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energy.fronermyanmar.com Myanmar Energy Brief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.fronermyanmar.com IN THIS ISSUE Parliament discusses shung state refineries and ferliser plants MoEE deputy minister announces list of state-owned assets due for closure as government seeks more solid financial foong Ophir looks for farm-in partners before drilling at AD-3 UK-based firm announces it requires partners before it will move to the next stage of exploraon at the AD-3 offshore block Interview: Myanmar Petroleum Trade Associaon The Myanmar Energy Monitor talks to officials about rising fuel prices, the challenges of import and distribuon, and the associaons business plans LNG terminal tender may come by April, report claims Funds requested from reserve budget for 25MW Yangon generators Subsidy costs connue to plague government budget Eni Myanmar plans seismic surveys in MD-2 and MD-4 Saturated Philippines power market drives AboizPower to Myanmar Several 230kV transmission lines to be upgraded to 500kV Max Myanmar aims to re-aempt foreign lisng aſter past failure Upper house of parliament discusses Oil and Petroleum Products Bill Small hydropower projects planned for northern Sagaing Bangladesh awards Posco Daewoo offshore block Shwe Gas expansion plans cricized at Rakhine State meeng Thai firm mulls Thailand-China pipeline through Myanmar SCG President meets with MIC following cement plant protests Ministry request parliament accept loan for electrificaon in Shan State THIS WEEKS NEW TENDERS Sale of CGO by MPE in March Sale of Blue Oil by MPE in March THIS WEEKS NEW DATA Weekly fuel retail and import prices, March 2017 Fuel retail prices by city, March 2017 CALENDAR Myanmar Infrastructure Summit 2017 Electric Power & Renewable Energy Myanmar 2017 NEWS ANALYSIS DATA TENDERS COMPANIES energy.fronermyanmar.com ENERGY NUMBER OF THE WEEK $311m The finance commiee of the lower house of parliament has announced that the government expects to lose $311m in 2017-18 subsidising power, if prices are leſt in place. There is growing awareness that keeping the cost of electricity for consumers at an arficially low level causes market distorons and is affecng the naonal budget. In 2017-18, the government ancipates earning $735m from electricity sales, but spending $1.1bn, causing the $311m loss.

Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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Page 1: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

energy.frontiermyanmar.com

Myanmar Energy Brief Issue 89 16 March 2017

Part of the Myanmar Energy Monitor energy.frontiermyanmar.com

IN THIS ISSUE

Parliament discusses shutting state refineries and fertiliser plants

MoEE deputy minister announces list of state-owned assets due for closure as government seeks more solid financial footing

Ophir looks for farm-in partners before drilling at AD-3 UK-based firm announces it requires partners before it will move to the next stage of exploration at the AD-3 offshore block

Interview: Myanmar Petroleum Trade Association The Myanmar Energy Monitor talks to officials about rising fuel prices, the

challenges of import and distribution, and the association’s business plans

LNG terminal tender may come by April, report claims

Funds requested from reserve budget for 25MW Yangon generators

Subsidy costs continue to plague government budget

Eni Myanmar plans seismic surveys in MD-2 and MD-4

Saturated Philippines power market drives AboitizPower to Myanmar

Several 230kV transmission lines to be upgraded to 500kV

Max Myanmar aims to re-attempt foreign listing after past failure

Upper house of parliament discusses Oil and Petroleum Products Bill

Small hydropower projects planned for northern Sagaing

Bangladesh awards Posco Daewoo offshore block

Shwe Gas expansion plans criticized at Rakhine State meeting Thai firm mulls Thailand-China pipeline through Myanmar

SCG President meets with MIC following cement plant protests Ministry request parliament accept loan for electrification in Shan State

THIS WEEK’S NEW TENDERS

Sale of CGO by MPE in March

Sale of Blue Oil by MPE in March

THIS WEEK’S NEW DATA

Weekly fuel retail and import prices, March 2017

Fuel retail prices by city, March 2017

CALENDAR

Myanmar Infrastructure Summit 2017

Electric Power & Renewable Energy Myanmar 2017

NEWS ANALYSIS DATA TENDERS COMPANIES

energy.frontiermyanmar.com

ENERGY NUMBER OF THE WEEK

$311m

The finance committee of

the lower house of parliament has announced

that the government expects to lose $311m in

2017-18 subsidising power, if prices are left in place.

There is growing

awareness that keeping the cost of electricity for

consumers at an artificially low level causes market

distortions and is affecting the national budget.

In 2017-18, the

government anticipates earning $735m from electricity sales, but

spending $1.1bn, causing the $311m loss.

Page 2: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

energy.frontiermyanmar.com

Government and local authorities Parliament discusses shutting state refineries and fertilizer facilities The Thanlyin oil refinery and Kyawswar fertiliser factory have been temporarily shut down after parliamentary inspections, while further changes are also planned, according to deputy ministry for electricity and energy Dr Tun Naing, as quoted in The Global New Light of Myanmar. A sub-article to the 2017-18 fiscal year’s National Planning bill is to be put up for consideration, after the Joint Bill committee issued an appraisal, the article said. It is somewhat unclear from the 14 March article, but appears as though the sub article in question refers to a proposal released earlier this month to shut down up to 44 state-owned factories. The proposal was submitted as Annex 2 to the 2017-18 National Planning Bill, and is intended to close loss-making state entities, with a particular focus on Ministry of Industry and Ministry of Electricity and Energy (MoEE) facilities. Dr Tun Naing provided the following update on MoEE facilities in Parliament, according to the recent article: Fertiliser facility (1) at Salay A proposal has been submitted to continue production. Tender contracts have been signed with budget allotted from the 2016-17 fiscal year, and are expected to arrive in the 2017-18 fiscal year. The tender contracts include allotted budget, and “after careful review” it was determined that conflicts could arise with the contracted companies, therefore meaning the factory should be allowed to continue running

Fertiliser facility (2) at Kyunchaung Submitted for demolition Fertiliser facility (3) at Kyawswar Temporarily shut Fertiliser facility (4) at Myaungdagar Constructed using a Chinese loan in 2010 Fertiliser facility (5) at Kangyidaunt Constructed using a Chinese loan in 2011. LPG factory at Minbu A proposal has been submitted to continue production. Tender contracts have been signed with budget allotted from the 2016-17 fiscal year, and are expected to arrive in the 2017-18 fiscal year. The tender contracts include allotted budget, and “after careful review” it was determined that conflicts could arise with the contracted companies, therefore meaning the factory should be allowed to continue running LPG factory (2) at Nyaungdon Received production from LPG factory (3) at Kyunchaung after production halted. Currently produces 300 tonnes of fertiliser daily LPG factory (3) at Kyunchaung Halted, with production shifted to LPG factory (2) at Nyaungdon Methanol factory (Seikthar) Submitted for demolition Oil Chemical Plant (Tanpayarkan) To be put up to Hluttaw for inspection Oil Refinery (1) at Thanlyin Temporarily shut

