8 February, 2017
The Ministry of Electricity and Energy of Myanmar (MOEE) has signed the build-operate-transfer (BOT) agreement with Singapore-based Sembcorp relating to the implementation of a 225-megawatt gas-fired power plant in Myingyan, Myanmar, with a total project cost of US$300 million. This is the first internationally competitively tendered power project in the country, as well as the largest gas-fired power station to be built in Myanmar to date. Myanmar has a severe power deficit estimated to be approximately 500-megawatts during peak periods. The project is seen as a key contributor to the improvement of life for people living in the Mandalay Region due to the extra capacity this power station will provide.
Under the agreement signed on 18 January 2017, Sembcorp Myingyan Power Company will build and operate the power plant for 22 years, after which the facility will be transferred to the Myanmar government.
Acting as lead counsel to Sembcorp, Duane Morris & Selvam LLP’s work included:
– Advised and negotiated all in-country project documents, including the Memorandum of Agreement, Power Purchase Agreement (PPA), BOT Agreement, Land Lease
Agreement, Attorney General Opinions and others
– Advised and negotiated all associated financing documents involving a consortium of private lenders as well as the International Finance Corporation (IFC) and Asian Development Bank (ADB)
– Advised on various aspects of Multilateral Investment Guarantee Agency (MIGA) and ADB political risk guarantees affecting the sponsors
– Advised and negotiated security documents and provided assistance with perfection of the same
– Assisted with project company establishment and issuance of Myanmar Investment Commission approval for the project
– Advised and negotiated EPC contracts and related documents
Lawyers involved include: partner Giles Cooper in Hanoi; director Mark D’Alelio in Yangon; partner Carl Winkworth in London; special counsel Pham Bach Duong in Ho Chi Minh City; and senior associates Su Pyi Sone and Rory Lang in Yangon.
