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Sembcorp inks agreement for gas-fired power plant in Myanmar
SEMBCORP Industries (Sembcorp) has announced the signing of a build-operate-transfer (BOT) agreement with the Ministry of Electricity and Energy of Myanmar (MOEE) for its upcoming 225-megawatt Sembcorp Myingyan gas-fired power plant in Mandalay.
Under the agreement, Sembcorp Myingyan Power Company will build and operate the power plant for 22 years, after which the facility will be transferred to the Myanmar government.
Sembcorp said the BOT agreement represents a key milestone and continued progress for the Sembcorp Myingyan project. It comes after the signing of a long-term power purchase agreement in March 2016, for the sale of the plant's entire power output to Electric Power Generation Enterprise, the successor entity to Myanma Electric Power Enterprise pursuant to re-organisation within MOEE.
The total project cost of the Sembcorp Myingyan Power Project is approximately US$300 million. Once operational, the Sembcorp Myingyan Power Project would become one of Myanmar's largest gas-fired power plants, and would help to play a key role in meeting the country's growing demand for electricity, Sembcorp said.
The signing of the agreement is not expected to have a material impact on Sembcorp's earnings per share and net asset value per share for the financial year ending Dec 31, 2017.