Gulf JP wins Bt37bn loan

 While ADB contributed US$170 million (approximately Bt... billion), the other four financiers are Siam Commercial Bank, Kasikornbank, Mizuho Corporate Bank, and Japan Bank for International Cooperation (JBIC). Gulf JP NS is a subsidiary of Gulf JP, a Thai arm of  J-Power - Japan’s largest wholesale power supplier. The 1,600MW power plant in Nong Saeng will sell all electricity to the Electricity Generating Authority of Thailand under the independent power producer (IPP) programme. The combined power capacity of Gulf JP under construction is 3,987M.
 “This is the first large independent power producer (IPP) project to reach financial close in Thailand since the 2008 global economic crisis,” said Daniel Wiedmer, Investment Specialist in ADB’s Private Sector Operations Department. “It incorporates state-of-the-art technology to generate electricity far more efficiently than coal fired systems, which are the only domestic alternative for IPPs.”
 PTT Plc will supply natural gas to the power plant, which is set to commence operations by 2014.
 ADB said in a statement that by using clean burning, combined cycle technology to curb harmful carbon releases, the plant will avoid an estimated five million tons of annual carbon dioxide emissions that would otherwise be produced by coal-fired generators. Affordably priced power is crucial for supporting Thailand’s post global crisis economic rebound, for making Thai businesses competitive, and for expanding livelihood opportunities to help reduce poverty.
 ADB is convinced that its participation and willingness to provide a long-term loan helped draw co-lending support from commercial banks at a similar tenor. The availability of long dated finance gives JPower the ability to pay down the plant’s high upfront costs over a longer term, allowing it to provide low-cost energy to consumers in Thailand.
 ADB is now helping tofinance two private sector solar power projects, including one of the world’s largest solarphotovoltaic plants in Lop Buri.