Myanmar Energy Brief | 10 March - 16 March 2017 2

Page 3: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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Annex 2 proposal A Member of Parliament has proposed shuttering up to 44 state-owned factories, after a survey found the government is spending large amounts keeping them open, according to a recent article in The Global New Light of Myanmar. The proposal was submitted as an Annexe to the 2017-18 National Planning Bill. The names of the 44 factories were not released separately, though they are under: Ministry of Industry (No 1 Heavy Industries, No 2 Heavy Industries, No 3 Heavy Industries) Ministry of Energy and Electricity (petrochemical distribution and transportation sub-branch of Myanma Petrochemical Enterprise) Parliamentarian U Thein Tun, who proposed the amendment, was quoted as saying that a re-scrutinisation of state finances indicated these 44 businesses were receiving large amounts of subsidies. He added that parliament should take notice of the “wastage of people’s finances” to suspend or abolish the factories. U Thein Tun also said that public should be informed of other development projects that should take their place. Revamping Myanmar’s state-owned enterprises was part of the National League for Democracy’s 2015 economic policy document, given their proclivity for generating losses. The previous USDP government had privatised or formed joint ventures for a number of state-owned companies, though some contend that the effort did not go far enough. It remains to be seen whether the latest proposal will be followed to completion.

Exploration Ophir looks for farm-in partners before drilling at AD-3 Ophir Energy is looking for farm-in partners for its offshore block AD-3, viewing this as a pre-requisite to drilling. The prospect has been matured to drill-ready status, the company said in a press release accompanying its full year results. The play looks to be comprised of sands in low relief channel systems, leading the firm to believe that its Myanmar holdings will likely be developed by the aggregation of gas fields. Ophir, which is listed in on the London Stock Exchange, spent $76m on exploration in 2016, including $9m at Myanmar’s AD-3 for well planning and an Environmental Impact Assessment. It had spent $28.3m on exploration activities in Myanmar in 2015. The firm generated revenues of $107m in the 2016 FY, compared with $178m in 2015. Its total net use of funds in the 2016 FY was $183m, compared with $252m in the 2015 FY.

Ophir is operator of the block and holds a 95% interest, while local partner Parami Energy controls the remainder. AD-3 covers approximately 10,000 sq km offshore Rakhine State, with waters of up to 2,500 metres in depth.

Myanmar Energy Brief | 10 March - 16 March 2017 3

Page 4: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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The Myanmar Energy Monitor previously reported that Ophir was intending to begin feasibility work on the block in early July 2016, having finalised its required Environmental Impact Assessment in 2015 and wrapped up its 3D seismic survey in June the same year. Environmental Resources Management (ERM) and local partner E Guard were responsible for undertaking the EIA. Transportation and distribution Interview: Myanmar Petroleum Trade Association The Myanmar Petroleum Trade Association (MPTA) is working at modernising fuel imports, attempting to address concerns over poor quality and distribution as well as high prices, according to association officials. While fuel imports, distributors and retailers are the frequent target of public criticism, MPTA officials claim many of the factors are beyond their control. Senior MPTA officials also claimed to have undertaken a number of initiatives to improve fuel prices, product testing and imported and distribution, during a recent interview with Myanmar Energy Monitor held at the association’s office at UMFCCI. There are about 30 members of the MPTA at present, with all fuel importers to Myanmar required to join the association. Its chairman is prominent businessperson U Tay Za, while Dr Win Myint is the association's secretary. Fuel price The MPTA has been criticised in local media over rising fuel prices. While the MPTA does not set fuel prices, senior members of the MPTA and other industry groups meet every Tuesday.

They discuss what the price should be for fuel, producing an index covering different areas of the country, and also attempt to solve problems which are keeping fuel prices high, or poor-quality imports. The index produced every Tuesday is also submitted to the Ministry of Electricity and Energy, which has the authority to take action against fuel retailers accused of taking too much profit. The MPTA officials also told Myanmar Energy Monitor that there are three main ingredients in setting fuel prices – the international price of fuel purchased from Singapore, transportation fees and insurance, and issues over sufficient foreign exchange and the dollar-kyat exchange rate. There are also a range of taxes, but the MPTA said that they are generally predictable and do not overtly influence swings in the price (though do push up prices). In practice, the two main factors in the fuel price is the USD-MMK exchange rate and the international price of oil. However, the MPTA claimed that the two have been moving in opposite directions recently, which has meant that local fuel consumers have generally not seen lower prices from either an improved exchange rate or lower price of oil. Fuel importers also do not receive any government subsidy, MPTA officials claimed. Petrol testing laboratory The MPTA is planning to open a products testing laboratory at the end of March at Thilawa Special Economic Zone at the end of the month. It is already running on an experimental level, using what officials claim is equipment imported from the U.S.

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It can be used for testing of imported 92 and 95 Octane, but cannot yet check lubricants nor perform “detailed examinations”. The goal is to help counter past problems with poor-quality fuel imports. The checks will eventually become mandatory for all imported fuel. The MPTA claims fuel tests will take about 45 minutes to perform, and will be completed at an international standard. The service fee for a test will be around $300 (Ks350,000) per test. The charges are due to staff, water and electricity charges, as well as the use of chemicals in the test. It is operated by a joint venture from the MPTA and state-owned Myanma Petroleum Products Enterprise, under the Ministry of Electricity and Energy. The joint venture is called Petroleum Products Laboratory Service Company (PPLS), with MPTA holding 95% and MPPE holding the remaining 5%. Although MPPE is not playing an active role in the project, MPTA officials said it was necessary to partner with the government for issues such as ordering machinery and for taking legal action when companies are caught importing low-quality fuel. Fuel import, storage and distribution Local companies wanting to import fuel must successfully submit an application to join the MPTA, as well as following its rules and regulations. Presently, the only legal foreign fuel importer is Puma Energy, which partnered with a government-owned entity for jet fuel import and distribution.

MPTA officials declined to say what they thought of the market potentially being open to foreign companies, claiming that a decision to open the market is up to the government. MPTA’s public company The MPTA is an association rather than a business. To do business, it has established a public company, called Myanmar Energy Sector Development Public Company (MESDP). MESDP has 52 separate shareholders, according to the MPTA. Currently it is working on installing fuel tanks in Mandalay. It has planned a total of 32 separate fuel tanks with a capacity of 2m gallons, including four tanks for 92 Octane, two tanks for 95 Octane, and 26 tanks for diesel. It has further plans to enter other businesses, including importing natural gas from China and SIM card distribution. MESDP does not have fuel distribution facilities in Yangon, with fuel storage tanks under three private companies at present. Previous press reports have said the company is planning for a facility along the Hlaing river in west Yangon. MPTA officials told Myanmar Energy Monitor that a site had not been selected, though a site along the Hlaing river would be attractive. MESDP has requested Yangon Region provide 50 acres for a possible fuel storage site, though the large size required has limited the available options. Besides a site near the Hlaing river, another option the MPTA is looking at is a site at the south end of the Yangon river near the Andaman Sea.

