China Eximbank pledges $17.48 million loan for 30MW Upper Baluchaung Hydropower Plant Project

Project narrative

In 2011, a Build-Operate-Transfer (BOT) contract was signed for the 30MW Upper Beluchaung Hydropower Plant. In May 2011, China Eximbank also reportedly agreed to issue a $17.48 million loan for the 30MW Upper Baluchaung Hydropower Plant. According to page 2-171 of the release from the Final Report to Yangon, the loan may have been interest-free with a maturity period of 20 years. However in 2013, the project was suspended due to financing problems. The project was later re-started with a loan from a Myanmar state-owned bank, with the Government of Myanmar holding a 40% stake in the project. A financing request for this project was reportedly submitted to China Eximbank under a cooperation fund in 2015. However, it is unclear if the request was approved. Then, on November 4, 2015, China National Heavy Machinery Corporation (CHMC) and Myanmar Ministry of Electric Power (MOEP) signed an EPC contract for the 30MW Upper Baluchaung Hydropower Plant. Representatives from China Eximbank attended the EPC contract signing ceremony, and it was said that "The financing will be integrated into the sum of cooperation requested by Burma from the Exim Bank". The purpose of the project is to construct a 30MW hydroelectric power plant — with two, 15MW power generation units (Unit 1 and Unit 2) — Nyaungshwe Township within the upper reaches of the Baluchaung River upstream of the Mobye Dam. The project scope includes the construction of a 35 meter high dam, which will create a reservoir that will inundate 10 km2 and store 2.2 hm3. A 2.6 km long headrace canal will lead to a penstock 266 meter long connecting to two Francis turbines in an above-ground powerhouse. A 32 km 66 kV transmission line will connect the power plant to the Kalaw substation. The expected duration of the project implementation period is 28 months. This project is also known as the 30MW Upper Beluchaung Hydropower Plant or the 2x15MW Upper Beluchaung Hydropower Plant. The Chinese project title is 就上巴路桥水电站EPC项目 or 缅甸上巴路桥水电站.