Recently, Thai construction company Toyo Group (TTCL) said it plans to build a 2.8 billion U.S. dollars coal-fired power plant in southeastern Myanmar.
TTCL Chief Financial Officer Gobchai Tanasugarn said the state-of-the-art coal-fired power plant in Kayin, Myanmar, is scheduled to start operation in 2023 and be fully operational in 1224 with 1280 MW capacity.
Suratana Trinratana, executive vice president of TTCL, said the formal joint venture agreement remains to be approved, will grant 95% of the shares of TTCL and the government of Myanmar holds 5% of the shares.
The $ 2.8 billion offer includes up to $ 2 billion in construction costs and 40 years of land lease payments by TTCL. The return on investment is estimated at 10% to 13%.
TTCL aims to arrange funds by the second quarter of 2018, 75% of which are raised through debt.
"The company has started to discuss and consult domestic and foreign financial institutions." Gobchai added that TTCL will invest at least $ 300 million in equity investment.
The coal-fired power plant will use 4 million tons of imported coal each year. This will be the second power plant after TTCL built a 120 MW gas-fired power plant in Myanmar in 2013.
Thanks to this new project, Gobchai said the company's energy business will increase its share of total revenue from 5% this year to 25% in 2022.