Sustainability Report 2008 - Electricity Generating Public Co

egco.com

Sustainability Report 2008 - Electricity Generating Public Co

Contents

2 Message from the President

4 Scope of the Report

5 EGCO Business Profile

6 Good Corporate Governance

6 Board Structure

8 Corporate Social Responsibility

8 Codes and Policies

12 Financial Performance

14 Safety, Occupational Health

and Environmental Management

15 Implementation of EGCO Group , s

SHE Plans

15 Safety and Occupational Health Management

16 Environmental Management

- Energy Conservation

- Water Resource Management and

Treatment of Water from Production

Process

- Air Pollution Management

- Noise Pollution Management

- Waste Management and Recycling

24 Environmental Support Projects for

Power Plants and Communities

25 Compliance with Environmental Laws and

Regulations

25 Environmental Operation Efficiency

26 Social Performance

26 Workforce Structure

28 Human Resources Policies and Management

31 Social Investment Contribution Activities

44 Network for Sustainable Development

47 Glossary


Message from the President

We, the Electricity Generating Public Company Limited or EGCO Group, carry out the business to provide

integrated electric power services with full commitment to the environment conservation and social development.

Despite the economic and investment slowdown hurt by the global financial crisis, we continue our business while

treating all stakeholders fairly to create a balance between economic return and the benefit to the society and

the environment.

With the belief that the sustainable success is a result of the combined strengths and cooperation of all

sectors, we, as the first independent power producer (IPP), have carried out the business under the good

corporate governance umbrella and within the required standard. In this regard, EGCO has adopted the

sustainable development guidelines. First of all, we plan to invest in power generation units with fuel diversification

to reduce the fuel risk. We also put the priority to study investment opportunities in renewable projects such as

wind power, solar and biomass which we believe is a way to use the resources in an efficient manner, reduce

fuel import, and mitigate the global warming.

We continue to grow our business by using natural resources in an efficient and environmentally responsible

manner. In this regard, we have adopted environment-friendly power generation technology and promoted the

commitment among EGCO Group employees to have environment awareness at heart in discharging our duties.

We coach our employees to meet their responsibilities under the requirements of relevant laws and regulations

including those of the local governments where EGCO power plants are located. At the same time, we have

continuously invested in projects that will enhance the quality of life of the communities and will endeavor to

minimize the impact from our operation on the community and the environment both during the development

phase and the operation phase.

With respect to the above, we will continue to invest in social projects that generate sustainable benefit

with the participation and involvement of our employees. Our existing programs cover the areas of environment

conservation, development of public awareness among youths, and enhancement of community’s quality of life.

We encourage our employees to have deep social commitment while ensuring that they have a fulfilling

workplace. Employees are trained to bring out their potential to develop the company and the society at large.

Thanks to the above projects, EGCO Group was shortlisted by the Stock Exchange of Thailand to get the

certificate for one of the candidates for the CSR Awards in the 2008 SET Awards. In addition, our Khanom Power

Plant is also the first power plant to get the CSR-DIW certificate from the Department of Industrial Works, the

Ministry of Industry.

With the pride that we are the first IPP of Thailand, we commit to carry out our business for the stability of

power supply system with international business standards along with providing support to the social development

and environment conservation. This is aimed to live up to our vision of having “full commitment to environment

protection and social development support”.

We, management and employees of EGCO Group, would like to thank for the support of all stakeholders

which lead to our business success and the recognitions by various national institutions for our good corporate

governance and environment management. We are proud of your support and will continue to achieve quality

growth for sustainable development.

Vinit Tangnoi

President


Scope of the Report

This is the second issue of the Sustainability Report that provides

the content to cover the performance and operations of Electricity

Generating Public Company Limited (“EGCO”) and the Group companies

in three main areas: financial performance, environment conservation,

and social contribution for the period of January 1-December 31, 2008.

The report is aimed at presenting EGCO Group’s sustainable

development performances. The contents include our vision, mission,

policy and business implementation based on sustainable development

in accordance with the good governance principles to ensure equilibrium

and fairness in conducting our businesses and services for the benefits

of all stakeholders. This of course will lead to the kingdom’s sustainable

development in the long term.

Even though EGCO has conducted our businesses and services in

Thailand and neighboring countries, the report only discusses our

operations in the country.

This Sustainable Development Report which is prepared in both Thai and English

are available both in the printed form and the electronic form which can be downloaded

from our website. For further information and inquiry, please kindly contact:

Corporate Secretary Division

Electricity Generating Public Company Limited

EGCO Tower, 222 Moo 5, Tung Song Hong,

Laksi, Bangkok 10210

Telephone: 02 998 5020-4

Website: www.egco.com


EGCO Business Profile

First IPP in Thailand

The Electricity Generating Public Company Limited is the first independent power producer in Thailand incorporated

on May 12, 1992 by Electricity Generating Authority of Thailand (“EGAT”). Such incorporation marked the commencement

of the Thai government’s privatization initiatives to allow broader private sector investment in the electricity generating

sector. On March 23, 1994, EGCO was transformed into a public company and then listed on the Stock Exchange of

Thailand (SET) on January 16, 1995.

Since EGCO is a holding company, it recognizes revenue in form of dividend income from subsidiaries and joint

ventures which mostly operate in power generation and other related energy services. EGCO intends to increase its

market share in Thailand and the ASEAN region.

Ethical Business

EGCO believes that the corporate social responsibility is a key factor to sustain the business. In this regard, EGCO is

committed to conduct business taking into account the stakeholders’ benefits. Being well aware that the business may

have the social and environment impact, EGCO fosters the corporate culture for the employees to take into account the

benefit of the stakeholders when discharging their duties. Besides, employees must avoid activities that could involve or

lead to involvement in any unlawful or unethical practice. To use our assets or personnel for illegal act is strictly prohibited.

Energy for Life

As at December 31, 2008, EGCO Group operated 13 power plants and the equity MW was 3,967.6 equity MW,

which accounted for 13.27% of the total installed capacity of Thailand. It should be noted that the equity MW of

operating assets increased by 458.5 MW from 3,509.1 equity MW in 2008.

To comply with the government’s policy to cut oil import and to use other alternative fuels, EGCO invests in the

Nam Theun II which is a hydropower plant in Laos and Roi-Et Green and Yala Green which use rice husk and parawood

chip as fuel, respectively. EGCO also explores the opportunity to use other types of fuel for power generation. If including

the capacity of Nam Theun II hydropower plant which has the scheduled COD in December 2009, EGCO MW equity will

increase to 4,239.3 comprising the gas and oil fired power plants, coal fired power plant, hydropower plant and biomass

power plant which accounts for 73.5%, 19.7%, 6.4% and 0.4% of EGCO capacity, respectively.

EGCO is committed to foster quality growth with the balance between the shareholders’ return and the social and

environment responsibility for the long term benefits of all stakeholders. EGCO will continue to generate energy for life.


Good Corporate Governance

Board Structure

The Board of Directors (Board) of Electricity Generating Public Company Limited or EGCO

intends to conduct the business under the Good Corporate Governance Principles issued by

the Stock Exchange of Thailand (“SET”) and the Best Practices for Directors of Listed Company

issued by the Securities and Exchange Commission (“SEC”) to ensure efficient governance and

sustainable business growth. The Board consists of 15 directors; 14 of whom or 93% of the

entire Board are outside directors. Out of the outside directors, 6 are classed as independent

directors, which account for 40% of the entire Board.

