Thailand’s PTT wants piece of $4 bn Burma power project

Construction News

PTT wants to co-invest with Italian-Thai Development (ITD) in a 3,000 MW coal-fired power plant supplying Burma’s Dawei deep-sea port and industrial estate, according to a PTT source.

The investment value of the plant is expected to be as high as US$4 billion (Bt120 billion). PTT envisions the project being divided into three phases. ITD and the Electricity Generating Authority of Thailand (Egat) are negotiating a Power Purchase Agreement for the coal-fired plant, the source said.

Other power-plant operators including Ratchaburi Electricity Generating Holding and Electricity Generating Plc are also interested in investing in the mega-project.

“PTT is always looking to invest in the power-plant business, reinforcing our aim to diversify into this area. We’re investing in the Xayaburi hydro-electricity power plant in Laos. The project in Dawei is another one that is on our radar screen. We would like to take part in this project,” the source said.

If PTT’s plan to invest in the project pans out, it will likely invest in a related coal-mining project, as the plant will need many millions of tonnes of coal per year to generate electricity. The coal-fired power plant will generate electricity for sale to the Dawei’s industrial estate and deep-sea port, as well as to Egat, the source said.

In the middle of this year, ITD announced it was looking for partners to invest in the Dawei mega-project, for which the Burmese government granted it a 75-year concession. ITD has embarked on a road show to China, Japan, South Korea, India and other countries in search of strategic partners. Total investment in the Dawei project is around $8 billion.

Besides the industrial estate, deep-sea port and coal-fired power plant, cement, paper and steel plants are also planned for Dawei.

Source: http://www.nationmultimedia.com/home/PTT-wants-piece-of-$4-bn-Burma-power-project-30165573.html

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