Myanmar: Sembcorp takes another step on Myingyan project

Myanmar: Sembcorp takes another step on Myingyan project

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 Sembcrop 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.

Liu Xingti at Sembcorp's corporate relations department said the plan was
scheduled to start commercial production in the first half of next year.

The plant is receiving financial investment 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.

The ADB has proposed a $42.2 million loan.

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Link to Original Article:
http://www.mmtimes.com/index.php/business/24612-sembcorp-takes-another-step-
on-myingyan-project.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com