The Nomination and Remuneration Committee is entrusted to select and recommend

prospective nominees, whether they are to become the shareholders’ representatives or

independent directors. The Nomination and Remuneration Committee is also responsible for

assessing the appropriate mix of skills and characteristics required of Board members in the

context of the needs of the Board at a given point in time and shall periodically review and

update the criteria as deemed necessary. The Board views that the existing structure and

composition of the Board which comprises directors with the background of engineering,

economics and finance, laws and political science, and accounting at the ratio of 50%, 33%,

13% and 7%, respectively, was appropriate with useful mix of skills and experience and an

appropriate balance of power.

EGCO sets the directors’ remuneration at the appropriate rate which is comparable to

that of the leading companies in the same sector. The remuneration comprises monthly

retainer fee, meeting allowance and bonus which is paid once a year and is tied with

shareholders’ value. The Nomination and Remuneration Committee shall recommend the

remuneration framework to be endorsed by the Board before proposing to the shareholders.

EGCO has a policy to disclose the remuneration of each director for transparency. Directors

that also serve as committee members will be entitled to extra remuneration to match the

increase in responsibilities. Management who serve as directors and committee members shall

refrain from taking director remuneration.

With the objective to enhance the governance efficiency, the Board set up committees

to review and make recommendation on significant matters to support the Board’s decision

making namely Audit Committee, Executive Committee, Nomination and Remuneration

Committee and the Corporate Social Responsibility Committee (“CSR Committee”)

Being aware of the impact of EGCO’s information on the decision of investors and

stakeholders, the Board set a policy to disclose financial and non-financial information via the

Company’s web site at www.egco.com. To increase the value of EGCO, stakeholders can direct

their recommendations and concerns on corporate issue to the Board via electronic mail to

directors@egco.com or mail to the following address.

Board of Directors

Electricity Generating Public Company Limited

EGCO Tower, 222 Moo 5, Vibhavadi Rangsit Road, Tungsonghong, Laksi,

Bangkok 10210


Corporate Social Responsibility

EGCO has a policy to operate the business with commitment to social contribution and environment conservation. In

this regard, EGCO will foster the corporate culture that employees at all levels will be fully responsible for social and

environment impact when discharging their duties.

To achieve the above commitment, the CSR Committee has been set up. The CSR Committee comprises 5 members

with the President as the Chairman of the Committee. Two of the CSR members shall be directors/nominees and the other

two shall be management. The Corporate Social Responsibility Committee has the responsibility to oversee EGCO’s

positions and practices on issues of corporate social responsibilities, principally in relation to social and environmental

matters that affect shareholders and other key stakeholders.

In addition, EGCO sets up the Corporate and Social Affair Section to coordinate and to monitor the CSR activities.

This section reports to the Corporate Communication Division which directly reports to the President.

Codes and Policies

The Board believes that every organization makes an effort to maintain proper balance of its business objective,

those of the society at large and the environment which will lead to the peaceful co-existence of humans and nature as

well as promote successful business operations in the Thai society for the long-term. With this in mind, the Board sets up

the following policies.

1. Corporate Governance Policy

The Board has established the written good corporate governance policies which includes the statutory rights of

shareholders as well as the Best Practices issued by SET. The good corporate governance policies are comprised of 7

principles.

1. Structure and Responsibilities of the Board of Directors

2. Guiding Business Principles

3. Rights and Equitable Treatment of Shareholders

4. Rights of Stakeholders

5. Disclosure and Transparency

6. Internal Control, Risk Management and Code of Conduct

7. Conflict of Interest

2. Code of conduct

To maintain high ethical standards, EGCO has set up a Code of Conduct as a guideline so that directors,

management and employees perform their duties with regard to ethical values. Directors’ Code of Conduct focuses on

business ethics, ethics for directors, directors’ commitment, duties and responsibilities, conflict of interest and use of

information. Employees’ Code of Conduct covers 1. Guiding principles, 2. Making the system work, 3. Compliance with

laws and regulations, 4. Business ethics, 5. Human resources, 6. Safety, health and environment and 7. Accountability.


3. Risk Management Policy

EGCO group’s Risk Management Policy is to give full and due consideration to the balance of risk and reward, as

far as practicable, to optimize the rewards gained from our business and operational activities. The application of the

policy will be the responsibility of the Board through the Risk Management Committee. To be successful, EGCO group

needs to carry out the following:

1. To promote risk awareness throughout EGCO Group

2. To ensure appropriately skilled resources are made available to manage risk to the required standard

3. To ensure management encourages a “risk awareness culture” throughout the organization

4. To provide training regarding regulatory, legal and task-related issues, where appropriate

5. All investment projects to be assessed from a Risk Management perspective and approved by respective Board

and committees

4. Environmental Policy

EGCO Group has an intention to operate the business with the commitment to environmental responsibility:

1. We will comply with relevant environmental laws and regulations.

2. We will manage our business with the goal to alleviate the adverse effects on the environment, undertake

appropriate reviews and evaluations of our performance to measure and to ensure compliance with this

environmental policy,

3. We will encourage employees to have strong concern and be responsible for the clean environment, and

4. We will educate the employees on the environment including exchanging the knowledge with other agencies in

order to continuously and regularly maintain good environment and to improve the working practice appropriate

to the environment.


10

5. Safety and Health Policy

EGCO Group believes that the safety and health of our employees are fundamental responsibilities and that the

continued success of our operation depends upon the protection of our employees. We therefore set the policy to enable

our employees and contractors to work safely and comply with the relevant laws.

1. We will strive to prevent accident, injury and occupational illnesses through the active participation of every

employee. We are committed to continuous efforts to identify and eliminate or manage safety risks associated

with our activities.

2. We will strictly comply with all applicable laws and regulations. In case that no enforceable body of law exists,

we will apply reliable standards of our own.

3. We will arrange for the proper design of tool and equipment, regulations, training and the control tools in a

manner that safeguards workers, property and the communities in which we operate from machine, working

procedures and occupational illnesses.

4. Employees who report to work with illegal drugs in their system or report with level of alcohol or other chemical

substances that could impair performance are subject to disciplinary action.

6. Social Responsibility Policy

EGCO Group believes that the sustained success of our operations depends upon our being a responsible company,

respecting and giving due attention to social, economic, environmental, health, safety and cultural needs of the

communities where we work. Therefore as a matter of policy, we will implement CSR activities under the following

concepts:

1. Alignment with the corporate mission

2. Participation and understanding by employees

3. Continuity of project implementation with clear results

4. Sustainable benefits to the society and the environment


7. Procurement Policy

EGCO requires that all aspects of procurement of goods and services be conducted in compliance with ethical

standards. In addition, EGCO aims at developing and securing sustainable relationship with suppliers and contractors on

the bases of value for money, technical conformance and mutual trust. As such, EGCO will ensure that the procurement

process prescribed in the Regulation on Procurement and Supply and the Code of Conduct are fully observed.

- Competitive tendering with equal information

- Objective evaluation of tenders and selection of suppliers and contractors

- Appropriate forms of contract

- Effective monitoring systems and management controls to ensure the proper fulfillment of contractual obligations

and to detect and prevent bribery, fraud or other malpractice throughout all stages of the procurement process

- Prompt payment consistent with the mutually agreed terms of trade

8. Anti Fraud and Conflict of Interest Policy

EGCO has set the policy that employees must refrain from the incidents that create the possible conflict between

personal interests and company interests in contracting the business partners or other third party.

- Employees, during appointment/employment and afterwards, must not disclose or use confidential information for

the benefits of their own or outside people. Such information includes reports, internal memoranda, technical

data, financial data, operating data and other information regarding the company’s business and operational

activities and future plans.

- Employees shall not be engaged as directors or advisors of outside business that may conflict with the interests

and the business of the company. Approval by the Board of Directors in writing must be sought before taking

such engagement.

- If an employee or a family member is engaged in activities that create or even appear to create a conflict of

interest, he or she must immediately inform the President/Managing Director in writing.

