TTCL plans two power plants in Myanmar worth $6 bn

TTCL plans two power plants in Myanmar worth $6 bn

TTCL, an integrated engineering procurement and construction firm listed on
the Stock Exchange of Thailand, plans to invest more than US$6 billion
(Bt204 billion) between the second half of this year and 2020 to establish
two coal-fired power plants in Myanmar, chief financial officer Gobchai
Tanasugarn said.

TTCL is a joint venture between Italian-Thai Development, which holds a
51-per-cent stake, and Japanese company Toyo Engineering Corporation, which
holds 49 per cent.

Gobchai said the first project would be a coal-fired plant in Mon state with
production capacity of 1,280 megawatts.

This $3-billion project will get under way this year.

As for the second project, a coal-fired plant in Kayin state, it is still
under study, and it will take about 30 months before TTCL is ready to
propose it to the Myanmar government. If it goes ahead, the project will
also have production capacity of about 1,280MW and will be developed under
an investment budget of $3 billion, he said.

TTCL subsidiary Toyo Thai Power Myanmar Co already operates a
natural-gas-fuelled combined-cycle power plant in Yangon with total capacity
of 121MW.

The company plans to spend an average of $1.25 million per megawatt to
nearly double the plant's capacity to 200MW in the project's second phase,
to be proposed to the government as soon as possible, Gobchai said.

Listing planned

To raise funds for this high investment budget, the company plans to apply
for listing its subsidiary Toyo Thai Power Holding Co on either the SET or
the Singapore Exchange, he said.

TTCL holds a 70-per-cent stake in Toyo Thai Power Holding Pte Ltd, which is
registered in Singapore, while 18 per cent is held by its management and
staff as the rest by other partners.

TTCL also will negotiate with its Japanese partner on expanding its
investment in its power-plant projects in Myanmar, as well as applying for
project loans from the commercial banks, Gobchai said.

He added that its $162-million investment in the Yangon power plant in 2012
had been backed by a long-term loan worth $100 million from the
Export-Import Bank of Thailand.

Under a 30-year contract, the plant is supplying electricity to the Myanmar
Electric Power Enterprise.

TTCL recorded revenue of Bt20.35 billion and net profit of Bt400.1 million
last year.

Its revenue in the first quarter of this year was Bt3.86 billion and net
profit Bt45.18 million, down 41.28 per cent and 58.74 per cent respectively
from the same period of last year, it reported to the SET.

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com