Sembcorp Utilities has signed a deal to develop a $225MW gas-fired power plant in central Myanmar, which will involve an investment of approximately $300m.
The firm has entered into a memorandum of agreement with Myanmar’s Department of Electric Power Planning (DEPP), under the Ministry of Electric Power of Myanmar (MOEP).
Sembcorp will own 80% stake in the new facility, while its partner MMID Utilities will hold the remaining 20% interest.
The deal will also allow Sembcorp to operate the power facility, which will be located at the Myingyan district of the Mandalay division.
Once operational, the facility will supply power to MOEP division Myanma Electric Power Enterprise (MEPE), under a 22-year power purchase agreement (PPA).
Sembcorp Industries executive vice-president Tan Cheng Guan said: "Sembcorp is pleased to be embarking on this project, which is our first investment in Myanmar.
"This new facility will provide a reliable source of power, which is integral to the country’s economic development. At the same time, it gives us a foothold to potentially develop other businesses in the country, such as water and urban development."
Claimed to be the largest gas-fired independent power plant in the country, the facility will use modern technologies to maximise power output and minimise emissions.
Project company Sembcorp Myingyan Power will undertake the development of the new power facility.