Sembcorp Industries (Sembcorp) is pleased to announce that it has signed a long-term power purchase agreement (PPA) with Myanma Electric Power Enterprise (MEPE) for the supply of 225 megawatts of power for a period of 22 years.
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 fulfilment 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 which MOEP agrees to provide all support for the implementation of the project and guarantees MEPE’s payment obligations under the PPA.
Dennis Foo, General Manager of Sembcorp Myingyan Power Company, said, "Sembcorp is very pleased to sign this long-term PPA with MEPE. We look forward to working closely with MEPE and MOEP to help meet the growing demand for power here, thereby supporting Myanmar’s continued development and contributing to an enhanced quality of life for its people. We also hope to support the country through capacity building in the power sector."
The signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.