Ital-Thai eyes mega-projects

Following a shareholders' meeting yesterday, managing director Premchai Karnasuta said if the issue were successful, the company would have enough cash to bid for nearly Bt170 billion worth of mega-projects.

At present, ITD has won contracts worth nearly Bt85 billion for state and private projects at home and abroad.

It has appointed JP Morgan to be financial adviser for the seven-year debenture, which expects to offer interest of not more than 6.8 per cent.

"We are very confident the new government will launch bids on the mega-projects as soon as possible as part of a drive to spur the local economy. We believe that this year or next, the bidding will be finished. Construction should be worth nearly Bt400 billion next year, and we should have a share of this if our bids are successful," he said.

Meanwhile, ITD also plans to bid jointly for infrastructure projects in several Asian countries.

In India, these include a Bt100-billion 67-kilometres underground train system in Hyderabad and a Bt50-billion ring road in Calcutta.

Expanding its investment abroad will allow the company to balance its portfolio and generate net margins higher than for domestic projects, averaging 6-10 per cent this year.

ITD reported revenue of Bt34.09 billion for a net profit of Bt893.35 million in the first nine month of last year.

It yesterday closed at Bt7.60, unchanged from last Friday.

ITD came in second in bidding for a double-rail track, losing the Bt1-billion project to TSC Consortium, said a State Railway of Thailand source.

TSC Consortium, consisting of Thai Pecon and Industry, Sermsanguan Construction and Ch Tawee Construction, won the bid by quoting Bt3.926 billion, which was Bt1.3 billion below the median bid. The source said ITD made an electronic bid of Bt4.1 billion.

Watcharapong  Thongrung

 The Nation