IBTimes UK

SembCorp signed a deal with Myanmar to supply 225 megawatts of power over 22 years.

The long-term power purchase agreement was signed with Myanma Electric Power Enterprise (MEPE).

SembCorp will supply power produced at its upcoming power project in Myingyan, Mandalay, the company said in a press note.

The PPA will come into effect after Myanmar's Ministry of Electric Power (MOEP) puts in place the build-own-transfer agreement for the project. The MOEP has agreed to provide all support for the implementation of the project and guarantees MEPE's payment obligations under the PPA.

"We look forward to working closely with MEPE and MOEP to help meet the growing demand for power here, thereby supporting Myanmar's continued development and contributing to an enhanced quality of life for its people. We also hope to support the country through capacity building in the power sector," said Dennis Foo, General Manager of Sembcorp Myingyan Power Company.

SembCorp said the signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of SembCorp Industries for the current financial year.