ratch: csr report 2010

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CONTENTSSocial & EnvironmentResponsibilityReport

Social & Environment Responsibility Commitment

10 Year Journey of Responsible Citizenship

Message from the President

Our People • Human resources policy • Human resources development • Manpower • Remuneration • Personnel recruitment • Health benefit • Hiring • Occupational health and safety • Employee welfares • Internal communications • Labor relations

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 • Education and youth participation • Health • Community development • Sport

• Public disaster relief

Social Projects and • In the work process • Workplace Activities • Environment • Donation • Education • Religion, Tradition and Culture

Our Business

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.

2002

20102001

Executive’s manual on business related lawsEmployees’ Welfare CommitteeSafety, Occupational Health and

Environment Policy forRatchaburi Power Plant

2003

2005

2008

2009

Love the Forest and the Community ProjectWaste Water Reuse by Reversed Osmosis

and Ultra Filter Technology Project Waste Water Reuse in 350 rai

Wetland ProjectWaste Water Reuse in Garden

Watering System ProjectAuspicious Trees Growing Project

on a plot of 350 raiWater Quality Improvement by

the Conductivity Bleed Off Control Techniqueat Main Cooling Water System

Study Project on Plants forWater Quality ImprovementWater Chiller Unit Installation

in the Air Compressor Cooling System ofthe Ratchaburi Combined Cycle Power Plant

Community Development Fund

2006

Reduction of Treated Water Releasedto Khlong Bang Pa

of Ratchaburi Power PlantLower Waste Water Temperatureat Ratchaburi Combined Cycle

Power Plant

Rule on Directorship of the Company’s Presidentin State Enterprise and Listed Companies

Ratchaburi Power Plant’s Energy Saving MeasuresCommunity Development Project

by Ratchaburi Power Plant Community Communication Network ProjectMobile Medicine and Dental Care Project

Energy Saving Project in Boiler Building of the RatchaburiThermal Power Plant Unit 1 & 2

Energy Saving in Ratchaburi Combined Cycle Power Plant

Noise Silencer Buffer Extensionby Growing Thick Bush Project

Sludge Utilization Development ProjectGreen 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 Fanin Turbine and Control Building

Human Resources andRemuneration Committee

Corporate Governance Working Group Value Added Tax Guide

of Ratchaburi Electricity Generating Co., Ltd.ISO 14001 - Environment Management Standard

Implementation in Ratchaburi Power PlantRatchaburi Power Plant’s

Environment Management Committee Ratchaburi Power Plant’s Safety Measures

Ratchaburi Power PlantLoss Control Measure

Director and Executive RemunerationCriteria and Policy

Reduction of Treated Water Releasedto Khlong Bang Pa, Phase 1

Energy Saving of Circulation Fanin Water Treatment Plant

Waste Water Reduction in Circulating Water systemof Ratchaburi Combined Cycle Power Plant

Waste Water Reduction in Circulating Water systemof Ratchaburi Thermal Power PlantEnergy Saving of Circulation Fan

in Fuel Oil Unloading UnitPaper and Ink Reduction for Plant

Information System Phase 1HRSG Treatment Program Upgrade ProjectEnergy Saving at Station Air Compressor

Ratchaburi Power PlantEnergy Saving CommitteeRatchaburi Power Plant’s

Energy Management InspectorRatchaburi Power Plant’s

Energy Saving PolicyInvestment Working CommitteeOccupational Health, Safetyand Environment Committee

Employee Social Contribution PolicyComputer and IT Network Policy99,784 Teak Cultivation Projectto honor His Majesty the King

Spirulina Algea Growing with emitted CO2 from Ratchaburi Power Plant Research Project

Environment Inspector ProjectOHSAS 18001 Occupational Health and

Safety Management System ImplementationSituation Report by Safe Card Project

Hearing Capability Care ProjectLow Fat, No Fat Project

2007Employees’ Policy

Shareholders’ PolicySocial and Environment PolicyAppointment of the Company’s

Corporate SecretaryRatchaburi Power Plant

Garbage Recycle Bank ProjectCollect & Separate Fluorescent Lamp to Revive

the Environment Project of Ratchaburi Power PlantEnergy Saving of Air Conditioning System

in the Training Building, Ratchaburi Power PlantReduction of Treated Water Releasedto Khlong Bang Pa and Reuse Project

