Myanmar to call international tender for power delivery

Myanmar will hold an international tender for gas to be delivered to the country via floating power plant to generate the electricity required to meet rising demand in Yangon by summer 2020, a senior official from the Ministry of Energy and Electricity (MOEE) told The Myanmar Times.

“We will invite an international tender. We will select those who can offer the cheapest price. This is a short-term emergency plan to generate more electricity supply as quickly as possible,” he said.

The MOEE plans to buy gas from the international market, which will be generated on the floating unit and channeled via pipeline to the transmission lines, he said. Distribution will be based at the jetties nearest to existing power generation infrastructure, he said.

There are currently eight locations in Myanmar with the required infrastructure allowing such ships to dock and supply electricity. The transmission lines, substations and pipelines are located in Kyaukphyu in Rakhine, Pathein in Ayeyarwady, Thilawa in Yangon and Mawlamyine in Mon State.

The MOEE plans to buy 600 megawatts worth of power in this manner and prices are expected to be high. “Based on the budget allocation for power, we can’t afford to pay too high a price but enough electricity must be provided to meet demand. There is also the issue of electricity rates to be resolved,” the official said.

The MOEE has set a deadline for the additional power to be generated by February next year. As such, the tender must take place within one month, the official added. Local companies will also be able to participate in the tender.

Last year, a similar arrangement with Turkish company Karadeniz Holding fell through.

The MOEE has been exploring other emergency options to generate more power, including taking a loan from Thailand and buying power from China.

Source: Myanmar Times

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