- Employees should not borrow from the company’s customers/suppliers or from individuals or firms having business

dealings other than the financial institutions as it may influence the way they handle company business.

- Employees should not make payments of money or other property to anyone without the approval of the

authorized persons.

To ensure that EGCO has strictly adhered to the governance principles, the Board has monitored the Company’s

activities on a regulator basis. The Board also sets up the compliance with the governance principles, staff development,

safety and environment compliance as key performance indicators of EGCO and Group companies. The Board is proud

to announce that EGCO business was carried out in adherence to the above policies.

11


12

Financial Performance

EGCO is committed to generating a good return to shareholders. EGCO posted the net profit as at December 31,

2008 of 6,927 million baht, a decrease of 1,475 million baht or 18% compared to the previous year. Excluding the foreign

exchange rate loss due to the baht depreciation, EGCO posted the net profit of 7,491 million baht, representing an

increase of 99 million baht or 1.34% as compared to 2007. The gain (loss) on foreign exchange rate is mostly an

accounting number to be shown in accordance with the Thai Accounting Standard.

In the absence of unforeseen circumstances, EGCO has a policy to dividend 40% of the consolidated net profit after

taxation, or to increase the dividend amount in a steady manner, to the shareholders. This dividend policy may change in

the light of investment opportunities that may become available to EGCO or as a result of other economic or financial

factors or when a dividend payment may have a significant impact on the normal operation of EGCO. The dividend

payment shall not exceed the retained earnings of the separate financial statements.


The dividend payout of EGCO

Baht/Share

6

5.5

5

4.75 5.00

4.5 4.00

4

2.50

2.50

3.5 3.00

3.25

3

2.00

2.25 2.50

2.75

2.5

2

1.25

1.50 1.50 1.75

2.00 2.00 2.00

1.5 1.27 1.25

1

1.00

0.5 1.00 1.25 1.25 1.50 1.50

2.00 2.25

2.50

2.00 2.00 2.00

1.00 1.27

0 Year

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Annual Dividend Interim Dividend Final Dividend

Remarks: In 1997 EGCO reported net losses on the annual operation following the baht float; as a result, no dividend

was paid to shareholders in that year.

EGCO plans to pay dividend twice a year. In 2008, the 2007 final dividend of 2.50 baht per share was paid on May

7, while the 2008 interim dividend at 2.50 baht per share was paid on September 11.

Indicators 2008 2007 2006 Units

1. Total revenues 10,698 11,594 14,687 million baht

2. Total net profit 6,927 8,402 6,016 million baht

3. Total assets 58,330 53,600 50,459 million baht

4. Dividend per share 5.00 4.75 4.00 baht

5. Return on equity 16.01 21.89 18.14 %

13


14

Safety, Occupational Health

and Environmental Management

We, Electricity Generating Public Company Limited or EGCO, are well aware of the environment impacts from our

operation on the environment and the nearby communities. Consequently, we commit to use natural resources in the

most efficient and environmentally responsible manner to minimize the impact on the environment while strictly adhering to

the environmental laws.

Safety, Occupational Health and Environment

To align our efforts and to extend our scope of responsibility to cover future power plants, EGCO has included the

projects on safety, health and environment in the strategic plan and budget. With respect to this, the Safety, Health and

Environment (SHE) Committee, has been shored up comprising representatives from Group companies. The responsibilities of

the SHE Committee are to prepare the action plan on SHE implementation in alignment with the corporate policy and

goals as well as the strategic plan and to monitor and appraise the quality of SHE program. At present, the Executive

Vice President-Project Management from Asset Management and Planning Group is the Chairman of the Committee.


Implementation of EGCO Group’s SHE Plans

EGCO group considers SHE management as an essential part of our business to deliver our commitment of

“constantly adopting the best practices to continuously increase the competitiveness and being sensitive to community

and environment concerns”. In this regard, the SHE Committee has set the EGCO Group’s SHE guidelines. In 2008, the SHE

Committee had cascaded the practice to EGCOM Tara, a subsidiary that supplies tap water that meets the industrial

standard to the Provincial Waterworks Authority.

To promote SHE activities, the SHE Committee has developed the SHE Management System Database for systematic

knowledge sharing. This database is also the evidence of the effective communication and involvement of EGCO Group

so that the information can be used by the SHE Committee and the Group companies to continuously enhance its

practices up to the international standard. To achieve this goal, EGCO continues to study the best practices and relevant

laws and standards in order to update its SHE guidelines.

Safety and Occupational Health Management

EGCO Group employees are encouraged to put the SHE management as the priority to ensure the safety of

employees, business partners as well as relevant parties. All units are encouraged to apply the good health and safety

practices through the following projects:

• Safety Projects in 2008

- Annual fire drill

- Safety equipment trainings

- Regular check-up of workplace safety

- Workplace safety exhibition to provide knowledge to employees and contractors.

- Safety exhibition in collaboration with government units to provide knowledge to students, private and

government organizations and the general public.

- Activities to promote safety awareness by distributing safety news via electronic mails and bulletin boards.

- Safety trainings for REGCO’s and KEGCO’s employees and contractors to ensure compliance with the

requirement of OHSAS 18001/TIS 18001 Safety System. This results in a zero accident record.

- Installation of rails at KEGCO reservoir to ensure the safety to the community and the public who visit the area

to see the dolphins, monkeys and the sea eagles.

- Installation of CCTV in controlled and restricted areas of the Khanom power plant to ensure safety and to

prevent sabotage.

- Project to report unsafe acts with recommendation to encourage employees’ involvement in preventing

accident from happening and mitigate the impact on the employees and the assets.

- Slogan contest on safety at Roi-Et Green power plant. The winning slogan was put on posters and displayed in

power plant area.

15


16

• Health Projects in 2008

- Annual physical check-up for employees

- First-aid training for the employees

- Employees physical exercise campaign to promote physical fitness by providing facilities to encourage

employees to exercise every day, supporting the budget to the Sport Club to run sport programs for

employees, and hosting Sport Day

- Health and life insurance for employees and their families

Safety Records

With the concerns for safety and health together with the consistent SHE practices, there is no labor dispute

between EGCO and the employees. In addition, there is no loss time injury in 2008. The accumulated safety hours of each

company is shown below:

Companies Accumulative safety hours Period

REGCO 8,170,489 September 11, 1999 to December 31, 2008

KEGCO 4,294,925 May 17, 1998 to December 31, 2008

EGCO Cogen 385,317 January 20, 2003 to December 31, 2008

Roi-Et Green 686,450 May 29, 2003 to December 31, 2008

Environmental Management

• Energy Conservation

Since power industry consumes a large amount of energy, EGCO Group puts high priority on making the best use of

energy and reducing energy consumption by using efficient equipment and maintaining equipment and machinery in a

ready-to-use condition. Moreover, EGCO Group puts emphasis on cultivating the consciousness on sustainable energy

consumption.

• KEGCO has converted one of its existing buildings to be the demonstration center for energy conservation

powered by solar energy. This building is open as a learning center for sustainable energy usage for employees,

students and the general public.

• Roi-Et Green has set the measure to clean the boiler ventilation area during the planned outage 4 times a year.

Since Roi-Et Green is a biomass power plant using rice husk as fuel, there is slag in the boiler tubes. As such,

the oxygen level in the exhaust gas and the boiler blowdown rate is adjusted down to maintain the boiler

efficiency which results in a better heat rate.


