The Electricity Generating Authority of Thailand plans to sell 16 billion baht of bonds to domestic investors this month to raise funds for new power-generating projects and refinance existing debts.

Governor Sombat Sarntijaree said two tranches of bonds would be issued. The first one of 10 billion baht would finance capacity expansion at its Nonthaburi, Samut Prakan and Chachoengsao power plants. The second lot of six billion baht would refinance the state utility's debts.

"The proceeds will improve our liquidity at a time when power demand has dropped as a result of the economic slowdown," he said.

He said this was the right time to tap the bond market because declining bank deposit rates helped bolster demand from investors.

EGAT expected total sales volume of power this year would contract by 1.1% from 141,000 million kilowatt-hours (units) last year in line with falling GDP projections.

EGAT yesterday also signed a cash-management contract with TMB Bank and Kasikornbank to facilitate nationwide money transactions between its clients and those of the banks. It expected transactions of up to 4,000 cheques worth 30 billion baht per month.The deal would cut EGAT's cost by tens of millions of baht a year and also reduce processing times.

In another development, the Energy Ministry said it would allocate a budget of 3.3 billion baht to subsidise a programme to switch from traditional T8 fluorescent light bulbs to energy-saving T5 bulbs, said Energy Minister Wannarat Charnnukul.

Through the Energy Conservation Fund, it expects to see 110 million units of T5 bulbs replace T8 units, out of a total of 200 million in use.

Private companies can submit proposals to obtain budget support to shift to T5 lightbulbs.

Once 110 million T8 units are replaced, power consumption would be cut by 4.79 billion units yearly, generating 14.37 billion baht in savings and reducing carbon emissions by a considerable 2.4 million tonnes.