Out-Law News | 24 May 2021 | 8:28 am |
Myanmar will invest $2.5 billion in a liquified natural gas (LNG) power plant, according to Myanmar’s investment commission (MIC).
The electricity generated by the LNG power plant will be sold domestically and it is expected to help to achieve the goal of 100% nationwide electricity from the national grid by 2030.
Another 14 projects related to electricity generation, manufacturing and other sectors have been approved by the MIC and will receive $300 million in investment, a statement said. It is expected to create 2,473 job opportunities.
According to Reuters, much of Myanmar's economy paralysed by protests and strikes since the army seized power in February. Its economy has been forecasted to contract by 20% this year.
Infrastructure expert John Yeap of Pinsent Masons, the law firm behind Out-Law, said: “The announcement of the investments that have been approved reflects the urgent need to prioritise the energy and electricity sector, as economic development through the building of factories, hospitals, roads, ports that will all be dependent on the adequacy of electricity supply. There are no doubt tremendous further opportunities for investment and the international debt and equity providers will be assessing their investment priorities for Myanmar against the context of managing its political and economic risks and opportunities.”
As of end of April, Myanmar’s biggest investors are Singapore, China and Thailand.