China Eximbank provides overseas investment loan to 600MW Shweli 1 Hydropower Plant Construction Project

China Eximbank provides overseas investment loan to 600MW Shweli 1 Hydropower Plant Construction Project The 600 MW Shweli 1 Hydropower Plant Project is located in in Muse District and Shan State, about 23 km from the PRC-Myanmar border. It is the only hydropower plant operating on the Shweli river in Myanmar.

Its exact locational coordinates are 23.699, 97.506422. 400 megawatts (67%) of the power plant’s 600 megawatts are reportedly consumed in Myanmar, and 200 megawatts are exported to PRC through a double circuit 220 kV transmission line.

Following the Government of Myanmar's inability to secure funding for the project, Yunnan Joint Power Development Co. (YUPD) was established as a joint venture in August 2006 by Huaneng Langcang River Hydropower Co., Ltd. (50% ownership stake), Yunnan Hexing Investment and Development Co., Ltd. (34% ownership stake), and Yunnan Union Resources & Engineering Co.

Ltd. (16% ownership stake).

Then, on May 22, 2007, YUPD and Myanmar Ministry of Electric Power jointly established Shweli I Hydropower Co. (SHPC), with Yunnan United Power Development Co., Ltd. holding 80% of the shares and Myanmar’s Ministry of Electric Power holding 20% of the shares (see Record ID#49904).

With the approval of the Government of Myanmar, the Shweli I Hydropower Plant was developed on a BOT (build-operation-transfer) basis. The BOT agreement was signed on December 30, 2006.

In accordance with the Joint Venture Agreement, Myanmar can use 15% of the electricity generated from the power station for free. The validity of the franchise right is 40-years. The total cost of the project was RMB 3.2 billion, of which RMB 2.96 billion was invested by Chinese parties. Huaneng Langcang River Hydropower Co., Ltd. reportedly received a loan to support its investment in YUPD.

It is also known that China Eximbank issued an overseas investment loan (境外投资贷款) for the 600MW Shweli 1 Hydropower Plant Construction Project, which is likely the loan that Huaneng Langcang River Hydropower Co., Ltd. received to support its investment in YUPD.

The Shweli 1 HPP has a 47 meter high concrete gravity dam that diverts water through a headrace tunnel to the powerhouse some 9.5 km downstream.

The 10 km long reservoir created by the dam is also small and narrow (about 120 m wide on average) inundating 1.3 km2 and storing 24 hm3. It is equipped with six, 100 MW power generation units. Sinohydro Corporation Limited was the EPC contractor responsible for implementation. On December 10, 2006, the project realized river closure.

Then, on September 5, 2008, the first power generation unit was put into operation. In April 2009, the last power generation unit was put into operation. The project was ultimately completed on May 16, 2009. The project drew controversy in 2002 with a military battalion moving in to secure the area.

Local villagers had their land seized and were forced to construct roads in preparation.