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CONTENTS 2 Social & Environment Responsibility Commitment 4 10 Year Journey of Responsible Citizenship 6 Message from the President 8 Our People 16 20

30 31 32 33 34

42 56

• Human resources policy • Manpower • Personnel recruitment • Hiring • Employee welfares • Labor relations

Social & Environment Responsibility Report

• Human resources development • Remuneration • Health benefit • Occupational health and safety • Internal communications

Corporate Governance

• Good corporate governance commitment • Corporate governance • Corporate governance structure

Environment

• Environment, occupational health and safety • Energy conservation • Waste and excess materials management • Water and waste water management • Ecology and biodiversity • Occupational health and safety at Ratchaburi Power Plant • Occupational health and safety management • Safety promotion activities • Safety measures • Emergency response preparedness

Human Rights Products and Services Our Suppliers Our Customers Our Communities

• Community relations and participation • Community development • Public disaster relief

• Education and youth • Health • Sport

Social Projects and Activities

• Workplace • Donation • Religion, Tradition and Culture

Our Business

• In the work process • Environment • Education


Our Commitment towards Social & Environment Responsibility Since its establishment in 2000, the Company has been strongly committed to being the responsible corporate citizen. It has given high importance to the society and environment and been committed to turning this commitment into concrete initiatives. The Company has instilled values related to morale, ethics, integrity and responsibility among all levels of employees. The values are repeated frequently through various activities and occasions until all employees realize the importance of them. These values have become the norm that employees at all levels have adopted and implemented as a guideline for treating different stakeholder group. The practice has rooted deeply and become the strong foundation for Ratchaburi Electricity Generating Holding Public Company Limited to make a stable progress and win confidence and high recognition from all stakeholders throughout the past decade. Based on its “Good Neighbor� principle, the Company has initiated and run many projects related to social and community development, as well as environmental preservation in the areas that the Company operates. Care for the better living, society and environmental quality has formed the foundation for all its operations. The Company has put all efforts to ensure that its environment quality management standard is higher than the industry level. The Company is committed to reducing global warming through constant power generating process improvement, campaign for energy saving and conservation in the power plant and office in order to help reduce carbon dioxide emission, and promotion of preservation of forests which help effectively absorb carbon dioxide. These are the commitment that the Company intends to expand further for the better benefits of the public at large.


Ratchaburi Electricity Generating Holding Public Company Limited

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10 Year Journey of Responsible Citizenship 2000-2010

Establishment of the Company Code of Conduct for Board of Directors Code of Conduct for Executives Code of Conduct for Employees Rule on Workplace and Employee’s Guide Rule prohibiting the use of insider information for abusive self-dealing Audit Committee Human Resource Management Regulation Accounting, Finance and Budgeting Regulation Procurement Regulation Guidance for Ratchaburi Power Plant’s public disaster assistance

Human Resources and Remuneration Committee Corporate Governance Working Group Value Added Tax Guide of Ratchaburi Electricity Generating Co., Ltd. ISO 14001 - Environment Management Standard Implementation in Ratchaburi Power Plant Ratchaburi Power Plant’s Environment Management Committee Ratchaburi Power Plant’s Safety Measures

2002

Rule on Directorship of the Company’s President in State Enterprise and Listed Companies Ratchaburi Power Plant’s Energy Saving Measures Community Development Project by Ratchaburi Power Plant Community Communication Network Project Mobile Medicine and Dental Care Project Energy Saving Project in Boiler Building of the Ratchaburi Thermal Power Plant Unit 1 & 2 Energy Saving in Ratchaburi Combined Cycle Power Plant Noise Silencer Buffer Extension by Growing Thick Bush Project Sludge Utilization Development Project Green Belt Development from Gypsum Landfill Area Project Energy Saving in FGD and Cooling Tower of the Ratchaburi Thermal Power Plant Unit 1& 2 Energy Saving of Circulation Fan in Turbine and Control Building

2000

2004

2001 Executive’s manual on business related laws Employees’ Welfare Committee Safety, Occupational Health and Environment Policy for Ratchaburi Power Plant

2003 Guidance for Charitable Donation Board of Directors’ Regulation Corporate Governance Policy Risk Management Committee Risk Management Policy Regulation for Supervision of Subsidiaries, Affiliates and Joint Ventures Investment Criteria Occupational Health, Safety and Environment Committee Ratchaburi Power Plant’s Environment Policy Steam Quality Upgrade project of Ratchaburi Combined Cycle Power Plant Waste Water Reduction in Process of HP Clean Up Blow and HP&LP Heater Drain during Start-up in Ratchaburi Thermal Power Plant Oil and Chemical Management Project Community Visit Ratchaburi Power Plant Project Community Health and Quality of Life Improvement Project (Mobile medical unit) Educational Promotion from School to Power Plant Project


2006

2009

2008

Ratchaburi Power Plant Energy Saving Committee Ratchaburi Power Plant’s Energy Management Inspector Ratchaburi Power Plant’s Energy Saving Policy Investment Working Committee Occupational Health, Safety and Environment Committee

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Reduction of Treated Water Released to Khlong Bang Pa of Ratchaburi Power Plant Lower Waste Water Temperature at Ratchaburi Combined Cycle Power Plant

Love the Forest and the Community Project Waste Water Reuse by Reversed Osmosis and Ultra Filter Technology Project Waste Water Reuse in 350 rai Wetland Project Waste Water Reuse in Garden Watering System Project Auspicious Trees Growing Project on a plot of 350 rai Water Quality Improvement by the Conductivity Bleed Off Control Technique at Main Cooling Water System Study Project on Plants for Water Quality Improvement Water Chiller Unit Installation in the Air Compressor Cooling System of the Ratchaburi Combined Cycle Power Plant Community Development Fund

2005 2010 Ratchaburi Power Plant Loss Control Measure Director and Executive Remuneration Criteria and Policy Reduction of Treated Water Released to Khlong Bang Pa, Phase 1 Energy Saving of Circulation Fan in Water Treatment Plant Waste Water Reduction in Circulating Water system of Ratchaburi Combined Cycle Power Plant Waste Water Reduction in Circulating Water system of Ratchaburi Thermal Power Plant Energy Saving of Circulation Fan in Fuel Oil Unloading Unit Paper and Ink Reduction for Plant Information System Phase 1 HRSG Treatment Program Upgrade Project Energy Saving at Station Air Compressor

2007

Employees’ Policy Shareholders’ Policy Social and Environment Policy Appointment of the Company’s Corporate Secretary Ratchaburi Power Plant Garbage Recycle Bank Project Collect & Separate Fluorescent Lamp to Revive the Environment Project of Ratchaburi Power Plant Energy Saving of Air Conditioning System in the Training Building, Ratchaburi Power Plant Reduction of Treated Water Released to Khlong Bang Pa and Reuse Project Energy Saving of Air Conditioning System in the Control Building, Ratchaburi Combined Cycle Power Plant

Employee Social Contribution Policy Computer and IT Network Policy 99,784 Teak Cultivation Project to honor His Majesty the King Spirulina Algea Growing with emitted CO2 from Ratchaburi Power Plant Research Project Environment Inspector Project OHSAS 18001 Occupational Health and Safety Management System Implementation Situation Report by Safe Card Project Hearing Capability Care Project Low Fat, No Fat Project

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Ratchaburi Electricity Generating Holding Public Company Limited

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Message from the President Dear shareholders and stakeholders, Throughout the past 10 years of strong commitment to growth and profitability, we have been aware that sustainable growth will be achieved only when the Company is healthy and strong from within. Since its inception in 2000, the principles of good corporate governance have been adopted and implemented as part of our management and operational guidelines. We have been focusing on building and nurturing a culture of morals, ethics, integrity and responsibility towards all stakeholders. This culture has grown strongly and has been recognized by the general public as evidenced by the awards and recognition we have received from many leading institutions. Responsibility towards our stakeholders, including shareholders, employees, partners, the local community, the society and the environment, is one of our top priorities. Clear regulations and guidelines regarding the treatment of stakeholders have been set out, ensuring proper and equitable treatment towards all stakeholder groups. Human rights issue has been focused as well. For the society and local communities, being a “good neighbor” is the rule. We have focused on developing and improving the quality of life for people in the communities where we operate through support for education, healthcare, career development, sports, religion and culture. The Ratchaburi Power Plant, our major power plant, ignites concept of the community development fund. In terms of the environment, we are strongly committed to contributing to the reduction of global warming. As stated in our business plan, alternative energy is set as one of our three core businesses. The Company has set a clear goal to increase our electricity generating capacity, using alternative energy, to 100 megawatts by 2016. This will not only reduce our dependence on fossil fuels but also reduce carbon dioxide emissions by 95,660 tonnes per year. The Company has regularly maintained maintenance of electricity generation process in all power plants to assure their utmost efficiency. New technologies that help save energy have been implemented at our power plants. Furthermore, campaigns to save energy have been implemented in our power plants and offices. To contribute more towards creating a better environment, the Company is working on a research project involving growing Spirulina algae using carbon dioxide from our power plants, which has the potential to reduce green house gas emissions. Our social contribution projects focus mainly on the recovery, maintenance and preservation of forests, which are important carbon sinks. Since 2008, the Company has continuously operated the “Love the Forest and the Community” project in cooperation with the Royal Forestry Department. This initiative is aimed at promoting and supporting community forests in communities across the nation. The project is an effective way to indirectly preserve forests through the active participation of local communities. In 2010, the “99,784 teak cultivation” project was implemented in commemoration of His Majesty the King’s 60th accession to the throne and birthday. Teaks are


known to absorb carbon dioxide better than other species of trees. Once fully grown, the 99,784 teak trees will be able to absorb over 30,000 tonnes of carbon dioxide. The campaign for local trees plantation was also launched to increase green areas across the country. All of these initiatives have been, and will continue to be implemented with determination. More initiatives will be introduced in order to bring additional benefits to all stakeholders, the society and the environment. All of this has been done based on the Company’s belief that sustainable growth will be achieved through responsible action. And, through responsible action we will be able to achieve our goal of being the leading private power producer that is widely recognized by the public.

(Noppol Milinthanggoon) President


Ratchaburi Electricity Generating Holding Public Company Limited

Our People

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The Company views its employees as valuable assets and a key success factor for growth. Our employee policy’s essence is as follows: Human resources policy

In 2010, the Company implemented various human 1. Promoting good quality of life at work by resources management and development activities under providing pleasant work environment, occupational health the above mentioned policy as follows: and safety based on internationally accepted standard. 2. Constantly enhancing employees’ skills Manpower The Company’s manpower is based on its and knowledge to ensure they are ready to support business and growth plan. Since its establishment in organizational growth. 3. Supporting employees’ career development 2000, the Company has constantly increased the number of employees. From 33 persons in the beginning, the according to their competency. 4. Managing and ensuring appropriate and fair Company currently has 138 employees, including 75 male and 63 female employees. Out of this, seven are remuneration and benefits. 5. Encouraging employees’ participation in assigned to work in other countries. From 2010-2012, the Company plans to increase manpower number to 170 organizational development. persons in order to support its investment expansion in and outside Thailand.


The Company has given high priority to ensuring sufficient workforce to support the corporate investment and project development plans. The Company also seconded its employees to partcipate in management of its joints ventures.

