TTW PCL (SET:TTW) Managing Director, Ms. Walainut Trivisvavet discusses the company’s strategy and outlook

TET: Please explain TTW’s business model.

TTW is Thailand’s largest private tap water producer and distributor with a production capacity of 540,000 m3/day. We produce and distribute tap water to the Provincial Waterworks Authority (PWA) for two provinces, Nakorn Pathom and Samut Sakorn. We provide this service via two entities, firstly under TTW itself we were awarded to produce and distribute tap water in both the aforementioned mentioned provinces and specifically the Nakorn Chaisri, Sampran, Phuttamonthon, Krathumban and Muang Samutsakorn districts, structured as a Build Own and Operate (BOO) for 30 years until 2034. Under our fully owned subsidiary Pathum Thani Water Co., Ltd. (PTW) we have a Build Own Operate and Transfer (BOOT) structure for 25 years, expiring in 2023, it covers the entire Pathum Thai province and it’s currently capacity is 488,000 m3/day. TTW also provides a fully-integrated water management system, providing water
production and wastewater treatment rights to Bang Pa-In Industrial Estate until 2039, with a maximum production capacity of 48,000 m3/day. Finally in 2011, TTW invested in CK Power Plc, a holding company that invests in different companies in Thailand generating and distributing electricity in Thailand and Laos.

TET: TTW has consistently grown its revenues over the past decade, what were the key drivers for this?

The key reason is the continued development of the areas in which TTW operates and the overall development of Thailand as a country. As the city of Bangkok expanded, and continues to, there have been investments in new industrial estates, factories and residential projects all of which contributes to an increase in demand for water. We expect to see this trend continuing over the coming decade as a result of the country’s infrastructure projects and extension of mass rail transit systems.

TET: How does TTW effectively manage quality assurance and what impacts does technology have upon your operations?

We constantly monitor the quality of water with our own internal lab and additional hire outsourced experts to confirm this. Technology is an important aspect of our monitoring as we employ SCADA, which stands for Supervisory Control and Data Acquisition, to map the water tubes, monitor the flows and we are able to advise the PWA on the existing and potential water leakage points within the system so that these issues can be managed.

TET: Is TTW looking to expand further domestically and internationally?

Yes, domestically we are expanding our capacity by an additional 100,000 m3/day at our Krathumban plant. We are hoping that we may expand further within the country in additional provinces. Internationally we are in discussions with parties in a few countries such as Myanmar and Sri Lanka. In Myanmar we expect that the contract should be a BOOT with a 30 year concession and two additional decades of potential increases however because the country has only recently opened up for international investment. It takes time to conclude such an agreement. In Sri Lanka we are going with our partners Ch. Karnchang Plc and Mitsui and hope to conclude a similar type of agreement as well.

TET: What type of CSR activities does TTW focus upon?

We have begun a 1 million tree planting project because we understand that water is essential for the life and forests are essential for water. Forests serve as our natural water collection, filtration and delivery systems by collecting rain and delivering it into streams and aquifers throughout the year. Forests are also key to flood control, absorbing and holding vast amounts during major rain events such as those increasingly seen with climate change.

TET: Where do you see TTW in five years from now?

We aim to continue to provide the same high quality of service to all our stakeholders as well as actively look for opportunities to expand the water business to neighbouring countries as well as to expand into energy and environment-related businesses.

Source: Bloomberg