BANGKOK, Oct 30 (Reuters) - Thai construction company TTCL Pcl said on Monday it plans to build a $2.8 billion coal-fired power plant in southeastern Myanmar.
The advanced technology coal-fired power station in the state of Kayin is expected to start operations in 2023 with the full 1,280 megawatts to be completed in 2024, TTCL Chief Financial Officer Gobchai Tanasugarn said.
A formal joint venture agreement, which will give TTCL a 95 percent stake and the state government 5 percent, is awaiting approval, TTCL executive vice president Suratana Trinratana said.
The $2.8 billion pricetag includes construction costs of up to $2 billion, which TTCL will bear, plus the 40-year land lease. The investment is expected to generate a return between 10 percent and 13 percent, she told reporters.
TTCL aims to line up funding by the second quarter of 2018, with 75 percent financed through debt.
“The company has started discussions and consulting financial institutions in the country and overseas,” Gobchai said, adding that the company would inject at least $300 million in equity.
The plant will use 4 million tonnes a year of imported coal.
This will be TTCL’s second power plant in Myanmar, following a 120 MW gas-fired plant, which opened in 2013.
With the help of the new project, the company’s energy business is set to expand to 25 percent of the group’s total earnings by 2022 from 5 percent this year, Gobchai said.
Reporting by Satawasin Staporncharnchai; Writing by Chayut Setboonsarng; Editing by Sonali Paul