Completed Mixed AidData Chinese Aid

CDB provides loan for 135 MW Kyauk Phyu Combined Cycle Power Plant Construction Project (Linked to Record ID#88703)

$126M USD

Funder	China Development Bank (CDB)
Recipient Organization	Kyauk Phyu Electric Power Company Limited (KPEPC)
Country	Myanmar
Start Date	Mar 01, 2021
End Date	Sep 26, 2030
Duration	3,496 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`64147`

Grant Description

CDB provides loan for 135 MW Kyauk Phyu Combined Cycle Power Plant Construction Project On March 27, 2019, Kyauk Phyu Electric Power Company Limited (KPEPC) — a special purpose vehicle and joint venture of Power China Resources Limited (75% equity stake) and Myanmar Supreme Trading Company Limited (25% equity stake) — was legally incorporated in Myanmar.

Then, in July 2019, Myanmar’s Electric Power Generation Enterprise (EPGE), a state-owned energy company, invited tenders for the 135MW Kyauk Phyu Combined Cycle Power Plant Construction Project to be implemented on a build-operate-own (BOO) basis.

On November 5, 2019, a power purchase agreement (PPA) was signed by EPGE, Myanmar’s Ministry of Electricity and Energy (MOEE) and KPEPC. A land lease agreement was signed on September 11, 2020.

Then, in March 2021, KPEPC secured approval from the Foreign Exchange Management Department of the Central Bank of Myanmar to receive overseas financing for the implementation of the 135 MW Kyauk Phyu Combined Cycle Power Plant Construction Project. On May 27, 2021, KPEPC and the Government of Myanmar’s MOEE signed a 25-year concession agreement.

The total estimated cost of the independent power project was $180 million and it was financed according to a debt-to-equity ratio of 70-30. China Development Bank (CDB) is identified by an official source as the project’s source of debt financing. CDB reportedly issued an insured loan with an interest rate of 6-7% (captured via Record ID#64147).

The proceeds of the loan were to be use by the borrower to partially finance a commercial contract between KPEPC and Power China Resources Limited, which was signed on December 10, 2020.

Then, in 2022, ICBC Yangon Branch cooperated with a local bank in Myanmar to issue loans worth $9 million to KPEPC (captured via Record ID#102824).

ICBC Yangon Branch also provided $10.81 million in foreign exchange settlement for the construction and operation enterprise of the project, with a settlement amount of $28.45 million in the same year.

The purpose of the project was to build a 135 MW combined cycle power plant near the Kyauk Phyu 230KV main substation in Kyauk Phyu Township, Kyauk Phyu District, and Rakhine State. Power China Resources Limited was the EPC contractor responsible for the implementation of the project. Implementation commenced on February 5, 2021.

Then, on March 20, 2022, the centralized control system (DCS) system received electricity successfully, marking the official entry of the Kyaukpyu gas-fired power plant project into the commissioning and trial operation stage. On June 24, 2022, the EDI system in the power plant produced desalinated water.

Then, on October 11, 2022, an official handover ceremony was held for the power plant. The power plant was connected to the national grid on December 7, 2022. The project was originally scheduled to reach completion on November 30, 2022.

Residents of Ohntaw village in Kyaukphyu, where the power plant is located complained after a road promised as part of the project construction became unusable.

Project implementor Power China had promised to build a new road for residents after two roads and farmland were seized as part of the plant's development.

According to media reports, Power China officials officially promised the road to Kyaukphyu town residents at the Kyaukphyu Township General Administration Department. The company then built a one mile long, 12-ft-wide road linking Ohntaw with Gone Chun. However, the road was dirt and quickly became unusable.

In addition, in July 2023 the thermal sensor system had problems resulting in the shutting down of the power plant.