The Company in 2010 adjusted its manpower plan to better support corporate strategy which focuses on making investment in and outside Thailand. A three-year plan (2000-2012) was prepared, enabling the Company to have systematic recruitment process and to be assured of sufficient employees to support its activities and business plan. In 2010, 28 new staff members were recruited. In addition to new recruitment, the Company also adopts job rotation both internal and with its joint ventures. This offers an opportunity for employees to learn more and gain new experience. Most of the rotation involved assignment and posting in other countries, which provided employees with greater skills and experience in working in international work environment. The Company has prepared a manual for international assignment for employees assigned to work in Lao PDR, Vietnam, Indonesia and the Philippines. The manual provides them with crucial information about the countries they are assigned to, including culture, language, tradition, way of life, and related laws and regulations.

Personnel recruitment

Hiring

Level

Operational First line management Middle management Top management

Gender Total No. Male Female (person)

64 38 27 9

(person)

(person)

32 14 21 8

32 24 6 1

*As of 15 January 2011

To recruit new employees, the Company considers candidates’ knowledge, skills and capabilities that match job description, as well as attitude and commitment to work, their ability to face challenges and adapt themselves to changes in order to make sure that they would be able to best support the Company’s goals.

Hiring new employees is done within the manpower framework approved by the Board of Directors. In hiring new staff members, a department has to submit a request to its supervisor. Human Resource Department will later check the headcount before seeking approval from the President. Once approved, the

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Position structure includes four key levels operational, first line management, middle management and top management. Criteria and conditions for career path development are clearly stated based on merit system considering employees’ skills, knowledge, competency and performance of individual employee.

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Ratchaburi Electricity Generating Holding Public Company Limited

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Human Resources Department will open for applications from outsiders and form a recruitment committee by cooperating with the department that requests new recruit in arranging an exam and conduct the selection process. Once new recruit is selected, the recruitment committee will propose to the department head the selected candidate for approval. Executive Vice President - Corporate Administration is authorized to approve hiring of operational employee up to first line management or equivalent. The President is authorized to approve hiring of middle management or equivalent. Placement of top management has to be endorsed by the Human Resources and Remuneration Committee and approved by the Board of Directors. The department requesting new recruits will arrange 90 day probation period and set clear appraisal criteria as well as informing the new recruit of the criteria. Prior to the end of the probation period, the department will appraise the new recruit’s performance and report to the Human Resources Department in order to change the new recruit’s status to employee. In case that the person does not pass the probation period, the Company will terminate the contract and notice the person no less than 30 days in advance.

Employee welfares

The Company provides employees benefits and incentives as required by laws and as deemed appropriate in order that employees has sufficient security for living, good work environment and quality of life. Welfares provided by the Company are as follows: Welfares

Required by Law

Additional

• Disaster assistance • Life and accident insurance • Medical provision* • Annual health check • Dental and eyesight check up and treatment, and vaccination • Emergency loan • Financial assistance in case of death • Financial assistance for housing • Financial assistance in case of birth • Provident fund • Social security • Annual Vacation * Including employee, spouses, and 2 children who are not sui juris

Regular reviews and improvement of employee welfares are systematically handled by the “Employees’ Welfare Committee”, comprising of representatives of the Company and employees. In 2010, the Company has extended the coverage of dental and eyesight check and treatment to also cover vaccination in order to prevent employees from developing health problems which result in work time loss. This also provides employees with greater security and moral support. Once having peace of mind and security, employees will be willing to contribute their best to creating good work within their responsibilities and at their best capabilities.


Labor relations

Clubs - Good Health Club - RH Photography Club - We Love Kids Club - RH Buddha Club - RH Badminton Club - RH Golf Club - RATCH FC

One of the Company’s policies is to promote employee development in terms of work related knowledge and skills, management and attitude. This is achieved through work experience, training, seminars, and work visit in and outside Thailand, considering the benefits and value employees and the Company will receive. These development activities will help our employees to improve their capabilities and be able to perform their duties efficiently and effectively, which results in their career path development. The Company focuses on two areas of people development as follows: 1. Core Competency: The Company has created shared value and desired qualities of employees through instilling corporate values and desired behaviors among its employees. The values and desired behaviors are in line with the Company’s vision and mission, including drive for result, strategic thinking, team spirit, integrity, and relationship building. Training course on core competency therefore focuses mainly on creating and ensuring desired attitude and perception, especially teamwork, respect for others’ opinion, unity, commitment to the Company and shared goals. 2. Functional Competency: This is the quality that No. of members helps employees demonstrate the right behavior that matches their responsibilities and increase performance 28 efficiency. Each function sets specific functional 24 33 competency appropriate to support their operations. 51 Training courses on functional competency are specially 26 designed to best address specific functions and skills 23 needed to perform specific task for each discipline. 19

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In 2010, the Company encouraged its employees to set up activity clubs according to their interests. This additional incentive is aimed at strengthening relationships among employees, resulting in greater harmony and stronger teamwork. Employees also have the opportunity to spend their free time wisely by making contributions to the public. Such clubs are established within the framework and under the objectives set by the Company as follows: • Sports and recreations • Public services • Public charity and public disaster relief • Education for children and young people and promote quality of life of the disadvantages • Natural resources and environment preservation • Arts, cultures and religions The Company established a committee on sports, recreations and social activities to provide consultancy to these clubs and help them perform according to the objectives and policy of the clubs. The committee also considers budget allocation for each club. In the past year, seven clubs were established. Details of the clubs and members are as follows:

Human resources development

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Ratchaburi Electricity Generating Holding Public Company Limited

In the past year, human resource development programs were organized as details below:

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Program

No. of participants (person) First line Middle Operational level management management

Top management

Core Competency Development Courses 59

30

18

10

Thai Institute of Directors

-

-

-

1

Senior Executive Program

-

-

2

-

Chief Financial Officer

-

1

1

-

International Financial Reporting Standard

5

2

3

1

Other skills and work-related

31

17

13

5

Crisis communication

2

1

1

1

RATCH GROUP in harmony course Functional Competency Development Courses

Remuneration

In considering employees’ remuneration, the Company takes into account the position and responsibilities of the employees. Key factors are importance and responsibilities of the job, knowledge, skills, experience, economic conditions, industry’s average, and specific business environment of the Company. Annual remuneration and pay raise structure is approved by the Company’s Board of Directors. The Company’s remuneration structure is generally reviewed in order for the Company to maintain competitiveness in the labor market. Its remuneration is in the same level as other companies operating similar business in order to retain high capable employees with expertise and experience and to attract outsiders with desired skills and knowledge to join the Company and contribute to its growth. Considerations to adjust the Company’s remuneration system are to maintain its

competitive advantages in the labor market of similar industry, and within considerable budget. Individual remuneration increase is based on individual performance. In addition to salary, the Company allocated bonus to employees based on corporate performance and according to the endorsement of the Human Resources and Remuneration Committee and approval by the Board of Directors. Salary and remuneration are regarded as confidential information. Disclosure of such information is prohibited, except for performing the task assigned and authorized by the Company.

Health benefits

To promote employees’ health and ensure that employees have sufficient health protection, the Company offers not only benefits as required by laws


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but also additional ones that best address the country’s public health conditions. The Company provides health conditions that covers its employees, their spouses and 2 children who are not sui juris, annual health checkup using age as the criteria for determining scope of coverage and benefits, and eyes and dental check-up. In the past year, the Company also added vaccination to its employees benefits in order to protect its employees from seasonal diseases. The Company arranged various activities to promote physical and mental health, considering that physical and mental health is crucial to employees’ performance and efficiency. In the past year, a physical capability check up was organized for employees to learn more about their health and healthy living. Annual sports event was also organized to promote health and relationships among employees. The Company also supported sports activities organized by various clubs, including football, health and RH Golf clubs.

Occupational health and safety

Since 2009, the Company has appointed the Occupational Health, Safety and Workplace Environment Working Group. The working group is responsible for formulating policy related to workplace safety and general safety to reduce risks of accidents, injuries, illness or suffering and safety issues caused by work. The group is also responsible for proposing new and improving existing safety measures for employees, contractors and visitors who come to visit or work within the Company’s office. Safety measures, including workplace safety, were prepared as guideline. Workplace safety survey and accident risk check were held every month. So far, there is no employee being hurt or having accident within the office premises. Employees are required to participate in a fire drill organized by the building owner. In the past year, three fire drills were held to ensure that all employees know it well and can perform properly in case of emergency within the office.


Ratchaburi Electricity Generating Holding Public Company Limited

The Company also implemented the “5S” program within the organization to promote health and safety in the workplace. This is implemented as standard practice across the office. Regular review and check are ensured. For employees assigned to work in other countries, the Company prepared a guidebook, covering safety care and assistance in case of emergency practice, to be used as guideline. All employees have life and accident insurance.

Internal communications

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Realizing that people is a vital mechanism that drives the Company towards its goal of being the leading independent power producer in the region trusted by the public, the Company gives internal communications a high priority. Efficient internal communications is instrumental to ensuring that all employees and staff members realize and understand the corporate goals and business direction. Communication can be one-way or two-way depending on the objectives and importance of matter delivered. There are four levels of internal communications as follows: • Organizational communications - is the communications for all employees, focusing on giving

overview of the Company’s goal and business direction as well as motivating employees in driving the entire company in the desired direction. Tools used for this level of communications are company meeting, first line management meeting, middle management meeting, message from the President and electronic newsletter. • Departmental Communications is held to communicate policy and related business activities and direction to ensure understanding of employees within department which will lead to effective implementation. Example is business unit meeting. • Team communications is arranged among specific task force members who may come from the same or cross functions. Team communications generally focus on issues related to the team’s function and responsibility. Example of this communication is the Synergy Meeting. • Individual communications relates to meeting between different levels of management with individual employee. The objective is to open channel for employee to express their opinion and for the management to listen and understand more about problems and concerns in routine operations.


direct supervisor, employees can complain to higherlevel supervisors. In case of employment termination, employees shall complain to the Company’s President or Board of Directors within 30 days. Complaint investigation and consideration shall be conducted within 15 working days. If an employee is not satisfied with the investigation result, he or she can appeal to the highest level supervisor in seven days. An employee who sincerely lodges a complaint will not be punished or terminated or face any unfair treatment that may have adverse impact on the employee. All information will be kept confidential.

