May 29, 2014 00:00 By SOMLUCK SRIMALEE THE NATION 8,839 Viewed
TOYO-THAI CORPORATION, an integrated engineering procurement and construction contractor, is in talks to invest US$2.7 billion (Bt88 billion) in a 1,280-megawatt coal-fuelled power plant in Myanmar.
The company expects to finalise the deal in the third quarter, said vice president and chief operating officer Surattana Trinratana.
Yesterday saw a signing ceremony for a project loan worth $100 million from the Export-Import Bank of Thailand for the development of a 120MW combined-cycle gas-turbine project at Ahlone township, Yangon. This project is under a 30-year concession from the Myanmar government.
Surattana said the 1,280MW coal-powered plant would be in Mon state. If the Myanmar government approves the project, design and construction will start as soon as possible.
Funding for the project will come from the company’s cash flow, and from its subsidiary in Singapore, Toyo-Thai Power Corp, after it lists on that country’s stock exchange.
The company also plans to increase the registered capital of Toyo-Thai Power in the second half of this year, also from the Thai parent firm’s cash flow. This will increase its shareholding in the Singapore firm from 58 per cent to 71 per cent before applying for listing on the Singapore Exchange.
As for the Ahlone township project, construction began in 2012 on a total investment of $170 million. Partially completed with a capacity of 80MW, this project is already providing electricity to the township and is expected to contribute $10 million in revenue to Toyo-Thai Power this year. The remaining 40MW capacity is to come online next year.
Toyo-Thai Corp targets total revenue of Bt18 billion this year, up 16.8 per cent from last year’s Bt15.4 billion. It recorded revenue of Bt4.92 billion and net profit of Bt211 million in the first quarter of this year.
Currently, the company has a backlog of construction projects set for delivery to customers over the next few years worth Bt23 billion. About half of that is overseas projects, 25 per cent domestic projects, and 25 per cent in the form of investments both overseas and domestically. These include Thailand’s rooftop solar programme and its projects in Vietnam and Myanmar.
Toyo-Thai Corp is a joint venture between Japanese firm Toyo Engineering Corp and Thailand’s largest construction company, Italian-Thai Development.