Private Sector Participation

In early 1994 the permission of Private Sector to participate or jointly implement in Government activities was introduced also in the power sector.

Since then MEPE had been discusslng with several interested parties both local and foreign for private participation In various areas of the power sector. However, the low tariffs in local currency and the small amount of consumers in foreign currency have been a draw-back to the commercialization process.

With the promotion of the tourist industry, mining industry and the current trend of foreign investments in various sectors, an increase In the number of consumers in foreign currency is expected in the near future.

The tariff was increased in September 1994 for the first time in 40 years. It was raised fivefold from Kyat 0.50 to 2.5 Kyat per unit (of 1 kilowatt-hour) for domestic users and 3 Kyats per unit for commercial and industrial users. Tariff in foreign currency_ for foreigners, foreign and exportoriented companies is 0.08 US $ / kWh.

Even after this increase, the tariff in local currency is well below the commercial. rates needed to make power generation profitable. Recently the tariff has been further raised from K 2.50/kWh to K25/kWh for commercial and industrial consumers and for domestic above 200 units per month.

Pursuant to the increase in tariff, many of the local and foreign companies have discussed with eagerness for private participation in the power generation sector. For the time-being only the followings local companies are involved for investments in the power sector.

(a) The Present status of private participation in power sector Is as follows :

The following Power Projects have been permitted to respective local companies for implementation on BOOT (Built-Own-Operate-Transfer) Basis.

(1) 2 x 6 MW coal-fired power station at Tachileik Township, Wastem Shan State will be developed by Golden Triangle Co., Ltd.

(2) 2 x 12 MW Hydra Power Station at Myitkyina and Walng Maw Township, Kachin State will be developed by Bu Ga Co., Ltd.

(b) For the following Hydropower Projects located in Sittaung valley, the discussions for joint

Implementation with interested local companies and Myanma Electric Power-Enterprise are underway.
(1) 20 MW Yenwe Hydropower Project, Nyaunglebin Township, Bago Division.
(2) 66 MW Phyu I lydropower project Phyu Township, Bago Ulvision.
(3) 60 MW Kun Chaung Hydropower Phyu Township, Bago Division.