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Singapore Company Will Hand $300m Power Plant To Myanmar Government in 22 Years
The Singapore-listed energy company Sembcorp has signed a build-operate-transfer agreement with the Ministry of Electricity and Energy for a 225-megawatt gas-fired power plant in Myingyan, near Mandalay.
The signing “represents a key milestone” for the $300 million project, the company said in a statement.
Under the deal, the Sembcorp Myingyan Power Company will operate the plant for 22 years before the government takes ownership.
Semcorp’s Executive Vice President, Tan Cheng Guan, signed the deal with U Htein Lwin, Permanent Secretary at the Ministry of Electricity and Energy on January 18th, the statement added.
Last March the company signed a long-term power purchase agreement with the government to sell the plant’s entire output to the Electric Power Generation Enterprise, an entity under the Ministry of Electricity.
The plant, which is due to go into operation next year, will be one of Myanmar’s largest gas-fired stations and will “help to play a key role in meeting the country’s growing demand for electricity,” the company said.
“We thank the government of Myanmar for its support, and we are encouraged by its commitment to accelerate infrastructure development in the country,” said Sembcorp Group President & CEO Tang Kin Fei.
“We are confident that we will be able to deliver this facility on time. This will help to meet the growing need for power particularly in Mandalay, support the nation’s progress and improve the quality of life for the Myanmar people,” the CEO added.
Sembcorp employs 7,000 people and operates facilities around the world. Its power facilities have a total capacity of 10,000 megawatts. The company also supplies water solutions to local governments and industrial projects and works in urban development and marine engineering.Source: Myanmar Business Today