Hydropower attracts big investment in Myanmar

Hydropower attracts big investment in Myanmar
The Myanmar Times
By Juliet Shwe Gaung
January 10 - 16, 2011

http://www.mmtimes.com/2011/business/557/biz55702.html

ONE-THIRD of the total foreign investment in Myanmar went into the
hydropower sector during the first seven months of the 2010-2011 fiscal
year, and hydropower represented the second-largest investment sector,
according to official figures.

Figures from the government's Central Statistical Organisation show that
from April to October 2010, foreign investment in the power sector
reached US$5.03 billion. Total foreign investment in all sectors during
the period was $15.9 billion.

Investment in hydropower was second only to oil and gas, which amounted
to $9.8 billion, while the mining sector stood in third place with
investment totalling $990 million during the period.

In 2010 a total of seven memoranda of understanding (MOU) and memoranda
of agreement (MOA) were signed between investors and the Department of
Hydropower Planning under the Ministry of Electric Power (1).

In February, the government signed an MOA with China for implementation
of a 1400 megawatt (MW) hydropower project on the upper Thanlwin
(Kunlong) River in Shan State. An MOU was also signed between China and
the Htoo Group of Companies for construction of a coal-fired thermal
power plant in Yangon.

In April, an MOA was signed with Thailand and China for implementation
of the 1360MW Hutgyi hydropower project in Kayin State, and the
following month an MOU was signed with China for construction of the
520MW Mawlite hydropower project and a Kalewa coal-fired power plant,
both in Sagaing Region.

July saw the signing of an MOA with China for a 1055MW Ngaw Chan Hka
hydropower project in Kachin State.

China and Thailand signed another MOU with the government in November
for the 1400MW upper Thanlwin (Ming Long) project in Shan state. Other
agreements were signed in the same month for the 520MW Shwe Li (2) and
280MW Belin hydropower projects in Shan state.

There are currently 16 hydropower stations and one coal-fired power
plant operating in Myanmar. The most recent to open was the Yeywa
hydropower project in Mandalay Region, the first dam built in the
country using roller compacted concrete construction techniques. Opened
on December 15, it has the capacity to generate 790MW of power.

The 75MW Shwegyin hydropower project is about 80 percent complete and is
one of 10 projects due to be completed in 2012. Altogether these
projects will generate 1656MW, in addition to the 2100MW currently
generated for the entire country though hydropower.

A former official from the Ministry of Electric Power (1) said Myanmar
was unable to exploit all the identified hydropower resources on its
own, so it had signed joint-venture agreements with neighbouring
countries like Thailand, China and Bangladesh for implementation and
export of power.

The joint-venture projects not only generate foreign exchange revenue
during the concession period, but also increase the country's overall
power generation, because the agreements entitle Myanmar to 10-15pc of
the annual electricity generated from the power stations free of charge,
he said.
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