Myanmar to start thermal power plant construction

Myanmar will start construction of a thermal power plant soon to supply power to planned Thilawa Special Economic Zone (SEZ), official media reported Monday.

The thermal power plant project, which lies in Yangon region's Thakayta township, will start on over 20 hectares as the first phase by the end of this year and is set to complete in December 2014.

The power plant, which would generate 500 megawatts' electricity, will be built by Hanza International Company with the support of 18 companies including a Korea-based Western Power Company.

The memorandum of understanding on the project was signed early this month.

The planned Thilawa SEZ project, which includes factories, high- tech industry, textile, labor intensive industry and manufacturing industry, is being jointly developed by Myanmar and Japan, with Myanmar holding 51 percent's stake and Japan with 49 percent.

Myanmar is to finance the construction of infrastructure such as power station, roads and bridges outside Thilawa SEZ.

Thilawa SEZ project covering an area of over 2,000 hectares lies between Thanlyin and Kyauktan townships in Yangon region.

Meanwhile, the Japan International Cooperation Agency (JICA) has agreed to provide a loan of over 51 billion yens'(510 million US dollars) Official Development Assistance (ODA) to Myanmar in June.

Of the 51.052 billion yen's ODA loan, 20 billion yen is for development of infrastructure in Thilawa SEZ and 14.052 billion yen for upgrading power grid project and power stations in Yangon.

Nine Myanmar public companies and a consortium of three Japanese firms comprising Mitsubishi, Marubeni and Sumitomo are to develop the Thilawa SEZ.

According to official statistics, Japan's investment in Myanmar amounted to 270.283 million US dollars as of March 2013 since Myanmar opened to such investment in late 1988. It stands the 11th in Myanmar's foreign investment line-up.

source: Global Times

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