Government Spends K300 Billion for Electricity Annually

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2 Government Spends K300 Billion for Electricity Annually Government is spending up to around K300 billion for electricity for the whole country annually from state budget, U Phyo Min Theing, Yangon Chief Minister, said. Currently, around K300 billion are spent for electricity from state budget every year. The more we produce and sell electricity, the more we will lose money, he said. Meanwhile, Myanmar uses 4,000 to 5,000 megawatts, but only 30 percent of the total population has access to electricity. Most of the electricity usage in the country is from Yangon whose 44 townships except Coco Island use around 1,300 Megawatts annually, and its electricity usage surges by 150 Megawatts yearly, according Yangon Electricity Supply Corporation. Electricity usages are charged in two categories: individual use and industrial use. Individual usages are charged at K35 per unit while the later are charged K75 to K150 per unit. While lower electricity prices cause loses to the country, raising the fees will cause difficulties for the people, U Phyo Min Thein said. He added that there will be new rate when the New Yangon City Project is finished. Raising rates will bring more expenses to the people. In new city projects, we will provide good quality electricity, and will set new charges, he said. MoUs for purchasing electricity signed between the government and power supply companies will enable people to use electricity as much as twice the present amount in coming years. In collecting electricity fees, a pilot project of real-time pricing is being carried out in Dala Township.

3 Myanmar and China to Sign MoU for Agricultural Products and Machineries Exchange Myanmar and China will sign a MoU to exchange agricultural products and machineries, during the South Asia Business Forum in Kunming in June, according to Myanmar Trade Promotion Organization under the Ministry of Commerce. Kunming is the capital of the Yunnan Province in China. Yunnan occupies, by far, the majority of the border between China and Myanmar. The announcement comes after a meeting between Yunnan s government, the Myanmar Rice Federation, and the Ministry of Commerce held at UMFCCI on May 24. We negotiated on the agreement at the meeting today (May 24). We will meet again and ink the MoU in Kunming in June, U Yan Naing Tun, Director General of Myanmar Trade Promotion Organization said. The MoU will streamline the trade of agricultural products and farm equipment under a goods exchange program proposed by the Chinese government. Myanmar will export a variety of agricultural products to China, and in return, China will export farming equipment to Myanmar. Under this agreement, Myanmar will export rice, sugar and corns in quota and China will export machineries, electronic products, and construction products, U Aung Than Oo, Vice President of Myanmar Rice Federation, said. At the meeting, Myanmar proposed one million tons of export, and perhaps because of all the controversy in the news over international trade in the last few months the federation discussed ways to make the MoU equally beneficial for both parties. China has yet to propose setting a price or quantity of goods to be exchanged.

4 Electricity Plan for New Yangon City is Under Way Yangon Region government has prepared an electrification plan for New Yangon s City project as well as for the industrial zones in Yangon, according to U Phyo Min Thein, Yangon Chief Minister at Yangon Investment Forum To meet the demand form Yangon Region, he said that feasibility studies have been conducted to build a LNG power plant at Mee Laung Gyain, in Ayeyarwady Region, capable of producing 1350 Megawatt by importing LNG. We have been preparing to produce electricity. Ayeyarwaddy Region only uses over 100 Megawatts currently or may be 350 Megawatts at most, he said. According to the Ministry Electricity and Energy, Chinese firm Zhefu and local firm Supreme are planning to jointly implement a power plant at Mee Laung Gyain, in Shwethaungyan Township, using $2 billion, it will produce 1390 Megawatts. It is expected to start operating in the next three years. Moreover, around 500 megawatts from a power plant in Tanintharyee Region built by French s firm Total and German conglomerate SIEMENs will be sent to Yangon, there is nothing to worry about electricity problems, he added. Meanwhile, Yangon uses around 1,300 megawatts, which accounts 50 percent of total usage in the country, while its electricity usage has been surging by 50 percent annually. Dr.Tun Naing, Deputy Minister of the Electricity and Energy, said that the country is planning to raise the electricity production to 3600 megawatts, from and also has committed to build new power stations in Tanintaryee Region, Ayeyarwaddy Region, Yangon Region and Rakhine State.

5 Government in Talks with Saudi Arabia to Lift Fishery Import Ban Via Diplomatic Channels The Union Government is in talks with Saudi Arabia through diplomatic channels to allow fishery import from Myanmar, U Hla Kyaw Deputy Minister for the Ministry of Agriculture, Livestock and Irrigation said in response to a lawmaker s question, at Amyothar Hluttaw (Upper House) on May 16. U Aung Kyi Nuynt, Member of Parliament from No. 4 Constituency of Magway Region, raised the question on the government s effort to get the ban on fishery exports removed by Saudi Arabia, a key buyer of Myanmar s fishery products. Having found two diseases in seafood imported from Southeast Asia countries, Saudi banned fishery imports on January 30 from those countries including Myanmar. The deputy minister said that the government has been trying to restart fishery exports to Saudi. The diseases they said are only found in prawn breeding farms, and are not diseases that infect fish. We also informed Saudi Arabia s Embassy in Myanmar. The Ministry of Foreign Affairs is also trying through diplomatic channels to restart exports. Moreover, officials from the Ministry of Commerce, Livestock Breeding and Veterinary Department, Fishery Department and Myanmar Fishery Federation have contacted Saudi Arabia s Embassy to talk about this issue, he said. Fish species exported by Myanmar is the Labeo Rohita which has no infection, he said. Moreover, he also included that the government is in talks with local fishery breeders to invite Saudi officials to visit for inspections of Myanmar s fishery products. The Labeo Rohita or rohu is a species of fish of the carp family, found in rivers in South Asia. It is a large omnivore and extensively used in aquaculture. The rohu is a large, silver-colored fish. Adults can reach a maximum weight of 45 kg (99 lb) and maximum length of 2 meters (6.6 ft), but average around.5 meters (1.6 ft). The countries being banned include Vietnam, Bangladesh, and India. They are also trying through diplomatic channels, U Aung Kyi Nyunt said. Myanmar has been exporting fishery products to the Middle East. Fishery exports to Saudi Arabia generate up to $40 million per year.

