Hong Kong company wins emergency power tenders

Hong Kong company VPower Group (VP), working with Myanmar’s Zeya & Associates, has been awarded four emergency power tenders as the government races to meet its growing demand for power. The four projects would use imported liquified natural gas (LNG) to generate 920 megawatts of power. “All the projects are expected to commence commercial operation in the first half of 2020,” VP said in a statement.

In January, 2019, the Ministry of Electricity and Energy (MOEE) announced that it would turn to imported LNG to fill its power supply gaps. It announced emergency tenders for projects that would eventually add 3,000 megawatts of new generating capacity. But those projects fell well short of their goal, and in June, the government opened a new set of emergency tenders to try and meet power demands for the 2020 hot season.

However, the MOEE’s effort has been criticized for essentially trying to meet Myanmar’s long term and short term power needs at the same time. Analysts have said the scope of the projects are too large for their timelines of 210 days and harsh penalties for not meeting the deadlines. Speaking to the Myanmar Times, an anonymous industry consultant said, “Most reputable companies that looked at the emergency power tenders walked away as it is nearly impossible to execute.”

Nevertheless, VP is forging ahead with LNG-based power plants in Kyaukphyu Township, in Rakhine State, and Thanlyin and Thaketa townships in Yangon Region. The company will build on a track record of successful projects, including a 90 megawatt plant in Myingyan, a city in Mandalay Region.

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