Project Financing for Nong Saeng Natural Gas-Fired Combined Cycle Power Plant in Thailand
Supporting Japanese Business for Developing Overseas Integrated Infrastructure System

• Region: Asia
• Infrastructures
• Environment
• Overseas Investment Loans
• Project Finance

1. The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)^*1  signed on November 4 a loan agreement in the overall cofinanced amount of up to 1,184 million U.S. dollars with Gulf JP NS Co., Ltd. (GNS), a subsidiary of Electric Power Development Co, Ltd. (J-Power), for the Nong Saeng Natural Gas-Fired Combined Cycle Power Plant Project. The loan is cofinanced with the Asian Development Bank (ADB), Mizuho Corporate Bank., Ltd., The Siam Commercial Bank Public Company Limited and KASIKORNBANK Public Company Limited.
    
2. In this Project, GNS will build and operate a natural gas-fired combined cycle power plant with the capacity of 1,600 MW (800 MW × 2) in Nong Saeng district, Saraburi Province, with the electricity generated to be sold to the Electricity Generating Authority of Thailand (EGAT) for 25 years.
    
3. According to the power development plan of the Thai government, the country's demand for electricity is projected to grow by an annual average of 4.19% by 2030. To meet such increasing demand, the Thai authorities have formulated a plan to increase the national capacity of power generation from 31,349 MW in 2010 to 65,547 MW by 2030. This project holds an important place in this plan.
    
4. The project is a typical form of Japanese overseas integrated infrastructure system deployment project, with J-Power leading the project development, operation and maintenance of the most advanced-type power-generating systems using Japanese technologies. It is also a significant project for many Japanese firms' subsidiaries and affiliates operating in Thailand, from the point of view of ensuring a stable supply of electricity. As such, the Project will not only contribute broadly to infrastructure development in Thailand, but it will also contribute to overseas economic activities of Japanese firms.
    
5. JBIC launched the Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE) last April.^*2  At that time, JBIC announced its policy to strengthen support for overseas integrated infrastructure system deployment and other strategic projects undertaken by Japanese firms, while vigorously mobilizing Japanese private-sector funding for these purposes. JBIC is supporting this Project as part of its efforts under E-FACE.
    
6. As Thailand and Asian countries have continued robust economic growth, they foresee growing needs for developing and improving infrastructure. This has presented a major business opportunity in infrastructure development to Japanese companies. Amid these developments, JBIC will support overseas infrastructure business activities of Japanese firms through project structuring risk taking, by drawing on its range of financial instruments and schemes and, through these operations, will contribute to maintaining and improving the international competitiveness of Japanese industries.

Note

1. *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
2. *2 See Press Release on April 1, 2011.
3.