Located in the Myingyan district of the Mandalay division, the facility will help close the country’s power deficit, estimated to be approximately 500MW during peak periods.
Over the next 15 years, electricity demand in the country is likely to increase at a compounded annual growth rate of 13%, according to government estimates.
MOEP estimates that the country requires more than 20GW of additional power capacity between 2013 and 2030 in order to meet the growing demands.
Sembcorp will sign an agreement with MOEP for the development of the $300m build-operate-transfer project, which is expected to be the largest gas-fired independent power plant in Myanmar.
The company will own at least an 80% interest in project, which is planned to be completed in 2017.
Sembcorp Industries group president & CEO Tang Kin Fei said: "Sembcorp is well-positioned to cater to Myanmar’s increasing power needs and support its economic growth.
"The new facility will provide a reliable source of power which is integral to the country’s economic development and electrification efforts.
"At the same time, this project is in line with our focus to expand our global business and grow our overseas utilities contribution."
Power generated from the plant will be sold to MEPE under a 22-year power purchase agreement.