Complaint Process Board of Directors President

Higher-level supervisor

Complaint related to employment termination Complaint lodged to direct supervisor

Direct supervisor Investigation result informed within 15 days Complainant

General complaints Complaint in written Appeal within 7 days

* If not satisfied, employee can appeal to the highest-level supervisor

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Tools used for internal communications range from intranet, email and notice board to meetings. Regular internal meetings were arranged, including monthly middle management meeting, first line management meeting every two months, staff meeting twice a year and monthly Synergy Meeting. One-way communication was done through Message from the President and company newsletter all year round. Opinion boxes are provided to offer employees with another channel to express their view. In case of work-related problems, such as work environment, employment condition, order, assignment, remuneration and benefits and improper treatment by supervisors, employees can submit a signed written complaint to their immediate supervisor. In case of conflict with

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Ratchaburi Electricity Generating Holding Public Company Limited

Corporate governance

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Since the establishment of the Company, the Board of Directors and management have strictly implemented and adhered to the corporate governance principles. The principles are the guideline in formulating overall business operations policy, policy on process and measures for stakeholders’ treatment which varies depending on each stakeholder group; constant monitoring to ensure that the implementation and policy best address business and social environment as well as communities and international measures in any places that the Company operates; and ensuring proper balance of benefits of stakeholders.

successfully overcome these challenges and turned crisis into opportunities in order to achieve its goals and mission. Such success is credited mainly to the Company’s strong foundation provided by clear and strong corporate governance practice. With commitment to transparency, integrity, responsibility, the Company is confident of sustainable and stable growth. The strong foundation of corporate governance practice is evidenced in the Board of Directors’ efficient supervision and monitoring of the management’s performance, proper business operation process that strictly follows the Company’s rules and regulations as well as comprehensive risk management Our corporate governance principle that covers all aspects of business operations. These Against the backdrop of economic fluctuation in measures have significantly supported the Company’s and outside Thailand and more intense competition which constant growth and ability to nurture good relationships tends to be more severe in the future, the Company has with communities and other stakeholders.


act of fraudulent. • The Risk Committee is responsible for following up, managing and controlling risks factors that may become threats at the acceptable level as well as providing for alarming to prevent further negative impact on the business. • The Human Resources and Remuneration Committee plays a vital role in ensuring that the Company’s Board of Directors and the Management consist of skilled and experienced members and the composition of both bodies can support the Company’s sustainable growth. • The Investment Working Committee is in charge of considering new investment projects and ensuring that these projects support the Company’s policy and goals as well as best address the business environment and situation at the moment. Independent auditors, appointed at the shareholders’ meeting are responsible for the auditing of the Company’s financial statements and business operations. • Internal Audit Division, an independent unit reporting directly to the Audit Committee, acts as a mechanism for monitoring business operations in different aspects. These bodies clearly show the Company’s intention to ensure clear roles and responsibility of each

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

The Board of Directors consists of experts from different fields and with different sets of skills and knowledge, which complement one another and enable the Board of Directors to perform at their best. Members of the Board of Directors have full freedom and transparency in making major decisions for the best benefits to the Company and have to make careful and reasonable decision. The Board also includes a number of independent directors, which meets the Securities and Exchange Commission and the Stock Exchange of Thailand’s requirements. The Company’s business operations policy and governance have been prepared based on the Company’s commitment to maintain independence and freedom of directors in order to achieve performance efficiency of the Board of Directors. The Company’s governance structure includes several parties: • The Board of directors, who are appointed at the shareholder’s meeting, are responsible for formulating policy and direction of the business as well as monitoring, supervising and appraising the management’s performance. • The Audit Committee which comprises all independent directors is responsible for reviewing sufficient internal control process in order to prevent an

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Ratchaburi Electricity Generating Holding Public Company Limited

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Corporate Governance Structure Shareholders

Independent Auditor

Audit Committee

Appoint

Elect

Risk Management Committee

Board of Directors

Human Resources and Remuneration Committee

Investment Working Committee

Internal Audit Division

unit in order to create the right check and balance power, which will lead to transparency and integrity which are keys to corporate governance. The Board of Directors and the Management have studied and searched for new ways to strengthen the Company’s supervision and governing the business. Individual stakeholder policy was established, in addition to Code of Conduct which is a practice guideline for all staff members. Overall corporate governance policy and risk management were set. The Corporate Governance Working Team regularly reviews the policy and implementation result to ensure that its corporate

governance policy is appropriate and best addresses the current internal and external environment before submitting the policy to the Management and the Board of Directors in order to ensure better process and practice. To search for new ways to prevent or solve or minimize possible impact from internal and external factors on business operations, the Company has given high priority to having effective and efficient report, prevention measures, and alert and alarm system for following up with or monitoring business-related problems that have or may occur. The Board of Directors also demands immediate report of any important incident and periodic reports, including monthly, quarterly, mid-year and annual reports. The Company has ensured that all employees in all levels comply with the Code of Business Ethics, with key focus on integrity. Such action has been established and promoted through the Company’s Values. Abbreviations of each of five core values combined is RATCH which is the Company’s trading symbol on the Stock Exchange of Thailand. The five core values are :


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R = Respect A = Accountability T = Teamwork C = Creativity H = Honesty

Integrity is a part of core competency of individual employee and it is promoted through training, formal and informal meetings, encouraging employees to participate in social contribution activities for at least three days per year per person, supporting employee club activities in order to promote physical and mental health which will lead to better quality of life in the workplace, promotion

of public responsibility and volunteering among all employees which will bring great benefits to them, the Company and later to the public at large. Various communication channels also provide and support the Company’s goal of achieving maximum corporate excellence, including compliance with related laws and regulations, social responsibility and environment, transparent quality information disclosure, effective and efficient human resource management, protection of shareholders’ basic rights and equitable treatment of different stakeholders, and the Board of Directors and Management’s accountabilities.


Ratchaburi Electricity Generating Holding Public Company Limited

Environment

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Environment

With its vision to be a leading independent power producer in the region trusted by the public, the Company believes that responsibility towards environment is a significant task that also contributes to business growth and sustainability. Environment quality management of all of its power plants, including Ratchaburi Power Plant in which the Company holds 99.99 per cent stake and is a large independent power producer with 3,645 megawatts, is therefore very important. Throughout the past 10 years, Ratchaburi Power Plant has been committed to producing electricity in parallel with environment quality management. It has set clear policy and ensured that all employees of all levels and all functions comply with it. Ratchaburi Power Plant has relentlessly improved the environmental management to make it even more sustainable and environmental friendly for better environmental quality and betterment of communities and people living near the power plant.

At the same time, communities and the power plant can live together in harmony. Ratchaburi Power Plant has chosen clean and efficient technologies for its electricity generating activities. It also strictly complies with laws and regulations related to environment. To ensure that electricity generating meets with generally accepted standards, the plant has provided for an efficient and regular monitoring system for air, water, noise and soil quality as well as biodiversity. The ISO 14001 standard and Geoinformatic Technology have been implemented to support the plant’s efficient and sustainable management, electricity production and environmental management. The Company has promoted efficient use of energy and natural resources, reuse and recycle them in order to optimize energy and resources for the best benefits of all parties involved, especially for the country’s natural resources and environmental preservation. As global warming and climate change are


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

21 becoming the new challenges, Ratchaburi Power Plant has been searching for additional measures to reduce carbon dioxide emission. Some of such efforts include the use of carbon dioxide from its production system and from boiling unit of its combined cycle power plant to grow Spirulina algae and the 9,784 teak cultivation in the power plant. These actions confirmed its responsibility towards the society and environment and commitment to reducing impacts from the global challenges.

Environment, occupational health and safety

The Company has focused its support to environment preservation and rehabilitation in order to create natural and life balance. This is the approach for all its subsidiaries and joint ventures follow for their responsibility towards community, social, environment and its people. This commitment also promotes good relationships between the Company and communities. In line with this direction, Ratchaburi Power Plant, which is the Company’s main power plant, has given high importance to efficient environmental and occupational health and safety management. ISO 14001 and OHSAS 18001 standards were used as the guidelines for formulating the plant’s environment, occupational health

and safety management policy. Essences of the policy are as follows: 1. Strict compliance with law, rules, and regulations related to environment, occupational health and safety. 2. Making efficient communications is one of the top priorities in order to ensure that workers, contractors and other people working in the Company and communities understand and realize their direct and indirect responsibilities towards environment and occupational health and safety management. 3. Control and prevent pollution possibly caused by raw materials and production process by conducting an assessment of environmental impact before using the raw materials or operate the production process and finding new ways to reduce energy consumption, pollution and wastes released to the environment 4. Prevent danger from machines, equipment, fire, chemicals and medium-high risky work, and control all levels of risk 5. Providing support on sufficient resources, including people, budget, time and training


Ratchaburi Electricity Generating Holding Public Company Limited

Energy Conservation

Being the country’s largest independent power producers, Ratchaburi Power Plant has to initiate various measures to reduce energy consumption within the plant. It has promoted awareness among all its staff members and introduced new technologies that help save energy. Such efforts have been developed into an energy saving campaign with an aim to reduce emission of carbon dioxide from its production process. The campaign has been implemented in all buildings within the plant under ISO 14001 guidelines since 2005.

According to the energy report in 2010, total power produced was 17,373,576 megawatt-hour, which is 37 per cent higher than 2009 and means 8,420,121 tonnes of carbon dioxide emission. The continuity of energy saving campaign has enabled Ratchaburi Power Plant to cut electricity consumption by 3,198 megawatt-hour. The reduction, however, is lower than 2009 as a result of the installation of Water Chiller Unit of Air Compressor Cooling System which was used while the thermal power plant was reserved shut down in 2009. In 2010, Ratchaburi Power Plant operated all its power production units. (see graphic below)

Power production and carbon dioxide emission statistics

Volume of electricity saved and CO2 emission reduction

Electricity production volume (megawatt-hour) Carbon dioxide emission (tonne)

Electricity volume saved (megawatt-hour) Carbon dioxide emission reduction (tonne)

30,000,000

24,000

22

25,000,000 23,417,727

20,544,057

20,000,000

16,000 17,373,576

17,014,533

15,000,000 10,000,000

11,845,398

12,000 10,403

12,687,035

14,520,907

8,000 10,209,925

8,420,121

8,091,242

5,000,000 0

0

2006

2007

2008

2009

4,565

4,000

5,826,999

2005

20,439

20,000

24,403,296

2010

2,362

2,556

3,073

1,514

1,639

1,564

2,323

2005

2006

2007

2008

Electricity production volume (megawatt-hour)

Electricity volume saved (megawatt-hour)

Carbon dioxide emission (tonne)

Carbon dioxide emission reduction (tonne)

3,198 1,628

2009

2010


Waste and excess materials management

Ratchaburi Power Plant has two major types of wastes, which are general waste and hazardous waste. General waste includes recyclable, wet garbages (food) and non-degradable or non-recycle waste. Hazardous waste ranges from waste oil to oil-tainted gloves and clothes.

• General waste management

- Recyclable waste: Each unit collects and brings general waste to the plant’s recycle waste bank. Contractors will collect them later for recycle. - Wet garbage and food are collected and sent to the fermentation unit to make bio-fertilizer handled by the recycle waste bank. - Non-degradable and non-recycle waste: Ratchaburi Power Plant hired Ban Rai Municipality Office to collect them for proper disposal.

• Hazardous waste

Hazardous wastes, such as oil sand and oiltainted globes and clothes, are handled by General Environmental Conservation Public Company Limited

or authorized contractor. The Company strictly follows the Ministry of Industry’s announcement on waste management B.E. 2548. In 2010, total waste treated included 600 tonnes of general waste and 157 tonnes of waste from the production process, including optic fiber 17.56 tonnes, 8.7 tonnes of contaminated fabric, 4 tonnes of refectory bricks,1.86 tonnes of expired light bulbs, 6 tonnes of used lubricant oil, 3.86 tonnes of oily water from oil/water seperators, 0.18 tonne of contaminated oil containers and 114.82 tonnes of activated carbon & resin (which was used in the demineralized water production for 11 years). Ratchaburi Power Plant also initiated the power plant’s recycle waste bank in order to maximize the use of resources, reduce pollution and reduce global warming caused by the use of raw materials, production and landfill. Since its establishment in 2007, the recycle waste bank has purchased 15,356 kilograms, 11,268 kilograms and 9,489 kilograms of recycle waste from 2008-2010 respectively. The recycle waste bank together with the campaigns for plastic and foam reduction, the plastic bags for fabric bags exchange, used vegetable oil purchase, garbage landfill trips, sufficiency economy lifestyle and environmental conservation camp, have attracted a large number of participants. These campaigns have significantly reduced total recycle waste which is seen in the drastic reduction of waste received by the bank in 2010.

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Ratchaburi Power Plant’s energy saving program, which has been running from 2005 to 2010, has successfully reduced electricity consumption by 36,192 megawatt-hours, which equals Baht90.6 million saved and cut carbon dioxide emission by 19,072 tonnes.

23


Ratchaburi Electricity Generating Holding Public Company Limited

Water and waste water management

24

In 2010, Ratchaburi Power Plant drew approximately 28.26 million cubic meters raw water from Mae Klong river to produce electricity energy of 17.37 million megawatt-hour. It released 6.3 million cubic meters of water from the plant into Khlong Bang Pa canal. The volume of water used has increased according to the increasing production capacity in 2008 (see the graphic below).

