years, with new contracts being added continuously. The Company also has the total water services project to provide tap water, sewage treatment and recycled water services at U-Tapao International Airport, with a contract period of 25 years. . All of these projects ensure that the Company will continuously recognize revenue.
The company is committed to operating its business by following the corporate vision “To be the nation’s total water solution leader”, while continually striving to grow its business, improve sustainability, maintain the stability of water supply and to increase its competitiveness through the application of advanced technologies and innovation. The company is committed to following the direction of the Cabinet Resolution to manage and develop water resources in the East Coast region for continued and sustainable growth.
Please be informed accordingly.
President and CEO
Office of Legal Affairs and Corporate Governance
Tel 02-272-1600 Ext. 2522, 2577
Eastern Water Resources Development and Management pcl published this content on August 01, 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unmodified, on Aug 01, 2022 10:44:02 AM UTC.
Public now 2022
Trends in Technical Analysis EASTERN WATER RESOURCES DEVELOPMENT AND MANAGEMENT PUBLIC COMPANY LIMITED
|Short term||Middle term||Long term|
Evolution of the income statement
|Number of analysts||2|
|Last closing price||THB6.90|
|Average target price||THB7.03|
|Average Spread / Target||1.81%|