Five South Korean companies have been given the go-ahead to launch a 500-megawatt (mw) gas-fired combined cycle power plant project in Rangoon’s Thakayta Township, official media reported on Saturday.
Officials said the authorities have signed a memorandum of understanding, the sixth MoU of its kind signed with foreign companies to carry out similar energy projects under a build-operate-transfer system, said the New Light of Myanmar.
Companies involved in the latest project are Busan Korea Biotechnology Co, Korea Western Power Co, Hyundai Engineering and Construction Co, Hana Daetoo Securities Co and Hexa International Co.
The project is aimed at supplying electric power to the Thilawa Special Economic Zone (SEZ), one of the special economic zones set up in the Rangoon region.
In September, three Japanese industrial and economic groups reached agreement to establish the Thilawa zone in Rangoon’s Thilawa Port.
Under the agreement, Japan's Mitsuibishi Corporation, Marubeni Corporation and Sumitomo Corporation will hold a 49 percent share to run the 2,400-hectare Thilawa SEZ, while Burmese entrepreneurs in the form of public company will take 51 percent.
The Japanese side will also provide financial assistance to the SEZ' s infrastructural development such as factories and workshops and one natural gas-fired power plant.
In addition to foreign investors, the government also invited domestic entrepreneurs to take part in the project through shares.
The Thilawa SEZ project lies between Thanlyin and Kyauktan townships in Yangon region, which is next to the Dawei Special Economic Zone project in southern Taninthayi region.