Mitsui, the Japanese investor in Myanmar, has acquired a 44 percent stake in Myanmar Power Pte Ltd (MPPL) from MAXpower Group, the first foreign company to enter Myanmar power market in 2013.
“Sealing a new strategic partnership with Mitsui will enable us to fast forward the de- velopment of our project pipeline in Myan- mar and beyond”, said Arno Hendriks, chief executive officer of MAXpower Group. MAXpower runs 50MW gas-fired power generation project in Thaketa district in Yangon. The Project commenced commer- cial operation in August 2013 and contrib- utes to the existing national power grid by providing a stable power supply. It also sup- ports anticipated further growth of electric- ity demand in Myanmar, where electricity shortages have hampered economic growth and development.
The companies have signed a share sub- scription agreement on mutually agreed terms between Mitsui and MAXpower Group Pte. Ltd. (MGPL), the parent compa- ny of MPPL and MAGPL on 16th December 2014.
MGPL focuses on the delivery of distribut- ed power throughout Indonesia and Myan- mar. MPPL’s approximate project costs will be about US$35 million, according to their press release.
MPPL operates, through its subsidiary MAXpower (Thaketa) Co., Ltd (MAXpower
Thaketa), a gas-fired generation plant con- sisting of 16 General Electric Jenbacher gas engine generator units with capacity total- ing 50 MW and sells electricity to Myanmar Electric Power Enterprise (MEPE) under a power purchase agreement with a 30-year term.
MGPL, through its Navigat Energy business unit, sells and distributes GE Jenbacher gas engines, parts and services in Indo- nesia, Myanmar, Singapore and Thailand and, through MAXpower, develops its own distributed power in Indonesia and Myan-
mar. MGPL owns, operates and has under construction, power plants with capacity of approximately 450 MW.
Mitsui will pursue new power business op- portunities in Myanmar which is one of the priority countries for the company by lever- aging its participation in the Project.
The Project strengthens the partnership be- tween MGPL and Mitsui, and the companies intend to co-develop new distributed power business not only in Myanmar but in other countries in South East Asia that anticipate rapid growth in electricity demand.
MAXpower Group, Southeast Asia leading gas-to-power specialist, is incorporated in Singapore, and headquartered in Jakarta. MAXpower launched the first 100% for- eign owned power plant in Myanmar and a 50MW facility in the first half of 2014 in the Thaketa district in Myanmar.
Mitsui& Co., Ltd is one of the most diversi- fied and comprehensive trading, investment and service enterprises in the world and is actively taking on challenges for global busi- ness innovation around the world.
