Sembcorp nabs 22-year power purchase deal in Myanmar

It will supply 225 megawatts of power to MEPE.

Sembcorp Industries (Sembcorp) and Myanmar Electric Power Enterprise (MEPE) have sealed the deal a long-term power purchase agreement (PPA) for 225 megawatts of power for a period of 22 years.

According to Sembcorp’s press release, the power to be supplied will be produced by Sembcorp’s upcoming power project in Myingyan, Mandalay.

The PPA will come into effect upon the fulfillment of certain conditions precedent including the execution by Myanmar’s Ministry of Electric Power (MOEP) of the build-own-transfer agreement for the project.

Pursuant to the deal, MOEP agrees to provide all support for the implementation of the project and guarantees MEPE’s payment obligations under the PPA.

Sembcorp asserts it does not expect to have a material impact on the company’s earnings per share and net asset value per share.