The Asian Development Bank (ADB) has signed a $180m financing agreement with Gulf PD Company to support the construction and operation of a 2,500MW combined cycle gas turbine power plant in Thailand.
Planned to be built in the Rojana Rayong 2 Industrial Park in Rayong Province, about 150km southeast of Bangkok, the project is estimated to cost $1.6bn.
ADB’s financial support for the new power plant comprises a $50m regular loan and a B loan of up to $85m, as well as $45m through Asia’s Private Infrastructure Fund (LEAP) and supported by the Japan International Cooperation Agency.
ADB private sector operations deputy director-general Christopher Thieme said: “The project will build the fourth-largest power plant and one of the largest combined cycle gas turbine power plants in Thailand, which will be key in the Eastern Economic Corridor (EEC) development plan, considered as the prime economic growth driver for the country until 2028.
“We are particularly pleased to bring in additional cofinanciers to this transaction through our B loan program and LEAP, since the financing gap will be one of the major challenges for the success of the EEC development plan.”
The power generated from the facility will be sold to the Electricity Generating Authority of Thailand under a 25-year long-term contract.
Construction on the plant is scheduled to commence in July 2020, with completion planned in 2023.
Planned to be fully operational by 2024, the power plant will be equipped to deliver at least 16,000 gigawatt-hours of electricity.
Gulf PD is owned by Independent Power Development, a joint venture between a Thai private power company Gulf Energy Development Public (GED) and Mitsui. It was established to develop, construct, own, and operate the 2,500MW power plant.
The plant is expected to contribute to Thailand’s energy security as the country plans to retire more than 8,500MW of ageing power plants between 2020 and 2025.