K30b From Reserved Fund for Yangon’s Power Needs

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President U Htin Kyaw has asked the Pyidaungsu Hluttaw to approve the allotment of K30 billion from the reserve fund of the 2016 Union budget for the purchase of generators to meet the increasing electricity needs in Yangon Region.

The proposal was made in a formal message distributed to the Hluttaw representatives on March 13. The electricity consumption of Yangon Region has increased from 150 megawatts to 200 megawatts and currently, it accounts for about 45 percent of the country’s electricity consumption.

As the government cannot supply sufficient power to meet the need which is expected to increase in Yangon in the coming summer months, the additional generators can be used to supplement the supply where power is needed.
For this purpose, a 25-megawatt generator, which can be easily moved on a trailer and used with both diesel and natural gas, will be bought with this fund, the message stated.

The message did not provide details of which country the generator will be purchased from, though it mentioned that the Union Government has already given permission to use K30 billion from special fund.

Dr Tun Naing, Deputy Minister for Electric Power and Energy, and U Maung Maung Win, Deputy Minister for Planning and Finance also raised the matter at the Pyidaungsu Hluttaw.

“I have presented this to get approval from Hluttaw as this matter is included in the special matter for which fund must be used in the fiscal year to avoid electricity shortage in Yangon city during the summer season,” said U Maung Maung Win.

He added that although the ministry had presented a budget for 2017-18 fiscal year to avoid electricity shortage in summer season, it had to reduce the budget.

The Ministry of Electric Power and Energy also proposed to the Hluttaw to borrow 23.88 million euros from Germany to supply power to 416 villages situated in southern Shan State.

Deputy Minister Dr Tun Naing said that as deferment period is 10 years with 30 years repayment period for this loan, the total loan term is 40 years and interest rate is 0.75pc per year.

According to the plan, this will allow the government to distribute power to Taunggyi, Loilin and Linkhae townships, situated in southern Shan State, via the national power grid. This will help improve the living standards of the villagers, enable small industrial businesses to operate, and create jobs, all of which would contribute to alleviating poverty among the rural people, said Dr Tun Naing.

 

Source: The Myanmar Times
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