Sembcorp has signed a build-operate-transfer (BOT) agreement with the Ministry of Electricity and Energy of Myanmar (MOEE) for the 225MW Myingyan gas-fired power plant in the country.
Under the agreement, Sembcorp Myingyan Power Company will build and operate the power plant for 22 years.
The facility, located in Mandalay, Myanmar, will be transferred to the Myanmar government after the completion of that period.
In March 2016, a long-term power purchase agreement for the sale of the plant’s entire power output to Electric Power Generation Enterprise (EPGE) was signed.
EPGE is the successor entity to Myanma Electric Power Enterprise (MEPE) pursuant to re-organisation within MOEE.
The total project cost of the project is about $300m.
Sembcorp Group president and CEO Tang Kin Fei said: “The signing of the BOT Agreement marks an important milestone for the Myingyan project. We thank the government of Myanmar for its support, and we are encouraged by its commitment to accelerate infrastructure development in the country.
“With Sembcorp’s strong track record, we are confident that we will be able to deliver this facility on time. This will help to meet the growing need for power particularly in Mandalay, support the nation’s progress and improve the quality of life for the Myanmar people.”
Once operational, the project is expected a play key role in meeting the country’s growing demand for electricity.
In July last year, GE received a contract from Sembcorp Utilities to supply two high-efficiency 6F.03 gas turbines as well as the associated steam turbines and heat recovery steam generators (HRSGs) for the project.