China Eximbank provides $20 million export seller's credit for 30MW Thapanzeik Hydropower Plant Construction Project

Project narrative

On November 20, 1998, China International Trust and Investment Corporation (CITIC) Technology Co Ltd signed a EPC contract with Myanmar Electrical Power Enterprise (MEPE) to provide equipment and services for the 30MW Thapanzeik Hydropower Plant (HPP) Construction Project. Then, on May 30, 2000, Sinohydro Corporation Limited and CITIC signed a contract to assist with the installation of power generating equipment and structures. China Eximbank issued a $20 million export seller’s credit to help finance one or both of these contracts. The borrowing terms of the loan are unknown. It is also unknown if CITIC or Sinohydro Corporation Limited on-lent the proceeds of the export seller’s credit to the Government of Myanmar. Thapanzeik HPP, situated on the Mu River in the Sagaing Region (exact locational coordinates: 23.305918, 95.358330) is approximately 6 km long, making it one of the largest dams in Southeast Asia. It is a multipurpose dam, providing water for irrigation and electricity for the nation’s socioeconomic development. The dam enables year-round irrigation of over 200,000 ha with feeder canals extending to eight townships. It has 30 MW of installed HP capacity comprised of three 10 MW turbines. This multipurpose facility owned by MoALI on the Mu River incorporates a 30 MW power plant. It joins the Ayeyarwady from the west about 40 km downstream of Mandalay City. Its 33 m high dam created the largest man-made reservoir in Myanmar to date with an inundation of 397 km2. It is 43 km long along its main branch. A diversion weir about 11 km downstream of the dam diverts water for irrigation on both banks of the Mu River. Although the Ayeyarwady has been little used for irrigation in the central dry zone, its tributary, the Mu River, has been used for this purpose since the 9th century. The Mu Valley Irrigation Project is among the largest in the country. It permits the dry-season cropping of corn, peanuts, sesame, wheat, cotton, millet, and other dry crops. About one-sixth of the total rice grown in Myanmar comes from the irrigated areas of Mandalay, Sagaing, and Magwe divisions. The power plant is connected to Ngapyadaing substation by a 53 km long 132 kV transmission line. Myanmar Electric Power Enterprise and Myanmar Ministry of Agriculture, Animal Husbandry, and Irrigation were said to be developers of the power plant. The project was completed on June 18, 2002.