Ch. Karnchang Plc (CK), Thailand’s largest contractor by market value, will focus more on searching for construction projects in neighbouring countries, particularly Myanmar, to mitigate risks from delays in the government’s 2-trillion-baht infrastructure plan.
Chief executive Plew Trivisvavet said while looking for more projects in Laos, CK is also studying the feasibility of infrastructure, dam and tap water projects in Myanmar, Cambodia and Vietnam, where business potential is high.
At present, the contractor is working on the 76-billion-baht Xayaburi hydroelectric power plant in Laos and expects to sign the 17-billion-baht Nam Bak project this year.
“We will increase our investment in projects in Asean countries in the future, focusing on Laos and Myanmar for the time being. This will enable us to mitigate risks from external factors that may have an impact on the construction industry in Thailand,” he said.
Myanmar, for instance, has ample opportunities in infrastructure project development.
“But we should not be in a rush to get into Myanmar as the country is just opening up and it will take more time to understand laws concerning investment as well as the banking sector there,” said Mr Plew.
The 1,285-megawatt Xayaburi project has been progressing according to plan with 30% completed and will contribute 60% of CK’s total revenue this year, he said.
The SET-listed CK Power Plc (CKP), the group’s flagship company in the energy business, has high opportunities to develop multi-energy source projects in neighbouring countries.
CKP projects to expand its capacity from 875 MW next year to 2,320 MW when the Xayaburi project is finished in 2019 and nearly double that to 4,300 MW from 2020 onwards with more hydroelectric and small power producer projects in the region.
Phongsarit Tantisuvanichkul, CK’s executive vice-president for business development, said teams have been sent to study potential projects in Vietnam and Cambodia.
In Thailand, CK is preparing to bid for new projects worth 85 billion baht this year.
These include four contracts of the 19-kilometre Dark Green mass-transit line, with a total value of 25 billion baht, a dual-track train from Rangsit Khlong 19 in Pathum Thani to Saraburi’s Kaeng Khoi district and the second phase of Suvarnabhumi airport. The contractor has a backlog of 110 billion baht, almost four times its annual revenue.
Shares of CK closed yesterday on the SET at 17.20 baht, up 30 satang, in trade worth 602 million baht.