SINGAPORE: Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries, has been given the Notice of Award to develop and operate the largest gas-fired independent power plant in Myanmar.
In a press release on Friday (Aug 24), Sembcorp said the project was awarded by the Myanmar Electric Power Enterprise (MEPE) – a division under the Ministry of Electric Power of Myanmar (MOEP).
This marks Sembcorp’s entry into Myanmar’s fast-growing power market, where electricity demand is estimated to increase at a compounded annual growth rate of 13 per cent over the next 15 years. Sembcorp will have at least an 80 per cent stake in the project, said the press release.
The US$300 million (S$400 million), 225-megawatt power plant is located in the Myingyan district of the Mandalay division. When it is completed in 2017, “the new facility will help to ease the country’s severe power deficit, which is estimated to be approximately 500 megawatts during peak periods,” said Sembcorp.
“Sembcorp is well-positioned to cater to Myanmar’s increasing power needs and support its economic growth,” said Mr Tang Kin Fei, Group President and CEO of Sembcorp Industries. “The new facility will provide a reliable source of power which is integral to the country’s economic development and electrification efforts.”
Mr Tang added the investment not only enables Sembcorp to establish an important beachhead in Myanmar, it also gives the company a foothold to potentially develop other businesses in the country, such as water and urban development.
Sembcorp said it will be a signing a Memorandum of Agreement with MOEP for the investment and development of the power plant project. The total project investment of about US$300 million is expected to be funded through a mix of limited recourse project financing and equity.
Source: Channel News Asia