6 Myanmar, Thailand to Resume Deep Sea Port Project After Years of Suspension Myanmar and Thailand have agreed to resume work on a deep sea port project this year, part of the infrastructure project of Myanmar's Dawei Special Economic Zone (SEZ) in southern Tanintharyi region, after several years of suspension, local media reported W e d n e s d a y. U n d e r a f r e s h memorandum of understanding signed between the two countries, the Italian- Thai Development Public Company (ITD) is allowed to begin work again, according to a report by official media the Global New Light of Myanmar. The project, originally started in 2008, was set to build and develop a port and a highway to link the two countries' industrial zones, office and residential buildings and other infrastructures. According to an earlier official report, Myanmar and Thailand have finalized a loan of 133 million U.S. dollars in July 2017 to prompt the re-start of the longhalted special economic zone project. Government Soon to Accept Tender Application for Inland Jetty With the aim of improving trade and transportation, the Yangon Regional government is planning to invite tender applications for the inland jetty near Ngwe Pin Lel Industrial Zone in Hlaing Tharyar Township, according to U Phyo Minn Thein, Yangon Chief Minister. Along with the Ngwe Pin Lel inland port, a container wharf will be built on acres of land along the bank of the Hlaing River near the Ngwe Pin Lel Industrial zone throughout four years, ranging from 2018 to We have been preparing for implementation of an inland port near Ngwe Pin Lel Industrial zone, and are expecting to start tender process soon. We are also consulting with experts, he explained, during the Yangon Investment Forum held in Yangon on May 9th. Ngwe Pin Lel inland port is part of an urban development plan spanning from 2018 to Moreover, U Phyo Min Thein stated that there are many opportunities for investors to invest in transportation sector as the regional government has plans to implement circular roads, inland ports and other transportation projects. We need developments in trade and transportation. There are many opportunities for investors in those areas. We can build outer circular roads and inland ports, he said. As Yangon has the Yangon River, Pauntaung creek, Ngamoe Yeik creek, Pagu River and Toe River at the border of Yangon Region and Ayeyarwaddy Region, the proposed area will have the advantage of connecting to roads in Ayeyarwaddy Region and Yangon s outer circular roads.

7 Myanmar receives US$47 m w o r t h f o r e i g n investment in April Foreign investors made over US$47 million worth of investments in April and over US$21 worth of foreign investments are in the industrial sector, according to Directorate of Investment and Companies Administration (DICA). The foreign investment in April last year is over US$650 million and the amount this year is much lower. Foreign investors made US$ million in industrial sector, US$0.3 million in hotel and tourism sector, US$2.88 million in housing development sector, US$5.33 million in industrial zones construction and US$17.05 million in other service sectors. The total foreign investment by April 2017 is over US$71 billion, according to the DICA. China is the biggest investor in Myanmar followed by Singapore. Foreign investment in oil and natural gas sector is the biggest followed by the foreign investment in energy sector. Korea-Myanmar Industrial Complex to be in Hlegu YANGON- US$ 110 million worth Korea-Myanmar Industrial Complex(KMIC) project will be implemented in Nyaungnapin, Hlegu Township, Yangon Region. The approximately 555 acres wide project will begin near Nyaungnapin village, western part of about 5-mile away from the Yangon-Mandalay Expressway and it is a joint venture between Civilian and Housing Development Department under the Ministry of Construction and Korea Land and Housing Cooperation under the Republic of Korea. The Memorandum of Agreement on construction of KMIC project was signed last year and Korea will invest 60 percent in the project and Myanmar is 40 percent investment. It will start this year and finish in Korea plans to establish industrial zone in Nyaungnapin village in cooperation with the ministry of construction. Both sides have agreed but project isn t submitted yet to the Myanmar Investment Commission (MIC). Korea wanted to implement the Nyaungnapin industrial zone to build Korean factories in the zone, said Aung Naing Oo, MIC s Secretary. Not only small, medium and large industries but also Labour Training School of One Stop Services, Staff Housing, Park, Sewage refinery Plant, Management Office and other services will involved in the zone. Although MIC allows the project, they[korea] must be taken to the proposed site for construction of industrial zone under agreement of the respective regional government committee. If the location is satisfactory, we will allow the project. Moreover, KMIC project has been involved in the MIC s promotion sector. But, it must be cleared regarding the land first, said Aung Naing Oo.