REGCO

Heat Rate (kJ/kWh)

20,000

16,000

12,000

8,000

4,000

Fuel Consumption

9,106.94 9,049.00 8,935.61

2008 2007 2006

Remarks

Using gas as fuel

Heat Rate (kJ/kWh)

20,000

16,000

12,000

8,000

4,000

EGCO Cogen

9,204.00 9,074.00

2008 2007 2006

Remarks

Using gas as fuel

9,027.00

KEGCO

Heat Rate (kJ/kWh)

20,000

16,000

12,000

8,000

4,000

9,311.35 9,536.59 9,914.85

2008 2007 2006

Remarks

Using gas as fuel

Heat Rate (kJ/kWh)

20,000

16,000

12,000

8,000

4,000

Roi-Et Green

18,563.76

17,152.86

15,934.72

2008 2007 2006

Remarks

Using rice husk as fuel

17


18

• Water Resource Management and Treatment of Water from Production Process

EGCO Group supports the efficient use of water resource. Apart from reducing the water usage, we also adopt new

technology in water treatment using sediment forming catalyst to treat waste water from office building and implement a

neutralization system to treat chemical contaminated water from the operation process. In parallel, EGCO Group adheres

to the water treatment plan.

Construction of reservoirs to reserve water for power generation process

- KEGCO constructed two external reservoirs with the capacity of 400,000 cubic meters and internal reservoir with

the capacity of 35,000 cubic meters. KEGCO has set the water level above the check dam so that it can

pump in water without disturbing the water consumption of communities around the reservoir and above the

check dam.

• Using treated water for fish farming or plant watering.

- KEGCO has conducted the Zero Discharge Program to re-use waste water from office buildings, power plant

and employees’ residences to water the plants.

- REGCO and EGCO Cogen used 30% of the waste water from office buildings and power plants for watering

plants.

• Monthly monitoring of water quality

This project was aimed to ensure that the waste water was treated to the level that meets the standard before

being discharged to natural water sources to reduce the impact on the water resources. In addition, regular monitoring of

the ecological system is conducted.

- KEGCO runs the project to monitor the types and density of plankton and other benthic animals twice a year

in the rainy season and the hot season. The result indicated that the diversity and density of plankton

population did not depend on the discharged water but on the environment of Khanom canal such as the

chemical and physical property of water, sunlight, nutrient, waste water from residences, and land

development.

• Quarterly monitoring of the water treatment system.

This quarterly monitoring is aimed at efficient treatment of waste water.

- KEGCO implements the grease trap in the water drainage to increase the efficiency of separating oil from

discharged water.


Water Consumption

Raw Water (M 3 /GWh)

6,000

5,000

2,000

1,000

500

REGCO

2008 2007 2006

Raw Water (M 3 /GWh)

6,000

5,000

2,000

1,000

500

1,248.16 1,320.00 1,110.14

EGCO Cogen

1,401.00 1,370.00 1,373.00

2008 2007 2006

KEGCO

Raw Water (M 3 /GWh)

6,000

5,000

2,000

1,000

500

2008 2007 2006

Roi-Et Green

Raw Water (M 3 /GWh)

6,000

5,000

2,000

1,000

500

88.112 86.202 90.223

4,885.75 4,545.66

5,295.02

2008 2007 2006

19


20

Water Discharge

REGCO

Temperature of cooling water at the discharge ( ํC)

50

40

30

20

10

EGCO Cogen

Temperature of cooling water at the discharge ( ํC)

50

40

30

20

10

33.4 34.3 34

2008 2007 2006

34.1 34.8

36.5

2008 2007 2006

KEGCO

Temperature of cooling water at the discharge ( ํC)

50


• Air Pollution Management

Due to the full intention to power generation process, the quality of air emission from the power plant stacks for all

power plants in EGCO Group is better than the legal requirements. EGCO Group has also implemented continuous air

quality control plans as follows :

• Cross checking of stack emission measuring twice a year,

• Checking of efficiency of air pollution control treatment equipment on a quarterly basis,

• Enhancement of air quality management as follows :

- Rayong Electricity Generating Co., Ltd. (REGCO) reduced Nitrogen Oxide emission by spraying water into the

combustion chamber.

- KEGCO constructed a sandblasting room using Uncen Trator and cartridge to control the dust from the

sandblasting process in order to maintain a good working environment and control the air pollution in the

nearby area.

- Roi-Et Green Power Plant, a biomass power plant using rice husk as fuel, installed an electrostatic precipitator

to trap flying ash in the fuel gas to be kept in the ash silo before being transported by a truck with full cover

and water spray to prevent dusting. Ash is transported via conveyor belt to the storage for future distribution to

farmers in nearby areas to be used as fertilizers.

Air Emission

Oxide Nitrogen (ppm)

200

150

100

50

149.79

REGCO

164.87

139.22

2008 2007 2006


22

Oxide Nitrogen (ppm)

200

150

100

50

58.90

EGCO Cogen Roi-Et Green

2008 2007 2006

2008 2007 2006

Remarks

Nitrogen Oxide (ppm)

Legal requirement


The bar graph shows the noise level of power plants during the last 3 years

Noise Emission

REGCO KEGCO

140 140

120

100

80

60

40

81.3

62.8

50.9

82.0


24

• Waste Management and Recycling

With the commitment to make the best use of natural resources, EGCO Group set the procedure for waste

management under the following principles.

• Employees must bear in mind to produce as minimum waste as possible and to recycle waste.

• An appropriate waste management is set up starting from waste separation, transportation and disposal.

• Advisors will be engaged to manage contaminated and hazardous waste which may have impact to the

environment to comply with the environmental laws.

• Environmental Support Projects for Power Plants and Communities

Apart from paying attention to efficient environment management, EGCO Group also encourages the power plants

in EGCO Group to engage in activities that will promote a good environment for the power plants and the nearby

communities. Examples are as follows:

• Expansion of the Green Zone Project 2006-2013 by REGCO

The process of power generation involves the emission of exhaust gas which contains carbon dioxide. To remedy

this problem, REGCO establishes a plan to increase the green belt around the power plant to absorb as much as possible

the carbon dioxide emitted from the electricity generation process. Under this plan, REGCO will plant trees in the area of

15 rai per year. In 2008, REGCO in cooperation with the community plants trees in 45 rai. The combined planting area is

now 75 rai.

• Water Revival Project by KEGCO

Being located near the open sea, KEGCO raised 5,000 snappers in baskets at KEGCO’s cooling water discharge

twice a year to be later released to the sea. This project is intended to be a showcase of good management

environment in the power plant. At the same time, this project helps increase the population of sea basses in the Khanom

area. • Improvement of Chai Son Mountainous Landscape by KEGCO

Recognizing the duty to contribute to the society as well as seeing the importance of local plants, KEGCO

initiated the project to improve the landscape of Chai Son Mountain by planting trees that represented 14 provinces in

the south in the park at the foot of the Mountain. Apart from being the resting and recreational area for employees and

the public, this park also provides knowledge about local plants to the communities.

• Banana Conservation by KEGCO

To conserve the banana species and to keep the moisture of the soil at the foot of the mountain and the grass

court, KEGCO launches a project to conserve the banana species by planting 200 various species of bananas with sign

tag. This banana garden is open for the employees and the public.


• Husk Ashes Organic Fertilizer

Using rice husk as fuel, Roi-Et Green uses the ash which is the by product from the combustion process to

produce organic fertilizers. The knowledge then is transferred to farmers so that they would switch from chemical fertilizers

to environment friendly one.

Compliance with Environmental Laws and Regulations

EGCO Group has the policy to conduct our business with commitment to fully complying with relevant environmental

laws and regulations and ensuring that its environment management meets or exceeds the standard. The SHE system will

be used for new projects while the compliance with environment laws and regulations including the rules and regulations

of the local government will be followed.