Raw water and waste water volume at Ratchaburi Power Plant Water volume (million cubic meters) Electricity produced (million megawatt-hour) 50 40 30 20

38.38

35.31

32.47

23.40

24.52

20.54

10 9.6 0

2005

28.26

24.62 17.08

8.0

6.4

2006

2007

2008

Waste water (million cubic meters) Electricity produced (million megawatt-hour)

17.37

12.74

7.7

Raw water (million cubic meters)

17.56

4.5

6.3

2009

2010

In the past year, Ratchaburi Power Plant continued to reduce waste water released to the public waterway to minimum. Various projects introduced to achieve this objective are, for example, Main Cooling Water quality control project, using conductivity bleed off control technique to reduce the volume of additional water, and the Reduction of Water Released to Khlong Bang Pa project. The Reduction of Water Released to Khlong Bang Pa project, since its implementation in 2007, had significant impact on the reduction of raw water and waste water release from 2008 until now. The project consists of three subprojects as follows: 1) Reducing Water Release by Natural Method project under which a development of 350 rai plot of land on the western side of the power plant was introduced. Water treated at the power plant’s water treatment system is used in this land development which comprises the following activities: • Organic Plant Demonstration Farm - in cooperation with the Engineer Department of Royal Thai Army, Ratchaburi Power Plant grew rice on a 40 rai plot. Rice grown in this project is delivered to the Royal Thai Army’s Engineer Department. • Wetland - set aside for habitat and source of food for marine animals and birds, and for use as a learning center for young people and general public interested in natural science. • Community forest - trees are grown to generate oxygen and absorb carbon dioxide • Multipurpose area for various activities and events


Treated water volume under the Reduction of Water Released to Khlong Bang Pa Project Khlong Bang Pa

Natural water treatment technique on 350 rai plot

Plant watering System

Water recycling system (RO)

18%

13% 43%

26%

3) Waste Water Recycling Project: using Reversed Osmosis (RO) and Ultra Filter (UF) technologies, Ratchaburi Power Plant has improved the quality of waste water from the first treatment well by passing the water through many filters, including cell-level filter, before the water is reused in the production system. The recycled water is then used in the production line instead of releasing all to the public waterways.

The Reduction of Water Released to Khlong Bang Pa Project has enabled Ratchaburi Power Plant to reduce the volume of waste water released to Khlong Bang Pa canal from 88 per cent before project implementation to 43 per cent and 26 per cent of the treated water used for watering trees. Approximately 18 per cent of the water is used in the Reducing Water Released by Natural Method project and 13 per cent is sent to quality improvement process using RO and UF technologies before it is reused in the production process in the power plant. Meanwhile, the remaining 43 per cent is released to Khlong Bang Pa canal.

Ecology and biodiversity

Ratchaburi Power Plant has conducted a survey on ecology and biodiversity of animals near the power plant in order to find out impact of its plant’s construction and operation on the environment. The change in number and variety, population and expansion of animals, especially birds, around the power plant were analyzed. Specific species were selected for accurate research. Survey result in 2010 was compared to the study conducted from 1997-2009, when the plant was under construction and later started commercial operations. Direct searching method during daytime was conducted to search for the animals their trace or other evidences that help identify type of the animals, such as footprint, droppings, feather and hair, nests or holes, and noises. The survey was done in the one-square-kilometer buffer zone. Survey routes are the front, left, back and right of the Ratchaburi Power Plant. In 2010, the animal survey around the power plant showed that animal diversity was found in all the four levels. 96 types of animals were found, including nine amphibians, 11 reptiles, 72 birds and four mammals. Out of these 34 species are densely found, 31 are found in medium density level and 31 species were found in low density level. Out of the 96 animal species, 71 of them, including 68 species of birds and three species of reptiles, are

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

2) Plant Watering Increase Project: more trees are grown around the power plant. Used water, which has already been treated at the treatment facility to improve quality that meet the Royal Irrigation Department’s standard, is used for watering the trees in the area, thus reducing the volume of water released to natural waterway. Trees grown in this project also absorb more carbon dioxide in the area.

25


Ratchaburi Electricity Generating Holding Public Company Limited

26

categorized as protected species under the Ministerial Regulation B.E. 2546. Five of all 96 species found are conserved species, including purple herons, Indian cormorants, watercocks, Asian golden weavers, and Ploceus philippinus. Asian golden weavers are conserved species under IUCN (2010). Since 2006, these birds started to build nests and laid eggs and increased in numbers thanks to more sources of food, such as the rice field in the power plant, no disturbance from human and the fact that they are familiar with people’s activities. Many other birds reside in the trees which are naturally grown and grown by the power plants for their habitat. Some built nests in gypsum piles in a well.

When comparing the number and diversity of animals from 1997-2010, it is found that the number and diversity of the animals slightly varied according to the chances to find the same animals. The chances depend on population, timing of migration of birds, and new animals that migrated into the area. It is found that the animals that were first found in 1997 continued to spread and increase in number in the area around the power plant. At the same time, new species are found from time to time. In 2010, two new species were found.

Number of species found around Ratchaburi Power Plant in August 1997-2010 No. of species found 100 80 60 40 20 0 amphibians

reptile

birds

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

mammals

Occupational health and safety at Ratchaburi stability have best served but also impacts on life, health, properties and environment were least. The essences of Power Plant Occupational health and safety and work environment in and around Ratchaburi Power Plant are kept as high priority to ensure no impact from work related safety, occupational health and environment on its employees, contractors and communities as well as the Company’s reputation. The Environment, Occupational Health and Safety Committee has formulated the policy on environment, occupational health and safety to ensure that not only power production efficiency and

the policy are : 1. To give priority and create good relationships with communities, based on awareness of the plant’s social and environmental responsibility as a member of the society 2. To strictly comply with laws, restriction and regulations related to environment, occupational health and safety 3. To promote self awareness on environment,


Occupational health and safety management

To ensure international standard of occupational health and safety, Ratchaburi Power Plant has integrated OHSAS 18001 standards and ISO 14001 standard to adopt and implement in the plant since 1st April 2010.

Certificate audit was conducted on 25-26 November 2010. The audit revealed no significant weakness or problem. The implementation of these standards has helped reduce risks of injury, sickness and losses and at the same time increase confidence among employees and workers towards operational safety.

Safety promotion activities

• Safety Day To promote knowledge on safety, exhibition, safety tagline contest, a contest of workers who always wear safety gear, safe card report contest and special lectures were also organized. • Safe Card Report To raise awareness on safety in order to reduce accident that cause personal, assets, and production losses as well as environmental problem, Ratchaburi Power Plant encouraged all workers and employees to participate in reporting the situation that may create risks in the future for improvement according to international standards. • Low Fat, No Fat To promote good health and reduce risks of developing heart and vascular diseases, the activity also provided information on proper and healthy diet as well as good exercise. • Hearing Capability Care To raise awareness among workers who work in

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

occupational health and safety among employees and related parties to ensure they understand their important role in efficiently manage the environment, occupational health and direct and indirect safety 4. To control and minimize pollution caused by the power plant’s activities in a way that is theoretically correct. Work related risks are prevented by controlling risky activities and increase and constantly improve management system. 5. To set safety measures, including controlling and preventing danger that may happen to workers and related persons which may lead to personal, assets and production process losses 6. To upgrade work environment to ensure safety and to promote safety practice through various activities 7. To appropriately and sufficiently allocate jobs, human resources and budget. The management and employees of all levels shall cooperate in improving and ensuring that the environment, occupational health and safety meet international standards. 8. To maximize the use of resources for the best benefits

27


Ratchaburi Electricity Generating Holding Public Company Limited

28 loud noise environment of the work-related risks and educate them of prevention. The activity also monitored and checked level of noises. Various activities were held to educate employees and workers on the risks from loud noise, control and prevention and to ensure that people working in loud-noise environment properly use personal risk prevention equipments. Due to regular and continuous health promotion activities, the Company has never experienced serious accident that may interrupt its operations. In addition, this earned Ratchaburi Electricity Generation Company Limited award for its Zero Accident Campaign from Labour Ministry. The Company won in the silver category or a workplace that did not experience work-related accident and interruption for 3,000,000-9,999,999 hours.

- Everyone is required to strictly follow safety rules and security measures. - Supervisors, head of unit and head of department are responsible for controlling and ensuring that all workers strictly follow safety rules. - People working in the power plant must attend an safety orientation session. - Ratchaburi Electricity Generating Company Limited may prohibit those who do not respect safety rule and security measures, regulations, and orders from working within the plant’s premises. - Those who work in the power plant shall assess the risks of the assigned work, specify measures on risk control and present this to the supervisor at least five working days before they start the work. - Those who are responsible for the power plant, Safety Measures security guard, supervisors, controllers and safety units Ratchaburi Power Plant has formulated safety have to work together in checking for safety and security measures to control operational safety in the plant as at least once a week. follows:


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

29 Emergency Response Preparedness

Ratchaburi Power Plant has installed prevention equipment, for example, automatic fire extinguisher system was installed in the area that may catch fire. In cases these prevention measures fail to stop the incident, Ratchaburi Power Plant also has another emergency response plan. As a result, preparedness is very important in preventing and controlling possible loss of life and assets. In addition, power plant staff can stop or solve immediate problems efficiently according to the proper procedure. This will not only reduce risks of loss but also give confidence of the plant’s safety and security system among employees, workers and communities. Due to its vast area, Ratchaburi Power Plant finds it difficult to have efficient emergency and crisis management. The area was therefore divided into four zones, including the thermal power plant zone, combined cycle power plant zone, space surrounding the production building and warehouse. Each zone has clear procedure and a separate authorized team and team leader. Seriousness is divided into three levels.

Seriousness Level 1 The unit responsible for the area can contain and stop the incident. Seriousness Level 2 The unit responsible for the area cannot stop the incident and seeks help from the emergency team of other units within the power plant. Seriousness Level 3 The incident cannot be stopped by the emergency and support teams within the plant. The head of emergency team will request help from other organizations, such as other organizations in the province. So far, each zone has to practice emergency plan as scheduled. In low-risk zone, response to seriousness level 1 practice is required. In 2010, 34 practices were organized in all risk zones within the power plant. One seriousness level 2 response practice was held under simulation case which assumed that a fire broke out at the air-heater of the thermal power plant Block 1. One seriousness level 3 response practice was held by creating a simulation case where fuel oil unloading pump of the combined cycle power plant caught fire. After the practice, reviews and summary were prepared to identify areas of improvements for greater efficiency.


Ratchaburi Electricity Generating Holding Public Company Limited

Human Rights

30

The Company relies upon and complies with the Constitution of Thailand, B.E 2550 (2007) on people’s rights and freedom. This has been applied in our treatment to our employees where we respect rights, freedom and equality of everyone. Each can exercise his rights and freedom as long as it does not violate someone else’s and as long as it is not violating the laws or ethics. In addition, the Company treats its employees with equality, fairness and non-discrimination regardless of their birthplaces, races, languages, genders, ages, physical or health conditions, individual status, economic or social status, religious belief, education or training and political point of view. All employees have the same right to thrive in their career where decisions are made on the basis of their abilities subject to the integrity principle.

According to an employment policy, the Company does not hire children under 18 years old and illegal alien workers. Also, rule to prevent sexual harassment in the workplace by supervisors, co-workers and employees is complied by strictly prohibiting unwelcome behaviors including unwanted sexual verbal and physical conduct, unwanted looks or gesture, assaulting, unwanted deliberate teasing or joking and personal life interfering. Violation against the rule will the penalized. This guideline has been vigorously applied in various businesses the Company has invested both here and abroad. Overseas, the Company strictly complies with labor and related laws of relevant countries. Local staff are employed in various positions while local customs and culture as well as people’s rights and freedom are duly respected.