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Page 6: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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Transportation and distribution LNG terminal tender may come by April, report claims The tender for Myanmar’s LNG terminal may come by April, a 14 March article in The Nikkei Asian Review quoted a government source as saying. The article claimed that the tender will cover a floating LNG terminal with an annual capacity of 3m to 4m tonnes, with 200km of pipeline and a 1GW power plant. The whole project is to cost $2bn. The Myanmar Energy Monitor understands that deciding on a location has been a major challenge for the plans. The Nikkei article said that a location for the terminal has not been decided, but a prime location is in Mon State, with the power plant either near the terminal or closer to Yangon. The article also claimed that the government will selected the winning bid by the end of the year, with the terminal becoming operational no earlier than 2020.

It also stated that “several dozen” foreign and local companies have expressed interest, since an invitation issued last September. The Ministry of Electricity and Energy has issued an invitation for letters of Expression of Interest for companies interested in conducting LNG business in the country.

The LNG Business Sector Implementation and Development Central Committee is planning to implement bulk imports and re-gasification of LNG in Myanmar through private sector participation, the announcement from state newspaper Myanma Ahlin said. The invitation specifically asks for foreign companies to submit non-binding letters by 28 October. In June, The Global New Light of Myanmar reported that the Ministry of Electricity and Energy is working with the EU to produce electricity from LNG, with facilities possibly including a port. Thailand has also bet on LNG, particularly as officials have said they expected natural gas imports from Myanmar to decline. Other LNG plans have been announced. Shell has previously announced plans to work with LNG Plus and Italian-Thai Development for a project near Dawei. Government and local authorities Funds requested from reserve budget for 25MW Yangon generators Some Ks30bn ($22m) may be allocated from the 2016 Union Budget reserve fund for purchase of gas and diesel-powered generators, according to numerous local media reports. Deputy electricity and energy minister Dr Tun Naing discussed the request in parliament on 13 March, while deputy minister for planning and finance U Maung Maung Win said the motion had been presented to the Union government to ensure electricity supply for the coming summer months. U Maung Maung Win also reportedly urged that the Union parliament approve the budget allocation.

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The sudden proposal in parliament appears to be the first time that this project has been publicly discussed. Many newspapers have reported on the plans, and some of the accounts conflict. However, it appears the funding is for the Ministry of Electricity and Energy to purchase generators with capacity of 25MW in time for Yangon’s hot season. One source told the Myanmar Energy Monitor that the project is a 1x25MW dual fuel (diesel and natural gas) project. The PPA was to signed with seven days, with shipping to take 30 days and installation to take 15 more days. One possibility is that it runs off diesel at first, and later switches to natural gas, dependant on government supply. The hourly gas consumption is to be 11445 cu m per hour, though running on diesel would be 7,488 litres per hour. Frontier magazine, which is not affiliated with the Myanmar Energy Monitor, reported that the government planned to purchase the TM 2500+ turbine, which is produced by American multinational GE. Although not officially stated, it is likely the request is a response to growing concern over Yangon’s electricity supply during the coming hot season. In October 2016, the government selected two separate 300MW fast-track projects to set up in Yangon, with the intention of having them be operational by the start of the April hot season. It is becoming increasingly clear that both projects will not meet the intended deadline, if they arrive at all.

Local media has published an abnormally large number of articles in the last two weeks about looming electricity shortages. In April and May 2016, Yangon underwent unusually intense electricity blackouts, and significant amounts of public criticism was directed at the NLD government, despite it only taking office on 1 April 2016. It is likely that the discussion of funding the purchase of generators in time for the hot season is an attempt to prevent a repeat of last year’s shortages, and occurring as pressure mounts to find a solution. However, most press accounts indicate that the amount of electricity will be insufficient. A 14 March article in Kumudra states that Yangon represents about 45% of Myanmar’s total electricity consumption. The article also stated that a minimum additional capacity of 200MW and more likely 300MW must be added to Yangon to prevent blackouts. However, the proposal for purchase of generators capable of generating 25MW is likely to be insufficient, it said. Daily Eleven reported that the generators are likely to run for five hours a day. Yangon Electricity Supply Corporation has reportedly acquired one million gallons of diesel fuel, to be used over the coming three months of summer. The article also stated that there will be no tender for the project, as that would unnecessarily slow the project. Altogether, it is expected to take 45 days for the purchase, transport and installation of the generators, with a total price of $22m (Ks30bn).

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Page 8: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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It also appears that the generator will be purchased by Yangon Region and operated by Yangon Pan Company, which is owned by the Yangon Region government. However, various media sources are not clear on this point, and there does not appear to be a company called Yangon Pan currently registered with the Directorate of Investment and Company Administration. Power and electricity Subsidy costs continue to plague government budget Figures from the Financial Committee of the lower house of parliament show a consistently gap between the cost of electricity to the government, and the amount they are collecting in tariffs, according to a 12 March article in Daily Eleven. The government restricts the price that can be charged for power, which is well below the actual cost of generation, transmission and distribution. This results in what is essentially a subsidy. Daily Eleven said that the average person uses 225 units of power per year. One unit costs the government Ks89.3 to generate, though it receives Ks69.2 on average from consumers, resulting in a loss of about Ks20 per unit. Other media have reported broadly similar figures on losses-per-unit, though sometimes the details are slightly different. For instance, Weekly Eleven, the sister publication of Daily Eleven, quoted deputy minister of electricity and energy Dr Tun Naing earlier this month as claiming the average loss is about Ks23 per unit.

Overall, Daily Eleven said the government’s expenditures on electricity have been as follows: 2015-16 Income of Ks847bn ($615m), expenses of Ks1304bn ($948m), losses of Ks456bn ($331m) 2016-17 Income of Ks1033bn ($750m), expenses of Ks1420bn ($1031m), losses of Ks387bn ($281m) 2017-18 (expected) Income of Ks1012bn ($735m), expenses of Ks1441bn ($1047m), losses of Ks428bn ($311m) The USD exchange rate is current for 15 March 2017. Exploration Eni Myanmar plans seismic surveys in MD-2 and MD-4 Eni Myanmar is planning 3D offshore seismic surveys in offshore blocks MD-2 and MD-4, to begin in late 2017, according to a notice in state media. An Initial Environmental Examination (IEE) for the proposed activity is being prepared by Eni Myanmar, Environmental Resources Management (ERM) and Resource and Environment Myanmar (REM). The IEE will be submitted to the Environmental Conservation Department in April, and will also be available on the company’s website, the notice said. Eni was awarded both MD-2 and MD-4 in 2014, with the PSCs signed in April 2015. Initially they were 80% held by Eni and 20% by PetroVietnam, though Total farmed-in in late 2016. After the farm-in, Eni held 40% and remained the operator, while Total had 40% and PetroVietnam the remaining 20%.

