MAXpower (Thaketa) Co Ltd, a power generating subsidiary of Singapore-based Navigat Group, has begun supplying power under a purchasing agreement with the state-owned Myanmar Electric Power Enterprise (MEPE).
The Navigat group negotiated directly to formulate the agreement in order to develop the electricity sector across Myanmar.
The company said with this agreement it became the first 100-percent foreign-owned power company to enter into a long-term relationship with MEPE, which will now act as the blueprint for future power initiatives in Myanmar.
The Ministry of Electric Power has said it plans to carry out 17 power plant projects by 2016 – where 10 will be gas-fired and seven will be hydropower plants.
MAXpower has invested $35 million in the plant and the agreement opens the door for further power project developments throughout Myanmar, which has one of lowest electrification rates in the world.
Almost 70 percent of the population of Myanmar has no access to electricity, according to the World Bank, which in January pledged $1-billion financial support to Myanmar to expand electricity generation, transmission and distribution.