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Products and Services

31

Electricity is an invisible goods. Once produced, it has to be used right away. As a result, developing and improving efficiency of the power generation process is one way to develop our products and services. During the period, the Company invested in sophisticated and environmental-friendly technology while ensuring its power generators were consistently maintained in good conditions. The idea was to ensure that our power plants were efficient enough to generate power that responded to the needs in every situation. In other words, Ratchaburi

Holding’s power plants should be able to generate power in lieu of other power sources if necessary. In addition, we have also improved our environmental quality management process, which also focuses at occupational health and safety. We have introduced the ISO 14001 and OHSAS 18001 to our Ratchaburi power plant to reduce the emission of carbon dioxide and campaigned energy saving in the plant, which in the end will enhance environmental quality and social wellbeing.


Ratchaburi Electricity Generating Holding Public Company Limited

Our Suppliers

32

Ratchaburi Holding’s principles when dealing with suppliers are transparency, fairness and equality. Most of our relationships with the suppliers are hiring or purchasing items from them. The Company has four methods in hiring or purchasing from suppliers; which are through price settlement, price quotation, bidding procedure and other special methods. In each method, details, conditions, amounts of money and responsible persons are clearly specified. In other words, clear hiring procedures are made in order to ensure transparency and fairness to every supplier. In addition, the Company also sets up committees; namely, a price evaluation committee, a bidding review committee, a hiring or purchasing through special means committee, an examination and accepting committee and a contracting examination committee. Each committee has clear scopes of responsibility. More

importantly, every committee has to appoint an expert with expertise in related materials or business activities as its member. The committee’s resolution is based on majority votes. In case of tie, chairman of the committee will have an additional vote as a casting vote with an exception to the examination and accepting committee and the contracting examination committee where their resolution will be based on unanimity. However, the Company requires the following as a prerequisite for its suppliers - suppliers must not violate the laws and must have no previous issues concerning integrity or environmental problems. The guideline is complied with the Company’s subsidiaries to ensure that the suppliers are treated in equality, fairness and within same set of standards.


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Our Customers

33

Most electricity generated from power plants invested by the Company is sold to EGAT, who provides electricity to serve the power demand of the country. In other words, EGAT is the Company’s major customer. Since establishment, the Company focused at its service quality and customer satisfaction by putting the best effort to respond to customer’s needs as much as possible. However, because of the special characteristics of power, which must be used as soon as made, to respond to customer needs with the highest efficiency, one has to

maintain every power plant to ensure that their availability remains constant so that the power plants will be ready to generate and dispatch power every time EGAT places an order. This, in the end.will stabilize the country’s electricity reliability system while consumers will get access to power every time they need. The Company also commits and complies with the conditions and requirements stated in the Power Purchase Agreement by generating power and delivering it up to the amount desired by its customers.


Ratchaburi Electricity Generating Holding Public Company Limited

Our Communities

34

As a responsible citizen, the Company realizes that long-term care of the communities in the area of its business operations is a crucial on-going responsibility. The ultimate goal is to achieve harmony living between the Company and communities based on trust and recognition. All power plants of the Company are therefore required to seriously and continuously arrange community relations activities with focus on better quality of life and sustainable living of the people around our power plants. In the past year, the 3,645-megawatt Ratchaburi Power Plant, which is our core power plant, has introduced and continued community relations activities in nine districts around its premises. All the activities encouraged maximum community participation with a mutual purpose of sustaining close relationships with communities. The activities comply with the Company’s policies as follows: 1. Promote participation between communities and the Company in “good neighbor� manner

2. Promote development and community self sustainability for better and sustainable quality of life 3. Encourage communities to participate in monitoring environmental quality management of the power plant 4. Provide effective communication channels between the power plant, government authorities and communities In 2010, major community relations activities of the Ratchaburi power plant are as follows:


• Establishment of Ratchaburi Power Plant Environmental

Inspector Committee In managing the environment of the Ratchaburi Power Plant, the Company always gives priority to public participation, especially in monitoring the environment quality management. It has cooperated with the Ratchaburi provincial administration and other organizations, including local administrations at different levels, water users, agriculturists, health groups and experts in various fields in forming the Environmental Inspector Committee for Ratchaburi Power Plant. On 23 July 2010, the governor of Ratchaburi Province has signed the “Regulation on Environment Inspector Committee for Ratchaburi Power Plant (Ratchaburi Electricity Generating Company Limited) B.E.2553. Twenty five members of the committee include 15 representatives from nine subdistrict communities surrounding the power plant comprising of; subdistrict municipality, subdistrict administration, subdistrict

• Community visit

Community visit is a regular activity aims at bringing closer the relationship between the Ratchaburi Power Plant and community leaders and residents. This is done through participation in local community activities and cultural events, such as ordination, cremation, wedding and local religious ceremonies. The Company took this opportunity to familiarize and strengthen relationship with people in the communities. Participation in various groups and networks’

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Community relations and participation

headman, village headman, agriculturalist, health, education and water user groups; two representatives from civil society sector, 6 from public sector including District Chiefs of Muang and Damneonsduak, Ratchaburi Provincial Office of Natural Resources and Environment, Ratchaburi Provincial Public Health Office, Regional Environmental Office 8 Ratchaburi Province, and two representatives from Ratchaburi Power Plant. Under the regulation, the committee is responsible for monitoring Ratchabuir Power Plant’s operation in order to assure its compliance with environmental mitigation measures and environmental monitoring programs which are identified in the Environmental Impact Assessment Report. The committee will act as a center to surveillance environment management of the power plant, communicate information and fact, and give recommendations on the power plant’s environment management to the Joint Committee on Ratchaburi Power Plant’s Environment Management and Community Development Monitoring. The committee’s meeting will be held quarterly.

35


Ratchaburi Electricity Generating Holding Public Company Limited

36

activities, such as health volunteer network and the elderly network, is another area of involvement. Monitoring the progress of various projects initiated by local communities is another channel for community relations. The Company, for example, had some site visits to monitor the progress of various projects that are jointly initiated, implemented, operated and benefited mutually. Different networks and groups were regularly invited to participate in Ratchaburi Power Plant’s activities on various occasions. In addition, the power plant has created a newsletter titled “Baan Rao” (Our Home) in order to enhance communication and understanding between the plant and community. The newsletter covered with the power plant’s operation and community activity updates were disseminated to every household in nine subdistricts around the power plant every two month. Based on “good neighbor” concept, Ratchaburi Power Plant gives high priority to complaints lodged by communities and takes this as its responsibility to provide quick response in order to strengthen trust and confidence among people in the communities. Care and quick responses also confirm the plant’s commitment to communities. Ratchaburi Power Plant has implemented the complaints handling process according to ISO 14001 and OHSAS 18001 standards. As a result, the power plant has a new procedure enabling to respond to any community’s complaint within 24 hours. In 2010, the plant received three complaints from surrounding communities. The complaints were fixed and informed the communities.

• Participation in community development fund

With its continuous participation in community development, Ratchaburi Power Plant not only contributed to the Ratchaburi Community Development Fund for quality of life improvement, but also participated as members of the fund committee and subcommittee. In this role, Ratchburi Power Plant participated in brainstorming, providing recommendation on various issues, drafting the Fund Regulation by sharing its experience from managing the Ratchaburi Power Plant Community Development project before the Community Development Fund launched by the Ministry of Energy. Ratchaburi Power Plant also supported various community projects. Some of the highly successful projects in 2010 are the clean tap water project in Pangpuey Subdistrict, Bang Pa Subdistrict, Tha Rab Subdistrict, Sam Ruan Subdistrict, Don Sai Subdistrict, Pikulthong Subdistrict and Bang Singh Subdistrict; toilets for the elderly project in Don Sai Subdistrict, support for Healthy Community Groups around the power plant; and


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

37 Subdistrict Health Park Project. The plant also acted group empowerment with focus on the area that specific as an advisor in initiating new development projects for community needs. Communities are the direct beneficiary communities around the power plant. and can handle these development projects by themselves.

Community Development

• Community Development Network Strengthening Project

This is a continuous project in strengthening communities. The project focuses on supporting development groups established under the framework provided by the Community Development Department, Ministry of Interior. Out of the nine target subdistricts, Ratchaburi Power Plant has already taken actions in five subdistricts in 2009 and therefore continued with the remaining four subdistricts in 2010. The four subdistricts are Tha Rab, Bang Pa, Don Sai and Pikulthong Subdistricts. The project was held in cooperation with the Ratchaburi province’s Community Development Office under the framework of the “Agreement on Academic Cooperation between Ratchaburi Electricity Generating Company Limited and Office of Community Development of Ratchaburi Province, according to the Development Group Strengthening Project under integrated development concept”. This project integrates academic knowledge with sufficiency economic theory and applies this learning in supporting development

• For Our Home Project

Spin-offs from the community participation process (initiation, decision making and project operation) driven by actual community’s need comprises four groups - community leaders, education network, healthcare network, and religious and culture networks. Each network meets to discover the needs that create mutual benefits for the group. Once agreed, the group will jointly draw an action plan, prepare budget and implement the project. In 2010, the Education Network introduced three activities as follows: • English Camp - aimed at offering opportunity for students to improve English skills. Participants learned listening, speaking, reading and writing skills that can be practically applied to daily communications both for work and education. Three classes were held, each attracted 100 participants. Details are as follows: Class 1: for Prathomsuksa 1-3 students, held from 12-13 June 2010 at Potharam Kindergarten, Ratchaburi province Class 2: for Prathomsuksa 4-6 students, held from


Ratchaburi Electricity Generating Holding Public Company Limited

38 19-20 June 2010 at Potharam Kindergarten, Ratchaburi province Class 3: for Mattayom 1-3 and Mattayom 4-6 students, held from 26-27 June 2010 at Tha Makam Wittaya School, Ratchaburi province

• Local Curriculum - Energy Alternatives

committees were set up to prepare in details teaching and learning kits. Two committees work on mattayomsuksa or high school level and the remaining five committees work on prathomsuksa or primary school level. The local curriculum preparation is the second phase of the “Learning from School to Ratchaburi Power Plant” project, which has been held for eight consecutive years. The project’s goal is to allow all students in the highest grade in 27 schools near the power plant to visit Ratchaburi Power Plant to observe and learn more about electricity generating activity and enhance science knowledge to young people.

In 2010, 47 representatives from the network of schools near Ratchaburi Power Plant and the power plant attended a seminar for local curriculum committee on energy and environment preservation. A team of trainers from Mahidol University’s Environment Quality Development Association also attended the seminar to provide the latest knowledge and information related to • Development for Thinking Process Teaching Skills energy and environment. Results and learning from the In 2010, more than 160 teachers from the network seminar will be compiled and used for preparing a new of schools around Ratchaburi Power Plant and the plant’s curriculum for member schools in 2011. Seven working representatives participated in the “Development for


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Thinking Process Teaching Skills Seminar”. Held to help teachers improve teaching skills, the project provided guidelines for how to effectively plan and arrange learning activities based on learning by doing concept which enable students to adapt and apply to real life situation later. A team of lecturers from the Institute of Teachers Development were invited to run the seminar for the network of schools around Ratchaburi Power Plant.

Public Disaster Relief

from severe water shortage faced by people living around the plant. Ratchaburi Power Plant repeatedly instructed people in the nearby community to use water economically and boil the water before consumption.