Energy Saving of Air ConditioningSystem in the Control Building,

Ratchaburi Combined Cycle Power Plant

Guidance for Charitable Donation Board of Directors’ RegulationCorporate Governance PolicyRisk Management Committee

Risk Management PolicyRegulation for Supervision of Subsidiaries,

Affiliates and Joint Ventures Investment Criteria

Occupational Health, Safetyand Environment Committee

Ratchaburi Power Plant’s Environment PolicySteam Quality Upgrade project of

Ratchaburi Combined Cycle Power PlantWaste Water Reduction in Process of HP Clean Up Blow

and HP&LP Heater Drain during Start-upin Ratchaburi Thermal Power Plant

Oil and Chemical Management ProjectCommunity Visit Ratchaburi Power Plant Project

Community Health and Quality of LifeImprovement Project (Mobile medical unit)

Educational Promotion from School to Power Plant Project

Establishment of the CompanyCode of Conduct for Board of Directors

Code of Conduct for ExecutivesCode of Conduct for Employees

Rule on Workplace and Employee’s Guide Rule prohibiting the use of insider information

for abusive self-dealingAudit Committee

Human Resource Management RegulationAccounting, Finance and Budgeting Regulation

Procurement RegulationGuidance for Ratchaburi Power Plant’s public

disaster assistance

20002004

10 Year Journey of Responsible Citizenship 2000-2010

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2002

20102001

Executive’s manual on business related lawsEmployees’ Welfare CommitteeSafety, Occupational Health and

Environment Policy forRatchaburi Power Plant

2003

2005

2008

2009

Love the Forest and the Community ProjectWaste Water Reuse by Reversed Osmosis

and Ultra Filter Technology Project Waste Water Reuse in 350 rai

Wetland ProjectWaste Water Reuse in Garden

Watering System ProjectAuspicious Trees Growing Project

on a plot of 350 raiWater Quality Improvement by

the Conductivity Bleed Off Control Techniqueat Main Cooling Water System

Study Project on Plants forWater Quality ImprovementWater Chiller Unit Installation

in the Air Compressor Cooling System ofthe Ratchaburi Combined Cycle Power Plant

Community Development Fund

2006

Reduction of Treated Water Releasedto Khlong Bang Pa

of Ratchaburi Power PlantLower Waste Water Temperatureat Ratchaburi Combined Cycle

Power Plant

Rule on Directorship of the Company’s Presidentin State Enterprise and Listed Companies

Ratchaburi Power Plant’s Energy Saving MeasuresCommunity Development Project

by Ratchaburi Power Plant Community Communication Network ProjectMobile Medicine and Dental Care Project

Energy Saving Project in Boiler Building of the RatchaburiThermal Power Plant Unit 1 & 2

Energy Saving in Ratchaburi Combined Cycle Power Plant

Noise Silencer Buffer Extensionby Growing Thick Bush Project

Sludge Utilization Development ProjectGreen 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 Fanin Turbine and Control Building

Human Resources andRemuneration Committee

Corporate Governance Working Group Value Added Tax Guide

of Ratchaburi Electricity Generating Co., Ltd.ISO 14001 - Environment Management Standard

Implementation in Ratchaburi Power PlantRatchaburi Power Plant’s

Environment Management Committee Ratchaburi Power Plant’s Safety Measures

Ratchaburi Power PlantLoss Control Measure

Director and Executive RemunerationCriteria and Policy

Reduction of Treated Water Releasedto Khlong Bang Pa, Phase 1

Energy Saving of Circulation Fanin Water Treatment Plant

Waste Water Reduction in Circulating Water systemof Ratchaburi Combined Cycle Power Plant

Waste Water Reduction in Circulating Water systemof Ratchaburi Thermal Power PlantEnergy Saving of Circulation Fan

in Fuel Oil Unloading UnitPaper and Ink Reduction for Plant

Information System Phase 1HRSG Treatment Program Upgrade ProjectEnergy Saving at Station Air Compressor

Ratchaburi Power PlantEnergy Saving CommitteeRatchaburi Power Plant’s

Energy Management InspectorRatchaburi Power Plant’s

Energy Saving PolicyInvestment Working CommitteeOccupational Health, Safetyand Environment Committee

