Active Development AidData Chinese Aid

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

Funder	China Development Bank (CDB)
Recipient Organization	Mee Lin Gyaing Electric Power Company Limited
Country	Myanmar
Start Date	Jan 01, 2020
End Date	Jan 28, 2032
Duration	4,410 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`94076`

Grant Description

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.

📋 Loan / Grant Terms

💰 Loan Amountare 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.

📋 Staff Comments

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.
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 or 缅甸明林羌液化天然气联合循环电站项目 or 缅甸明林羌液化天然气联合循环电站项目.
It is unclear if a final loan agreement was signed by CDB and the borrowing institution. This issue warrants further investigation.
In 2023, SGLA Law Firm’s Kunming office advised Yunnan Energy Investment on various aspects of the project, including its investment path design, financing and guarantee structure arrangement, project concession agreements, international engineering bidding, tax planning, and power sales. See https://law.asia/top-china-law-firms-regional-2023/

📚 Sources & References

Myanmar Govt to Accelerate Energy Projects Amid Power Shortages
Revamping BRI in post-coup Myanmar
Mee Lin Gyaing Integrated LNG to Power (1390 MW)
Mee Laung Gyaing FSRU
MOEE – Mee Laung Gyaing LNG-fired Power Plant 1390 MW – Ayeyarwady - Project Profile
Invitation for Bids – LNG to Power Plant in Mee Lin Gyaing, the Republic of Union of Myanmar ; Deadline : 28th July 2020
MoEE signs letter of intent to speed up Mee Lin Gyaing LNG power plant construction
Myanmar Government to Accelerate Energy Projects Amid Power Shortages; Says Sanctions End Up Hurting Foreign Investors
Local Workers and Businesses More, စစ်ကောင်စီက ခွင့်ပြုလိုက်သည့် ဒေါ်လာ ၂ ဒသမ ၅ ဘီလျံတန် တရုတ်ကျောထောက်နောက်ခံစီမံကိန်း
Xiaohui Ji Lawyer Profile
Nishant Choudhary Lawyer Profile
Xiaohui Ji Partner
Beijing
Xiaohui Ji Partner
Beijing, partner profile-nishant choudhary
周柏宇顾问律师
浙富控股签署缅甸1390MW燃气轮机联合循环发电项目大单
Mee Lin Gyaing Electric Power - Mee Lin Gyaing LNG Power Project, https://www.irrawaddy.com/news/burma/162007.html
Myanmar Trade & Investment Update, https://www.irrawaddy.com/news/burma/myanmars-shadow-govt-calls-on-firms-to-shun-junta.html, announcement 10/2021
Thingyan massacre reveals depths of Myanmar junta’s depravity—and its growing desperation
EPA/Kimimasa Mayama China’s influence in Myanmar could tip the scales towards war in the South China Sea
缅甸提议将25亿美元的梅林江项目纳入中缅经济走廊的早期项目
MIC批准对缅甸发电厂投资25亿美元
缅甸将启动多个天然气发电项目
中资企业向缅甸卫生与体育部捐赠呼吸机
云南能投联合外经股份有限公司缅甸明林羌液化天然气联合循环电站项目（LNG接收和气化站部分）分期开发可行性研究招标代理选聘的询价公告 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.

All Grantees

Mee Lin Gyaing Electric Power Company Limited

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