• Flood relief

Devastating flood in October-November 2010 damaged many parts in Thailand. To help relieve people’s suffering and to show its commitment to the public, the Company provided life sustain bags, foods and flat-bottomed barges to help flood victims. The Company cooperated with the Ministry of Energy and other government agencies in donating these flood relief products to flood victims in the Northeastern and Central regions.

• Diesel donation The severe water shortage in March and April 2010 had hardship on many people. The Company, therefore, arranged financial support for purchasing 100,000 litres of diesel oil which was donated to people suffering from water shortage for use in various activities to alleviate water shortage impact. The activity was in cooperation Education and Youth with the Ministry of Energy. • 2010 Children Day at Ratchaburi Power Plant Held under the theme “Good thinking, Good kids”, • Water donation the 2010 Children’s Day activities focused on encouraging Ratchaburi Power Plant donated 600 cubic meters children living near the power plant to learn proactively (carried by 100 trucks) of water to help reduce problems through actual participation and experience. The activities also trained children to develop thinking ability by using rational and adopting positive attitude which help them grow up as a quality asset of the country. The Children Day at Ratchaburi Power Plant has been held for six consecutive years. In 2010, more than 9,000 children from nine subdistricts around the power plant attended the event and experienced many brain training games, science and energy, and “Good Thinking,

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Ratchaburi Electricity Generating Holding Public Company Limited

40

Good Kids” learning exhibition. The power plant also at Sirindhorn Public Health College in Supanburi Province presented trophies to the winners of a speech contest. with Baht 84,150 in value. The scholarships are granted for This year, young students from Wan Ban Mai and Wat two consecutive academic years, totaling Baht 168,300. Nekkammaram Schools won the contest.

Health

• Ratchaburi Power Plant Scholarship

Ratchaburi Power Plant and RatchaburiPower Power Plant offered scholarships to poor students who have strong academic report and good manner. This project gives the children opportunity to further their study in higher level and at the same time helps promote people development. Interested students have to have required qualitications and submit an essay and a drawing or painting under the theme “Energy… For Better Society” for consideration. Introduced since 2006, this project has been running for five consecutive years and there are 1,001 scholarships offered. Scholarships are available in three categories, with total value of Baht 2,035,000. Category

Value (Baht)

Number of scholarship

Kindergarten level Prathomsuksa (primary) level Mattayomsuksa (high school) level

1,000 2,000

170 628

3,000

203

In addition, the plants also offered scholarships to college students who live in nine subdistricts around the power plants. Eight scholarships were granted to students of Bomratchachonnanee Nursing College with total value of Baht 441,000 for four consecutive academic years. Three scholarships were also granted to students enrolling in advanced public health course (dental care)

• Mobile Medical and Dental Unit 2010

In 2010, the Company’s Mobile Medical and Dental Unit made 24 trips to provide medical service to people in 11 Subdistricts and 16 Subdistrict Public Health Centers. Services included general health check up with cooperation from Muang Ratch Hospital, medical diagnosis by alternative medical doctors from Ratchaburi Hospital, traditional Thai massage by Ban Rai Subdistrict OTOP Group, and free hair cut by Thanwarat Hair School. The services were provided free of charge. In 2010, the mobile unit provided medical services to 8,086 people Services

General health check-up Dental service Thai massage Hair Cut Heath check by alternative medicine

No. of participants

2,261 802 1,952 1,451 1,620


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41 Sport

3rd Ratchaburi Power Plant Mini Football Academy

The project was initiated to offer education opportunity to young people in Ratchaburi province. Participants have the opportunity to apply for scholarship in leading schools in Bangkok by showing off their football talent. In addition to giving education opportunity to the children, this project at the same time promotes the sport in Ratchaburi. To date 16 students have been awarded scholarships under this project. In 2010, Ratchaburi Power Plant opened for application and selected students to attend the 3rd Mini

Football Academy. Participants were trained for individual football skill and teamwork as well as won the opportunity to apply for the White Elephant scholarships. Ratchaburi Power Plant also arranged a football competition called “Mini Football Cup 2010” for young people in 9 Subdistricts surrounding the plant. Children with football talents were given priority to join the 3rd Mini Football Academy before the project application was opened to the public. The football competition was organized every year to open for opportunity for the children to show off their football talent to community leaders. These young children later become the role model for their own community.


Ratchaburi Electricity Generating Holding Public Company Limited

Social Projects and Activities

42

In the work process

• Producing power from renewable energy

With an aim to reduce fossil fuel in electricity generating and cut carbon dioxide emission, the Company has made renewable energy one of the three core businesses. Renewable energy sources in focus

are wind, solar, and biomass. By using these alternative sources of energy, the Company hoped to expand production capacity of electricity from these sources by 100 megawatts in 2016, which helped reduce carbon dioxide by 65,660 tonnes per year.

Current projects

Social benefitfifis

60-MW Wind farm project

34.25-MW Solar power project

• Reduce carbon dioxide emission by 46,000 tonnes per annum • Reduce dependence on bunker oil by 24 million liters per annum, valued at Baht 420 million, or equivalent to 750 million cubic feet of natural gas use per annum, worth Baht 170 million. • Reduce carbon dioxide emission by 32,000 tonnes per year


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

43 • A research project on using CO2 from Ratchaburi

Power Plant to grow Spirulina algae The Company is aware of the importance of environmental quality, way of life of people and community, and therefore committed to producing electricity with the highest possible safety and efficiency while creating as little impact on the environment as possible and optimizing natural resources. In 2010, the Company started a study on using carbon dioxide in growing Spirulina algae, which is a positive way to use carbon dioxide from Ratchaburi Power Plant for public benefit. Spirulina sp algae are cyanobacteria that need carbon dioxide for photo synthesis. In producing electricity, carbon dioxide will be emitted. By using carbon dioxide from the production process to grow the algae is not only make good use of the waste but also help reduce impact from global warming caused by carbon dioxide emission. The project is handled by leading academics specialized in related fields from Institute of Food Research and Product Development of Kasetsart University, Faculty of Agricultural Production and Faculty of Fisheries Technology and Aqua Resources, Maejo University, and Faculty of Agriculture of Chiang Mai University.

This project aims to find the best way to grow algae by using the highest possible volume of carbon dioxide. The initial experiment revealed some core factors in growing the algae under conditions in Ratchaburi Power Plant. Significant physical factors that boost Spirulina growth are light intensity, PH level, temperature, nutrients, intensity and volume of carbon dioxide, volume and direction of wind. The initial study showed that the algae actually used carbon dioxide from Ratchaburi Power Plant. One rai plot of Spirulina algae can absorb approximately 9.59 tonnes of carbon dioxide per year. At present, the project is now in its second phase of research and experiment, which aims to find out the best level of light intensity that help grow the algae in order that the algae can use the highest possible volume of carbon dioxide emission from the plant.


44

responsible for maintaining forest ecology system and using the forest for their sustainable and balance living. Key activities are as follows: • Community forest contest • Kla Yim Youth Camp • Love the Forests and the Community Project • Community forest Network seminar Introduced since 1998, the activity has continued • Community forest trail under cooperation between the Royal Forestry • Project evaluation Department, Ministry of Natural Resources and Environment. By adopting the sufficiency economy • Community Forest Contest (for HRH Princess Maha and natural resources preservation concepts of Their Chakri Sirindhorn trophy) Majesties King Bhumibol Adulyadej and Queen Sirikit, As a major activity under the “Love the Forests the project has supported and promoted community and the Community” project, it has been introduced since forests. The objective of the community forest promotion 2008 with an aim to search for a role model community is to balance the use of forests and preservation. forest with efficient management, considering social, Communities are encouraged to manage their community economic and resources sustainability by communities. forests through participation from all stakeholders, Factors for considering management efficiency range including home, temples and schools in order to from having a specific management committee, ensure the highest efficiency in forest management. involving community participation, having clear rules and At the same time, this project tightens relationships regulations in preserving forests and the environment, among people working on community forests in order the richness of the community forests, management to create a strong network that will be the major force and administration based on sufficiency theory, and in driving Their Majesties’ concept related to forest the promotion of energy and environment preservation. development based on scientific body of knowledge and In 2010, more than 700 community forests the “Forests sustained, communities win” concept. In which registered with the Royal Forestry Department addition, relationship between communities and forests participated in the contests and 132 projects won the are nurtured. Under this concept, communities are awards which include four categories. Category Grand prize

Ratchaburi Electricity Generating Holding Public Company Limited

Environment

Winning community

Grand prize - a trophy granted by HRH Princess Maha Chakri Sirindhorn Ban Huay Rai Burapa Community Forest Oob Moong Subdistrict, Nong Wua Sor District, Udon Thani Province

Awards - A royal trophy granted by HRH Princess Maha Chakri Sirindhorn - Baht 200,000 funding for forest preservation - A plaque for display at the community forest

Remark: Community forest is an area where the Royal Forestry Department allows a community to utilize, develop and rehabilitate. As of 31 January 2011, the Royal Forestry Department has granted approval for 8,119 villages to operate their own community forests, covering a total area of 2 million rai.


Special award 2010 Outstanding regional awards

Winning community

Best eco-tourism community forest

Ban Thum Phueng Community Forest Panom District, Surat Thani Province Northern

Ban Sam Ka Community Forest Mae Ta District, Lampang Province

Central and Eastern Ban Non Hin Phueng Prachantakam District, Prachin Buri Province Northeastern Alor Donban Community Forest Muang District, Surin Province Southern

Ban Tung Soong Community Forest Ao Luek District, Krabi Province

Awards - A plaque from the Minister of Natural Resources and Environment - Baht 100,000 funding for forest preservation - A plaque for display at the forest

- A plaque from Permanent Secretary of the Ministry of Natural Resources and Environment - Baht 100,000 funding for forest preservation - A plaque for display at the forest

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Category

45


Provincial awards and merits

Ratchaburi Electricity Generating Holding Public Company Limited

46

Category

Winning community

Awards - A certificate from Director General, Royal Forestry Department - Funding for forest preservation totaling Baht 2,170,000 - A plaque for display at the forest

Best provincial community forests and merit awards

126 projects nationwide

Ban Huay Rai Burapa Community Forest, Udon Thani province, the grand prize winner for 2010, covers an area of 1,545 rai of deciduous, dipterocarp and dry evergreen forests. The community has outstanding performance in preserving the forest area with participation from homes, temples and schools. Checkpoints, fire tower and ranger patrol teams were arranged to monitor and prevent wild fire. The responsible team members were well trained and with very good fire extinguishing skill. Members of the “Forest Protection Volunteers Group”, established as part of the Ban Huay Rai Burapa Community Forest, have received good support from the Region 2 Army and community forest administration office under the Community Forest Development and Support Center 3 - Sakon Nakhon, resulting in strong community forest maintenance system and personnel. People living around this community forest use wood chips from the forest in their household, thus reducing the use of cooking gas and oil. With clear rules on waste management and

richness of the forest, surrounding communities can live in harmony with nature with the community forest as their good source of food. Sustainable use of the forest helps the people cut expenses while significantly increasing household income. Locals also earn extra from weaving mats from local grass and some weaving products, which is a good implementation of self sufficiency economy theory. • Kla Yim Youth Camp The Kla Yim Youth Camp is also another major activity under the “Love Forests and Community” project. It opens for opportunity to young people, aged 13 years up, from community forests nationwide to get together and learn more about forest preservation. Each camp welcomed 50-100 youth who are trained and taught to conserve community forests as their communities’ and the nation’s valuable assets. The activity has clear objective. Camp leaders, or buddies, work closely with all the camp participants


arranged also promote learning and skill improvement as well as encourage the participants to adopt the desired attitudes. All the activities are designed for the participants to learn more about the following topics:

