US firm's large-scale power project to benefit more than six million people

The signing of a large-scale, turnkey power contract in Myanmar will provide Myanmar Electric Power Enterprise with a guaranteed minimum of 82 megawatts of power generation, with plant capacity to deliver up to 100 MW.

The firm has planned to build one of the largest thermal plants in the country in Kyaukse, in the Mandalay Region, and it will be fuelled by natural gas.

The contract marks the first power generation agreement signed by a US company with the government of Myanmar since the lifting of economic sanctions in 2013. 

The firm hopes to commence operations in Myanmar in the second quarter of 2014 and expects to run through to late 2015.

APR Energy won the contract due to its ability to deliver in a very challenging timeframe, as well as for the efficiency of its power generation technology, said John Campion, the firm’s chief executive officer.

“We are delighted to have won this contract, based on our ability to optimize the use of natural gas resources in a fast, efficient, and effective manner,” said Campion.

“Today, three-quarters of Myanmar’s population is without access to electricity. This contract will create one of the biggest thermal plants in the country, enabling the provision of light and power to more than six million people.”

Campion also added that the Myanmar project marked another step in the firm’s expansion of businesses in the Asia Pacific region.

Clive Turton, the firm’s head of business development across Asia Pacific, stated that Myanmar is a key strategic market for APR Energy as the US firm rapidly expands its Asia-Pacific business.

“This landmark agreement will help Myanmar to meet its critical and growing need for electricity, using the country’s indigenous natural gas resources. We are committed to supporting the growth and development of the country’s power sector now and in the future.”

Turton added that the growing demand for electricity within Asia gives the firm a great opportunity to replicate success not only in Myanmar, but in other countries in the region.

The firm’s turnkey plant, featuring mobile gas power modules (GPMs), will become one of the cleanest power generation solutions in Myanmar and will represent a significant investment in the infrastructure of the country. 

Moreover, the firm will provide a bridging solution for the medium term while the country develops its long-term power generation infrastructure.

The US Ambassador to Myanmar, Derek Mitchell, has encouraged American businesses entering the newly-opened country, including APR Energy.

“Doing business in an emerging market economy does not come without its challenges, including the need to implement key economic reform policies, address infrastructure challenges, and make sure all benefit from the country’s economic potential,” said Mitchell.

“But we are confident that American businesses, with their experience and commitment to principled and transparent approaches, will make a tangible contribution to these efforts.” 

The firm provides power generation solutions to communities around the world, with an emphasis on Africa, the Americas, Asia Pacific and the Middle East.

APR Energy recently partnered with Singapore-based United Overseas Bank Limited to help it achieve its expansion into Myanmar.

Commenting on the partnership, Turton said, “UOB is a key partnership bank in Asia. Through leveraging UOB’s strong regional franchise in Asia, we have obtained tremendous support from UOB’s teams in respect to our recent landmark Myanmar contract. We look forward to working with UOB to support our Asian expansion plans.”

A UOB survey of 800 businesses in Asia found that one in two companies (51 per cent) with a turnover of between US$ 10 million (Ks 9.88 billion) and US$ 160 million (Ks 140.8 billion) see Myanmar as an expansion opportunity. Their preferred strategy is to establish a local presence (14 per cent) followed by partnering with local agents and businesses (11 per cent).

Sam Cheong, executive director and head of Foreign Direct Investment Advisory Unit at UOB Group, said that he could see more companies expressing serious interest in Myanmar

“Myanmar’s economic transformation has undoubtedly led to strong interest by both global and Asian enterprises in investing into the country. In fact, it is now a hot spot in Asia for investment and expansion plans.”

“Its favourable geographical position and large population of 60 million make it suitable for businesses looking to take advantage of trade flows and to build new customer bases,” Cheong added.

Since its incorporation in 1935, UOB has more than 500 offices in 19 countries in Asia Pacific, Western Europe and North America. In Asia the bank operates through its branches and representative offices as well as banking subsidiaries in China, Indonesia, Malaysia, the Philippines, Singapore, and Thailand.