April 22, 2013

The Thai Energy Ministry is seeking Cabinet approval of a Baht 12 billion project to improve electricity-transmission capacity in the Eastern region in preparation for the completion of new power plants.

The capacity improvements, to be carried out by the Electricity Generating Authority of Thailand, will cover Rayong, Chachoengsao and Chon Buri.

According to Electricity Generating Authority of Thailand (EGAT), the economic internal rate of return of the project is 20.62 percent, the financial internal rate of return is 18.39 percent, and the economic value added is Baht 12.019 billion.

To finance equipment imports, EGAT is considering many fund sources ranging from foreign financial institutions to local banks, the Export-Import Bank of Thailand, and foreign and local bond markets, as well as using its own cash.

The National Economic and Social Development Board, which has approved the plan, has advised EGAT to follow closely the plans for commercialisation of new independent power producers in the East when making its investment.

The project comprises two phases. The first, costing Baht 5.95 billion, will cover the upper East and will be finished in 2017. The second, costing Baht 6.05 billion, will cover the lower East and will be finished in 2019. Of the total budget for the second phase, Baht 2.98 billion will be allocated to importing equipment from overseas, and the remainder is earmarked for construction costs and purchasing locally supplied equipment.