Two Thai energy companies, GMS Power Publish Co Ltd and Global Power Synergy Co Ltd, have signed a memorandum of understanding (MoU) on power plants with the Myanmar electric power authorities.
The MoU is aimed at conducting a feasibility study for the establishment of combined cycle power plant projects with a 500 megawatts capacity in Ayeyarwady and Yangon regions, official media reported.
The construction of natural gas-fired power plants have advantages such as short construction period, efficient power generation and less environmental impact, Minister for Electric Power U Khin Maung Soe was quoted as saying in the New Light of Myanmar.
The government will have a 50 percent stake in the project. The Asian Development Bank will also disburse long-term loans for the project.
A feasibility study will be carried out in Bogale and Kyaiklat townships of Ayeyarwady region and Kawhmu township of Yangon region.
Due to the rising demand of electricity, Myanmar government is scampering to produce electricity from all the sources available such as natural gas, diesel and coal, besides hydropower and other renewable energy sources.