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Power and electricity Saturated Philippines power market drives AboitizPower to Myanmar Philippine conglomerate Aboitiz’s power division is pursuing hydropower projects in Myanmar as well as Indonesia, as it foresees a glut of supply at home. AboitizPower is the Philippines’ second-largest electricity producer by capacity. However, given that the country will not need new power plants for five to seven years, it is considering foreign expansion, or local mergers and acquisitions, as ways to grow their business. AboitizPower president and chief operating officer Antonio Moraza was attributed as saying by Philippine news portal Rappler that the company is doing feasibility studies in Myanmar and Indonesia for possible hydro projects, in conjunction with a Norwegian partner. The size of the projects have yet to be determined, however. The firm would move forward with its partner SN Power. Moraza reportedly said that the concentration on hydropower comes from SN Power’s expertise, with over 15,000MW in Norway hydropower. The firm earlier withdrew from a greenfield geothermal plant in Indonesia it had been working on with SN Power, with Moraza claiming that “you win some, you lose some”. "Myanmar is large and bountiful – with several hundred megawatts (MW). Indonesia is good. It has the potential of 400 MW to 500 MW," Moraza was quoted as saying.

Power and electricity Several 230kV transmission lines to be upgraded to 500kV Several 230kV transmission lines are to be upgraded to 500kV with funding from the National Electrification Project, according to a 14 March report in Pyi Myanmar. Plans have been in place since the former military government, but have continually been delayed, partly due to financial problems, former deputy minister of electricity and energy U Aung Than Oo was quoted as saying. The article specifically said the following transmission lines will be improved from 230kV to 500kV: Shweli 3 substation to Tha Pyay Wa

substation (250 miles) Tha Pyay Wa substation to Taungoo

substation (153 miles) Mong Tong to Taungoo substation (230

miles) Taungoo substation to Kamar Nat

substation (117 miles) Kamar Nat substation to Myaung Tagar

substation (50 miles) However, it is not clear if the article has another source for its information beyond the former deputy minister.

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B2B Max Myanmar aims to re-attempt foreign listing after past failure Conglomerate Max Myanmar is still looking to list on a foreign stock exchange, after having been rejected by the Singapore stock exchange in 2012, according to Bloomberg. Max Myanmar is looking to expand its international business, move into the investment banking sector, and potentially list on a foreign stock exchange, said Chairman U Zaw Zaw during an interview at at the Bloomberg Invest Myanmar conference in Yangon. Speaking generally about Myanmar and the company’s long-term plans, U Zaw Zaw said that the recent lifting of sanctions by the United States and other Western countries was only the first step toward Myanmar’s successful development adding that political stability, as well as human capital investments in the form of training and education, are crucial. The United States’ ‘specially designated nationals’ blacklist, on which U Zaw Zaw was one of the most prominent members listed, was abolished in November 2016. Since then, U Zaw Zaw said that the company has not seen an immediate gain in business, but that it has allowed for more ambitious future plans, especially involving international actors. Regarding the company’s desire to attract investment, the chairman indicated that he would like to see his company listed on a stock exchange, but that the capital market in Myanmar (referring to the Yangon Stock Exchange) “is not there yet.” Instead, he stated that the company has begun preparing to list in Hong Kong, Singapore, or London, though did not indicate which was preferred among those possibilities.

Zaw Zaw’s previous attempt to list on an international stock exchange ended unsuccessfully, when the deal that would have made him majority shareholder of Singapore-listed Aussino Group Ltd was rejected by the Singapore stock exchange reportedly because of uncertainty regarding sanctions imposed on him, particularly regarding Max Myanmar’s land acquisition and alleged human rights violations connected to the Myanmar military.

Transportation and distribution Upper house of parliament discusses Oil and Petroleum Products Bill Members of the Bill Committee of the Upper House of parliament read out findings and concerns with the planned Oil and Petroleum Products Bill, according to a 9 March article in the Global New Light of Myanmar. The bill had been sent back by the lower house of parliament with amendments, though it is unclear from the article what these amendments were. The speaker of the Upper House also asked for MPs to submit their names if they want to discuss the bill, the article said. The Ministry of Information had said in a February press release that the Lower House had approved the law, which originally had been submitted by the Ministry of Electricity and Energy.

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The bill - the title of which has been translated as the Oil and Petroleum Products Law in the past - was first drafted mid-2016, and submitted to the lower house in November 2016, according to previous press reports. It was partially to replace a 1934 law on the same subject. June 2016 draft The draft in June 2016 was publicly released in state media. The original draft included the following points: The final version of the law when enacted by parliament is to govern the importation of oil and petroleum products, exports, transportation within the country, storage, production, refining and blends of petroleum products. There were eight sections covering these topics in the initial draft. Section 3 of the law allows the Ministry to form oil and petroleum product management committees. These will have the power to licence oil and petroleum businesses for imports, exports, trading and distribution, as well as regulating the products on the market and taking action if they are contravened. Section 4 of the draft gives the Ministry power to inspect and test the quality of products. The draft law also lays out some exemptions. It will not cover tanks of below 20 gallons, including vehicle petrol tanks, as well as pipelines and buried oil tanks. It also lays out fines. First-time offenders will face fines of Ks500,000 to Ks5m, while repeat offenders face fines of Ks10m and six months in prison.

The published draft states that the drafters are open for recommendations before a final version is passed. Power and electricity Small hydropower project planned for northern Sagaing A 2.4MW project is planned for the Hone Hnyi stream near Khanti in northern Sagaing Region, according to a 15 March article in state-owned Myanma Ahlin newspaper. Khanti, which has various spellings also including Hkamti, is an isolated town located near the border with India. The article said the project will be placed about 22 miles northwest of the city, and will be built by the Department of Hydropower. Exploration Bangladesh awards Posco Daewoo offshore block Posco Daewoo officials and officials from Bangladesh’s energy ministry and its state-owned oil company signed a production sharing contract for deep sea block 12 in the Bay of Bengal, according to Bangladesh media. The 2D seismic survey is to begin this year, a report in the Daily Star said. The deep sea block 12 is located in the eastern part of Bangladesh waters, near the border with Myanmar and the Posco Daewoo-operated Shwe Gas offshore area. Posco Daewoo is to spend $3m to $5m on the 2D survey, $5m to $7m for a 3D survey and eventually $50m to $100m for drilling wells, the report said. Bangladesh state minister for power and energy Nasrul Hamid said the company has not been able to award offshore blocks previous due to maritime boundary disputes, though now that it is settled it is possible to sign PSCs.

