Thai Tap Water Supply has reaffirmed its plan to invest up to Bt300 million in neighbouring Myanmar.
“The company intends to develop a tap water supply project in Myanmar under the budget of Bt250 million-Bt300 million. This will be our pilot project for the expansion of our tap water business overseas in the future,” Chaiwat Utaiwan, the newly appointed managing director, said last week.
Established to operate a water concession in Thailand over 10 years ago, the company first set its sights to expand overseas last year, with Myanmar in the spotlight.
Sompodh Sripoom, then managing director, noted that for the first overseas tap-water project, the company had surveyed target areas in Yangon and local partners were being sought.
This followed surveys in other cities such as Mandalay and Nay Pyi Taw.
Yangon businesses need water
“With a 7.5-million population, Yangon is the most promising. In other cities, they are now demanding infrastructure like roads and electricity. But in Yangon, the city has witnessed fast expansion in tourism and construction. All new businesses need water.
“This tap water project has indeed drawn attention from many bidders, but we’re confident that TTW – with more than 10 years of experience – stands a chance to win,” he said then.
The investment has somewhat been delayed. Sompodh said the investment plan was supposed to be submitted in the year.
TTW is expanding overseas due to slower demand in Thailand.
Last quarter, TTW and its subsidiaries sold 68.17 million cubic metres of water, up only 1.6 per cent from the same quarter last year.
“Concerning future investment, the company will focus mainly on the tap water business as its core business by planning capacity expansion in the service area of Pathum Thani, Samut Sakhon and Nakhon Pathom to serve rising water demand from industrial, commercial and household sectors in the future with an investment of Bt2.2 billion,” he said.