US-based ACO Investment Group has entered into an agreement with the Ministry of Electric Power for the construction of two 150-megawatt solar power plants in Mandalay Division. The project, which reports say, is likely to see the plants located in Myingyan and Meiktila districts, is valued at $480 million, according to a release from the Office of the U.S. Trade Representative. The plants are expected to account for 10 percent to 12 percent of Myanmar’s power generation when completed in 2016, the release said.
Hari Achuthan, managing director of ACO, said that the company has secured investment of about US$ 150 million in the deal and the project is expected to provide 400 construction jobs and 100 permanent jobs. US Trade Representative Michael Froman said that the project marks one of the most significant investments from a US company in Myanmar, which have reached more than US$ 600 million since sanctions were lifted.
Myanmar will expand its sources of clean energy through an agreement with ACO Investment Group, focusing on Asian emerging markets, as the country begins to put a policy structure in place to encourage renewable energy. ACO’s project is the first-ever solar energy development in the Mandalay region. It will help Myanmar provide stable energy because the country depends heavily on hydropower, which decreases in output during the dry season, the release said.