• Environmental Operation Efficiency

With continuous effort in ensuring efficient environment management, EGCO Group power plants are recognized by

various institutions. KEGCO received the EIA Monitoring Awards from the Office of Natural Resources and Environmental

Policy and Planning, Ministry of Natural Resources and Environment for the seventh consecutive year since 2000 (There was

no contest in 2003 and 2004). It was also awarded the “2008 National Safety Awards” for the ninth consecutive year and

the “Outstanding Workplace for Labor Relations and Welfare” for the second year. In addition, it receives the certificate

for zero accident campaign and is the only power plant that gets the CSR-DIW certificate.

At the same time, Roi-Et Green Power Plant was awarded the “Safety Excellence Award in Provincial Level” by the

Ministry of Labor.

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Social Performance

The Electricity Generating Public Company Limited or EGCO believes that every corporate should foster a balance

between the business objectives and the environment and society contribution. With respect to this, EGCO Group extends

our care to cover not only our employees, but also the community at large. We believe that our philosophy and

practices will enable us to achieve sustainable success in running integrated electricity business.

Workforce Structure

As at 31st December 2008, EGCO and EGCO Group which comprises all wholly owned subsidiaries has a total

headcounts of 745; which comprise 70 executives, 122 managers and 553 staff. The turnover rate within the Group is 2.6%.


The details are shown in graph.

Company

800

700

600

500

400

300

200

100

2006 2007 2008

EGCO

REGCO

KEGCO

ESCO

Total

Number of Employees in the Group Company

Level

800

700

600

500

400

300

200

100

113

70

152 161

106

526

276

702

702

114

70

152 159

110

2006 2007 2008

Executive

Managerial

Operational

Total

542

297

722

722

121 150 157

70

122

553

317

745

745

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Human Resources Policies and Management

Being aware that human resources are the our strongest assets to drive the company towards sustainable

competitiveness, EGCO Group commits to take each and every part of human resource management to promote

employees’ pride in the company by fostering the fulfilling and participative working environment and ensuring equitable

career advancement and fair remuneration. We believe that a happy workforce will work efficiently and effectively. In this

respect, employees will be trained to enhance the core competency and functional competency. The merit and

equitable recruitment process is adopted. At the same time, EGCO endeavors to ensure that the remuneration is

comparable to those of peer companies with the same business type and size.

• Selection and Recruitment

It is necessary to engage a “proficient” and “good” employee with job-fit and culture fit to retain EGCO’s business

excellence. To achieve such objective, the selection and recruitment process is based on ethical and equitable treatment,

candidate proficiency and business needs. The applicant screening, whether they are employees or outside candidates, is

made by an assigned committee. This is aimed at preventing individual discriminatory judgment from personal connection

or bribery in accordance with the good governance principle and the Code of Conduct.

Apart from adopting equitable and merit system in recruiting new employees, EGCO also set a policy to hire local

people as one of the measures to help increase their income and their well-being.

• Employee Development

EGCO allocates budget and time for employee development. Employees will be continuously trained to

enhance their core, managerial and functional competencies. Development programs include training, on-the-job

training, site visit, etc.

• Orientation

New employees must attend orientation program to learn about the corporate vision and mission, management

team, EGCO business, working systems, workplace and benefit schemes. In addition, they will have an opportunity

to visit power plants within EGCO Group to enhance their understanding about power generation. Monitoring

scheme is in place to ensure that new employees are qualified, having the right attitude, fitting with the

workplace and working towards the cooperate goals.

• Training

EGCO provides training for employees at all levels. In this regard, the training roadmap and the individual

development are prepared. The training roadmap is developed based on competency-based management

which included core competency, managerial competency and functional competency. Employees from top to

bottom will have a chance to continuously develop their competencies to bring out the best of their potential

and to retain our business leadership. Apart from knowledge enhancement, EGCO also provides the program to

foster emotion quotient (EQ) and good relationship among employees.

EGCO gathers and analyzes training needs annually. The result is used to formulate the training roadmap and the

individual development plan. Training statistic in 2008 is as follows.


- EGCO: 5.24 days/person/year comprising 3.72 days/person/year and 1.52 days/person/year for outside and in-

house training

- Rayong Electricity Generating Company Limited (REGCO): 7.44 days/person/year; comprising 1.47 days/person/

year and internal 5.97 days/person/year for outside and in-house training

- Khanom Electricity Generating Company Limited (KEGCO): 10.27 days/person/year, comprising 2.86 days/person/

year and 7.41 days/person/year for outside and in-house training

- EGCO Service and Engineering Company Limited (ESCO): 2.08 days/person/year comprising 1.35 days/person/

year and 0.73 days/person/year for outside and in-house training

• Employee Rotation

EGCO Group supports management rotation to sharpen their potential and to prepare them for career

advancement. In 2008, there was a job rotation among deputy managing directors-finance and administration of

KEGCO and ESCO.

• Performance Evaluation

EGCO has a policy to ensure fair performance appraisal system which ties with the committed corporate

targets. With respect to this, Key Performance Index (KPIs) is adopted to appraise the corporate and individual

achievement. In addition, the 360-degree competency appraisal is used to evaluate the competencies, potential

and individual behaviors. Result of the appraisals will be used as reference for developing training roadmap as

well as supporting the salary increase and career path advancement program. We believe that our practices are

fair, accountable and transparent under the good corporate governance principles.

Compensation and Benefits Management

EGCO Group adopts the pay-for-performance system. Benefits and welfare are provided to employees and their

family member which are comparable to our peers in the power industry.

• Salary structure

EGCO conducts the survey on the pay system in comparison with the companies in the same business taking

into account the changing environment. The objective is to ensure that the salary structure fits the business and

economic environment as well as being competitive.

• Salary Increase

To ensure the fair system of salary increase and to retain good and capable employees, the annual salary

increase is based on the following guidelines:

1. Annual budget for salary increase is based on the average salary increase rate of companies in the same

sectors and economic circumstances along with the justification by the Management

2. Individual salary increase is based on the achievement and effort of each employee during the past year.

Compensation and motivation

In a bid to retain employees over a long term, EGCO conducts salary survey of energy sector periodically and

studies new salary management tools to ensure that the Company’s remuneration system is fair and motivating.

The survey result in 2008 indicates that EGCO’s remuneration structure is competitive to those of the peer companies.

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• Welfare and Benefits

EGCO Group has a policy to provide welfare and benefit schemes that meet the need of the employees and

are comparable to the peer companies. We believe that employees who work in a fulfilling company will

wholeheartedly devote themselves for the corporate success. The survey result in 2008 indicates that EGCO

welfare and benefits either is competitive or better than the market rate.

• Employee Relations Management

• Activities to Foster Employee Relations

In a bid to create a good and fulfilling working environment that nourishes good employee relations, the

following activities were implemented in 2008.

- Communication Day is arranged on a quarterly basis. Communication day is a semi-formal meeting

between management and staff to communicate internal and external movements. Employees are

encouraged to present and exchange their ideas about corporate issues and to seek clarifications and

recommendations from management.

- Smile @ Library program is a casual get-together program organized every Friday during 15.00-15.30 hrs. The

objective is to release work tension. Employees can informally share and exchange their ideas cross

functionally.

- Family Trip program is organized to foster good relationships among the employees and their families. We

believe that this will help strengthen our synergy as well as creating the happy workforce.

- Sport Day and New Year’s party is a program for EGCO to thank the employees for their devotion during

the year. We believe that this program also strengthen relationship in the workforce.

- ‘Rod Nam Dam Hua’ (pouring of water on hands of elders to ask for blessings) is held during Songkran

festival

- A birthday meal is held quarterly for employees who were born during that period to dine with the

management

- Farewell party is held to thank employees who work with the company until their retirement. We believe

that it is a way to foster loyalty to the company.

- Cultural and religious ceremonies. Apart from encouraging employees to observe and respect the national

culture and traditions, EGCO encourages them to join the religious program such as offering food to the

monks and listening to their sermons organized by the Buddhist Club. We also support employees to practice

Buddhist praying and concentration for spiritual peacefulness.

