Myanmar has signed a credit agreement with the World Bank Group (WBG) designed to increase electric power needed to help drive the economic development and international trade growth of the Southeast Asian country.
The country signed on October 12, 2013 a US$140-million credit agreement with the banking group to fund the installation of a modern, high-efficiency 106-megawatt electric power plant in Mon State.
The investment is part of Myanmar’s power expansion plan and involves replacing aging gas turbines with new units, and producing 250 percent more electricity with the same amount of gas as a first step to bringing more and cleaner electricity to Myanmar.
“The government of Myanmar has identified electricity as a top priority for our country’s development and this project is an important part of our effort to build a better future for our people,” said U Win Shein, Myanmar’s Minister of Finance.
The interest-free Myanmar Electric Power Project credit was approved on September 24.
At the same signing ceremony, Myanmar also took steps leading to full membership in the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA).
Membership in MIGA means that foreign direct investment into Myanmar will be eligible for the agency’s political risk insurance. This insurance protects investments against the risks of transfer restriction, expropriation, breach of contract, war and civil disturbance, and non-honoring of financial obligations.
Investors from Myanmar going into other developing countries may also receive coverage for their investments from MIGA. Membership in MIGA will be completed once Myanmar makes its required capital contribution to the agency.
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