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Recent efforts to attract foreign companies have generally been delayed due to lower international oil prices, though more offshore bidding is expected in the future. Posco Daewoo was named as the “preferred negotiator” by the Bangladesh government for Deep Sea block 12 (DS12) in November 2016. On 8 February, the Cabinet Committee on Economic Affairs approved a proposed allowing Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) to sign a contract under the Speedy Supply of Power and Energy Act 2010. Bangladesh has sped up the deal partly to show progress on offshore exploration, which has been a slow process. The move was a departure from past tenders.

Communities Shwe Gas expansion plans criticized at Rakhine State meeting Community groups have criticised the Shwe Gas project, as project backers undertake an Environmental Impact Assessment (EIA) for an expansion of the project, according to media reports. Online news portal BNI Online quoted Kyaupkhyu Rural Area Development Association member U Tun Kyi as claiming that the public “does not trust” the EIA being carried out, as it does not include civil society organisations and civilian experts.

Only company and government officials are involved, he said at a meeting in Rakhine State. U Tun Kyi also claimed that Rakhine State has suffered damage from the project, with the government failing to take charge in solving the issue of destroyed farmland. Myanma Oil and Gas Enterprise (MOGE) chief officer U Zeyar Moe reportedly replied that for any damaged land, a letter must be submitted stating who owned it, the extent of the damage and the type of farmland, with photos. “We will solve it,” he said. There has been a number of local protests against damage purportedly caused by the cross-Myanmar gas and oil pipelines. Two of the most vocal groups have been in Ann township and Kyaukphyu township, both in Rakhine State. In January, officials from the consortium behind the SEAGP pipeline, which connects with Shwe Gas, were reportedly awaiting confirmation from MOGE to allow the consortium to move forward with compensation payments near Kyaukphyu. Most area farmers have already taken compensation, but 21 farmers have held out for larger amounts. The latest complaints were generated during the EIA process, which is taking place ahead of a potential expansion of Shwe Gas and the nearby Mya field. The EIA is looking at issues include water quality, sedimentation and marine benthos, the article said. Posco-Daewoo presently produces about 560mmcfd from Shwe Gas, of which 400mmcfd is exported to China via the pipeline and 160mmcfd is used domestically.

Myanmar Energy Brief | 10 March - 16 March 2017 12

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Daewoo holds 51% of the project, which also includes ownership stakes from MOGE, ONGC and GAIL from India, and Korea Gas Corporation. Expansion plans In December last year, Posco Daewoo announced plans to install a platform, subsea facilities, pipelines and production drilling for the new phase of development of the Shwe field, in offshore Blocks A-1 and A-3. The EIA was to be carried out by Environmental Resource Management (ERM) and Resource and Environment Myanmar (REM) on behalf of Posco-Daewoo, a notice in state media on 9 December 2016 said. Posco Daewoo has a daily production target of 500mmscf from its Myanmar field, according to a November 2016 Investor Relation update. The update also shows a daily production average of 500mmscf in Q3 2016, from 380mmscf in Q2 2016, 510mmscf in Q1, and 550mmscf cubic feet in Q4 2015. The buyers are China National Union Oil Corporation and MOGE. The firm has a 30 year deal, with the gas sales price tracking the international oil price and inflation index. Daewoo’s operating profits from the Myanmar gas field in Q3 2016 were 66.4 billion won ($56m), from 82.3bn ($70.6m) in Q2, 97.7bn ($83.8m) in Q1, 83.3bn ($71.4m) in Q4 2015 and 87.8bn ($75.3m) in Q3 2015. Daewoo holds 51% of A-1 and A-3 and is the operator. Production began in June 2013, with the ramp-up complete by December 2014. The first conducting additional exploration on A-1 and A-3, with 3D seismic wave exploration slated until the end of 2016, with exploration well drilling to begin in 2017.

Transportation and distribution Thai firm mulls Thailand-China pipeline through Myanmar Thai-listed Bangkok Aviation Fuel Services is considering expanding a pipeline from northern Thailand into Myanmar and then China, according to a 13 March article in the Bangkok Post. It would be the firm's first international project, though it remains some time off, as a feasibility study is not planned until the end of the year or early in 2018. The pipeline would travel from Pichit province to Tak province, with borders Myanmar, then through Myanmar. The article also said it would go the Pichit depot through Chiang Rai to China. China and Thailand do not share a land border, so any bilateral pipeline would have to pass through Myanmar or Laos. The article did not further discuss the project, which appears to be at an early stage of development.

Myanmar Energy Brief | 10 March - 16 March 2017 13

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Communities SCG President meets with MIC following cement plant protests A high-ranking delegation from Siam Cement Group (SGC) met with the Myanmar Investment Commission (MIC), as authorities in Mon State investigate its coal-fired power plant following a large protest. SCG was previously given MIC permission to build the first foreign-owned cement plant in Myanmar, through its subsidiary Mawlamyine Cement Limited (MCL), which is partly owned by Pacific Link. The facility began operating in late 2016, with a daily capacity of 5,000 tonnes. However, it relies partly on a coal-fired power plant, which has been the source of controversy. Press reports say about 1,000 people protested the facility on 18 February. Some activists claim that SCG did not receive separate permission from the Ministry of Electricity and Energy for the coal generating station, though company officials countered that the facility was part of the design which had been given MIC approval. Following the protests, media reported that the factory was now being investigation by Mon State officials, with a possible shutdown of the facility being mooted depending on what the investigation uncovers. A release on the Directorate of Investment and Company Administration website said SCG President and CEO Roongrote Rangsiyopash met with DICA deputy director general U San Myint on 9 March. The release said that the new Myanmar Investment Law and associated rules were discussed, without going into further detail.

Mon State environment minister Dr Min Kyi Win was quoted as saying in February that Mawlamyine Cement Ltd did not send an EIA to the state government. The company will be given a certain amount of time before the factory is re-investigated, with the results to determine the plant’s fate. The facility has been a matter of dispute in Mon State. The plant’s power generation capacity is said to be 49MW, of which 40MW comes from coal and biofuel. Coal has been a controversial fuel in Myanmar, with a number of local groups opposing it due to environmental and social concerns. Power and electricity Ministry requests parliament accept loan for electrification in southern Shan State The Ministry of Electricity and Energy has requested the Union parliament borrow 24m euros ($26m) to supply electricity to 416 villages in southern Shan State. The funds are to come from Germany’s KfW Development Bank, deputy electricity and energy minister U Tun Naing said, according to a 14 March article in Daily Eleven. The loan comes with a 10-year deferment period, and then the funds must be repaid over the following 30 years, with an interest rate of 0.75%. The current National League for Democracy government has in general been more skeptical about taking on debt than the former USDP government was, though it is unclear from the article as to how parliament reacted to the ministry's latest plan.

