ICBC provides $97.5 million loan for 2,500MW Gulf Sriracha Power Plant Project

On November 2, 2018, Gulf SRC Co., Ltd. (or Gulf SRC Company Limited) — a special purpose vehicle and joint venture of Gulf Energy Development (70% ownership stake) and Mitsui (30% ownership stake) — signed a set of loan agreements (project finance facility agreements) worth 1.299 billion. with a group of 12 banks for the 2,500MW Gulf Sriracha Power Plant Project. The financiers included Japan Bank for International Cooperation (JBIC), the Asian Development Bank (ADB), the Export-Import Bank of Thailand (EXIM Thailand), Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank Limited, the Siam Commercial Bank Public Company Limited, Bangkok Bank Public Company Limited, Bank of Ayudhya Public Company Limited, TMB Bank Public Company Limited, CIMB Thai Bank Public Company Limited, Land and Houses Bank Public Company Limited, and Industrial and Commercial Bank of China (Thai) Public Company Limited. ICBC reportedly contributed $97,593,628, while ADB contributed ADB has agreed to provide $227.7 million and JBIC contributed $227 million. The purpose of the independent power project (IPP) is to construct and operate the Gulf Sriracha power plant (GSRC power project), which is a 2.5GW gas-fired combined-cycle power plant to be developed at Khao Khansong in the Si Racha district, Chonburi province, Thailand, approximately 130km south-east of Bangkok. The Sriracha combined-cycle power plant will comprise four natural gas-fired generating units of 625MW capacity each. Each unit of the plant will be equipped with an M701JAC gas turbine, a steam turbine, and a heat recovery steam generator (HRSG). Mitsubishi Hitachi Power Systems (MHPS) will provide the gas and steam turbines along with ancillary equipment for the plant, while the generators will be supplied by Mitsubishi Electric Corporation. The M701JAC air-cooled gas turbine represents a highly-efficient combined-cycle gas turbine technology that provides more than 63% thermal efficiency, while reducing CO2 emissions by approximately 70% compared to conventional coal-fired generating units. The Sriracha power plant is estimated to require up to 368 million cubic feet of natural gas a day (Mcf/d), which will be procured through a long-term gas sales agreement with Thailand’s state-owned oil and gas company PTT. The project also involves the construction of a 2.67km-long and 28in-diameter new gas pipeline connecting the power plant with the PTT’s existing No-5 pipeline at Moo 3, Nong Kang Kow village, Ta Sit, Pluak Dang district, Rayong Province. The electricity generated by the Sriracha power plant will be evacuated by the Electricity Generating Authority of Thailand (EGAT) through a 500kV transmission line connecting its Pluak Daeng substation. A consortium of Mitsubishi Hitachi Power Systems (MHPS) and Sino-Thai Engineering & Construction (STEC) was awarded the engineering, construction, and procurement (EPC) contract for the 2,500MW Gulf Sriracha Power Plant Project in February 2018. The EPC contract also includes a long-term service agreement for the power plant with MHPS. The owner’s engineer field services agreement for the Gulf Sriracha power plant was signed with EGAT in September 2018. The first generating unit of the plant was originally scheduled for commissioning in the first half of 2021, while the fourth and last unit was originally expected to be brought online by the end of 2022. The first power generation unit began commercial operations on March 31, 2021. The second power generation unit began commercial operations on October 1, 2021. The third power generation unit began commercial operations on March 31, 2022. The fourth power generation unit began commercial operations on October 1, 2022.

Additional details

1. King & Spalding’s Tokyo office led the advice to JBIC and ADB, including drafting and negotiating all of the English law finance documents for the transaction. The team was led by partners John McClenahan and Mark Davies (Tokyo), and included senior associates Rory Connor (London) and Daisuke Shimodaira (Tokyo) and associate Jon Wang (Tokyo). 2. Sino-Thai Engineering and Construction Public Company Limited is a Thailand-based company (https://www.stecon.co.th/), which is engaged in construction contracting, office building rental, machinery and construction equipment rental and property development.

Number of official sources

10

Number of total sources

17