CDB pledges to provide a loan for 1,390MW Mee Lin Gyaing integrated LNG to Power and Related Grid Project

In March 2016, China Zhefu Holding Group Co., Ltd. and Supreme Trading Co., Ltd. signed a Memorandum of Understanding (MOU) with the Ministry of Electricity and Energy (MOEE) and officially launched a preliminary study of the 1,390MW Mee Lin Gyaing integrated LNG to Power and Related Grid Project. Then, in May 2017, the project consortium submitted the pre-feasibility report to MOEE. On January 30, 2018, MOEE issued a Notice to Proceed (NTP) for the feasibility study, further engineering plans, and project permits. During Chinese President Xi Jinping's state visit to Myanmar, a Letter of Intent for Acceleration for the 1,390MW Mee Lin Gyaing integrated LNG to Power and Related Grid Project was signed by MOEE and Mee Lin Gyaing Electric Power Company Limited — a special purpose vehicle and joint venture of Yunnan Provincial Energy Investment Group Co. Ltd. (39% equity stake), Union Resources and Engineering Counsel (UREC) (41% equity stake), Zhefu Holding Group Co. Ltd. (1% equity stake) and Supreme Group (19% equity stake) that is legally incorporated in the British Virgin Islands — on January 16, 2020. China Development Bank (CDB) has reportedly agreed to issue a loan to Mee Lin Gyaing Electric Power Company Limited for the project. The face value and borrowing terms of the loan are unknown. However, it is known that the total estimated project cost is $2.4 billion and it will be financed with a combination of equity and non-recourse or limited recourse debt. As of April 2022, the project was still in the early stages of design and construction and it was expected to start commercial operations in 2027. The Government of Myanmar proposed to include it in the list of ‘early harvest’ projects of the China-Myanmar Economic Corridor (CMEC). The project involves the construction and operation of a 1,390 MW combined cycle power plant, a Liquefied Natural Gas (LNG) port with water breaker, a land-based LNG receiving/gasification plant, as well as three 500 kV and/or 230 kV transmission lines to Yangon and Ayeyarwady, and the expansion of three existing substations. The independent power plant (IPP) project will be implemented on a Build, Operate, and Transfer (BOT) basis.

Additional details

1. This project is also known as the 1390 MW Mee Lin Gyaing Integrated LNG to Power Project, the Mee Lin Gyaing LNG Power Generation Project, the Minglin Qiang LNG Power Generation Project, and the Mee Lin Chyiang LNG to Power Project. 2. The Chinese project title is 明林羌液化天然气发电项目 or 缅甸1390MW燃气轮机联合循环发电项目 or 梅林江LNG发电项目. 3. It is unclear if a final loan agreement was signed by CDB and the borrowing institution. This issue warrants further investigation.

Number of official sources

7

Number of total sources

27