Thanlwin hydropower project gets nod
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Chinese company Hanergy Group Holding Ltd and local company Asia World have been granted approval to build the first hydropower project on the Thanlwin River, according to sources from Ministry of Electric Power.
The final agreement was reached in the third week of May between the government and the companies for construction of the Upper Thanlwin (Kunlong) project on the river, said an official from the ministry who asked not to be named.
The joint-venture agreement will allow the companies to build and operate the 1400 megawatt power plant for up to 40 years under a build-operate-transfer scheme.
Most electricity output, 85-90 per cent, will be sold to China and 15 per cent will be used in the country for free of charge.
The government has publicised no details about the project, which will be the first hydropower plant on the river.
The Chinese group signed the Memorandum of Agreement for the development, operation and transfer of the project with the Ministry of Electric Power in February 2010. In its statement then, it this is a project with the largest amount of investment cooperated between the government of the Union of Myanmar and a Chinese private enterprise.
Asia World has been authorised to build at least nine hydropower projects in cooperation with other Chinese companies. It also has been allowed to execute the Thaukraykhet (2) hydropower project independently, from which the ministry of electrical power now has been buying back the electricity at a cost of Ks 70 per unit.
Myanmar has completed 22 such projects and 14 are still under construction. There are also 50 hydropower projects already signed and under process to be signed to begin tasks, according to official data.
Out of the 45 hydro-power projects, 39 will be implemented by Chinese companies in cooperation with local companies such as Asia World, Shwe Taung and IGE under a 40 year lease before handing it back to the government, according to the data.
Asia World has been allowed to implement two projects in collaboration with China’s CPI, and two others in cooperation with two other China-based companies.
The local company, IGE, is allowed to work on four projects in cooperation with China-based YPIC International Company, and four others with China-based companies.
Shwe Taung is also allowed to work on up to 10 such projects with China-based CDOI Company.
From almost all these projects, Myanmar will get 10 per cent of the electricity output free of charge while the Chinese companies will take up to 90 percent of electricity.
No details about the environmental or social impact of these projects have been released. The government requires assessments as part of its investment laws.
