Wednesday, April 26, 2017
The Myanmar Times
The Myanmar Times

APR signs Kyaukse power project extension

American power giant APR Energy has signed an extension agreement with the government for its plant at Kyaukse near Mandalay.

A man leads a tour of APR’s Kyaukse plant in 2014.(Aung Shin/The Myanmar Times)A man leads a tour of APR’s Kyaukse plant in 2014.(Aung Shin/The Myanmar Times)

The fast-track turnkey plant supplies power to Kyaukse industrial zone and to the national grid.

The industrial zone was built under the former government, in the hometown of senior general U Than Shwe.

In 2013 the government called a tender for an 18-month contract to supply the project with power, which was won by APR energy in February 2014, marking the first power generation agreement between the government and a US company since the lifting of international sanctions.

Switched on in May of the same year, the plant generates around 82 megawatts of its 103MW total installed capacity.

In October, the company signed a year’s extension under similar financial terms, according to an APR statement on November 17.

U Htain Lwin, managing director of Myanma Electric Power Enterprise said the new contract is for 12 months, with the option to extend it for a further six.

“The power purchasing price for generated electricity is US$0.032 per kilowatt per hour,” he said.

This price is lower than in the previous contract, he said, though declined to provide additional details.

APR is likely to have spent over $80 million to implement the project, including buying 68 heavy-duty Caterpillar generators, each worth $1.4 million, according to a second MEPE official.

APR also installed an additional 20MW in generation capacity during the first quarter of 2015 to help offset the reduction of hydropower in the annual dry season.

The project is one of the country’s largest thermal power plants and is the first engine-based gas-fired plant commissioned by MEPE on a short-term contract.

The state-owned power enterprise is also running another fast-track turnkey facility in Rakhine State.