Project description
This summary covers equity and shareholder loan investments from Sembcorp Utilities Pte. Ltd., a non-shareholder loan from commercial lenders Clifford Capital Pte. Ltd., DBS Bank Ltd. (“DBS”), DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main, Hong Kong Branch (“DZ BANK Hong Kong”), and Oversea-Chinese Banking Corporation Limited (“OCBC”), and associated hedging investments from commercial lenders DBS, DZ BANK Hong Kong and OCBC into a power station in Myanmar. The investors have applied for MIGA guarantees of up to $250.0 million for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The proposed project involves the development, financing, construction, testing, commissioning, operation, and maintenance of a 225-megawatt gas-fired combined cycle power station in the Taung Thar Township, Myingyan District on a build-operate-transfer basis. The power station will be operated on gas supplied by the Myanma Oil & Gas Enterprise and Myanmar Electric Power Enterprise (MEPE), and produce electricity for offtake by MEPE.
Environmental Categorization
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the International Finance Corporation (IFC) for their investment in the project.
Development Impact
The proposed project will help address the current severe power shortage in Myanmar. In addition, the project’s combined-cycle gas turbine is more energy efficient than single-cycle gas power plants currently in use in the country.
The proposed project will create significant employment opportunities during the construction and operational phases.
The project is the first IPP project in Myanmar to be awarded on the basis of a competitive bidding process. The success of the project will demonstrate the sustainability of public and private sector partnerships in the country’s power sector to power developers and operators and help attract more capital flows into the country.
Information on this project is being disclosed under the early disclosure procedures outlined in MIGA’s Access to Information Policy.
MIGA’s support for this project is aligned with the agency’s priorities of supporting investments into countries eligible for financing from the International Development Association, Fragile and Conflict Affected Countries, and transformational projects. It is also aligned with the World Bank Group’s Country Partnership Framework with Myanmar that aims to implement a nationwide electrification program – with a target of achieving universal energy access by 2030.
