Thailand’s top construction contractor, Italian-Thai Development Pcl , said on Thursday it expected sign a contract for a deep-sea port project with Myanmar Port Authority by the end of November.
The Dawei port project, with an estimated value of about 400 billion baht, will include a railway, roads, industrial estates, a refinery and a steel mill, senior executive Nijaporn Charanachitta told reporters.
“We should sign the contract with Myanmar Port Authority later this month or next,” Nijaporn said, adding the election in the country on November 7 should not affect the signing and should be positive for the project.
Analysts say the project in the Tanintharyi region of Myanmar, first mooted a decade ago, could secure a firm source of revenue for Italian-Thai for at least 10 years.
DBS Vickers gave a “buy” rating to Italian-Thai because of its improved earnings prospects from the construction project.
Italian-Thai has jobs in hand worth about 40-50 billion baht and expected to realise revenue of 40 billion baht this year, Nijaporn said.
The company is also in talks to sell a stake in engineering firm Toyo-Thai Corp Pcl for 300 million baht and expected to complete the deal in the fourth quarter, she said.
Italian-Thai has a 10.83 percent stake in Toyo-Thai, which is 26 percent owned by Japan’s Toyo Engineering Corp .
Last month, the company sold a 10 percent stake in Nam Thuen 2 power plant in Laos to Electricity Generating Pcl for $73.3 million as part of a plan to sell non-core businesses.
At the midday break, Italian-Thai shares were up 2.6 percent, while the broader Thai market was 0.33 percent higher.