YANGON. Jan.5(Xinhua) -- The Myanmar electric power authorities have signed a memorandum of understanding with Myanmar private company -- Union Resources and Engineering Co Ltd, to conduct feasibility study for establishment of natural gas and thermal power plant in Thakayta of Yangon over the last four days, official media reported Saturday.
Investment of the private sector has increased thanks to ongoing economic reforms of the government, said the New Light of Myanmar.
Minister for Electric Power U Khin Maung Soe called for private investment either local or foreign to cut annual expenditure of the government and to increase power supply to the public.
At present, there are two coal power plant projects under feasibility study with MoU signed for three gas engine power plant projects and one gas combined cycle factory project and MoA signed for two gas combined cycle factory projects to be implemented with investments of local and foreign private investors as joint ventures.
In October, Myanmar launched a 500-mw gas-fired combined cycle power plant project in Yangon's Thakayta township in cooperation with five South Korean companies including Busan Korea Biotechnology Co, Korea Western Power Co, Hyundai Engineering and Construction Co, Hana Daetoo Securities Co and Hexa International Co.
Myanmar produced up to 9.71 billion kilowatt-hours of electricity in 2011-12 but the demand is still not met.
Due to the high demand, the government is striving to produce electricity from natural gas, diesel, coal fire, solar power, wind power, biogas and waste fuel in addition to hydropower.