Saturday, August 31, 2013

Asia World Company to provide electricity for Bago region

An area of Yangon city with power blackout seen this year (Photo:EMG/Myo Min Htet)
Myanmar's Asia World Company has recently been granted permission to distribute electricity to 37 townships in Eastern Bago Region.
Asia World Group is Myanmar’s largest and most diversified conglomerate, which interests in industrial development, construction, transportation, import-export, and a local supermarket chain.
About half of Singapore’s investment in Myanmar comes through Asia World affiliates.
The Asia World Company.
The company is one of 20 private enterprises recently granted permission by Myanmar's government and President Thein Sein to supply electricity to 84 townships in other states and regions.
The winner companies are Gold Energy Limited, which is a subsidiary of Asia World Company, Ruby Dragon Construction, Capital Development, Eden Energy and Natural Resources Development Company.
Private power distribution companies will generate and supply not only electricity to the national grid but also reserve electricity when electricity cut off and power voltage is low.
Moreover, the companies have submitted the proposals to generate reserve power from coal-powered plants or natural gas-powered plants.
While the government outsources power distribution to private companies, there is yet no law in place that sets a standard for electricity supply and costs. Neither was any official announcement made about the contracts.
Many recognise the urgent need to upscale electricity production in Myanmar to meet a growing domestic demand for both businesses and private consumption. But many fear that a lack of regulation will lead to lack of accountability and exorbitant prices.
"If the industrialists invest in private power distribution enterprise, the public can enjoy more electricity. But, they [public] can’t get the electricity charges at the current price," an official from Yangon Region Government Committee said at a recent seminar held at the Sedona Hotel in Yangon.

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