Employee Social Contribution PolicyComputer and IT Network Policy99,784 Teak Cultivation Projectto honor His Majesty the King

Spirulina Algea Growing with emitted CO2 from Ratchaburi Power Plant Research Project

Environment Inspector ProjectOHSAS 18001 Occupational Health and

Safety Management System ImplementationSituation Report by Safe Card Project

Hearing Capability Care ProjectLow Fat, No Fat Project

2007Employees’ Policy

Shareholders’ PolicySocial and Environment PolicyAppointment of the Company’s

Corporate SecretaryRatchaburi Power Plant

Garbage Recycle Bank ProjectCollect & Separate Fluorescent Lamp to Revive

the Environment Project of Ratchaburi Power PlantEnergy Saving of Air Conditioning System

in the Training Building, Ratchaburi Power PlantReduction of Treated Water Releasedto Khlong Bang Pa and Reuse Project

Energy Saving of Air ConditioningSystem in the Control Building,

Ratchaburi Combined Cycle Power Plant

Guidance for Charitable Donation Board of Directors’ RegulationCorporate Governance PolicyRisk Management Committee

Risk Management PolicyRegulation for Supervision of Subsidiaries,

Affiliates and Joint Ventures Investment Criteria

Occupational Health, Safetyand Environment Committee

Ratchaburi Power Plant’s Environment PolicySteam Quality Upgrade project of

Ratchaburi Combined Cycle Power PlantWaste Water Reduction in Process of HP Clean Up Blow

and HP&LP Heater Drain during Start-upin Ratchaburi Thermal Power Plant

Oil and Chemical Management ProjectCommunity Visit Ratchaburi Power Plant Project

Community Health and Quality of LifeImprovement Project (Mobile medical unit)

Educational Promotion from School to Power Plant Project

Establishment of the CompanyCode of Conduct for Board of Directors

Code of Conduct for ExecutivesCode of Conduct for Employees

Rule on Workplace and Employee’s Guide Rule prohibiting the use of insider information

for abusive self-dealingAudit Committee

Human Resource Management RegulationAccounting, Finance and Budgeting Regulation

Procurement RegulationGuidance for Ratchaburi Power Plant’s public

disaster assistance

20002004


5

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

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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

Our People

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 1. Promoting good quality of life at work by

providing pleasant work environment, occupational health

and safety based on internationally accepted standard.

2. Constantly enhancing employees’ skills

and knowledge to ensure they are ready to support

organizational growth.

3. Supporting employees’ career development

according to their competency.

4. Managing and ensuring appropriate and fair

remuneration and benefits.

5. Encouraging employees’ participation in

organizational development.

In 2010, the Company implemented various human

resources management and development activities under

the above mentioned policy as follows:

ManpowerThe Company’s manpower is based on its

business and growth plan. Since its establishment in

2000, the Company has constantly increased the number

of employees. From 33 persons in the beginning, the

Company currently has 138 employees, including 75

male and 63 female employees. Out of this, seven are

assigned to work in other countries. From 2010-2012,

the Company plans to increase manpower number to 170

persons in order to support its investment expansion in

and outside Thailand.

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LevelGender

Total No.(person) Male

(person)Female(person)

322461

*As of 15 January 2011

3214218

OperationalFirst line managementMiddle managementTop management

6438279

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.

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.

Personnel recruitmentTo 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.

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.

HiringHiring 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


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* Including employee, spouses, and 2 children who are not sui juris

Welfares 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

Requiredby Law

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 welfaresThe 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:

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.

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- Good Health Club

- RH Photography Club

- We Love Kids Club

- RH Buddha Club

- RH Badminton Club

- RH Golf Club

- RATCH FC

Clubs

28243351262319

Labor relationsIn 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:

• Sportsandrecreations

• Publicservices

• Publiccharityandpublicdisasterrelief

• Educationforchildrenandyoungpeopleand

promote quality of life of the disadvantages

• Naturalresourcesandenvironmentpreservation

• Arts,culturesandreligions

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 developmentOne 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

helps employees demonstrate the right behavior that

matches their responsibilities and increase performance

efficiency. Each function sets specific functional

competency appropriate to support their operations.

Training courses on functional competency are specially

designed to best address specific functions and skills

needed to perform specific task for each discipline.

