Tuesday, 25 March 2014

US$ 26 million-plus goes to Myanmar hydropower projects

The Hydropower Implementation Department under the Ministry of Electric Power will spend more than US$ 26 million in loans from China and other aid on its hydropower projects, according to the Budget for the 2014-2015 fiscal year and the Union Budget Bill (2014).

The department’s budget includes more than US$ 8 million for machines and iron wear to be used for the upper Yeywa hydropower project, more than US$ 8 million for the Thahtay hydropower project and more than US$ 4 million for the upper Kengtung project.

According to the bill, China’s loans are being spent on the re-disbursement of more than US$ 5 million in loans—for the Golden Energy Company (US$ 2 million), which is operating the Thayyaykhat (2) project, and Future Energy Co (more than US$ 3 million), which will implement the Beluchaung (3) project via the build/operate/transfer system.

It also says that the state-owned enterprises will spend more than US$ 243 million. And the large-scale renovation of Beluchaung No 2 power plant will be carried out with the help of Japan.

Yangon City Electricity Supply Board (YESB) is planning to upgrade its power generation system with oversea loan assistance from JICA, ADB, NEDA and ODA, the bill discloses.

China tops the list for the ministry’s foreign loan-taking to run the hydropower sector. Taking oversea loans is for the purchase of necessary facilities of hydropower projects, the installation of power grids and the construction of sub-power stations.

The ministry is planning to increase its power charges for home and industrial use as of April 1, as the ministry’s power distribution is running at a loss.

source: Eleven Myanmar

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