Mitsui Enters Tap Water Supply Business In Thailand
The background to this transaction is a 30 year tap water supply agreement between TTW and the Provincial Waterworks Authority ("PWA") of Thailand, under which TTW is to supply drinking water to consumers in two provinces to the west of Bangkok, namely Nakhon Pathom and Samut Sakhon. TTW owns and operates the largest privately owned water treatment plant in Thailand, which has a capacity of 320,000 t/d, together with water distribution pipelines. The water supply area originally relied on boreholes for its water supply, but in view of environmental concerns such as the sinking of ground levels and pollution of ground water, the authorities decided to switch the supply of water to that of TTW.
CHK, Mitsui's joint shareholder in the project, has been aggressive in infrastructure investment projects which serve the general public need and this also accords with the Thai government's intention to involve the private sector in this field. CHK commenced its activities by participating in the operation of highways (Bangkok Expressway Public Company Limited) in the 1980s, and then water supply, and more recently subways (Bangkok Metro Public Company Limited). Mitsui, through its participation in TTW, will strengthen its relationship with CHK with the aim of expanding their joint business cooperation to neighbouring countries.
Mitsui has set as one of its target, the enhancement of investment in the infrastructure field, as part of its mid-term strategic and financial plan "Global Growth 2006", and has increased its power assets since its purchase of Edison Mission Energy's international power assets in 2004. In the water field, Mitsui is involved in a water supply project in Izmit City, Turkey and a wastewater recycling project for oil refineries in Mexico. Through this opportunity, Mitsui intends to increase its investment in the water field in Asia, Europe and Latin America.
SOURCE: Mitsui & Co. Ltd.