Project Financing for Utai Natural Gas-Fired Combined Cycle Power Plant in Thailand
Supporting Japanese Business for Overseas Deployment of Integrated Infrastructure System

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

1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on October 24, a loan agreement totaling up to 284 million U.S. dollars (JBIC portion) with Gulf JP UT Co., Ltd. (GUT), a subsidiary of Electric Power Development Co., Ltd. (J-POWER) for project finance^*1 for the Utai Natural Gas-Fired Combined Cycle Power Plant Project. This loan is cofinanced with Asian Development Bank (ADB), The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation and regional financial institutions^*2 in Thailand.
    
2. In this project, GUT will build and operate a natural gas-fired combined cycle power plant with a capacity of 1,600 MW (800 MW × 2) in Utai district, Ayutthaya Province, Thailand, 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 4.13% by 2030. To meet such increasing demand, the Thai authorities have formulated a plan to increase the national capacity of power generation from 32,395 MW in 2011 to 70,686 MW by 2030, thus this Project holds an important place in this plan. Furthermore, in terms of ensuring a stable supply of electricity, this is a significant project for many Japanese subsidiaries and affiliates operating in Thailand, and it will contribute broadly to infrastructure development in Thailand as well as overseas economic activities of Japanese companies. 
    
4. This project follows the Nong Saeng Natural Gas-Fired Combined Cycle Power Plant project^*3 signed in November 2011. It is an overseas integrated infrastructure system development project, with J-POWER leading the project development, maintenance and operation of the most advanced-type, high-efficiency and low environmental load power-generating systems built by Mitsubishi Heavy Industries, Ltd. JBIC supports this project as part of its efforts under the Enhanced Facility for Global Cooperation in Low Carbon Infrastructure and Equity Investment (E-FACE)^*4. 
    
5. 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 the overseas infrastructure business activities of Japanese companies through project structuring and risk taking by drawing on its range of financial instruments and schemes, and contribute to maintaining and improving the international competitiveness of Japanese industries.
    

Note

1. *1 Project finance is a financial scheme in which a loan is collateralized against the project’s future cash flow.
2. *2 KASIKORNBANK Public Company Limited, Siam Commercial Bank Public Company Limited, Bangkok Bank Public Company Limited and Land and Houses Bank Public Company Limited are also participating in cofinancing for the project.
3. *3 See Press Release on November 7, 2011.
4. *4 See Press Release on April 1, 2011.