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Sembcorp Takes Another Step on Myingyan Project

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Singaporean energy firm Sembcorp signed a build-operate-transfer (BOT) agreement with Myanmar’s energy ministry yesterday for the Myingyan power plant, a high profile energy project expected to receive loans from a variety of international lenders.

Tan Cheng Guan, Sembcorp Industries’ head of group business development and commercial, signed the BOT agreement with U Htein Lwin, permanent secretary at Myanmar’s Ministry of Electricity and Energy.

The 225-megawatt gas-fired plant is the country’s power project to be awarded through an international-standard bidding process, which was held by the previous administration back in April 2015.

Tender winner Sembcorp then received Myanmar Investment Commission approval in early 2016 and signed a power purchase agreement in March that year shortly before the new government took power.

Under the BOT agreement Sembcorp will operate the Mandalay Region plant for 22 years before handing it over to the Myanmar government, with all of the plant’s output to be sold to the Myanma Electric Power Enterprise.

Sembcorp spokesperson Liu Xingti said the plan was scheduled to start commercial production in the first half of next year.

The plant is expected to receive funding from several international financial institutions, and is the first Myanmar project scheduled to receive funding from the Chinese-led Asian Infrastructure Investment Bank (AIIB).

The AIIB is proposing a US$20 million loan for the project. The IFC will be providing a $58 million senior loan, but will share this with the AIIB if that organisation does end up making its loan.

In that event the AIIB would contribute $20 million and IFC $38 million.

 

Source: Myanmar Times
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