China Huaneng Group to Build Coal-Fired Power Project in Burma

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Researched by Industrial Info Resources (Sugar Land, Texas)--Huaneng Lancangjiang Hydropower Company Limited (Kunming, Yunnan), a subsidiary of China Huaneng Group (Beijing), was established in 2001 for the development of the hydropower resources of Lancangjiang River in Southwest China's Yunnan province. The company signed a memorandum of understanding regarding the development rights for the Rangoon coal-fired power project with HTOO Company (Rangoon, Burma) and the Burmese Ministry of Electric Power on February 11, 2010, China Huaneng Group announced on February 21, 2010.

According to the memorandum, the proposed coal-fired power plant has an estimated installed capacity of 270 megawatts (MW) and will be built on a build, own and transfer (BOT) basis. Total investment of the project is about $265 million.

This will be the first overseas coal-fired plant built by Huaneng Lacangjiang in Burma, and the first coal-fired project built in Burma from foreign investments. The signing of the memorandum marks that the cooperation on electric power development and energy between China and Burma is growing.

As the largest power producer in China, China Huaneng Group has long been engaged in power and energy cooperation with Burma. Early in 2006, Yunnan United Power Development Company Limited (Kunming, Yunnan), a holding subsidiary of Huaneng Lancangjiang, gained concession from the Burmese government to operate the 600-MW Ruilijiang I hydropower station, the largest hydropower project in Burma, for 40 years on a BOT basis. With the participation of Huaneng Lancangjiang, construction of the project was restored in July 2006, after more than a year of suspension because of lack of funding. In December of the same year, the river diversion for the project was achieved. In September 2008, the first unit was put into operation, and the last unit was successfully commissioned in April 2009. Successful implementation of the Ruilijiang I hydropower station provided a sound foundation for the expansion of cooperation between China and Burma in the coal-fired power sector.

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