Govt seeks parliament approval for US$131M loan

The government is seeking approval for a loan of US$131 million from South Korea that will be used to upgrade the country’s natural-gas infrastructure, a senior official says.

“The financing is meant to be used for a project to build a pipeline for the Shwe offshore gas field that will connect to the Myanmar-China gas pipeline,” Deputy Minister of Electricity and Energy U Tun Naing, said in the Pyidaungsu Hluttaw (Assembly of the Union) on Tuesday.

The loan will come from the Korean Economic Development and Cooperation Fund (EDCF).

“Existing portions of the Pyay-Sakha pipeline were built in 1980, while another section between Magwe and Shwe Taung needs to be strengthened, so some 191 kilometers of pipeline needs to be upgraded,” U Tun Naing said. The upgrades will involve the use of larger diameter coated carbon steel pipeline sections, he added.

“The main goal of the project is to improve the natural-gas pipeline network to connect upper and lower Myanmar,” said U Tun Naing.

The project will also enable distribution of natural gas from the Shwe offshore project to Shwe Taung and Myan Aung natural gas power plants and manufacturing businesses near Pyay. The project is located west of Magway and Bago region.

The Ministry of Electricity and Energy, Myanma Oil and Gas Enterprise, and South Korea’s K-EXIM Bank commission a survey conducted by have done a joint ground survey by hiring Byauksan Engineering from 2017 July to 2018 August with the Bank’s Grant Aid.

The loan term is 40 years; 15 years of grace period and 25 years of repayment period with interest rate of 0.01pc and 0.1pc of service charge. – Translated

Source: Myanmar Times

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