Myanmar Energy Brief | 10 March - 16 March 2017 14

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Organisation Description Deadline Contact

Myanma Petrochemical

Enterprise (MPE)

The Myanma Petrochemical Enterprise (MPE) under Ministry of Electricity and Energy invites companies to purchase Coker Gas Oil (CGO)

produced from Thanlyin No(1) Petrochemical Factory in Yangon region.

The price will be Ks 2,340 per gallon for the CGO produced from Thanlyin

factory.

All interested parties may apply.

The terms state that the applicant must purchase at least 100,000

gallons CGO with cash.

The applicant must collect and arrange transport within the defined

period, based on the amount purchased, as follows:

Application forms can be purchased at the head office, Naypyitaw, Office 44 or Yangon branch, Finance department, Myanmar Petrochemical Enterprise, 7(A) Thanlyetsoon, Linsadaung, Botahtaung township or N0(1) Thanlyin Petrochemical factory and Thanpayarkan Petrochemical

Factory.

31/3/2017

Myanma Petrochemical Enterprise, Manufacturing Department, Yangon branch (ph: +95 1397812) and

N0 (1) Thanlyin Petrochemical Factory (ph: +95 95041681, +95

95039047) during office hours.

NEW TENDERS

Myanmar Energy Brief | 10 March - 16 March 2017 15

N0. CGO gallon Defined days

(1) 100,000-200,000 14

(2) 200,000-300,000 20

(3) 300,000-500,000 25

(4) 500,000-up 30

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Organisation Description Deadline Contact

Myanma

Petrochemical Enterprsie (MPE)

The Myanma Petrochemical Enterprsie (MPE) under Ministry of Electricity and Energy invites companies to purchase Blue Oil produced

from No (2) oil refinery (Chauk) in Chauk township, Magway region.

The price will be Ks1,900 per gallon and all parties interested may apply.

Terms state that the applicant must purchase a minimum of 3,000

gallons blue oil with cash.

The applicant must handle collection and transport within the days

defined by the amount purchased as follows:

Application forms can be purchased at the head office, Naypyitaw, Office 44 or Yangon branch, Finance department, Myanmar Petrochemical Enterprise, 7(A) Thanlyetsoon, Linsadaung, Botahtaung township or No

(2) oil refinery (Chauk) in Magway.

31/3/2017

Myanma Petrochemical Enterprise, Manufacturing Department (ph: +95 67411082), Finance Department, Yangon branch (ph: +95 1397812) and No (2) oil refinery Chauk (ph: +95 61200187, +95

61200186) within office hours.

NEW TENDERS

Myanmar Energy Brief | 10 March - 16 March 2017 16

N0. Blue Oil gallon Defined days

(1) 3,000-10,000 14

(2) 10,000-50,000 20

(3) 50,000-100,000 25

(4) 100,000-up 30

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Organisation Description Deadline Contact

Myanma Oil and Gas Enterprise (MOGE)

Myanma Oil and Gas Enterprise (MOGE) under Ministry of Electricity and

Energy (MOEE) invites companies to submit materials.

Bids should be made in USD and Myanmar Kyats.

Tender No.

No 1- DMP/L044(16-17) Assorted Sizes of Batteries(6) Items (in Kyats)

No 2- IFB-123(16-17) Horizontal Directional Drilling (HDD), Services for Installation at Sittaung River crossing of 20" Myainggalay-Yangon and

Natural Gas Pipe Line Project (in USD)

Tenders must be submitted no later than 16:30hrs on 5 April 2017 for

No 1 and 16:30hrs on 25 April 2017 for No 2.

5/4/2017

Office (44), Myanma Oil and

Gas Enterprise, Naypyitaw.

Contact : +95 67411206/ +95

67411274

NEW TENDERS

Myanmar Energy Brief | 10 March - 16 March 2017 17

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Organisation Description Deadline Contact

Myanma Petroleum

Products Enterprise (MPPE)

The Myanma Petroleum Products Enterprise (MPPE) under Ministry of Electricity and Energy (MoEE) invites companies to submit bids to supply the following items for MPPE Warehouse Mandalay, Yangon &

Naypyitaw in Myanmar Kyats.

Tender must be submitted not later than 12:00hrs on 29 March 2017.

29/3/2017

Planning Department, Myanma Petroleum Products Enterprise, Ministry of Electricity and

Energy, Office (6), Naypyitaw.

Contact: +95 67411487

Myanma Oil and Gas Enterprise (MOGE)

The Myanma Oil and Gas Enterprise (MOGE) under Ministry of Electricity and Energy (MoEE) invites interested companies to submit bids to supply

computers and associated items.

Tender No.

MOEE/LP/COM/T/1(2016-17) Computers and Accessory (46 Nos) (in

Kyats)

MOEE/LP/COM/T/2(2016-17) Accessories (89 Items) Printer, Copier,

Scanner, Fax (in Kyats)

Interested applicants must submit the tender application forms not later

than 12:00hrs at noon on 28 March 2017.

28/3/2017

Office (6), Ministry of Electricity

and Energy, Nay Pyi Taw.

Contact: +95 67411332, +95

67411487, +95 67411121

NEW TENDERS

Myanmar Energy Brief | 10 March - 16 March 2017 18

Description

Quan-

tity Remarks

Fire Fightning Truck (Water & Foam) 1 Unit

(MPPE Warehouse

Yangon)

Air Conditioner 2 Items

(MPPE Warehouse

Naypyitaw)

Fire Extinguisher 2 Items

(MPPE Warehouse

Yangon)

600 IGPM Water Pump (Engine

Driven) 2 Nos

(MPPE Warehouse

Mandalay)

Air Compressor (4'' ø Vertical Type)

(2 Cylinder) 2 Nos

(MPPE Warehouse

Mandalay)

Air Compressor with motor 1 No

(MPPE Warehouse

Yangon)

Page 19: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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Organisation Description Deadline Contact

Myanma Oil and Gas Enterprise (MOGE)

The Myanma Oil and Gas Enterprise (MOGE) under Ministry of Electricity and

Energy invites interested parties to submit bids for the supply of the following

respectives items in United States Dollars and Myanmar Kyats.

