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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo; President & CEO: Masami Iijima) has acquired a 44% stake in Myanmar Power Pte Ltd ("MPPL"). Mitsui, MAXpower Asia Group Pte Ltd ("MAGPL") and MPPL have signed a share subscription agreement on mutually agreed upon terms between Mitsui and MAXpower Group Pte. Ltd. ("MGPL"), the parent company of MPPL and MAGPL. MGPL focuses on the delivery of distributed power throughout Indonesia and Myanmar. MPPL's approximate project costs to date are valued at about US$35 million.
MPPL operates, through its subsidiary MAXpower (Thaketa) Co., Ltd ("MAXpower Thaketa"), a gas-fired generation plant consisting of 16 General Electric Jenbacher gas engine generator units with capacity totaling 50 MW in Myanmar and sells electricity to Myanmar Electric Power Enterprise ("MEPE") under a power purchase agreement with a 30-year term (the "Project"). The Project commenced commercial operation in August 2013, and it contributes to the existing national power grid by providing a stable power supply by way of state-of-the-art and highly efficient engines running on environmentally-friendly natural gas. It is supporting the expected further growth of electricity demand in Myanmar, where electricity shortages have hampered economic growth and development.
MGPL, through its Navigat Energy business unit, sells and distributes GE Jenbacher gas engines, parts and services in Indonesia, Myanmar, Singapore and Thailand and, through MAXpower, develops its own distributed power in Indonesia and Myanmar. MGPL owns, operates and has under construction, power plants with capacity of approximately 450 MW.
Mitsui will pursue new power business opportunities in Myanmar which is one of the priority countries for Mitsui by leveraging its participation in the Project. The Project strengthens the partnership between 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.
|Sponsors||MAXpower Group Pte. Ltd.
MITSUI & CO., LTD.
|Capacity||Gas-fired power generation 50 MW (3.3 MW x 16 units)|
|Commencement of Operation||August, 2013|
|Location||Thaketa, Yangon Region, Myanmar|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
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