SEMBCORP Industries on Wednesday announced that its 225-megawatt gas-fired Sembcorp Myingyan Independent Power Plant (IPP) in Mandalay, Myanmar, has successfully commenced full commercial operation following its first phase operation in May this year.
The approximately US$300 million power plant uses advanced combined-cycle gas turbine technology that maximises power output while minimising emissions.
With the successful completion, the facility will generate around 1,500 gigawatt hours of power for supply to Myanmar’s Electric Power Generation Enterprise (EPGE), helping to meet the power needs of around 5.3 million people. This will help to ease the country’s severe power deficit, it said.The project’s completion follows the signing of a long-term power purchase agreement as well as a build-operate-transfer agreement with Myanmar’s Ministry of Electricity and Energy.
Under these agreements, Sembcorp Myingyan Power Company will build and operate the power plant for 22 years, after which the facility will be transferred to the Myanmar government.
Asian Development Bank, Asian Infrastructure Investment Bank, Clifford Capital, Development Bank of Singapore, DZ Bank, International Finance Corporation and Oversea-Chinese Banking Corporation supported Sembcorp in the funding of this project.
Sembcorp said it also aims to help the Myingyan community living in close proximity of the Sembcorp Myingyan plant, and has been actively engaging residents to understand their concerns and needs. Working closely with those in the community, Sembcorp aims to help improve their living standards and quality of life by assisting in flood relief work, generating training opportunities, refurbishing schools and repairing infrastructure.
The completion of Sembcorp Myingyan IPP is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2018.
Sembcorp Industries shares closed six cents lower at S$2.95 on Wednesday before it made the announcement.