Singapore-based Sembcorp Industries’ subsidiary Sembcorp Utilities has won a contract from Myanmar Electric Power Enterprise (MEPE) to develop a 225MW gas-fired power facility in the south-east Asian country.
MEPE is a part of the Ministry of Electric Power of Myanmar (MOEP).
The project will be developed in the Myingyan district of the Mandalay division. It is likely to involve an investment of $300m.
Sembcorp will sign a memorandum of agreement with MOEP for the investment and development of the project.
The Singaporean group will own a majority stake in the project, of at least 80%.
Sembcorp Industries group president and CEO Tang Kin Fei said: "The new facility will provide a reliable source of power, which is integral to the country’s economic development and electrification efforts.
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"At the same time, this project is in line with our focus to expand our global business and grow our overseas utilities contribution."
Construction of the project is scheduled to be completed by 2017. It will supply power to MEPE under a 22-year power purchase agreement (PPA).
The facility is expected to be the largest gas-fired independent power plant in Myanmar. The plant will assist the Asian country in meeting its energy deficits, which goes up to nearly 500MW during peak timings.
Government estimates show that Myanmar is likely to experience increased demands for power at a compounded annual growth rate of 13% over the next 15 years.
Population growth and rising electrification rates have been affecting the use of power resources in the country. MOEP has projected a surplus requirement of more than 20GW between 2013 and 2030.