Ch Karnchang has signed the memorandum of understanding with Electricity Generating Authority of Thailand (EGAT) for the sale of an average 1,220 MW of electricity from its Xayaburi power plant at the levelised tariff of Bt2.159/kWh.
The company expects to clinch the power purchase agreement as well as loan agreement by the end of this year. The Xayaburi power plant, with 1,260MW capacity, will require a total investment of Bt100 billion.
DBS Vickers Securities (Thailand) said if the construction starts by the end of this year, Ch Karnchang's backlog would be raised further by Bt76 billion. The company was also the lowest bidder for two Blue Line mass transit contracts worth Bt20.8 billion. The company's current backlog stands at Bt12.8 billion.
In 2008, CK signed an agreement with the Laos government to develop the Xayaburi hydropower project.