- The 2008 Business Plan meeting was held to inform all EGCO Group employees about the business directions

and objectives for 2008 to align the Group’s activities towards the same goal

- EGCO Green Heart Party was hosted to celebrate the 16-year anniversary of EGCO Group. This function was

aimed at promoting pride among our employees of EGCO Group business and CSR success and the next

move as a green company.

- The EGCO Group Sports Day was held to enhance EGCO Group employees’ relationship and to create a

sense of belonging to the same big family using sport event as a tool.

- EGCO Group Knowledge Sharing is also encouraged. Internal experts are invited to share their knowledge

and experience with the Group employees.


- Employee visit is a program carried out by the President. He will meet the Group employees in each

location to provide direction and discuss the issues with them. This program is believed to enhance the

bonding of all employees with the company.

Apart from the above activities, EGCO encourages the employees to run personal interest programs to

enhance the working environment and promote teamwork. For example, there are currently internal programs

covering photo club, Buddhist Club, Golf Club, etc. In addition, EGCO also sets up the welfare committee of

which the members are elected by employees to represent them for welfare issues and to promote good

relationship between EGCO and the employees.

• Labor Union

EGCO Group companies have strong commitment to foster good labor relations with the labor unions as well

as the outside labor organizations. At present, there are two labor unions in EGCO:

1. Managerial-level labor union

2. Operational-level labor union

The two labor unions work in partnership with the Group companies to enhance relations with the employees. In

addition, they also provide support to EGCO Group’s community program.

Social Investment and Contribution Activities

EGCO Group extends its responsibility from internal community to outside communities aiming at the long term

benefits of the society at large. EGCO joins hands with its alliance being its employees and outside organizations to run

programs which cover three main areas being environment conservation, development of public awareness among youths,

and enhancement of community’s quality of life.

• Environment and Natural Resource Conservation

1. EGCO Thai Conservation of Forest Youth Camp

EGCO is aware of the importance of natural resources, especially the watershed forest.

Believing that environment awareness should be developed among young children so that they

can play a larger role in natural resources and environment conservation in the future, EGCO

group and the Doi Inthanond National Park work closely in hosting the Thai Conservation of

Forest Youth Camp which started in 1997 at the Doi Inthanond National Park in Chiangmai.

The project was then expanded to the Khao Luang National Park, Nakorn Sri Thammarat in

2004 and the Peaceful South (Tai Rom Yen) National Park, Surat Thani in 2006.

In 2008, there were 140 students out of 500 applicants from 73 schools across the country

being shortlisted to join the camp no. 26-27. Twelve children from 3 utmost southern provinces

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were invited to join the camp no. 27. The camp no. 28 was run with 80 participants at the

Krung Ching Waterfall, Khao Luang National Park, Nakorn Sri Thammarat where children

were educated about the mangrove forest conservation. As of now, 1,800 youths have

participated in these camps.

In addition, EGCO extended the youth camp to be hosted in the Eastern Region

under the project “Khao Chamao Conservation Youth Camp”. In this regard, two camps

were arranged which was attended by 50 students each from 9 schools around the Khao

Chamao-Khao Wong National Park.

2. Forest: The Circle of Life (Year 2)

This is another project that continues the efforts to conserve the watershed forest which is a large natural water

reserve that has nourished our lives consistently. EGCO Group joins hands with the employees, investors, media and

interested public to launch this project in a bid to create awareness about the importance of the forest and watershed

which is a source of life. Participants joined hands to plant tree saplings and return the balance to the nature. In 2008,

EGCO planted 600 Rhododendron saplings at the Kiew Mae Pan Walking Trail at Doi Inthanond National Park in

Chiangmai province in a bid to revive the fired damage forest land. This project was attended by more than 300 people

and was presided over by the Minister of Natural Resources and Environment.

In addition, EGCO follows up the progress of the reforestation last year at Um Pang Wildlife Preservation Area, Tak

province. It is found that the reforested area of 1,000 rai was well maintained with the measure to prevent forest fire and

wild animals.


3. How to Fight Global Warming with Sustainable Living

EGCO Group and the Thailand Environment Institution have joined hands to develop this project since 2007. Seven

schools in five regions have been promoted to be “the learning center to fight against global warming by way of

sustainable living”. Learning and teaching plan including the teaching aids are developed under the concept of “reduce

the global warming by way of sustainable living”

The project was continued in 2008 with various activities in respect of each community’s ways of life. Basically, the

activities include the green meeting, the knowledge and experience sharing by environment experts, site visit, teaching aid

contest and the guidelines to fight the global warming. All the efforts were aimed at ensuring that this project will result in

a long term friendship network that supports environment conservation.

EGCO also hosted various supporting programs such as the green meeting at Sirindhorn Environmental Park in

Pechaburi province, the knowledge sharing with environment experts, the visit to the learning center in Pracheenburi

province and the teaching aid contest which were joined by executives and teachers from 5 learning center schools and

14 network schools.

At present, there are 21 schools in five regions joining the project.

7 learning center schools namely:

1. Wat Saem Dam School, Bangkok

2. Prajin Rat Amrung School, Pracheenburi

3. Kawila Wittayalai School, Chiangmai

4. Fang Wittayayon School, Khon Kaen

5. Rach-Prachanukro 29 School, Sri Saket

6. Chalermprakiart Somdejprasinakarin Phuket School, Phuket

7. Wat Khao Nim School, Surat Thani

14 network schools namely:

Northern Region

1. San Paksa School, Chiangmai province 2. Sadet Chuan Wanachayangkul Wittaya, Lampang province

Upper Northeastern Region

3. Nong Na Sang School, Roi Et province 4. Tung Yai Ratanasuksa School, Khon Kaean province

Lower Northeastern Region

5. Song-kroa Nangrong School, Burirum province 6. Poakpitayakom Rachamangkalapisek School, Sri Saket

province

Eastern Region

7. Nikomwitaya School, Rayong province 8. Kroaksomboonwitayakom, Pracheenburi province

Central Region

9. Ban Khen School (Wai Salee Anusorn School, Bangkok 10. Koa Po Village School, Bangkok

Upper South Region

11. Kanchanadit School, Surat Thani province 12. Khanompitaya, Nakorn Sri Thammarat province

Lower South Region

13. Ban Kratu School, Phuket province 14. Ban Ta Nun School, Pang-Nga province

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4. Research on dolphin population and behaviors at Khanom District to support dolphin conservation and to

promote ecological tour of Khanom and nearby communities.

EGCO Group joins hand with Dr. Thorn Thamrongnawaswat from the marine science division of the Fishery Faculty,

Kasetsart University to conduct a research on dolphin population and behaviors. The result will be used to promote

ecological tour in the Khanom and nearby community. This plan will not only help increase the revenue of the local

fishermen but will also foster the environment awareness among the youths so that they will take good care of the natural

resources.

• Development of public awareness among youths

5. Green Learning Project

This project is the cooperation between EGCO Group

and the Tai Wisdom Association. The objective is to provide

opportunities for young children and primary school student

to develop their creativity via attending the camp to learn

about life, nature, energy and environment using various

teaching aids and activities such as action learning project.

The reading skills are developed via the discussion on the

environment tale, the internet surfing to find information

about animals and livings, and the experiment to learn

about the benefits of each natural fuel type. We hope that

these activities will foster creativity and allow youths to show

up their skills, capability and creativity.

The project also includes the development of the Tai

Wisdom Association Office and the courses to promote the

understanding on energy and environment. Since 2007, ten

camps were arranged with approximately 40 students

attending each camp. Students were invited from 4 schools

under the Khon Kaen Municipality and 6 schools from Khon

Kaen Primary School District 1 and Mahasarakham District 3.


