Sembcorp to build $300 million power plant in Myanmar
MEPE is 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 expected to increase at a compounded annual growth rate of 13% over the next 15 years, according to government estimates.
Located in the Myingyan district of the Mandalay division, the $300 million power plant is set to be the largest gas-fired independent power plant in Myanmar. When completed, the new facility will help to ease the country's severe power deficit, which is estimated to be approximately 500 megawatts during peak periods.
The build-operate-transfer project was awarded after an international bidding process called by MEPE and advised by International Finance Corporation of the World Bank Group. Sembcorp will have at least an 80% stake in this project. Expected to be completed in 2017, the project will supply power to MEPE under a 22-year power purchase agreement (PPA), with MOEP guaranteeing MEPE's obligations under the PPA.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, "Sembcorp is well-positioned to cater to Myanmar's increasing power needs and support its economic growth. The new facility will provide a reliable source of power which is integral to the country's economic development and electrification efforts.
"This investment not only enables Sembcorp to establish an important beachhead in Myanmar, but also gives us a foothold to potentially develop other businesses in the country, such as water and urban development." ■