5 banks back Gulf JP natural-gas-fired plant

 “This is the first large independent power producer [IPP] project to reach financial close in Thailand since the 2008 global economic crisis,” Daniel Wiedmer said yesterday. He is an investment specialist in the private-sector operations department of the Asian Development Bank, which contributed US$170 million (Bt5.2 billion).
 “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,” Wiedmer said.
The other four participants are Siam Commercial Bank, Kasikornbank, Mizuho Corporate Bank and the Japan Bank for International Cooperation.
 Gulf JP NS is a subsidiary of Gulf JP, the Thai arm of Japan’s Electric Power Development Co, or J-Power – Japan’s largest wholesale power supplier.
 The power plant in Saraburi’s Nong Saeng district will sell all its electricity to the Electricity Generating Authority of Thailand.
 The combined power capacity of Gulf JP’s projects under construction is 4GW.
 PTT will supply natural gas to the power plant, which is to commence operations by 2014.
 The ADB said in a statement that by using clean-burning, combined-cycle technology to curb harmful carbon releases, the plant would avoid an estimated 5 million tonnes 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. The 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-term finance gives J-Power the ability to pay down the plant’s high up-front costs over a longer period, allowing it to provide low-cost energy to consumers in Thailand.
 The ADB is also helping to finance two private-sector solar farms, including one of the world’s largest solar photovoltaic plants in Lop Buri.