No. of members


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30

-

-

1

2

17

1

10

1

-

-

1

5

1

No. of participants (person)

Core Competency Development Courses

RATCH GROUP in harmony course

Functional Competency Development Courses

Thai Institute of Directors

Senior Executive Program

Chief Financial Officer

International Financial Reporting Standard

Other skills and work-related

Crisis communication

18

-

2

1

3

13

1

59

-

-

-

5

31

2

Program Operational level First line management

Middlemanagement

Topmanagement

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

RemunerationIn 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 benefitsTo 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 check-

up 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 safetySince 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.


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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 communicationsRealizing 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.

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Appeal within7 days

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

Board of DirectorsPresident

Higher-level supervisor

Direct supervisor

Complainant

Investigation resultinformed within 15 days

Complaint lodged to direct supervisor

Complaint related to employmenttermination

Complaint Process

Complaint in written

General complaints

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

direct supervisor, employees can complain to higher-

level 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.


15

Corporate governance

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.

Our corporate governance principleAgainst the backdrop of economic fluctuation in

and outside Thailand and more intense competition which

tends to be more severe in the future, the Company has

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

that covers all aspects of business operations. These

measures have significantly supported the Company’s

constant growth and ability to nurture good relationships

with communities and other stakeholders.

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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

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


17

Shareholders

ElectAppointIndependentAuditor

Internal AuditDivision

Board of Directors

Corporate Governance Structure

Audit CommitteeRisk Management

Committee

Human Resourcesand Remuneration

Committee

InvestmentWorking Committee

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.


19

Environment

EnvironmentWith 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

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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 safetyThe 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


21

Power production and carbon dioxide emission statistics

30,000,000 24,000

25,000,000

23,417,727

2,362 2,556

24,403,296

20,544,057

17,014,533 17,373,576

12,687,035

20,43920,000

20,000,000 16,000

15,000,000 12,000

10,000,000 8,000

5,000,000

2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010

4,000

0 0

Electricity production volume (megawatt-hour)

Carbon dioxide emission (tonne)

Electricity volume saved (megawatt-hour)

Carbon dioxide emission reduction (tonne)

8,420,121

5,826,999

10,403

8,091,242

10,209,925

11,845,398

1,514 1,639

14,520,907

3,073

4,5653,198

1,564 2,323 1,628

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)

Energy ConservationBeing 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)

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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.

Waste and excess materials managementRatchaburi 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 oil-

tainted 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.


23

Raw water and waste water volume at Ratchaburi Power Plant

2005 2006 2007 2008 2009 2010

50

40

30

20

10

0

Raw water (million cubic meters)

Waste water (million cubic meters)

Electricity produced (million megawatt-hour)

Water volume (million cubic meters)Electricity produced (million megawatt-hour)

6.34.5

6.48.07.7

9.6

23.40 24.52

20.54

17.08

12.74

17.37

28.26

17.56

24.62

32.47

38.3835.31

Water and waste water management In 2010, Ratchabur i 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).

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:

• OrganicPlantDemonstrationFarm- 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-setasideforhabitatandsource

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- treesaregrown to

generate oxygen and absorb carbon dioxide

• Multipurposeareaforvariousactivitiesand

events

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18%13%

26%

43%

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.

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.

Khlong Bang Pa

Plant watering System

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

Natural water treatment technique on 350 rai plot

Water recycling system (RO)

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 biodiversityRatchaburi 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


25

Number of species found around Ratchaburi Power Plant in August 1997-2010

amphibians reptile birds mammals

100

80

60

40

20

0

No. of species found

1997 1998 1999 2000 2001 2002 2003

2004 2005 2006 2007 2008 2009 2010

Occupational health and safety at Ratchaburi 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

stability have best served but also impacts on life, health,

properties and environment were least. The essences of

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,

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.R a

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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

Occupational health and safety managementTo 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


27

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.

Safety MeasuresRatchaburi Power Plant has formulated safety

measures to control operational safety in the plant as

follows:

- 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,

security guard, supervisors, controllers and safety units

have to work together in checking for safety and security

at least once a week.

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Emergency Response PreparednessRatchaburi 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.


29

Human Rights

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.

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Products and Services

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.


31

Our Suppliers

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.

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Our Customers

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.


