NAYPYITAW- Dr Tun Naing, Deputy Minister of Electricity and Energy, requested the Union Parliament to borrow US$ 298.9 million loan from Asian Development Bank (ADB) in order to carry out Myanmar electricity network development project.
“There are two sectors in the project. One is power generation and another is power distribution. For power generation, the cost will be $143.11 million and $ 98.94 million will be spent in the power distribution. The project’s consultant for hire will cost $ 10.48 million. The unexpected expenditure will be reserved at $ 38.60 million as well as the interest rate will be $ 7.77 million during the project. The State budget will be spent in Myanmar currency which is equal to estimate $10 million for costs of social, natural environments and land grants,” said Dr Tun Naing.
For ADB loan, the suspension period is eight years. The debt repayment period is 24 years. The interest rate is one per cent during the suspension period and 1.5 per cent during the repayment period.
The project will begin from April of 2019 to until June of 2015.
The Electricity and Energy Ministry will spend the ADB loan on development of electricity network to be carried out in Yangon, Taninthayi, Ayeyawady and Bago Regions, Mon, Kayin and Rakhine States.
For power generating, 230-KV power line and sub-power station in Ahlon, Yangon, Mawlamyaing-Yay-Dawei 230-KV line and sub-power station projects will be built under the ADB loan.
In power distribution sector, 42 sub-power stations including 66-KV and 33-KV will be constructed in Bago and Ayeyawady Regions and Mon, Kayin and Rakhine States.
Among the sub-power stations, six will be upgraded and new 48 power lines will be built with the assistance of ADB loan.