The Myanmar electric power authorities have signed a memorandum of understanding (MoU) with two foreign companies, GMS Power Publish Co Ltd and Global Power Synergy Co Ltd of Thailand.
The MoU aims at conducting feasibility study for establishment of combined cycle power plant project in Ayeyawady and Yangon Regions, official media reported Saturday.
The cycle power plant project will be able to generate 500 megawatts, said the New Light of Myanmar.
Minister for Electric Power U Khin Maung Soe said that the ministry was carrying out power generation and distribution by applying energy resources in the country, adding that the construction of natural gas-fired power plants have potentials such as short construction period, full power generation and less environmental impact, he said.
The project will be 50 percent share each by the State and the companies and Asian Development Bank offered to disburse long-term loans 50 percent share for the project.
Feasibility study will undertake in Bogale and Kyaiklat Townships of Ayeyawady Region and Kawhmu Township of Yangon Region.
Due to the high demand in electricity, 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.