33

Our Communities

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:

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Community relations and participation•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

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.

•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’


35

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

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Subdistrict Health Park Project. The plant also acted

as an advisor in initiating new development projects for

communities around the power plant.

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

group empowerment with focus on the area that specific

community needs. Communities are the direct beneficiary

and can handle these development projects by themselves.

• 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


37

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

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

energy and environment. Results and learning from the

seminar will be compiled and used for preparing a new

curriculum for member schools in 2011. Seven working

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.

• Development for Thinking Process Teaching Skills

In 2010, more than 160 teachers from the network

of schools around Ratchaburi Power Plant and the plant’s

representatives participated in the “Development for

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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•Dieseldonation

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

with the Ministry of Energy.

•Waterdonation

Ratchaburi Power Plant donated 600 cubic meters

(carried by 100 trucks) of water to help reduce problems

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 reliefDevastating 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.

Education and Youth• 2010 Children Day at Ratchaburi Power Plant

Held under the theme “Good thinking, Good kids”,

the 2010 Children’s Day activities focused on encouraging

children living near the power plant to learn proactively

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,


39

General health check-up

Dental service

Thai massage

Hair Cut

Heath check by alternative

medicine

Services No. of participants

2,261802

1,9521,4511,620

Good Kids” learning exhibition. The power plant also

presented trophies to the winners of a speech contest.

This year, young students from Wan Ban Mai and Wat

Nekkammaram Schools won the contest.

• 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 Number of scholarship

Kindergarten level

Prathomsuksa

(primary) level

Mattayomsuksa

(high school) level

170628

203

Value (Baht)

1,0002,000

3,000

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)

at Sirindhorn Public Health College in Supanburi Province

with Baht 84,150 in value. The scholarships are granted for

two consecutive academic years, totaling Baht 168,300.

Health • 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

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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.


41

Social Projects and Activities

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

60-MW Wind farm project

Current projects Social benef itfififi fis

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.

•Reducecarbondioxideemission

by 46,000 tonnes per annum

•Reducedependenceonbunkeroil

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.

•Reducecarbondioxideemission

by 32,000 tonnes per year34.25-MW Solar power project

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• 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.


43

Ban Huay Rai Burapa Community Forest

Oob Moong Subdistrict, Nong Wua Sor District, Udon Thani Province

Category Winning community Awards

Grand prize - a trophy granted by HRH Princess

Maha Chakri Sirindhorn

- 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

Environment

• Love the Forests and the Community Project

Introduced since 1998, the activity has continued

under cooperation between the Royal Forestry

Department, Ministry of Natural Resources and

Environment. By adopting the sufficiency economy

and natural resources preservation concepts of Their

Majesties King Bhumibol Adulyadej and Queen Sirikit,

the project has supported and promoted community

forests. The objective of the community forest promotion

is to balance the use of forests and preservation.

Communities are encouraged to manage their community

forests through participation from all stakeholders,

including home, temples and schools in order to

ensure the highest efficiency in forest management.

At the same time, this project tightens relationships

among people working on community forests in order

to create a strong network that will be the major force

in driving Their Majesties’ concept related to forest

development based on scientific body of knowledge and

the “Forests sustained, communities win” concept. In

addition, relationship between communities and forests

are nurtured. Under this concept, communities are

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

• Community forest Network seminar

• Community forest trail

• Project evaluation

•Community Forest Contest (for HRH Princess Maha

Chakri Sirindhorn trophy)

As a major activity under the “Love the Forests

and the Community” project, it has been introduced since

2008 with an aim to search for a role model community

forest with efficient management, considering social,

economic and resources sustainability by communities.

Factors for considering management efficiency range

from having a specific management committee,

involving community participation, having clear rules and

regulations in preserving forests and the environment,

the richness of the community forests, management

and administration based on sufficiency theory, and

the promotion of energy and environment preservation.

In 2010, more than 700 community forests

which registered with the Royal Forestry Department

participated in the contests and 132 projects won the

awards which include four categories.

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.

