(THAI BUSINESS ASSOCIATION OF MYANMAR)

www.tbam1997.com

Companies from Japan, South Korea, Thailand and China are inquiring to make investments in the Myanmar electricity sector, according to U Thant Sin Lwin, Acting Director General of the Directorate of Investment and Company Administration.

“We have received many inquiries for possible investments in electricity. Some Japanese companies want to make investments in the power sector under joint ventures. Japanese and Korean companies want to provide power in Yangon. Meanwhile the Chinese companies want to know the necessary procedures to build hydropower plants,” he said.

These companies came to Myanmar in May and met with the investment body to discuss the power sector. Likewise, U Zaw Min Win, President of UMFCCI, also said that some of the Japanese companies are planning to make investments in power projects that will produce around 1,000 megawatts.

During this fiscal year, Myanmar has seen $93 million worth of investments from Singapore’s Semcorp and Thailand’s Green Earth Power.

Under the government’s National Electrification Plan, the Ministry of Electricity and Energy plan to provide electricity to 55 percent of households by 2021, 75 percent by 2026 and 100 percent by 2030.

The World Bank’s report also suggested that Myanmar needs to receive more foreign investment in the power sector in order to realize its ambitious electrification target. The report also highlights that power blackouts occurring across the country have been a challenge for the power sector, and the country’s power distribution system needs to be strengthened for more effective power distribution.

Yangon raised electricity fees on July 1, experts support this decision and feel that the power issues have repelled potential foreign investors.