• Relationships between man and environment • Global warming and its impact on the young generation, and how to prepare for future issues • Differences between community forest and conserved forest, ecosystem and its benef its • Study and learn how forest grows and how to sustain it • Energy conservation • Teamwork and analytical thinking skills development

Kla Yim Youth Camp Activities in 2010

1st camp

“From Origin to Downstream” 31st March - 2nd April 2010 Samut Songkhram province

Attended by 110 young people from Chiang Mai, Chiang Rai, Lampoon and Ratchaburi

2nd camp

Kla Yim Youth Camp Southern region 16th-18th October 2010 Surat Thani province

Attended by 81 young people from Surat Thani, Nakhon Sri Thammarat, Songkhla, Krabi and Narathiwat provinces

3rd camp

Kla Yim Youth Camp Northeastern Region 5th-7th November 2010 Chaiyaphum province

Attended by 99 young people from Chaiyaphum, Ratchaburi, Khon Kaen, Nakhon Panom, Srisaket, Udon Thani and Yasothorn provinces

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

and act as “change agents”. The teamwork process is a key mechanism in achieving all tasks assigned. Activities and programs of each camp are tailored to match well with age and sex of the participants, plus some challenging activities for self improvement. While joining the camp, the participants learn more about the nature of community forests while having the opportunity to have hands on experience in “establishing harmony living between communities and forests” through various fun and challenging activities. Kla Yim Youth Camp activities focus on giving opportunity for participants to exercise their six senses. They learn through their eyes, ears, nose, tongue, body and heart, all at once in order to understand and remember well what they learn at the camp. Activities

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Ratchaburi Electricity Generating Holding Public Company Limited

48

Additionally, the camp activity is aimed to develop a new generation of community to continue forest preservation in the future. During camping, the youths have learnt more about nature of forest, ecology system, benefits of the forest and energy conservation. They were also trained necessary thinking skills such as holistic, analytical and integrative thinking. In 6 camps held since 2008, more than 600 students attended the camps and they learnt and understood forest advantages in aspects of economic, social and sustainability. They were aware of responsibilities for maintaining and preserving forests for their community and future generation.

• Community Forest Network Seminar

This activity opened a forum for different communities participating in the Community Forest Contest to share and exchange experiences in managing community forests. Through this sharing session, a network of community forest leaders was established with mutual goal; that is to preserve forest area and increase richness of the ecology system

which sufficiently feeds community. Each community nominated representatives to join the seminar in which they learn, share and exchange experiences related to community forest management. From the seminar, participants took home new learning that they can apply to their own community forests. This significantly promotes long-term community forest development because each community will have constantly improved management and becomes the learning center for interested persons and other community forests. The winning community forests, both at national and regional levels, are made the role models of wellmanaged projects that provide various benefits to the society, economy and natural resource sustainability. They also act as the learning center for others, leading to the widespread of efficient community forest management. In addition, this activity promotes bonding and relationships between different community forests and finally creates a strong nationwide network that will increase the people’s power in maintaining forests.

Community Forest Network Seminar in 2010

12-13 May 2010 at Jae Son National Park, Lampang province

21-23 July 2010 at Suan Phueng District, Ratchaburi province


• Community forest trail

In 2010, Ban Ta Pa Pao Community Forest, Lampoon province, has completed natural trail study. There are two trekking routes - the short one of approximately 3 kilometers which will take around 4-hour walk and the long one of approximately 12 kilometers which takes one day and one night to complete the round. Throughout the route, visitors will learn about different plants naturally grown in the forests. Major trees found in this area are teak, ironwood, Ceylon oak, hog plum, Terminalia alata Heyne ex Roth., Calamus caesius Blume., Canarium subulatum Guillaumin, tummy-wood, and Protium serratum (Colebr.) Engler. There are three learning stations, including a herb station where visitors can learn more about more than 500 types of herbs, check dam station where visitors learn about local way to hold water to feed the forests all year round, and the community forest preservation station which provides information and share experience about forest preservation and sustainable use of the forests. The natural trail in the Ban Ta Pa Pao Community Forest was first opened on 12 August 2010 and welcomed more

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

To commemorate the 10th anniversary of the Company’s establishment, natural trail was planned in 10 community forests. This is further developed from the “Love the Forest and the Community” project by promoting potential community forest projects that promote harmony living between man and nature. Participating communities are those with recognized strengths, such as strong community with participation from everyone in community and their forests are rich and have the potential to be a learning source or have eco-tourism destination. With cooperation with the Royal Forestry Department, the company selected 10 community forests as follows: • Ban Ta Pa Pao Community Forest, Ta Pla Dook Subdistrict, Mae Ta District, Lampoon province • Khao Ai Pote Community Forest, Sub Takien Subdistrict, Chaibadan District, Lopburi province • Khao Kham Hin Yok Community Forest, Talat Raeng Subdistrict, Ban Kwao District, Chaiyaphum province • Ban Wang Takian Community Forest, Ta Sai Luat Subdistrict, Mae Sot District, Tak province • Ban Sa Kaew Community Forest, Sai Thong Subdistrict, Chaiburi District, Surat Thani province • Khao Wong Community Forest, Wang Take Subdistrict, Nong Bua Raway District, Chaiyaphum province • Non Yai Community Forest, Siao Subdistrict and I-Say Subdistrict, Po Sri Suwan District, Sri Saket

province • Khao Sa Luad Community Forest, Watabaek Subdistrict, Thepsatit District, Chaiyaphum province • Ban Pu Yang Community Forest, Thung Luang Subdistrict, Pak Thor District, Ratchaburi province • Ban Yang Thone Community Forest, Sri Mongkol Subdistrict, Sai Yok District, Kanchanaburi province

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Ratchaburi Electricity Generating Holding Public Company Limited

50

than 600 people so far. A local animal nursery is under Most of the community forests acknowledge development. Once completed, it will be the center to and understand benefits of the “Love the Forests breed local animals which will later be released to the and the Community” Project. The community forest forests. contest also gives inspiration and encouragement to people working on forest preservation. The “Kla Yim” • Evaluation of the “Love the Forests and the Community” Youth Camp and community forests network seminar Project programs also efficiently educate the new generation The Company commissioned the Faculty of and community people while growing their commitment Forestry, Kasetsart University, to conduct an assessment to forest preservation. of the “Love the Forests and the Community” project. The study result will be used as guideline in The MOU was signed on 1 June 2010. The assessment future development and improvement of the project was focused on the change of community perception to better meet individual community’s need. The towards community forest management under the Love project is expected to continue long term and spins out Forests and Community Project. other activities and projects that will further promote A comparison between award-winning and 12 community forests sustainability and disseminate other community forests was conducted with focus on community forest concept to the public at large. changes related to economic and social aspects as well as utilization of forests, richness and ecology of the community forests, change in community’s perception and community’s participation in forest management to achieve maximum efficiency and best address community’s need. The study showed that most of the community forests realize the importance of forest preservation, not the use of the wood from the forests, but indirect benefits, such as environmental services. Community forest committees were established and with clear roles and responsibility. The committee members and everyone in a community have shared responsibility in preserving the forests which will provide both direct and indirect benefits to the community in the long run. • “99,784 Teak Cultivation in Honor of HM the King” The study also showed that the management To commemorate the 60th anniversary of His of award-winning community forests is highly efficient Majesty’s accession to the throne and HM’s birthday, the and its standard meets the project’s criteria. These Company initiated the “99,784 Teak Cultivation in Honor award-winning community forests are managed by of HM the King”. The project was held sincere gratitude specific committees and involved a lot of community of HM’s concerns over global warming by growing plants participation. Forest preservation also takes into account which have high capability in absorbing carbon dioxide. covering the ecology system, economy and social Teak is a local plant with great potential to absorb aspects, richness of the forests and the concept of forest carbon dioxide better than other trees. It absorbs carbon preservation under sufficiency economy philosophy. dioxide from the environment and keeps it in carbon


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

51 • Ban Ta Pa Pao Community Forest, Mae Ta District, Lampoon province • Ban Talat Khi Lek Community Forest, Doi Saket District, Chiang Mai province After growing the trees, the Company will continue to take care of the teaks in all areas for six years to ensure that all the teak grow healthily and later become the country’s major sources of carbon dioxide sink. It is estimated that one teak can absorb as much absorption. as 0.329 tonne of carbon dioxide for 15 years. This project aims to grow 99,784 teaks, which • “19,784 Trees Cultivation in Honor of HM the King” Following on from the teak cultivation program include all the auspicious numbers that reflects people’s gratitude towards His Majesty. It is expected that the and with the same objective of commemorating 99,784 teak grown under this program would help absorb His Majesty the King’s birthday, the “19,784 trees 32,870 tonnes of carbon dioxide and generate 24,000 cultivation” program was organized on 5 December 2010 tonnes of oxygen to the atmosphere for 15 years. The 99,784 teaks are grown in five areas, including • Ratchaburi Power Plant • Nong Plong Community Forest, Non Soong District, Nakhon Ratchasima province • Deteriorate forest areas in Mae Sin National Park and the left side of Mae Soong park, and a community forest in Sri Satchanalai District, Sukhothai province


Ratchaburi Electricity Generating Holding Public Company Limited

52

at a 200-rai plot of land in Soong Noen Forest, Pong Malaengwan Subdistrict, Kok Kruad District, Nakhon Ratchasima Province, the program was successfully completed thanks to the cooperation between the Ministry of Energy, public and private organizations and communities in Nakhon Ratchasima province. This program aims to increase forest area that will be the source of food for the community while bringing back balance in environment. It will also serve as a source of carbon dioxide absorption. It is expected that the 19,784 trees will be able to absorb 3,500 tonnes of carbon dioxide for 10 years.

Education

Viewing that education is a strong foundation for quality human resources development, the Company has contributed to education development through scholarship offering. Its scholarships are offered to students with good academic record and good manner but without sufficient financial support. The Company has granted scholarships mainly to students living in the communities near its power plants and offices.

• Good Deed for Society

students to receive the scholarships. This included 208 scholarships of Baht 1,500 each for primary school students, 38 scholarships of Baht2,500 each for secondary school students, and 6 scholarships of Baht 3,000 each for high school students. Running for the 4th consecutive years, the Good Deed Scholarship offers opportunities for children’s education and teachers’ network development. Since the launch, the Company has granted 882 scholarships worth Baht1.7 million in total.

• Scholarships for Ban Pratu Thao School

The Company offered scholarships to kindergarten and primary levels at Ban Pratu Thao School which is in Kong Subdistrict, Kong Krailat District, Sukhothai province, which is near the Pratu Thao Power Plant. The project was conducted in cooperation with the Kong Subdistrict Administration Office and the Sukhothai Primary Education Office and has been continued for 4 consecutive years. In 2010, 108 scholarships were offered, including 47 scholarships for kindergarten students and 61 scholarships for primary students. Since 2007, the Company already offered 400 scholarships worth Baht540,000 in total.

