INVITATION TO BID FOR IMPLEMENTATION OF GROUND MOUNTED SOLAR POWER PLANT PROJECTS ON INDEPENDENT POWER PRODUCER AND BUILD - OPERATE - OWN BASIS
Electric Power Generation Enterprise (EPGE) seeks to invite tender for the purchasing of electricity at Designated Connection Points from the Ground Mounted Solar Power Plant Projects on lndependent Power Producer (lPP) and Build Operate Own (BOO) basis. 2. The Concession period shall be 20 (twenty) years from Commercial Operation Date (COD).
(Source: Ministry of Electricity and Energy, May 18, 2020)
Hpone Myint Thu (Assistant Research Manager):
According to Bloomberg New Energy Finance, the price of electricity generated from solar power has dropped below wholesale market prices in many countries as the light capturing efficiency has increased and the cost of photovoltaic (PV) modules has fallen by more than 80% since 2010. Furthermore, the Institute for Energy Economics and Financial Analysis studies reveal that Southeast Asia had the cumulative solar PV capacity of 12.6 gigawatts in 2019. Although Myanmar is seen as a latecomer in solar power generation, this new 1.0-gigawatt initiative announced by Ministry of Electricity and Energy, if implemented successfully, could be a great leap forward in terms of energy infrastructure modernization. Looking at the geographic aspect of it closely, majority of the designated connection points listed in the bidding invitation turns out to be in Bago, Magway and Mandalay regions. In fact, the sunny and dry weather in Central Myanmar well complements with this proposition. This may reduce the conventional reliance on hydro power to the certain extent, and the electricity shortage in summer is also expected to be mitigated as a result. Chindwin and Ayeyarwady delta areas are most likely to benefit from this solarization initiative, and so will the industrial zones from nearby regions. Colliers encourages investors to take these upcoming power plants into account in selecting the sites for their future industrial projects. With efficient solar power cells and panels in place, this could facilitate and expedite Myanmar’s dream of becoming one of the industrial powerhouses in the region.
'ALL MY DREAMS ARE SHATTERED': CORONAVIRUS CRUSHES ASIA’S GARMENT INDUSTRY
Zarchi Lwin pawned her only two gold bangles for $140 when the owner of the Myanmar factory where she sewed winter coats for British retailer Next Plc shut it down after orders dried up due to the coronavirus. She is one of hundreds of thousands of garment workers across Asia who have been laid off, according to the Workers Rights Consortium, a labour rights campaign group, and are now struggling to survive with little welfare support, mired in debt and in many cases reliant on food handouts. “If I have a job and an income, I can pay for medical treatment for my mother,” Zarchi Lwin, 29, told Reuters from the home she shares with her 56-year-old mother, who has lung disease, in a shanty town on the outskirts of Yangon. “Now no income, no job,” she said, fighting back tears. “We don’t know what to do.” Next temporarily closed all its stores in Britain in March due to the coronavirus. The company said in a statement it had only cancelled some orders and “endeavoured to be fair” to its suppliers. KGG, the factory where Zarchi Lwin worked, did not respond to requests for comment. Since the 1960s, Asia has grown into the world’s garment factory, sending about $670 billion worth of clothes, shoes and bags a year to Europe, the United States and richer Asian countries, according to the International Labour Organization, a United Nations agency.
(Source: Thompson Reuters, May 21, 2020)
Paul Ryan Cuevas (Senior Research Analyst):
The outbreak has stunned the global community with a record humanitarian crisis, and will likely continue to have a long-lasting impact on the world economy. Specifically in Asia, garment manufacturers have been struggling as they have been directed to halt production and/or cut capacity owing to the substantial disruption of end-to-end global supply chains and the national restrictions on people as well as economic activity. This situation puts Myanmar in the same light. According to the International Labour Organization (ILO), as of April 9, about 20% of all garment factories in the country have frozen their production. Myanmar factories are principally impacted as European buyers, which account for 70% of the country’s garment exports, have been cancelling orders. In lieu of such, reps and agents of unions, employers and government are gathering to deliberate the impact on workers. Together with ILO, Colliers believes that it is important for garment manufacturers to stay resilient and to prepare for the possibility that the pandemic may perhaps change their way of doing business. For factories that have previously developed a Business Continuity or Business Resiliency plan, they should make sure to use the information available and the measures outlined, adjusting based on the specific nature of the pandemic.
MYANMAR TO INVITE TENDERS FOR SOLAR POWER: MOEE
The Ministry of Electricity and Energy (MOEE) will invite local and foreign investors to tender for a solar power plant project, said U Soe Myint, Deputy Permanent Secretary at the ministry. The Independent Power Plant should be able to generate 1000 megawatts of solar power, which the government would purchase based on a 20-year Build-Operate-Own system, he said. This could include more than one plant. Those interested in making the investment will be asked to submit proposals not later than June 18. The application cost is K300,000. U Ye Tun Zaw, chief engineer at the MOEE, said renewable energy such as solar power can reduce carbon emissions and create jobs for the locals. "The ministry is seeking various approaches in its longer-term plans to generate electricity," he said.
(Source: Myanmar Times, May 21, 2020)
Nida Soe (Research Analyst):
In spite of the large influx of investments in the energy sector, the market for energy companies remains fruitful. Under the National Electrification Plan, Myanmar has set a goal to achieve 100 percent nationwide electrification by 2030. As of December 2019, the country has only achieved 50 percent of nationwide electrification, compared to 34 percent penetration in 2015. At the same time, the demand for energy continues to grow at a staggering pace. Between 2000 and 2012, electricity demand in Myanmar grew at 9.8 percent year-on-year. Japan International Cooperation Agency (JICA) estimates that energy demand will be at approximately 15 gigawatts (GW) by 2030, a fivefold increase from current levels. For Myanmar’s economic ambitions to come to fruition, Colliers sees that Myanmar is keen on prioritizing investment projects that will help solve its energy challenges sustainably in the upcoming decade. Notably, in October 2019, Yoma Strategic and Philippine conglomerate Ayala Corporation formed a joint venture focusing on Myanmar’s renewable energy industry. The venture - equally owned by the Yoma and Ayala subsidiary AC Energy - plans to build projects amounting to around 200 megawatts by investing US$30 million into Yoma Micro Power. As Colliers sees it, the supply of electricity is one of the largest opportunities in Myanmar and also one of the biggest bottlenecks for economic development, creating ample room for growth in the sector.