6. EGCO Green Blood Project

There is a Thai saying that “we will get what we plant”. Consequently, EGCO chooses to plant a public mind in a

child so that he/she can grow up to be a good resource person to save energy, natural resources and the environment.

In 2008, EGCO Group initiated the EGCO Green Blood project to increase environment conservation awareness

among youths by encouraging those who have attended the Thai Forest Conservation Youth Camp to form a network

and launch local social and environment projects. In this regard, youths who attended the camp had selected their

leaders and formed the Green Blood network in the northern and central regions with the members of 20 each. The

network leaders had called a meeting to brainstorm the concepts to run the projects in 2009.

7. Cleaner Canal, Better Living: Lad Tanod Canal

EGCO works hand in hand with the Laksi District Office,

Kasetsart University and Dhurakit Pundit University. The project

objective is to create environment awareness among local

people, in a bid to keep the Lad Tanod Canal clean and

to improve the Canal’s landscape to be recreational area

for a better quality of life of people in the Laksi district.

In 2008, programs were run to improve water

conditions using Effective Microorganisms (EM) and to

beautify the landscape around the Lad Tonod Canal. In

parallel, public involvement was encouraged through various

programs such as the establishment of clean canal office,

the publishing of the people of the same canal magazine,

and the scholarship for the contest on EM which six schools

joined the contest. The clean canal day to celebrate the

project success was hosted with more than 300 participants

and was shared by Mr.Apirak Kosayothin.

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8. Heath Care Market

REGCO implemented this project in cooperation with the Public Health Coordination Committee, Pluak Daeng District,

Rayong. The objective is to proactively provide health-related services to the people of Pluak Daeng District which covers

6 sub-districts and 34 villages. The project provides medical services to people, and operates mobile exhibition and

recreational programs to educate the public about how to lead a healthy life. The project also provides service for those

who want to apply for health insurance card or to transfer the health insurance card to Rayong area. This project will be

run every year.

In 2008, 17 health care markets were organized. The customer satisfaction survey indicated that 90 of the

respondents were satisfied with the program and wanted the program to be run on a continuous basis.

9. Vocational Student Volunteer for Community (To repair electrical

appliances)

REGCO works in concert with the Rayong Technical College to run this

project. Vocational students volunteers to provide repair and maintenance service

to electrical appliances and check the conditions of the electrical wires in school

buildings, teacher residences and community households. This project does not only

protect the community from unsafe usage of electrical appliances but also helps

develop the technical skills of students and teachers.

In 2008, 5 repair and maintenance services were run which covered the

services provided to schools, temples, and local government office. Villagers and

offices were in favor of this project as it provides the benefits to the community.

10. Biological Agriculture: Sufficiency for Sustainability

KEGCO runs this project to support the lunch programs for students

in various schools in Khanom District, Nakorn Sri Thammarat by sponsoring

students to do vegetable farming, animal raising and fresh fish farming. In

addition, non-chemical cleaning agent was introduced so that students

would learn how to live a quality and healthy life without destroying the

environment. They would also learn how to effectively plan and organize

their projects under a self-sufficient economy.

In 2008, 5 more schools were selected to join the project. As such,

9 schools ran the program. The campaign on bio agriculture was run with

the demonstration of non-chemical fertilizer and the EM to students and

villagers at the Jedi Luang School. In this respect, the Nakorn Sri

Thammarat’s education deputy director district 4 visited the Ban Wat Nai

School to witness the progress of vegetable farming using non-chemical

fertilizer.


11. Youth Development

With the cooperation of the Office of District Education in Nakorn Sri Thammarat district 4 and Siang Dek News in

Khanom District, KEGCO runs the project to provide scholarships to poor students and to sponsor programs to promote IQ,

EQ and MQ among youths so that they understand different aspects of life essential for their physical and spiritual

development.

Significant activities in 2008 were as follows:

• To sponsor the Ta Muang School in Khanom District to host the 9th Knowledge Competition at primary school

level and to provide scholarships to 15 finalists. The scholarship were presented at the Khahom Power Plant’s

auditorium.

• To provide the 2008 scholarship to 15 poor students with high achievement. The contribution was from both the

power plant and their employees who made donation on a voluntary basis.

• To join hand with the “Children Voice News Office” to host the activities on “Waste Bank” which are run in the

neighboring schools and communities in a bid to promote the appropriate waste treatment, such as waste

separation and recycling, for environment conservation.

• First youth excursion to bring youths from 11 schools to visit the 2008 Technology and Science Exhibition at Bi-

Tech Center to promote the science and technology learning.

12. Breeding of Blue Swimming Crab

Due to the growing fishery industry, the size and number of blue swimming crab declined. KEGCO then worked

with the Nakorn Si Thammarat Coastal Fisheries Research and Development Center, Tong Nian Sub-District

Municipality and local fishermen in Khanom province to raise and release blue swimming crabs to the sea.

Activities have been organized to develop consciousness and knowledge on blue swimming crabs to youths.

A survey will be conducted to observe the increase in number of blue swimming crab before and after the release.

The activities in 2008 included the following:

• Nine releases of baby blue swimming crabs totaling 2,400,000 crabs breeding by the Coastal Fisheries

Research and Development Center.

• Training to 30 youths whose parents are fishermen to learn about the importance and the conservation of

the marine natural resource and the ecological system of sea-grasses and mangrove forest.

• Data gathering of the blue swimming crab fisheries in three districts (Don Sak, Sichon and Khanom) twice a

month by the the Coastal Fisheries Research and Development Center

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13. New Home for Undersea Livings (Artificial Coral reefs) Year 2

The project is a cooperation of local government and private sectors in

Khanom District. Under the project, 99 containers will be placed in the sea

during 2007-2012 to be artificial coral reefs for sea animals to live, breed and

hide from danger. This effort would help increase the number of sea animals

which will help promote the fishery business in the area according to the

concept of self-sufficient economy. In the future, the area should serve as the

tourist spot.

In 2008, 18 containers were placed into the sea to serve as underwater

homes. 738,000 species of water animals, including turtles, were released into

the sea to bring back ecological balance. The contest on container painting

under the theme of “Dolphin Land” was arranged. The event was presided over

by Mr. Soonthorn Patumtong, Nakorn Sri Thamarat Deputy Governor and was

attended by more than 1,300 people.

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15. Angel Mushroom Farming

This project is run in cooperation with the Office

of Agriculture in Nikom Pattana subdistrict, Rayong

Province. The objective is to provide knowledge and

training on angle mushroom farming so that local

people can earn extra income during the period that

they are free from tapioca and para plantation and

factory work.

In 2008, a field trip and training were made at

the Waree Mushroom Farm, Nikom Pattana sub-district

in Rayong. About 600 and 2,000 units of mushroom

spawn were distributed to 18 farmers and the Wat

Krachet School’s young farmer club.

14. Building for Fostering Local Wisdom

Roi Et Green Power Plant runs this project in cooperation with Nua Muang sub-district

in Roi-Et province. Under this project, a building will be constructed to be a learning center

for youths and villagers to learn about how to produce organic fertilizers from rice husk

and how to implement multi-level agriculture and plant herbs. Field trips are encouraged

so that local villagers can have a hand-on experience on the usage of new technology

which will help increase the community’s income and lead to self-sufficient community. In

2008, there was a workshop on “Biological way of life under the Royal Initiative on self

sufficient development”. Villagers from 23 villages in the Muang District were trained about

how to produce organic fertilizers. The construction of the local wisdom building was also

completed.


16. Mobile Medical Unit Support

In cooperation with the Office of Public Health in Nikom Pattana sub-district and the

Mab Ka District Management Organization in Rayong, EGCO Cogeneration sponsors free

mobile medical unit to the communities every 3 months. The services cover the medical

treatment, medical consultation, and sickness prevention to keep the local people in their

healthy shapes.