In 2010, the Company provided scholarships to 252 students from 21 schools in Sam Kok District, • Scholarships for students in Lao PDR Pathum Thani and some areas in Ayutthaya province. The Company has offered a Baht 120,000 The Company cooperated with the Phra Nakhon Sri scholarship to a technical college student from Lao PDR Ayutthaya Education Office Region 2 in selecting in 2010 to further study in geology at Chulalongkorn


10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

University. This is part of the Company’s commitment valuable assets of the society. Viewing that employees to promote knowledge and skill development for people are key drivers of corporate success, the Company has in Lao PDR where the Company operates business. instilled social responsibility concepts and attitudes among its employees. The Company allows its staff members to Workplace volunteer to participate in various employees activities that • Employee Volunteer will bring benefits to communities and public at large. In In addition to its commitment to promoting addition, it supports and promotes employees’ activities employees’ capability and skills, the Company promotes held by various interest clubs. In 2010, club’s activities social responsibility awareness among all its employees. were implemented as follows: Its employees are encouraged to adopt the five corporate core values, namely integrity, respect, responsibility, • Bhudda RH Club teamwork and creativity. These core values form the The club was established by a group of employees guidelines for work practice. At the same time, the who have mutual interest in Buddhism and practice Company encouraged its employees and staff members Buddhism for self development, in terms of morality, to volunteer to participate in any activities that are of ethics and logic. In 2010, the Club arranged a number public benefits. Employees are allowed three days for of activities for its members and colleagues, such as public service activities per annum. In the past year, Buddhist Lent Candle Making, Pha Pa ceremony, and the Company organized 13 public service activities, in Phra Neon Pool temple repairing. which 111 employees from Vice President to operational levels participated, representing 85.38 persons of its • RH Golf Club workforce. This represents 3,844 hours in total. In With an objective to promote employees’ sports addition, 13 high-level management members, from the skills and spirit, the RH Golf Club last year arranged a President to Executive Vice President levels, participated charity golf program to promote good relations among in social contribution activities, with a total of 448 hours different functions. Proceeds from the competition time spent. were donated to various charity, public service and construction of school libraries in rural areas. In 2010, • Interest Club the RH Golf Club completed the renovation of the library The Company is committed to support the of Wat Thai Koh School, Thai Koh Subdistrict, Pathum development of its human resources to make them Thani province. The old and ruined library was renovated

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Ratchaburi Electricity Generating Holding Public Company Limited

54 and is now a new learning center for students. The library • Mangrove Plantation in Chantaburi Province was handed over to the school on 28 August 2010. The Company provides financial support to the Ministry of Energy’s mangrove growing on 260 rai plots • Good Health Club in national reserved forests area, Welu River Mouth, and Established with an aim to promote employees’ other mangrove areas that have significant importance in health and reduce stress from work, the Club regularly terms of ecosystem. Those areas are under Department organized activities that promote good relationship of Marine and Coastal Resources’ supervision. among employees, which in the end have positive impact on employees’ performance. In 2010, the club members • World Golf Salutes King Bhumibol and interested persons organized yoka teaching course The Company provided financial support for the to youths at the Rajavithi Home For Girls and offered World Golf Salutes King Bhumibol activity which was lunch for them. held as part of the Reduce Global Warming Campaign. Leading golfers from 4 continents across the world Donation participating in the tournament included Tiger Woods, • Support for “Reduce Global Warming for His Majesty Paul Casey, Camilo Villegas and Thongchai Jaidee. The the King Campaign” by the Ministry of Energy tournament was held in Amata Golf Spring Country Club In honoring HM the King on the 60th anniversary on 8 November 2010. The golf event broadcasted on of his accession to the throne and his birthday, and Channel 3 as well as 453 households worldwide. supporting the social activities of the Ministry of Energy which directly supervises the Company’s business, • Ratchaburi Power Plant Donation the Company supported the ministry’s Reduce Global Ratchaburi Power Plant has been supporting Warming campaign. Two activities were initiated by various activities initiated by communities in nine the Company to support this project - 99,784 Teak subdistricts around its plant, including activities Cultivation to honor HM the King and the 19,784 Trees held by government offices in Ratchaburi province, Cultivation to honor HM the King. Financial support was local organizations, media, associations and other also provided to other projects as follows: communities in the province. In 2010, the Company provided financial support for various education,


Religion, Tradition and Culture

• Pha Pa ceremony at Silasuparam Temple,

Phuket province The Company, its employees, concerned parties and general public has donated more than Baht 700,000 for this Pha Pa ceremony. The proceeds were used in building a chedi to keep Buddha relics at Silasuparam Temple (Luang Pu Supa Temple), Phuket province. The Pha Pa ceremony was organized on 18 July 2010.

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

youth development, health and hygiene and sports, cultural and religious, environment and public service activities. Other supports included telecommunication equipment donation for community network around the power plant to increase communications and resource efficiency in communications between the power plant and communities. The activity is part of communication efficiency upgrade project. The donation was made to nine Subdistrict Administration Offices, nine Subdistrict Headman Offices, and 16 Public Health Centers, totaling 34 communications equipment units.

• Royal Kathin Ceremony

In commemorating its 10th anniversary, the Company organized a Royal Kathin Ceremony on 24 October 2010 at Sirindhorn Theprattanaram Temple under Royal Patronage, Omyai Subdistrict, Sampran District, Nakhon Pathom province. A total of over Baht 1,500,000 donation by the Company, its employees, concerned parties and the general public was presented to the temple for landscape improvement.

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Ratchaburi Electricity Generating Holding Public Company Limited

Our Business

56

Ratchaburi Electricity Generating Holding Public Company Limited is a leading Thai company with focus on electricity generating business. Established on 7 March 2000, the Company currently has 14,500 million baht registered capital and is a publicly listed company on the Stock Exchange of Thailand with “RATCH” trading symbol. plants in Thailand and Lao PDR. It has also expanded its businesses in other countries, including the Philippines, Indonesia, Vietnam and Australia, considering diverse sources of energy used for power generation, such as natural gas, oil, coal and hydro energy. At present, 14.3 per cent of Thailand’s total electricity generating capacity is contributed by power plants in Thailand in which the Company has invested. This contributed largely to the country’s power availability stability. More recently, three Power Generation Business The Company concentrates its investment in small scale cogeneration power plant projects in which large, small and very small power plants in and outside the Company jointly invested with its partners, with 350 Thailand. Most of the investment projects are large power megawatt combined production capacity, have been selected by EGAT. Being a holding company, the Company invests in its subsidiaries and joint ventures. Its major source of revenue is dividend from companies in which it invested. Three core businesses are as follows: • Power generation • Alternative energy • Power generating related businesses


Alternative Energy Business

Investment in Thailand Type

Power generation business

Project/ Company

Ratchaburi Power Plant, Ratchaburi province Tri Energy Power Plant, Ratchaburi province Ratchaburi-Power Power plant, Ratchaburi province Pratu Tao Power Plant, Sukhothai province Cogeneration small power producer project in Nava Nakorn Industrial Promotion Zone, Pathum Thani province. Cogeneration small power producer projects in Ratchaburi Industrial Estate, Ratchaburi province

Alternative businesses

Wind farm project, Petchabun province Solar power projects in Ayudhya, Nakorn Pathom and Supanburi provinces

Related businesses

Chubu Ratchaburi Electric Services Co., Ltd. (Power plant operation and maintenance) EGAT Diamond Service Co., Ltd. (Gas turbine refurbishment)

Production Capacity (Megawatts)

Ownership (%)

3,645 700 1,400 2.65 130

99.99 50 25 99.99 40

2x110

40

60 34.25

51 49

-

49.99

-

10

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

only expect pleasant return on investment, but also be Considering high potential of local resources, the able to help reduce fossil fuel for electricity generating Company highly values wind, solar power and biomass activities while reducing global warming impact. as the sources of energy for electricity generating. The Company has also sought the opportunities provided Power Generating Related Business Aiming at generating additional revenue, the by investment projects that would optimize the use of natural resources. For example, natural gases which are Company has expanded its investment to other electricitybyproducts from oil production are used for electricity generating related businesses, including operations and generating. Furthermore, the Company has a goal to maintenance services for the power plants, gas turbine invest in alternative energy projects in other countries, refurbishment and coal mining which supplies energy such as small hydro power plants. By investing in production sources to its power plants. alternative energy businesses, the Company does not

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Ratchaburi Electricity Generating Holding Public Company Limited

58 Nam Ngum 2 Hydro Power Plant, Vientiane, Lao PDR

Investment in Lao PDR Type

Power generation

Related businesses

Other

Production Capacity (Megawatts)

Ownership (%)

615

25

1,878

40

440

25

390

25

RATCH-LAO Services Company Limited Vientiane, Lao PDR (power plant operation and maintenance) Phu Fai Mining Company Limited Xayaburi, Lao PDR (Lignite mining)

-

99.99

-

37.50

Investment in ordinary shares of Electricite Du Laos Generation (EDL-Gen)

-

9.34

Project/ Company

Nam Ngum 2 Hydro Power Plant Vientiane, Lao PDR Hongsa Thermal Power Plant Saiyaburi, Lao PDR Nam Ngum 3 Hydro Power Plant Vientiane, Lao PDR Xepian Xenamnoy Hydro Power Plant Champasak and Attapue, Lao PDR


Financial Overview Financial Overview

44,248.76 million and its net profit is Baht 5,220.41 million. Total assets as of 31 December 2010 is Baht 69,446.40 million Balance Sheet

Generating Capacity Ratchaburi Energy Company Limited 2.65 MW Ratchaburi Power Company Limited 350 MW Tri Energy Company Limited 350 MW

Million Baht

80,000

60,000 46,547 40,000

Ratchaburi Electricity Generating Company Limited 3,645 MW

69,446

44,524 69,342

40,974 69,672

22,899

2010

24,818

2009

28,698

2008

Asset

Million Baht

0

2007

37,410

2006

Year

Shareholders’ equity

Million Baht 7,000.00

1,443

30,000 10,000

32,821

Net Prof it

60,000

20,000

72,105

Liabilities

Consolidated Income

40,000

70,301

34,695

20,000 0

50,000

37,480

1,721

792

932

727

6,000.00 5,000.00 4,000.00

1,721

35,933

42,870

45,280

51,121

2,000.00 1,000.00

2010

2009 Income from the Company and subsidiaries

2008

2007 Profit sharing from joint ventures

2006

Year

0

792

727

5,561

5,037

5,379

1,443

3,000.00

42,806

932

5,019 3,777

2010

2009 Net profit from the Company and subsidiaries

2008

2007

2006

Net Profit sharing from joint ventures

Year

10 Ye ar Jou r n e y of Re s pon s ible C itize n s h ip

Jointly-Controlled Entities 1. Tri Energy Company Limited: 350 MW As of 31 December 2010, the Company’s total 2. Ratchaburi Power Company 350 MWby its generatingAscapacity according shareholding is capacity of 31 December 2010, to the its Company’s total generating is 4,347.65 megawatts, including Limited: those contributed Thanks to the strong performance of the four subsidiaries and joint(MW), venturesincluding as follows: 4,347.65 megawatts those contributed by Subsidiaries its subsidiaries and joint ventures’ power plants as follow: power plants, the Company’s consolidated income for 1. Ratchaburi Electricity Generating Company Limited: 3,645 2010magawatts is as high as Baht 44,248.76 million and its net 2. Ratchaburi Energy Company Limited’s from PTO A and its project: 1.75 megawatts 0.90 as of 31 Subsidiaries profit isexpansion Baht 5,220.41 million. Totalandassets megawatts respectively 1. Ratchaburi Electricity Generating Company December 2010 is Baht 69,446.40 million. Jointly-Controlled Limited: 3,645 MW Entities 1. Tri Energy CompanyCompany Limited: 350Limited megawatts 2. Ratchaburi Energy 2. Ratchburi Company Limited: PTO-A and Power its expansion project:350 megawatts Thanks to the strong performance of the four power plants, the Company’s consolidated income for 2010 is as high as Baht 1.75 MW and 0.90 MW respectively

59


60 Ratchaburi Electricity Generating Holding Public Company Limited


RATCH: CSR Report 2010  

CSR Report

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