The TNP2 project will be located on a site adjacent to International Power’s existing 143MW Thai National Power (TNP) gas-fired power plant.
The majority of the output from the plant (90MW) will be sold to the Energy Generating Authority of Thailand , under a 25-year PPA, with the balance of up to 20MW sold to industrial users. The plant, which will be operational in 2012, will be owned and operated as a 100% subsidiary of the existing TNP project.
Philip Cox, CEO of International Power, said: “The requirement for new generation capacity continues to grow in Thailand, and we are pleased to have successfully developed and financed the TNP2 project on attractive terms.”
The total project cost is estimated to be GBP82m. A total of GBP76m will be raised, representing a term loan to fund the TNP2 project, and the releveraging of the existing asset. The debt equity ratio of the two projects combined will be75:25. The balance of GBP6m will be provided by International Power. The financing banks are Kasikorn Bank and Bank of Ayudhya.
The TNP2 project will be constructed by IHI/Jurong under a fixed price, turnkey EPC contract utilising General Electric LM6000PF gas turbines. Natural gas will be supplied by the Petroleum Authority of Thailand under a 25-year gas supply agreement.
The company said that as a result of its close proximity to the existing plant, the project will benefit from common facilities and will be operated by TNP under a similar arrangement to the existing plant.