In 2008, 4 rounds of the medical units were run at Nong Khla Parvillian, Mab Kha

School, Wat Krached School, and Wat Hnong Pak Hnam School. About 343 villagers used

the services and 90% of them were satisfied with the program with a view that it

benefited the community.

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Other social activities

EGCO Group allocated the budget to make donation to projects initiated by the government and the private

sector. EGCO Group also provides the support to community relations programs. Summary of those activities are as follows:

Societal Level

• Donation of 500,000 baht to support the Chula-Thamasart Traditional Football Match no. 64 hosted by the

Chulalongkorn University Alumni under HM the King’s patronage.

• Donation of 150,000 baht to support to the project on “Power Lingkage” at the Pha Ing Unit, Mae Yom National

park, Prae province. This project is co-hosted by Eastern TV Co., Ltd., Prae Technology School, and Thanachart

Bank.

• Donation of 500,000 baht to relieve the suffering of the Nagis victims

• Donation of 100,000 baht to build the royal statute and to procure supplies for the head office by the Permanent

Secretary to the Defense Ministry and the Foundation for Slum Child Care under the patronage of HRH Princess

Kalayaniwatana.

• Donation of 1,000,000 baht to support the construction of the learning park located at the Sri Ratanatouch Jedi,

Mamuang Tong Temple, Nakorn Sri Thamarat

• Donation of 2,000,000 baht to the Elephant Reintroduction Foundation for the reintroduction of two elephants to

the forest.

• Donation of 150,000 baht to the Thai Environment Institution to sponsor the workshop on “Global Warming in Thai

Context” to celebrate the 15-year anniversary of the Thai Environment Institution.

• Donation of 100,000 baht to the Kasem Jatikavanich Fund to support EGAT disabling employees and their families.

• Donation of 100,000 baht to support the ASEAN ENERGY BUSINESS FORUM 2008 hosted by the Ministry of Energy at

the Intercontinental Hotel

• Donation of 100,000 baht to the Kasetsart University’s Engineer Alumni on the 60-year anniversary of the Faculty of

Engineering.

Community Level

• Excursion for elders in Khanom District to different religious and historical places in the north,

central and north eastern regions. This trip is organized by the KEGCO employees.

• Supporting religious-related and traditional culture such as candle offering festival and Krathin

Offering Ceremonies in Khanom District in Nakorn Sri Thammarat, Muaung District in Rayong

and Chombueng in Ratchaburi


• Site visit to EGCOM Tara’s Pang Puay Water Plant for drinkable tap water and slogan contest

on water saving school. This program is in cooperation with the Ratchaburi Water Works Office

and Bang Pae Kindergarten.

• Sponsoring of the Roi Et Green Football League no. 1 during November 29- December 21 at

Roi Et province to foster good relationship and to redirect villagers from drugs.

• Blanket donation and scholarships awarded by Roi Et Green Power plant on December

22, 2008.

Apart from the 16 social and environment projects, EGCO Group also publishes the “Green News” which is a

monthly electronic magazine to broadcast the progress of social environment projects and to provide the knowledge on

the corporate social responsibility to EGCO Group employees. CSR sharing workshop is also hosted for power plant

representatives for experience exchange and sharing on the issue with the aim to lift up the Group standard to the

international level and to provide long term benefits to stakeholders.

With our commitment to operate with social responsibility and thanks to support from all concerned party, there is no

dispute between EGCO and the employees and there was no loss time injury. In addition, EGCO Group was shortlisted as

candidate for CSR Awards by SET in 2008. KEGCO is also the only power plant that joined the CSR-DIW project arranged

by the Department of Industrial Works and the Management System Certification Institute.

Looking to the future, EGCO Group will continue to pursue its business growth while implementing social development

programs in order to ensure Thailand’s future sustainable development.

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Network for Sustainable

Development

EGCO Group believes that apart from running the business with social responsibility, EGCO Group should also support

the sustainable development of the society. As such, it cooperates with various organizations to drive for long term

benefits all sectors in the society.

Thailand Business Council for Sustainable Development (TBCSD)

Thailand Business Council for Sustainable Development is a public organization that has the commitment to promote

the public awareness on environment conservation under the “Green Business” or “Environment Friendly Business” projects

across Thailand.

With a view that TBCSD’s vision is in line with EGCO’s vision and mission for environment and social commitment,

EGCO has applied to be a TBCSD member and joined their activities. Apart from getting useful information for running

EGCO business, EGCO also has an opportunity to present its practices as case study for other members. Such information

exchange and sharing will strengthen environment conservation initiatives in Thailand.


Thai Forest Conservation Foundation (TFCF)

TFCF is supported by EGCO Group to top up the effort on

watershed forest conservation by way of creating awareness and

supporting researches on biodiversity. Air Vice Marshal Kamthon

Sindhvananda, Privy Councilor, is the chairman of the supervisory board

and Mr. Vinit Tangnoi, as the chairman of the Board.

With a view that watershed forest is a source of lives, TFCF puts

priority on the conservation of watershed forests starting from the north

where the TFCF is located and extended to cover activities in other

regions. TFCF focuses on community and youth participation under the

program of Thai Forest Conservation Villages and Thai Forest Conservation

Schools.

Doi Inthanond National Park

Doi Inthanond National Park and EGCO Group have formed an

alliance on environment and natural resources conservation for more

than 10 years. Projects in cooperation includes the Thai Forest

Conservation Youth Camp, the Kiew Mae Pan Walking Trail, Community

Forests and the Watershed Forest Conservation. The objective is to

cultivate the environment awareness among youths and tourists.

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Thai Environment Institute (TEI)

TEI is a non-government organization with the focus on environment conservation. Activities include research at

national and international levels on environment and natural resource management. TEI has started the initiative to fight

against global warming and climate change for more than 10 years. Being aware of the global warming, EGCO Group

joins hands with the TEI to create a school network to fight against global warming under self sufficiency philosophy by

setting the learning center for other schools to learn how to cultivate environmental awareness among the new

generation.

Tai Wisdom Association (TWA)

TWA is a non-profit organization that has a vision that “Child development is the most efficient way to develop

human resource and to reduce the problems at family, community and society level”. This vision is in line with EGCO’s

philosophy that “the good start will lead to a good result”. EGCO Group then works in concert with the TWA to develop

the project on “Green Learning” for primary school children. In addition, TWA office is also developed to be the

environment learning center for small children in the northeast with the expectation that they will turn up to be proficient

adults.


Glossary

1. Companies

The Company, EGCO, We Electricity Generating Public Company Limited

Group companies, EGCO Group Electricity Generating Public Company Limited and its subsidiaries

and joint venture companies.

BLCP BLCP Power Company Limited

EGAT Electricity Generating Authority of Thailand

EGCO Cogen EGCO Cogeneration Company Limited

EGCO Green EGCO Green Energy Company Limited

Egcom Tara Egcom Tara Company Limited

ESCO EGCO Engineering and Service Company Limited

KEGCO Khanom Electricity Generating Company Limited

OneEnergy OneEnergy Thailand Limited

REGCO Rayong Electricity Generating Company Limited

Roi-Et Green Roi-Et Green Company Limited

2. Government Organizations

EPPO Energy Policy and Planning Office

PWA Provincial Waterworks Authority

SEC Securities and Exchange Commission, Thailand

SET Stock Exchange of Thailand

3. Other Institutions

TBCSD Thailand Business Council for Sustainable Development

TEI Thailand Environment Institute

4. Technical Terms

IPP Independent Power Producer

SPP Small Power Producer

SHE Safety Health and Environment

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