Monday, January 16, 2012

Dawei power plant to be renegotiated


(Mizzima) – Burmese officials and the Italian-Thai Development company, the builder of the Dawei deep-sea port and industrial complex, will renegotiate the type of power plant after the government abruptly cancelled a coal-fired power plant last week.

The government’s decision “only means we have to renegotiate the source of fuel,” Somchet said in an interview in Bangkok on January 10, according to Bloomberg News. A new type of power supply will require the contract to be renegotiated and affect the cost, company officials said.

Myanmar’s decision is “nothing dramatic,” Somchet said, adding that the company would explore using natural gas instead.

PTT, Thailand’s biggest energy company, is studying whether to invest in a power plant in the Dawei project, chief executive officer Pailin Chuchottarworn told reporters in Bangkok earlier in the week.

Ital-Thai chairman Premchai Karnasuta said last month he expects to sign loan agreements in 2012 valued at $12.5 billion to develop the first stage of the projects. Japan Bank for International Cooperation will probably provide most of the funding for the port, road and railway links in Dawei, he said on December 26.

Ital-Thai is still seeking partners and financing for an integrated steel mill, oil, gas and petrochemical complex, and fertilizer plants, Bloomberg said.         

Leave a Reply