Myanmar Hopes Private Sector Can Fill In Investment Gap in Power Sector

Government of Myanmar is hoping that private sector can help cover a $2.5 billion annual investment shortfall in Myanmar’s power sector, an official told Myanmar Times.

Country’s energy sector needs about $30 billion to $40 billion over the next 15 to 20 years, according to the government’s recently published Energy Master Plan.

A large portion of the investment is expected to be provided by international financial institutions (IFI) but this still leaves ample room for private firms, the newspaper reported.

Peter Brimble, the ADB’s principal country specialist for Myanmar said this represents an opportunity for the private sector. “My energy guys say we need to build three Myingyans a year over the next 10 years to keep up with that pace [of investment],” he said during a panel discussion on energy and infrastructure at the American Chamber of Commerce Myanmar’s annual economic forum, referencing the planned 225-megawatt gas-fired power plant in central Myanmar.

The $300 million Myingyan power plant is set to be the largest gas-fired independent power plant in Myanmar, according to Singapore-listed Sembcorp, which has an 80 percent stake in the project, Myanmar Times said.

Deputy Minister for Electric Power U Aung Than Oo laid out the many opportunities for investment in the electricity sector during the same panel discussion.

“All investors have the opportunity to invest in [electricity] generation centre[s] near Yangon,” the minister said. “They can invest in generation power plants near Yangon using gas, liquefied natural gas or coal.”