Sembcorp inks agreement to develop US$300m gas-fired power plant in Myanmar

It’s the largest of its kind in the country.

While the gas-fired power plant is Sembcorp’s first in the Southeast Asian nation, it certainly hopes it isn’t its last as its subsidiary, Sembcorp Utilities, hopes to alleviate the power deficit in Myanmar.

According to a statement by Sembcorp, it has signed a memorandum of agreement with Myanmar’s Department of Electric Power Planning, under the Ministry of Electric Power of

Myanmar to invest in and develop a 225-megawatt gas-fired power plant in central Myanmar.

Sembcorp said the build-operate-transfer project was awarded after an international bidding process called by Myanma Electric Power Enterprise (MEPE), a division under MOEP, and advised by International Finance Corporation of the World Bank Group. The conglomerate would be holding an 80% stake in the project.

“The signing of the memorandum of agreement followed Sembcorp’s receiving the notice of award to develop and operate the power plant in April this year,” the statement said.

Meanwhile, using Sembcorp’s power know-how, the plant will be able to maximise power output while minimising emissions.

“Expected to be completed in 2018, the project will supply power to MEPE under a 22-year power purchase agreement (PPA), with MOEP guaranteeing MEPE’s obligations under the PPA,” the statement said.

“This new facility will provide a reliable source of power which is integral to the country’s economic development. At the same time, it gives us a foothold to potentially develop other businesses in the country, such as water and urban development,” said Tan Cheng Guan, executive vice president of Sembcorp Industries.