Sembcorp Industries has recently announced that it has signed a long-term power purchase agreement (PPA) with Myanmar Electric Power Enterprise (MEPE) for the supply of 225 MW of power for a period of 22 years.
The power to be supplied will be produced by Sembcorp’s upcoming 225 MW gas-fired power plant in central Myanmar (Myingyan district of Mandalay).
The 225 MW gas-fired power plant will has an investment of US$300 million. The power plant is set to be the largest gas-fired independent power plant in Myanmar. Utilising the most efficient technologies, the plant will be able to maximize power output while minimizing emissions. When completed, the new facility will help to ease the country’s severe power deficit.
The PPA will come into effect upon the fulfillment of certain conditions precedent, including the execution by Myanmar’s Ministry of Electric Power (MOEP) of the build-own-transfer agreement for the project, pursuant to which MOEP agrees to provide all support for the implementation of the project and guarantees MEPE's payment obligations under the PPA.
The signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.
Dennis Foo, General Manager of Sembcorp Myingyan Power Company, said:
“Sembcorp is very pleased to sign this long-term PPA with MEPE. We look forward to working closely with MEPE and MOEP to help meet the growing demand for power here, thereby supporting Myanmar’s continued development and contributing to an enhanced quality of life for its people. We also hope to support the country through capacity building in the power sector.”