28/3/2017

Finance Department, Myanma Oil and Gas Enetrprise, No(44)

Complex, Nay Pyi Taw, Myanmar.

Contact: +95 67 411206 / 411274

OPEN TENDER

Myanmar Energy Brief | 10 March - 16 March 2017 19

Tender No. Description

Re-mar

k

IFB-119 (16-17)

Spare Parts and Maintenance for GCS (Myaingalay) (1) Lot US$

IFB-120(16-17)

Upgrade and Inspection for Cooper 12 SGT and MH 64 Compressor (1) Lot US$

IFB-121(16-17)

8'' ERW API 5L Grade X-42 MS 3 layer PE Coated Steel Line Pipe (PSL-2) (8050) MTR US$

IFB-122(16-17) API Class 'G' Cement (500) Tons US$

DMP/L-035(16

-17) Air Compressor Reciprocating with (15-18) HP

Diesel Engine (4) Sets Ks

DMP/L-036(16

-17) Water transfer Pump Skid Mounted with Engine

(300 GPM x 150 Ft hd)/ (25-40)HP (5) Sets Ks

DMP/L-037(16

-17) Crude Transfer Pump Skid Mounted with Motor

(100GPM x 15 Ft hd), 10 KW (1) Set Ks

DMP/L-038(16

-17) 12KV, 630 A, VCB Switch gear Panel Complete

Set (Two Incoming Two Outgoing) (1) Lot Ks

DMP/L-039(16

-17)

Air Compressor with Motor (20 HP) 3 Phase, 50 Hz, 400 V (500 PSI Air Compressor Complete

Sets) (2)Sets Ks

DMP/L-040(16

-17) 132 KW Motor for ZW type CNG Compressor

(400 V, 740 RPM, 3 Phase) (2) Nos Ks

DMP/L-041(16

-17) Assorted Sizes Tyrer (11) Items Ks

DMP/L-042(16

-17) Steel Wire Rope (6) Items Ks

DMP/L-043(16

-17) Spares for CAT-3512 Rig Engine Ex ZJ 70L SR-1

Rig (51) Items Ks

Con-tainer (1/201

7)

Container Transportation (round transports from Yangon ports to Thaketa Site areas)(1-4-

2017 to 30-9-2017)6months Ks

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National Electrification Project Credit No. 5727-MM

Contract Title: Supply, Installation and Maintenance of Solar PV System for Households and Public Facilities Reference No. S&I – 2 (12 lots) 1. The Government of Myanmar has received financing from the International Development Association (IDA) of the World Bank Group toward the cost of the National Electrification Project, and intends to apply part of the proceeds toward payments under the contract for Supply, Installation and Maintenance of Solar PV Systems for Households and Public Facilities. This contract will be jointly financed by the Government of

Myanmar. 2. The Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation now invites sealed bids from eligible bidders for supply, installation and maintenance of one or more of the 12 lots of solar PV systems for households and public facilities in 12 States/Regions/Territory (Kayin, Mon, Chin, Sagaing, Bago, Tanintharyi, Rakhine, Mandalay, Magway, Shan, Ayeyarwaddy and Nay Pyi Taw). 3. For quick reference, some of the key qualification requirements include: · The average annual turnover (or annual sales volume) of the last three years should be USD 4,000,000 or higher which varies by lot and is

cumulative if bidding for multiple lots. · The bidder has successfully completed at least two (2) contracts in supplying, installing, supervising, commissioning and/or maintaining off-grid solar PV systems with batteries, in any year over the last five (5) years, and at least one of the two contracts has a value equivalent to or greater than 50% of the value of the bid. The details of the qualification requirements are seen in the bidding documents. 4. Bidding will be conducted through the International Competitive Bidding procedures as specified in the World Bank ’s Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers dated January

2011 (revised July 2014) (“Procurement Guidelines”), and is open to all eligible bidders as defined in the Procurement Guidelines. In addition, please refer to paragraphs 1.6 and 1.7 setting forth the World Bank’s policy on conflict of interest. 5. A Pre-Bid meeting will be held on March 23, 2017 at 10:00 a.m. at the Department of Rural Development, Office No.14 (Main Conference Room, ground Floor), Nay Pyi Taw in order to answer any questions that potential bidders might have. 6. Interested eligible bidders may obtain further information from the address below and inspect the bidding documents during office hours 10:00 a.m. to 04:00 p.m. (10:00 to 16:00 hours) Myanmar time at the address given below.

7. A complete set of bidding documents in English may be obtained free of charge by interested eligible bidders upon the submission of a written application to the address below. The Bidding Documents will be issued through e-mail only. In case of any difficulty in obtaining the bidding documents, interested parties may contact in writing: Dr.Soe Soe Ohn, Director Department of Rural Development Ministry of Agriculture, Livestock and Irrigation

Office No.14, Nay Pyi Taw Country: Myanmar Fax: +95 67 409529 Email: [email protected]; [email protected] 8. Bids must be delivered to the address below on or before April 27, 2017, 10:00hrs (10:00 a.m.) Myanmar time. Electronic bidding will not be permitted. Late bids will be rejected. Bids will be publicly opened in the presence of the bidders ’ designated representatives and anyone who

choose to attend at the address below on April 27, 2017, 10:00hrs. (10:00 a.m.) Myanmar time 9. All bids must be accompanied by a Bid Security as stated in ITB 19.1 – Bidding Data Sheet of the bidding document. 10. The address referred to above is Attention: U Myint Oo, Deputy Director General,

Project Director of National Electrification Project National Electrification Project Department of Rural Development Ministry of Agriculture, Livestock and Irrigation Office No.14, Nay Pyi Taw Country: Myanmar Tel/Fax: +95 67 409529 [email protected], [email protected], [email protected]

OPEN TENDER

Myanmar Energy Brief | 10 March - 16 March 2017

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Organisation Description Deadline Contact

Myanmar Oil and Gas Enterprise (MOGE)

The Myanmar Oil and Gas Enterprise (MOGE) under Ministry of Electricity and Energy invites companies to submit bids to supply the following

petroleum items (in both US dollars and Myanmar kyats).

Tender application forms must be submitted in person, not later than

16:00Hrs on 20 March 2017.

20/3/2017

Planning Department, Myanma Oil and Gas Enterprise, Ministry of Electricity and Energy, Office

(44), Naypyitaw.

