Ratch Group has closed finance deal for 92-megawatt gas-fired co-generation Nexif Energy Rayong power plant project
SET-listed Ratch Group, Thailand’s largest capacity private power producer, has closed a deal to finance the 92-megawatt gas-fired co-generation Nexif Energy Rayong power plant project for an undisclosed sum.
Debt funding for the project is provided by a consortium comprising Kasikornbank, Sumitomo Mitsui Banking Corporation and Standard Chartered Bank Thai.
In March, Ratch acquired 49% ownership of the plant from Singapore-based Nexif Energy Rayong, worth US$21 million or 662 million baht.
Nexif Energy diluted ownership to 51% of the project after the two entered into a partnership agreement.
The power plant is located in the SSP Industrial Park in Ban Khai district, Rayong province.
The Nexif Energy Rayong power plant, which is under construction, is expected to commence commercial operations in April 2022.
Power output will be sold under a 25-year power purchase agreement with the state-run Electricity Generating Authority of Thailand.
Kijja Sripatthangkura, Ratch’s chief executive, said the project will serve industrial customers in the SSP Industrial Park, located in the Eastern Economic Corridor.
“The plant will utilise the latest, most efficient combined cycle gas turbine technology available at this scale,” Mr Kijja said. “Ratch Nexif reached a deal on financing and commenced construction.”
He said the deal is one of five targeted deals the company is planning to expand business by entering joint ventures. All the deals are related to the electricity generation segment, and the company is in negotiations.
Nexif Energy is a power company based in Singapore with investment portfolios in renewables and conventional power plants in Asia and Australia.
The partnership with Ratch Group is the first step in establishing a power generation base in eastern Thailand.
This year Ratch set a 20-billion-baht budget for asset acquisitions and development of new projects in an effort to achieve 780MW in capacity.
In Thailand, Ratch recorded equity of installed generation capacity of 5,898MW, accounting for 68% of total generation capacity of 8,700MW.
Ratch expects power generation capacity to total 8,715MW by the end of this year.
Ratch has diversified into infrastructure projects
Over the last several years, Ratch has diversified into infrastructure projects such as the Pink and Yellow lines of the skytrain in Bangkok through a joint venture, winning an auction to develop the train lines with BTS Group Holdings and Sino-Thai Engineering and Construction (Stecon).
The two train lines are under construction with an estimated cost of 100 billion baht.
Ratch recently teamed up with BTS, Stecon and Gulf Energy Development in a consortium that won a concession to operate and maintain two motorways from the Highway Department.
The consortium won a 30-year contract under a public-private partnership for the routes from Ayutthaya to Korat and from Nonthaburi to Kanchanaburi.
The two motorways are under construction and are expected to open next year.
Source: https://www.bangkokpost.com/business/1911452/ratch-cinches-funds-for-gas-fired-plant