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Outstan

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region

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Ban Thum PhuengCommunity ForestPanom District,

Surat Thani Province

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

ecial a

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10 Best eco-tourism community forest

Northern

Central and Eastern

Northeastern

Southern

- 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 forestBan Sam Ka Community Forest

Mae Ta District, Lampang Province

Ban Non Hin PhuengPrachantakam District, Prachin Buri Province

Alor Donban Community Forest Muang District, Surin Province

Ban Tung Soong Community ForestAo Luek District, Krabi Province

Category Winning community Awards 10 Year Journey of Responsible Citizenship

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126 projects nationwideProv

incial a

war

ds

and

mer

its

Best provincial community forests and merit 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

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

Category Winning community Awards

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

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

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

1st camp“From Origin to Down-stream”31st March - 2nd April 2010Samut Songkhram province

2nd campKla Yim Youth CampSouthern region16th-18th October 2010Surat Thani province

3rd campKla Yim Youth CampNortheastern Region5th-7th November 2010Chaiyaphum province

Kla Yim Youth Camp Activities in 2010

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

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 analyt ical th ink ing ski l ls

development


47

Community Forest Network Seminar in 2010

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 well-

managed 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.

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

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

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• Community forest trail

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

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


49

than 600 people so far. A local animal nursery is under

development. Once completed, it will be the center to

breed local animals which will later be released to the

forests.

• Evaluation of the “Love the Forests and the Community”

Project

The Company commissioned the Faculty of

Forestry, Kasetsart University, to conduct an assessment

of the “Love the Forests and the Community” project.

The MOU was signed on 1 June 2010. The assessment

was focused on the change of community perception

towards community forest management under the Love

Forests and Community Project.

A comparison between award-winning and 12

other community forests was conducted with focus on

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.

The study also showed that the management

of award-winning community forests is highly efficient

and its standard meets the project’s criteria. These

award-winning community forests are managed by

specific committees and involved a lot of community

participation. Forest preservation also takes into account

covering the ecology system, economy and social

aspects, richness of the forests and the concept of forest

preservation under sufficiency economy philosophy.

Most of the community forests acknowledge

and understand benefits of the “Love the Forests

and the Community” Project. The community forest

contest also gives inspiration and encouragement to

people working on forest preservation. The “Kla Yim”

Youth Camp and community forests network seminar

programs also efficiently educate the new generation

and community people while growing their commitment

to forest preservation.

The study result will be used as guideline in

future development and improvement of the project

to better meet individual community’s need. The

project is expected to continue long term and spins out

other activities and projects that will further promote

community forests sustainability and disseminate

community forest concept to the public at large.

• “99,784 Teak Cultivation in Honor of HM the King”

To commemorate the 60th anniversary of His

Majesty’s accession to the throne and HM’s birthday, the

Company initiated the “99,784 Teak Cultivation in Honor

of HM the King”. The project was held sincere gratitude

of HM’s concerns over global warming by growing plants

which have high capability in absorbing carbon dioxide.

Teak is a local plant with great potential to absorb

carbon dioxide better than other trees. It absorbs carbon

dioxide from the environment and keeps it in carbon

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sink. It is estimated that one teak can absorb as much

as 0.329 tonne of carbon dioxide for 15 years.

This project aims to grow 99,784 teaks, which

include all the auspicious numbers that reflects people’s

gratitude towards His Majesty. It is expected that the

99,784 teak grown under this program would help absorb

32,870 tonnes of carbon dioxide and generate 24,000

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

• 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

absorption.

• “19,784 Trees Cultivation in Honor of HM the King”

Following on from the teak cultivation program

and with the same objective of commemorating

His Majesty the King’s birthday, the “19,784 trees

cultivation” program was organized on 5 December 2010


51

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.

EducationViewing 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

In 2010, the Company provided scholarships

to 252 students from 21 schools in Sam Kok District,

Pathum Thani and some areas in Ayutthaya province.

The Company cooperated with the Phra Nakhon Sri

Ayutthaya Education Office Region 2 in selecting

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.

• Scholarships for students in Lao PDR

The Company has offered a Baht 120,000

scholarship to a technical college student from Lao PDR

in 2010 to further study in geology at Chulalongkorn

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University. This is part of the Company’s commitment

to promote knowledge and skill development for people

in Lao PDR where the Company operates business.

Workplace• Employee Volunteer

In addition to its commitment to promoting

employees’ capability and skills, the Company promotes

social responsibility awareness among all its employees.

