By Min Thit (MNA)
The Government of Myanmar is seeking means and implementing projects to fulfill the country’s industrial and public electricity demand as power supply is one of the most important requirements for national economic growth and the increase in foreign investment.
In so doing, the government is inviting investments from local and foreign sources for the country’s electricity sector. The 106-megawatt gas-fired power station in Thakayta Township, Yangon Region is one of the foreign investment projects of the electricity sector.
USD 126m investment
Union Resources & Engineering Co., Ltd. (UREC) a branch of the Yunnan Energy Investment Group (YEIG) put an investment of USD 126 million and built the 106-megawatt Thakayta gas-fired power station in cooperation with the Ministry of Electricity and Energy of Myanmar during the period between 2016 and 2018. The power station started operation on 28 February 2018.
The YEIG, the parent company of UREC, was established in Yunnan Province under the approval of Yunnan Province Government and Communist Party of China (CPC) in 2012. The mega company has been implementing hydropower, combined recycled power, solar power and wind power projects in various parts of the People’s Republic of China. Till now, the company has implemented projects that can generate over 15000 megawatts. Total value of the assets of YEIG is 187 billion Yuan. With its annual income of 113 billion Yuan it is contributing 20 percent to the gross domestic product (GDP) of Yunnan Province.
Union Resources & Engineering Co., Ltd. (UREC) a sub-company of the Yunnan Energy Investment Group (YEIG) has opened offices in Myanmar, Vietnam, Laos, Thailand, Bangladesh, Singapore and Hong Kong. In Myanmar, company built the 106-megawatt Thakayta gas-fired power station in Yangon and is implementing the 600-megawatt Shweli (1) hydropower project with its own investment in Shan State.
As regards its investment projects in Myanmar, Managing Director Mr. Dong Fan of Union Resources & Engineering Co., Ltd. said. “UREC is the company making investments mainly in power projects and implementing them by applying the state-of-the-art technology. Myanmar’s electricity consumption rate is rising daily amidst the Government’s endeavours to generate more power for the country. With the aim of putting investment into Myanmar’s energy sector under common interest for contributing towards the neighbouring country’s progress, the UREC has entered Myanmar.”
The 106-megawatt Thakayta gas-fired power station is generating about 800 million kilowatt hours of electricity per year and is producing power to about 42,000 homes. So it is partly fulfilling the power needs of Yangon City.
Myanmar could provide electricity for 50 percent of the people in December 2019, up from 34 percent in March 2016.
In its endeavours for generating more power for the national consumption, the Government built three hydropower stations, six combined recycled power stations and one solar power station totaling 10 that are producing 904 megawatts more for the country.
For all rural and urban areas
Apart from erecting more power stations to meet the growing local demand, the government installed 230-KV, 66-KV, 33-KV, 11-KV and 400-volt power cable lines totaling 19,600 miles long and 12,636 sub-power stations within a three-year period beginning 2016.
The government has been building more and more power stations, power cable lines and sub-power stations to supply enough energy for the people and industries. In December 2019, the national electrification ratio reached 50 percent. The government is striving for the national electrification ratio to touch 55 percent in 2021, more than 75 percent in fiscal year 2025-2026 and 100 percent in2030.
“Electricity is the most basic part of the national development. It plays the main role in increasing the national economic growth and improving the infrastructures for multiple sectors including social, health and education sectors. For example, inadequate power supply may scare away foreign investment. It is the most noticeable point of a developing country like Myanmar. Moreover, electricity is an essential requirement for health and education that serve as the springboard for social progress of the people,” said Mr. Dong Fan in expressing his view.
YEIG and UREC will make more investments in the power sector of Myanmar and one of its new projects is a LNG-fired power station at Meechiant area near Shwethaungyan Town in Pathein District, Ayeyawady Region, in the south of Myanmar.
“UREC has been working in Myanmar for over 30 years. In the future, YEIG and UREC will make more investments in Myanmar under the priority program of Yunnan Province Government. We have further investment schemes for Myanmar for the present and the future. “With the strategic and financial support of its parent company, YEIG, the UREC will increase its investment in Myanmar’s electricity sector to over US$ 2 billion in the next five years,” said Managing Director of UREC Mr. Dong Fan in explaining his company’s plans.
The electricity sector of Myanmar has now a total foreign investment of USD 21681.678 million and a total local investment of USD 483.435 million. In Yangon Region alone, the volume of foreign investment is USD 746.620 million and that of local investment is Ks 59060.554 million, according to the list of the Myanmar Investment Commission. (Translated by TMT)