📋 Staff Comments

The Chinese project title is 皎漂燃气电站项目 or 皎漂燃气电站. The Burmese project title is ကျောက်ဖြူ ၁၃၅ မဂ္ဂါဝပ် သဘာဝဓာတ်ငွေ့နှင့်စွန့်ပစ်အပူသုံး ဓာတ်အားပေးစက်ရုံစီမံကိန်း.
According to the website of Rakhine Development Corporation Limited (RDCL), a state-owned corporation in Myanmar, CDB was the source of debt financing and it agreed to issue a loan with a 6-7% interest rate. For the time being, AidData assumes an interest rate of 6.5% and a loan commitment worth $12 million (70% of $180 million).
Myanmar Supreme Trading Company Limited was established in 1990 and has maintained a good cooperative relationship with the local energy and power departments. Its main business is mainly to supply, install and construct power transmission and transformation equipment. It constructed Myanmar's first 230kV steel pipe pile transmission line. Power China Resources Limited, a subsidiary of Power Construction Corporation of China, was established in Beijing on September 4, 2012 with registered capital of RMB 5.41 billion.
It is unknown if the Government of Myanmar issued a sovereign guarantee in support of the CDB loan for this project. It is also unknown if Sinosure is the source of credit insurance. These issues warrant further investigation.
Mr. Jiang Xingcheng is the Chief Executive Officer of KPEPC. His phone number is +959 266679966 and his email address is [email protected]. The Financial Manager of KPEPC is Gu Yonglin (email address: [email protected]).
The CDB loan’s precise signature (financial commitment) date is unknown. For the time being, AidData relies on a proxy for the loan commitment date (March 2021): when KPEPC secured approval from the Foreign Exchange Management Department of the Central Bank of Myanmar to receive overseas financing.

📚 Sources & References

中缅合作皎漂燃气电站项目购电协议签约
杜春国赴云南拜访有关单位
缅甸皎漂燃气电站顺利获得缅甸央行审批, မြန်မာနိုင်ငံ၏ လျှပ်စစ်စွမ်းအင်ကဏ္ဍတွင်တရုတ်၏ပါဝင်မှု
Myanmar's Kyaukphyu project received financing approval
China Myanma Iinvest Power Project Kyaukphyu
Kyauk Phyu Combined Cycle Power Plant (135 MW
Construction of Kyaukphyu Circulation Power Station in Myanmar started
EPC contract and Construction supervision service contract of Kyauk Phyu Gas-fired Combined Cycle Power Station in Myanmar was successfully signed
装机约135MW！缅甸皎漂燃气电站项目燃机正式就位
缅甸皎漂燃气电站项目签署《特许经营协议》
History
Myanmar signs PPA for Kyaukphyu gas-fired power project, https://elevenmyanmar.com/news/kyaukphyu-gas-fired-combined-cycle-power-plant-came-into-service
Myanmar starts operating the Chinese-backed 135 MW Kyaukpyu CCGT plant
陈海大使出席皎漂燃气电站点火仪式
缅甸皎漂燃气电站助力中缅经济走廊合作走深走实, “一带一路”峰会期间建筑央企签约超2000亿（附项目清单
缅甸若开邦首席部长充分肯定皎漂燃气电站项目
中企思会员企业投资缅甸项目介绍
中缅合作皎漂燃气电站项目购电协议签约
Holding a signing ceremony of power purchase agreement between Electric Power Generation Enterprise
Ministry of Electricity and Energy and the Kyauk Phyu Electricity Power Co.,Ltd
Supreme Group chief: 'Negotiations for financing the LNG projects have already started'
LNG projects: delayed, not dead
缅甸皎漂燃气电站天燃气顺利通气
PROPOSED 135 MW KYAUK PHYU COMBINED CYCLE POWER PLANT PROJECT AT KYAUK PHYU TOWNSHIP
Myanmar tenders five power IPP concessions
缅甸皎漂燃气电站天燃气顺利通气
缅甸皎漂燃气电站场外燃气管线全线贯通
缅甸皎漂燃气电站项目倒送电一次成功
人民网：缅甸皎漂燃气电站助力中缅经济走廊合作走深走实
缅甸皎漂燃气电站项目燃机正式就位
缅甸皎漂燃气电站项目桩基工程正式动工
缅甸皎漂项目永久营地工程正式开工
缅甸若开邦首席部长高度赞扬皎漂燃气电站项目
公司在海外投资的首座燃气电站首机点火仪式举行
缅甸皎漂项目荣获“外商投资最佳履约卓越贡献奖”
缅甸若开邦首席部长尼布点赞皎漂燃气电站项目
山东电建三公司签订缅甸皎漂电站运行维护协议
缅甸皎漂项目主体工程正式破土动工
缅甸皎漂项目首船钢结构顺利运达现场
Branches & Subsidiaries
Three units of Kyauk Phyu Gas-fired Power Station were connected to the grid at the same time
Chinese firm’s Kyaukphyu power plant failing on corporate social responsibility: residents
中企海外项目周报（2023.4.29-2023.5.5）
Chinese-backed power plant in Myanmar shuts down operation Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Kyauk Phyu Electric Power Company Limited (KPEPC)

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