Its employees are encouraged to adopt the five corporate

core values, namely integrity, respect, responsibility,

teamwork and creativity. These core values form the

guidelines for work practice. At the same time, the

Company encouraged its employees and staff members

to volunteer to participate in any activities that are of

public benefits. Employees are allowed three days for

public service activities per annum. In the past year,

the Company organized 13 public service activities, in

which 111 employees from Vice President to operational

levels participated, representing 85.38 persons of its

workforce. This represents 3,844 hours in total. In

addition, 13 high-level management members, from the

President to Executive Vice President levels, participated

in social contribution activities, with a total of 448 hours

time spent.

• Interest Club

The Company is committed to support the

development of its human resources to make them

valuable assets of the society. Viewing that employees

are key drivers of corporate success, the Company has

instilled social responsibility concepts and attitudes among

its employees. The Company allows its staff members to

volunteer to participate in various employees activities that

will bring benefits to communities and public at large. In

addition, it supports and promotes employees’ activities

held by various interest clubs. In 2010, club’s activities

were implemented as follows:

• Bhudda RH Club

The club was established by a group of employees

who have mutual interest in Buddhism and practice

Buddhism for self development, in terms of morality,

ethics and logic. In 2010, the Club arranged a number

of activities for its members and colleagues, such as

Buddhist Lent Candle Making, Pha Pa ceremony, and

Phra Neon Pool temple repairing.

• RH Golf Club

With an objective to promote employees’ sports

skills and spirit, the RH Golf Club last year arranged a

charity golf program to promote good relations among

different functions. Proceeds from the competition

were donated to various charity, public service and

construction of school libraries in rural areas. In 2010,

the RH Golf Club completed the renovation of the library

of Wat Thai Koh School, Thai Koh Subdistrict, Pathum

Thani province. The old and ruined library was renovated


53

and is now a new learning center for students. The library

was handed over to the school on 28 August 2010.

• Good Health Club

Established with an aim to promote employees’

health and reduce stress from work, the Club regularly

organized activities that promote good relationship

among employees, which in the end have positive impact

on employees’ performance. In 2010, the club members

and interested persons organized yoka teaching course

to youths at the Rajavithi Home For Girls and offered

lunch for them.

Donation• Support for “Reduce Global Warming for His Majesty

the King Campaign” by the Ministry of Energy

In honoring HM the King on the 60th anniversary

of his accession to the throne and his birthday, and

supporting the social activities of the Ministry of Energy

which directly supervises the Company’s business,

the Company supported the ministry’s Reduce Global

Warming campaign. Two activities were initiated by

the Company to support this project - 99,784 Teak

Cultivation to honor HM the King and the 19,784 Trees

Cultivation to honor HM the King. Financial support was

also provided to other projects as follows:

• Mangrove Plantation in Chantaburi Province

The Company provides financial support to the

Ministry of Energy’s mangrove growing on 260 rai plots

in national reserved forests area, Welu River Mouth, and

other mangrove areas that have significant importance in

terms of ecosystem. Those areas are under Department

of Marine and Coastal Resources’ supervision.

• World Golf Salutes King Bhumibol

The Company provided financial support for the

World Golf Salutes King Bhumibol activity which was

held as part of the Reduce Global Warming Campaign.

Leading golfers from 4 continents across the world

participating in the tournament included Tiger Woods,

Paul Casey, Camilo Villegas and Thongchai Jaidee. The

tournament was held in Amata Golf Spring Country Club

on 8 November 2010. The golf event broadcasted on

Channel 3 as well as 453 households worldwide.

• Ratchaburi Power Plant Donation

Ratchaburi Power Plant has been supporting

various activities initiated by communities in nine

subdistricts around its plant, including activities

held by government offices in Ratchaburi province,

local organizations, media, associations and other

communities in the province. In 2010, the Company

provided financial support for various education,

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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.

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.

• 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.


55

Our Business

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.

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:

•Powergeneration

•Alternativeenergy

•Powergeneratingrelatedbusinesses

Power Generation Business The Company concentrates its investment in

large, small and very small power plants in and outside

Thailand. Most of the investment projects are large power

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

small scale cogeneration power plant projects in which

the Company jointly invested with its partners, with 350

megawatt combined production capacity, have been

selected by EGAT.

