A South Korean company will build a new 40 megawatt power plant in Bago, the company said, becoming the latest foreign firm to answer Myanmar’s desperate call for new power projects.

The firm, MCM Power Company, will invest USD 35 million in a new gas-fired power plant as well as distribution infrastructure in Pyay Township, Bago Region, according to the Directorate of Investment and Company Administration (DICA). When it opens in April, 2020, the plant will begin with 40 megawatts of generating capacity, but may eventually increase to 80 megawatts, said Finnish manufacturer Wärtsilä, which is supplying engines for the project.

The project comes amid a scramble for new power generation. Myanmar has always endured a seasonal power shortage during its dry months, when demand for electricity is highest and Myanmar’s rivers (which generate more than half of Myanmar’s power via hydroelectric dams) are at their lowest levels. The city of Yangon could not meet the demand for power last spring and was forced to impose rolling blackouts. This summer, the Ministry of Electricity and Energy doled out five emergency tenders worth a total of USD 500 million to create 900 megawatts of new installed capacity. Four of these tenders were awarded to Hong Kong-listed VPower Group.

In the long term, the government aims to provide 100 percent of its population power by 2030, a goal that will require an investment of USD 20-30 billion. Currently, only around 60 percent of Myanmar households are connected to the national grid.