Hanergy & Asia World to build first project on Thanlwin River
Chinese company Hanergy Group Holdings Ltd., and local company Asia World have been granted the go-ahead to build the first hydro-power project on the Thanlwin River, according to sources from Ministry of Electric Power.
The final agreement was reached in the third week of May between the government and the companies for construction of the Upper Thanlwin (Kwonlon) project on the river.
The joint venture agreement will allow the companies to build and operate the 1400 megawatt power plant for up to 40 years under a build-operate-transfer scheme.
An official from the ministry said the project will provide 10 or 15 percent free electricity to the country. The Chinese company will take an 85 percent to 90 percent of electricity output from the project. Myanmar will own a 15 percent stake and the two companies will own up to 90 percent stake in the project.
If Myanmar wants to use more electricity than the free share, it will have to buy it from the companies. The government has publicised no details about the project which will be the first hydro-power plant on the river.
Asia World has been authorised to build at least nine hydro-power projects in cooperation with other Chinese companies.
It also has been allowed to execute the Thaukraykhet (2) hydro-power project independently, from which the ministry of electrical power now has been buying back the electricity at a cost of Ks 70 per unit.
Myanmar has completed 22 such projects and 14 are still under construction.
There are also fifty hydro-power projects already signed and under process to be signed to begin tasks, according to official data.
Out of the 45 hydro-power projects, 39 will be implemented by Chinese companies in cooperation with local companies such as Asia World, Shwe Taung and IGE under a 40 year lease before handing it back to the government, according to the data.
Asia World has been allowed to implement two projects in collaboration with Chinaâ€™s CPI, and two others in cooperation with two other China-based companies.
The local company IGE is allowed to work four projects in cooperation with China-based YPIC International Company, and four others hands in hands with China-based companies.
The Shwe Taung is also allowed to work up to 10 such projects together with China-based CDOI Company.
From almost all these projects, Myanmar will get 10 percent of the electricity output free of charge while the Chinese companies will take up to 90 percent of electricity.
No details about the environmental or social impact of these projects has been released although the government requires assessments as part of its investment laws.