TTCL plans two power plants in Myanmar worth $6 bn

Corporate June 10, 2017 01:00

By SOMLUCK SRIMALEE
THE NATION
YANGON

8,063 Viewed

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.