A South Korean company plans to invest between US$500 million to US$700 million to construct 500 Mega watts gas-fired and waste-fired power plant, according to company sources.
The state-owned Korea Western Power Corporation will implement the project in cooperation with Myanmar’s Hexa Group of Companies. The plant will be located in Yangon and is the first foreign investment in the electricity generating sector in line with the Foreign Investment Law.
“Our company will work together with the Korean company as a local partner. We have already signed Memorandum of Understanding (MoU) with Ministry of Electrical Power. We will start implement the project once we finished the deal.
Now we are levelling the ground with sand and making ground testing. We will construct the project in 50 acres land plot next to Tharkayta power plant owned by the ministry,” said Dr. Sone Han, Chairman of Hexa Group of Companies.
The project is mainly intended to provide electricity to Thilawa Special Economic Zone. Currently the company is in negotiation with the Ministry of Electrical Power and doing its own environmental impact assessment for the project, according to Mr. Lim Soung Tai, Managing Director of the Korean company.
Korea Western Power Corporation is owned by the South Korean government. Myanmar Investment Commission has already allowed Toyo-Thai Corporation Public Company to use Build-Operate-Transfer system to build a natural gas-fired and waste-fired power plant in Yangon in January 2013.