The Company operates a public service business in production and distribution of tap water to the Provincial Waterworks Authority (PWA) in the vicinity of Amphur Nakhon Chaisi, Amphur Sam Phran, Amphur Buddhamonthon, Nakhon Pathom Province, and Amphur Mueang Samut Sakhon, Amphur Krathum Baen, Samut Sakhon Province , to replace the tap water production from the PWA’s groundwater wells and to increase the tap water production volume to sufficiently accommodate the consumers’s demand so as to help alleviate the land subsidence problems and saltwater penetration in accordance with the government’s policy.

The Company was incorporated on September 11, 2000 with an initial registered capital of Baht 100,000, with the objectives to operate the business of production of tap water for distribution to the Provincial Waterworks Authority in the vicinity of Amphur Nakhon Chaisi, Amphur Sam Phran, Amphur Buddhamonthon, Nakhon Pathom Province, and Amphur Krathum Baen and Amphur Mueang Samut Sakhon, Samut Sakhon Province. At present, the Company’s registered capital is Baht 3,990 Million, Baht 3,290 Million of which is paid-up.

On September 21, 2000, the Company entered into the Water Purchase and Sale Agreement with the PWA for a period of 30 years or until July 20, 2034 on the Build-Own-Operate (BOO) basis, namely, the Company carries out construction of the tap water production and distribution systems to consumers with the maximum production capacity of 320,000 cubic meters/day, which represent the highest capacity as compared to other private tap water business operators in Thailand. The Company maintains the ownership of the tap water production and distribution systems to consumers without transfer of the ownership of the said production and distribution systems to the PWA. Furthermore, the Water Purchase and Sale Agreement also specifies the minimum order quantity (MOQ) to be purchased by the PWA from the Company throughout the 30-year period, whereby the MOQ increases during the period of the Agreement as follows:

However, in operating such tap water business, the Company needs to obtain a concession from the Ministry of Natural Resource and Environment. In this respect, the Company applied for the tap water business concession from the said Ministry and was granted such concession on March 11, 2005 from the Ministry of Natural Resource and Environment for a concession period of 25 years.

In the tap water production, the Company pumps water from the Tha Chin River for use as raw water for production. The produced tap water is distributed by the Bulk Transmission Main (BTM) from the water production plant at Amphur Banglen, Nakhon Pathom Province, to the Company’s two distribution stations, namely, Buddhamonthon Distribution Station and Mahachai Distribution Station, and water would then be pumped through the Local Distribution Network (LDN) for distribution for service to the public in the vicinity of the Sam Phran, Omnoi and Samut Sakhon Water Offices.

In the tap water production, originally, the Company entered into an agreement to engage WaterFlow Co., Ltd. (WaterFlow) to carry out such production operation in charge of the production, repair and maintenance as well as production control and distribution. Later on February 27, 2006, the Company acquired all ordinary shares in WaterFlow, and as a result, WaterFlow became a subsidiary of the Company. On April 1, 2006, the Company amended the agreement between the Company and WaterFlow to reflect the change of WaterFlow’s status as a subsidiary of the Company, namely, WaterFlow became a production unit of the Company instead.

In June 2007 and December 2007, the Company acquired 10,698,283 ordinary shares and 1,061,452 ordinary shares, respectively, in Pathum Thani Water Co., Ltd. (PTW), representing 98 percent of its paid-up capital, at the price of Baht 340 per share, totaling Baht 3,998,309,900. The Company borrowed a loan from financial institutions to pay for such ordinary shares in full.

At present, the registered and paid-up capital of PTW amounts to Baht 1,200 Million and it operates the business of tap water production and distribution to the PWA in the same manner as the Company. On August 31, 1995, PTW entered into the agreement for operation of tap water production and distribution to the PWA for a contract term of 25 years from October 15, 1998 to October 14, 2023, pursuant to which the PWA purchases tap water from PTW for distribution to the public in the service areas in Pathum Thani and Rangsit, Pathum Thani Province. Furthermore, PTW was also awarded a concession for tap water business from the Ministry of Interior on January 13, 2000 for a period of 25 years.

The tap water production of PTW starts from pumping raw water from the Chao Phraya River into the production process in the water production plant at Amphur Sam Khok, Pathum Thani Province. The produced tap water is distributed to Bulk Transmission Main (BTM) to PTW’s three distribution stations, namely, Rangsit Distribution Station, Thammasat Distribution Station and Pathum Thani Distribution Station, and water would then be pumped through the Local Distribution Network (LDN) for distribution for service to the public in the vicinity of the Pathum Thani and Rangsit Water Offices. In light of the increasing demand in water consumption in the service areas, on September 15, 2006, PTW entered into a water purchase and sale agreement with the PWA to increase the volume of tap water to be purchased from PTW in an additionl volume of 70,000 cubic meters/day, which would be for service to the Rangsit Water Office. Originally, PTW entered into an agreement to engage Pathum Thani Operations Co., Ltd. to carry out such production operation, and Pathum Thani Operations Co., Ltd. then subcontracted such operation to BJT Water Co., Ltd. (BJT). On January 26, 2007, PTW terminated the operation and maintenance agreement with Pathum Thani Operations Co., Ltd. and paid a compensation of Baht 385 Million to Pathum Thani Operations Co., Ltd., and then acquired all ordinary shares in BJT in the total amount of Baht 305 Million. At the same time, PTW entered into an operation and maintenance agreement with BJT to carry out PTW’s production, maintenance, production control and tap water distribution.