Myanmar Electric Power Enterprise (MEPE) has officially granted Sembcorp the 225MW Myingyan gas-fired power project.
MEPE is a unit of the Ministry of Electric Power of Myanmar (MOEP). It had already unofficially granted Sembcorp preferred bidder status.
Sembcorp has already lined up four lenders for the project. They are: Clifford Capi, DBS Bank, DZ Bank, Oversea-Chinese Banking Corporation.
Sembcorp discoursed about providing a mixture of political risk insurance and loans for the project with several multilaterals. This includes: The Asian Development Bank, The International Finance Corporation, Overseas Private Investment Corporation
Sembcorp will have at least an 80% stake in the $300 million project. The project will come online in 2017 and will supply power to MEPE under a 22-year power purchase agreement (PPA).
After accomplishment the new facility will help to solve the country’s acute power shortfall. It is assessed to be approximately 500MW during peak periods. Financial close of the project is expected by year-end.