A subsidiary of Sembcorp Industries on Monday (Dec 7) signed a Memorandum of Agreement (MoA) to develop the largest gas-fired independent power plant in Myanmar.
Sembcorp Utilities will invest in and develop the US$300 million (S$420 million) power plant located in Myingyan district, Mandalay. The signing of the MoA with Myanmar’s Department of Electric Power Planning follows Sembcorp receiving the notice of award to develop and operate the plant in April.
The project was awarded after an international bidding process. Sembcorp will have an 80 per cent stake in the project, while its partner MMID Utilities will hold the remaining 20 per cent stake.
The power plant is expected to be completed in 2018, and will supply energy to the Myanma Electric Power Enterprise under a 22-year purchase agreement.
A project company, Sembcorp Myingyan Power Company, has been incorporated in Myanmar to undertake the development of the project. "The total project investment of approximately US$300 million is expected to be funded through a mix of limited recourse project financing and equity," said Sembcorp.
The signing of the MoA is not expected to have a material impact on earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2015.