The Asian Development Bank (ADB) and Gulf PD Company (Gulf PD) have signed a $180m agreement to build and operate 2.5GW combined cycle gas turbine power plant in Thailand.

The power plant will be located about 150km southeast of Bangkok in the Rojana Rayong 2 Industrial Park in Rayong Province in the country.

Gulf PD is owned by Independent Power Development, a joint venture between Gulf Energy Development (GED) and Mitsui & Co.

ADB stated that its loan for the project will include a regular loan of $50m and a B loan of up to $85m. The financial institution stated that it will also mobilise $45m through the Leading Asia’s Private Infrastructure Fund (LEAP).

ADB acted as anchor leader role by arranging cofinanciers for the project

ADB has also played an anchor leader role in the project by signing the loan agreement with its cofinanciers including Japan Bank for International Cooperation and 12 other international and local commercial banks and catalyzing up to $764m in commercial cofinancing.

ADB private sector operations deputy director general Christopher Thieme said “The project will build the fourth-largest power plant and one of the largest combined cycle gas turbine power plants in Thailand, which will be key in the Eastern Economic Corridor (EEC) development plan, considered as the prime economic growth driver for the country until 2028.

“ADB is proud to play an essential role in this transaction, which will help provide reliable power to industry and households and boost Thailand’s economic growth and development prospects. We are particularly pleased to bring in additional cofinanciers to this transaction through our B loan program and LEAP, since the financing gap will be one of the major challenges for the success of the EEC development plan.”

When fully operational in 2024, the plant will be able to deliver at least 16,000GWh of electricity to Thai people. As per ADB, by installing advanced combined-cycle gas turbine technology at the plant, nearly one million fewer tonnes of carbon dioxide will be emitted every year compared to the current electricity grid emissions.

The power plant is expected to be integral in sustaining Thailand’s energy security as more than 8.5GW of generating capacity, which is equal to 20% of the current national energy capacity, of aging power plants could be retired between 2020 and 2025.

Gulf PD was set up to develop, construct, own and operate the 2.5GW power plant.