Government courts ADB for power-line funding
After shunning a Chinese loan, the government is hoping to use Asian Development Bank financing to resurrect a project to build a power line from Mawlamyine to Dawei.
THE government is hoping to use Asian Development Bank financing to resurrect a project to build a power line from Mawlamyine to Dawei, the Union minister for electricity and energy has said.
The ministry is in negotiations with the ADB to help fund the 230 kilovolt power transmission line and accompanying sub-station, according to minister U Pe Zin Tun. The line will run from Mawlamyine to Dawei passing through Ye in southern Mon State.
U Pe Zin Tun made the statement to the Amyotha Hluttaw on July 29 in response to a question from representative U Myo Win (NLD; Mon 8) as to whether the project, which was promised by the previous government, would be restarted.
U San Yu, assistant permanent secretary for electricity, told The Myanmar Times the project failed to happen under the previous administration.
Loans from Exim Bank of China with a 2 percent interest rate were to have financed the project under the previous government, U Pe Zin Tun said. But the new administration has decided that this would be too expensive, and has approached the ADB for cheaper funding, he told parliament.
The previous government had estimated an Exim-funded project would cost a total of US$180 million. The new Ministry of Planning and Finance, however, has calculated that the project should cost $103.4 million based on interest-free funding, according to U Pe Zin Tun.
The project will be implemented when negotiations with the ADB have finished, he said.
ADB country director Winfried Wicklein said in an email yesterday that he could not comment on internal processes.
“Suffice to note that energy is a core sector for ADB assistance to Myanmar, and that we are working to provide support, through the long term, to the government for power network development,” he said.
The development bank approved financing for a distribution improvement project in 2013 and a transmission project in 2015, and is now working with the government to develop a series of additional power network development projects, he added.
“Moreover, ADB, through its private sector window, has been working with the private sector to increase the country’s power generation capacity.”
– Additional reporting by Steve Gilmore, translation by San Layy