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You are here: News Mizzima Burma signs MoU for Rangoon power plant

Burma signs MoU for Rangoon power plant

Burma has signed an agreement to conduct a study to build a natural gas-fired and combined cycle 100-megawatt power plant in Ahlone Township in Rangoon Region, official media reported on Sunday.

TLP Cogen Rayong Power Plant in Thailand.  Photo: toyo-thai.comA Memorandum of Understanding (MoU) was signed between the electric power authority and the Toyo-Thai Corporation Public Company.

Minister of Electric Power-2 Khin Maung Soe said the company would do a feasibility study for a 100-megawatt (mw) combined cycle power plant, which would include environmental and social impact assessments, said The New Light of Myanmar, the state-run newspaper.

Burma is also interested in building power plants that can generate 1,000 mw from solar energy in Rangoon and another 200 mw plant in Mandalay, the second largest city, officials said.

Burma produced up to 9.71 billion kilowatt-hours of electricity in 2011-12, far below the country’s basic needs, which led to regular blackouts and rationing of electrical power.

On June 4, Mizzima reported that a MoU agreement to build a 500-megawatt gas-fired power plant in Thakayta Township had been signed by the ministry in cooperation with BKB Consortium (South Korea) and Hexa International Co., Ltd and BOT/JV system. The project included two gas turbines, two head-recovery stream generators and one stream turbine.

“We know that electricity is a major challenge for our country. We have to consider five essential needs – land, electricity, roads, telecommunications and water – when foreign investors are coming. We are trying to find ways to have [create] a 24-hour electricity supply to develop our country,” Deputy Minister for Electric Power 2 Aung Than Oo said at a press conference on May 21.

Aung Than Oo said the government was inviting foreign investment in the power sector.

“We are going to build a 600 megawatt (MW) coal-fired plant with Japanese J Power Company and another 500 MW gas-fired power plant with South Korea. These plants will be built near Yangon,” he said.

The coal plant would take three or four years to complete. The gas-fired plant would be finished in a little over a year, he said.

The Ministry of Electric Power 1 is responsible for electricity production and managing hydropower projects; the Ministry of Electric Power 2 is responsible for electricity generation, distribution and sales, while the Ministry of Energy sells natural gas to foreign countries.