Jatropha curcas plants growing by the roadside in Bagan. Pic: Stuart Deed

THE chairman of First Myanmar Investment Co Ltd, U Theim Wai, says an investment of K30 billion will be needed for a 100,000-acre biofuel plantation it is developing in Ayeyarwady Division in partnership with SPA Co.

FMI’s chairman, U Theim Wai, told shareholders at the company’s annual general meeting in mid-December the group is expected to have a 30 percent share in the project. The balance would be held by SPA Co, he said.

U Theim Wai said 700 acres of jatropha curcas has already been planted under the project, launched by FMI Co and SPA Co, in 2006.

“We are scheduled to plant another 10,000 acres in 2008,” he told shareholders.

He said FMI Co will need to commit financial resources and technology to implement the project over the long term.

The project is expected to begin generating profits in the 2009-2010 fiscal year, he said, adding that these would be reinvested in the project.

“It may be some years before shareholders enjoy a share of profits,” U Theim Wai said.

“Even if the 100,000-acre plantation is successfully completed, the company plans to develop other plantations totalling between 300,000 and 400,000 acres throughout the country,” he said.

“With the assistance of our sister company in Malaysia [Golden Hope Plantations Bhd], we are dedicated to establishing the biggest jatropha curcas plantation in Myanmar and in the region.”

U Theim Wai said the project had benefited from the availability of cheap land in Myanmar.

Golden Hope Plantations prepared the master plan for the plantation, which is between Pathein and Mawtin in Ayeyarwady Division.

The project is being managed by Myanmar Agri-Tech Ltd, a subsidiary of FMI Co.