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Investment in Thailand

Type Ownership (%)

Project/ CompanyProduction Capacity

(Megawatts)

3,645700

1,4002.65130

2x110

60 34.25

-

-

Power generation business

Alternative businesses

Related businesses

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

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

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

99.995025

99.9940

40

5149

49.99

10

Alternative Energy BusinessConsidering high potential of local resources, the

Company highly values wind, solar power and biomass

as the sources of energy for electricity generating. The

Company has also sought the opportunities provided

by investment projects that would optimize the use of

natural resources. For example, natural gases which are

byproducts from oil production are used for electricity

generating. Furthermore, the Company has a goal to

invest in alternative energy projects in other countries,

such as small hydro power plants. By investing in

alternative energy businesses, the Company does not

only expect pleasant return on investment, but also be

able to help reduce fossil fuel for electricity generating

activities while reducing global warming impact.

Power Generating Related Business Aiming at generating additional revenue, the

Company has expanded its investment to other electricity-

generating related businesses, including operations and

maintenance services for the power plants, gas turbine

refurbishment and coal mining which supplies energy

production sources to its power plants.


57

Investment in Lao PDR

Power generation

Related businesses

Other

615

1,878

440

390

-

-

-

25

40

25

25

99.99

37.50

9.34

Nam Ngum 2 Hydro Power PlantVientiane, Lao PDR Hongsa Thermal Power PlantSaiyaburi, Lao PDRNam Ngum 3 Hydro Power PlantVientiane, Lao PDRXepian Xenamnoy Hydro Power PlantChampasak and Attapue, Lao PDR

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

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

Type Ownership (%)

Project/ CompanyProduction Capacity

(Megawatts)

Nam Ngum 2 Hydro Power Plant,Vientiane, Lao PDR

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Financial OverviewAs of 31 December 2010, the Company’s total

generating capacity according to its shareholding is

4,347.65 megawatts (MW), including those contributed by

its subsidiaries and joint ventures’ power plants as follow:

Subsidiaries

1. Ratchaburi Electricity Generating Company

Limited: 3,645 MW

2. Ratchaburi Energy Company Limited

PTO-A and its expansion project:

1.75 MW and 0.90 MW respectively

Jointly-Controlled Entities

1. Tri Energy Company Limited: 350 MW

2. Ratchaburi Power Company Limited: 350 MW

Thanks to the strong performance of the four

power plants, the Company’s consolidated income for

2010 is as high as Baht 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.

69,446

22,899

46,547 44,524 40,974 37,480 34,695

24,818 28,698 32,821 37,410

69,342 69,672 70,301 72,105Ratchaburi Electricity Generating

Company Limited3,645 MW

Generating Capacity

Subsidiaries

Jointly-Controlled Entities

Balance Sheet

Net Prof it

2010 2009 2008 2007 2006

2010 20082009 2007 2006

0

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

Million Baht80,000

60,000

40,000

20,000

Asset Liabilities Shareholders’ equity

0

1,721

1,443

932 792 727

5,019

3,777 5,561 5,037 5,379

0

10,000

20,000

30,000

40,000

50,000

60,000

Million Baht Million Baht

Year Year

Year

Income from the

Company and

subsidiaries

Profit sharing

from joint ventures

Net Profit sharing

from joint ventures

Net profit from

the Company and

subsidiaries

1,7211,443 932 792

727

35,93342,806 42,870 45,280 51,121

Financial Overview

As of 31 December 2010, the Company’s total generating capacity is 4,347.65 megawatts, including those contributed by its

subsidiaries and joint ventures as follows:

1. Ratchaburi Electricity Generating Company Limited: 3,645 magawatts

2. Ratchaburi Energy Company Limited’s from PTO - A and its expansion project: 1.75 megawatts and 0.90

megawatts respectively

1. Tri Energy Company Limited: 350 megawatts

2. Ratchburi Power Company Limited: 350 megawatts

Thanks to the strong performance of the four power plants, the Company’s consolidated income for 2010 is as high as Baht

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

Ratchaburi Energy CompanyLimited 2.65 MWRatchaburi Power CompanyLimited 350 MWTri Energy CompanyLimited 350 MW

2010 2009 2008 2007 2006

Consolidated Income


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ratch: csr report 2010

Documents

public company limited

responsible corporate

constant power

levels of employees

waste water management

various activities

promotion of preservation

environmental quality