Ch Karnchang eyes 20-25% of state infrastructure projects
Company to also focus on alternative energy ventures in Laos
Construction firm Ch Karnchang aims to win between 20 and 25 per cent of the state infrastructure projects coming up for tender in the new year, chief executive officer Plew Trivisvavet says.
The company has also approached the ruling junta on the possibility of building the MRT Blue Line extension from Hua Lamphong to Tha Pra. He said that as Ch Karnchang is already doing the line’s Bang Sue-Hua Lamphong section, it made sense to grant the contract for the extension to his company as well.
However, he added that if the government sticks with the plan to put the project out to tender, the company was interested in joining the bidding.
The company in 2015 will focus on both construction business and investing in infrastructure projects, especially alternative energy in Laos.
In Thailand, it will bid for government construction contracts including motorways, the Bangkok mass transit system’s Orange Line, and double-tracking of parts of the national rail system.
“We expect a share of between 20 and 25 per cent of the total value of projects open to bidding,” Plew said.
The company has continued to invest in alternative energy in Laos, currently constructing the Xayaburi hydropower project worth Bt115 billion. Of that total, Bt30 billion is from the group’s capital, and the rest borrowed from commercial banks.
The project has been cleared on environmental grounds and the communities in the vicinity have accepted it. It is to start operating in 2019 with capacity of 1,285 megawatts, up to 95 per cent of which will be sold to the Electricity Generating Authority of Thailand.
“We are also interested in expanding our investment in Myanmar. We are studying that country’s foreign investment laws and [looking for] partners to do business there,” he said.
He added that Asean Economic Community would open up business opportunities in this region.
At present, Ch Karnchang has a backlog of projects for which it has already signed contracts worth a total of Bt100 billion. They will generate revenue from 2015 to 2017. Up to half of that total are public-sector projects.
This year, the company targets revenue of Bt33 billion. For the first nine months, it reported revenue of Bt27.35 billion and net profit of Bt1.8 billion.
