Mar. 06, 2015
Contract Awarded for Construction of Units 1 and 2 of gas-fired power generation plant that will provide electricity to Myanmar’s Thilawa SEZ
Sumitomo Corporation (Head Office: Chuo-ku, Tokyo; President and CEO: Kuniharu Nakamura) has been awarded for the construction of Units 1 and 2 of gas-fired power generation plant (power generating capacity: 50 MW[25MW x 2 units]) next to the Thilawa Special Economic Zone in Myanmar. The order was placed by Myanma Electric Power Enterprise, a public utility corporation affiliated with the Myanmar Ministry of Electric Power. The total value of the contract is around five billion yen.
With a population now exceeding 50 million, Myanmar has high potential to become a favorable consumer market. Furthermore, its large and high-quality workforce can provide the country with a significant competitive advantage as a manufacturing base. Since the civilian government came into office, businesses and direct investments coming into Myanmar have increased and investment that was previously channeled into light industry is now reaching a variety of sectors. For businesses setting up in new areas, basic infrastructure such as a stable on-site electricity supply is essential. In addition, in line with the expected rapid economic growth of Myanmar, electricity demands are expected to increase fivefold by 2030. The early construction of a new power generation plant has therefore become vital. Against this background, a yen loan agreement was signed between the Japan International Cooperation Agency (JICA) and the Myanmar government in 2013 to support the improvement of infrastructure in Myanmar, under which this power plant project has been proceeding.
This power plant will be located next to the Thilawa Special Economic Zone (Thilawa SEZ) and will supply electricity to both the SEZ and Yangon, Myanmar’s largest city. Sumitomo Corporation will therefore not only be supporting companies that establish businesses within the Thilawa SEZ but will also contribute to the economic development of Myanmar itself. Mitsubishi Hitachi Power Systems Ltd. will supply key components, namely, turbines and power generators, while Taihei Dengyo Kaisha Ltd. will be responsible for the supply of other parts, including accessory facilities.
Operation is expected to begin in March 2016 for Unit1 and July 2016 for Unit 2.
Based on its long track record, Sumitomo Corporation has built a number of power plants, mostly in Asian countries such as Indonesia, Vietnam and Malaysia. We will continue to make efforts to win orders from countries around the world, including Myanmar, and to contribute to the economic development of those countries in cooperation with our partners.