Contact: +95 67 411206, +95 67

411274

OPEN TENDER

Myanmar Energy Brief | 10 March - 16 March 2017 21

Tender N0. Description

Re-

marks

IFB-100(16-

17) Telecommunication Equipments (2) Items US$

IFB-101(16-

17)

Marine VHF FM Transceiver (Synthesized) (25W) (10)

Sets US$

IFB-102(16-

17) Hydraulic Jack 100 Ton (1) Set US$

IFB-103(16-

17)

Air Compressor Engine Driven with Skid 100 CFM, 150

PSI, (40-60) HP (1) Set US$

IFB-104(16-

17) 185 KW, 3300V Induction Motor (1) No US$

IFB-105(16-

17) 7 Ton Fork Lift (82.4 KW @2000 rpm) (1) Unit US$

IFB-106(16-

17) Excavator(25)Ton(Bucket Capacity-1.2m3 (1)Unit US$

IFB-107(16-

17) 4"ERW Steel Line Pipe, API 5L Grade X-42 (16.75)Miles US$

IFB-108(16-

17) 10" ERW Steel Line Pipe, API 5L Grade X-42 (10) Miles US$

IFB-109(16-

17) 4" Steel Ball valve (1) Item US$

IFB-110(16-

17) Assorted Sizes of Pipe Fittings (5) Items US$

IFB-111(16-

17) Welding Electrode E-6011(5)Ton US$

IFB-112(16-

17) Heat Shrinkable Sleeves and Closure Patches (3) Items US$

IFB-113(16-

17)

Data Acquisition, Interpretation Work Station and Data

Processing Center (10) Items US$

IFB-114(16-

17)

Spares Parts and Maintenance for PLC (Daw Nyein) (1)

Lot US$

IFB-115(16-

17) Spares Parts and Maintenance for GDS (Ywama) (1) Lot US$

IFB-116(16-

17) Spersene (100) MT US$

IFB-117(16-

17) Chrome Lignite (XP-20) (200) MT US$

IFB-118(16-

17) Spares for Oxygen Plant (12) Items US$

DMP/L-031

(16-17)

Portable Fire Pump 200 GPM, Single Stage with Engine

& Assembly (1) Item Ks

DMP/L-032

(16-17) 18R 22.5 x 18PR Tyre Tubeless (1) Lot Ks

DMP/L-033

(16-17) SAE 15W 40 Diesel Engine Oil (1) Lot Ks

DMP/L-034

(16-17) Gear Oil (PGO-140 P) (GL-5) (1) Lot Ks

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Organisation Description Deadline Contact

Ministry of Electricity and Energy

1. The Ministry of Electricity and Energy has received financing from the World Bank towards the cost of the National Electrification Project, and intends to apply part of the proceeds towards payments under the

contract for Steel Poles for National Electrification Project.

2. The Ministry of Electricity and Energy now invites sealed bids from eligible bidders for supply of steel pole 10 meter and 12 meter, for the total quantities of 11,484 poles to be delivered in 2017 and 2018 to multiple destinations in all Regions and States of Myanmar. Domestic preference with the margin of 15% will apply. The goods will be grouped

into 10 lots and bidders may submit bid for any one or more lots.

3. Bidding will be conducted through the international Competitive Bidding procedures as specified in the World Bank’s Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD

Loans and IDA Credits & Grants by World Bank Borrowers [edition of January 2011 revised in July 2014] (“Procurement Guidelines”), and is open to all eligible bidders as defined in the Procurement Guidelines. In addition, please refer to paragraphs 1.6 and 1.7 setting for the World

Bank’s policy on conflict of interest.

4. Interested eligible bidders may obtain further information from Project Manager, Project Management Office, Office (27), Ministry of Electricity and Energy, nep.pom [email protected] and inspect the bidding documents during office hours 10:00 to 16:00 hours at the

address given below.

5. A complete set of bidding documents in CD with English Language may be purchased by interested eligible bidders upon the submissions of a written application to the address below and upon payment of a

nonrefundable fee of Ks 100,000.

The method of payment for the nonrefundable fee will be transferred to

the following account:

Electricity Supply Enterprise, account no.SEE10316 at Myanma Economic Bank in Naypyitaw, Myanmar. The transferred slip shall be submitted with the above application. Once the application and the transferred slip

received, the bidding documents will be provided in the CD.

4/4/2017

Bids must be delivered to the

address below on or before 10:00 am, 4 April 2017. Electronic

bidding will not be permitted.

Late bids will be rejected. Bids will be publicly opened in the presence of the bidders’ designated representatives at Director General Office,

Department of Electric Power Planning Office No (27), MoEE, Naypyitaw at 10:00 am, 4th April

2017.

All bids must be accompanied by a Bid Security as described in the

bidding document.

OPEN TENDER

Myanmar Energy Brief | 10 March - 16 March 2017 22

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Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 10 March - 16 March 2017 23

Retail fuel prices by week, March 2017

W/E 3 Mar W/E 7 Mar W/E 9 Mar W/E 15 Mar

Diesel Ks. 725 Ks. 725 Ks. 720 Ks. 725

Octane 95 Ks. 770 Ks. 770 Ks. 770 Ks. 770

Octane 92 Ks. 735 Ks. 735 Ks. 735 Ks. 735

690

700

710

720

730

740

750

760

770

780

22-Feb 26-Feb 2-Mar 6-Mar 10-Mar 14-Mar

Diesel

Octane 95

Octane 92

Page 24: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

energy.frontiermyanmar.com

Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

Imported fuel prices by week, February– March 2017

W/E 27 Feb W/E 3 Mar W/E 10 Mar W/E 6 Mar

Octane 92 Ks. 671 Ks.671 Ks. 657 Ks. 657

Diesel Ks. 689 Ks. 689 Ks. 670 Ks. 670

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 10 March - 16 March 2017 24

630

640

650

660

670

680

690

700

710

720

7-Feb 11-Feb 15-Feb 19-Feb 23-Feb 27-Feb 3-Mar 7-Mar

Octane 92

Diesel

Page 25: Myanmar Energy rief NEWS · Myanmar Energy rief Issue 89 16 March 2017 Part of the Myanmar Energy Monitor energy.frontiermyanmar.com IN THIS ISSUE Parliament discusses shutting state

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Source: Myanmar Petroleum Trade Association

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 10 March - 16 March 2017 25

Average retail prices of fuel in Myanmar (Kyat/Gallon)

Cities 3 March 6 March 10 March 15 March

Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel

Yangon 3,350 3,300 3,350 3,300 3,350 3,300 3,350 3,300

Pyimana 3,540 3,370 3,540 3,370 3,540 3,370 3,540 3,370

Lewe 3,650 3,500 3,650 3,500 3,650 3,500 3,650 3,500

Tatkone 3,600 3,500 3,600 3,500 3,600 3,500 3,600 3,500

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The Myanmar Energy Brief and the Myanmar Energy Monitor are produced by Frontier Myanmar Research Ltd.

Myanmar address

Office 12, Building 27

Shwe Ohn Pin Yan Shin Street

Yankin Township Yangon, Myanmar

www.frontiermyanmar.com

energy.frontiermyanmar.com

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