Thailand postpones power projects

Four international consortia in Thailand have agreed to postpone power projects valued at more than $4bn by at least a year.

Four consortia have agreed to delay the projects by twelve to thirteen months. A fifth consortia is expected to see its project delayed by two to three years. The consortia, none of which had obtained financing, include major US, Japanese and European companies.

In exchange for the unexpected delay, projects will be paid an additional three per cent on top of an “availability” tariff.

This comes on top of a previously agreed contract revision to limit the projects` currency exposure due to depreciation of the baht.