Myanmar Energy rief NEWS...Parliament did vote to purchase a 25MW dual-fuel generator, and there are plans to coax more power out of existing projects, though it is thought these efforts

energy.frontiermyanmar.com

Myanmar Energy Brief Issue 92 6 April 2017

Part of the Myanmar Energy Monitor

energy.frontiermyanmar.com IN THIS ISSUE

China changing stance on negotiations over Myitsone Beijing now willing to give up on frozen hydropower project in return for other economic concessions, report claims Cross-Myanmar oil pipeline to start in April SEAOP has been essentially complete since 2015, but a series of tax disputes and delays to the Yunnan refinery have prevented operations Analysis: Fuel importers association scrambles to prevent foreign entry Fuel importers are pushing back following a minister’s comment that foreign firms will be allowed into the market

YESC plans load shedding for summer Q&A: Auto Trust oil analysis YESC upgrades Dala township electricity

PTTEP holds Dawei consultation for Zawtika expansion Southern Mon State to wait longer for electrification Petronas India lubricant blending plant to export to Myanmar

InfraCo Asia signs MoU with Magwe Region to look at wind potential Fuel importers association explains price calculation

THIS WEEK’S NEW TENDERS

Supply of various gantries to DEPTSC Supply of machinery and associated equipment to MPE Supply of various items to MOGE

THIS WEEK’S NEW DATA

Weekly fuel retail and import prices, March-April 2017 Fuel retail prices by city, March-April 2017

CALENDAR

Renewable Energy Expo 2017 Electric Power & Renewable Energy Myanmar 2017

NEWS ANALYSIS DATA TENDERS COMPANIES


ENERGY NUMBER OF THE WEEK

$20m a month

Fuel importers and

distributors are collectively generating profits of about $20m a

month, or between $200m and $300m a year,

according to the secretary of the Myanmar

Petroleum Trade Association.

Secretary U Win Myint

used the figures to claim fuel importers are not price gouging, as the

association seeks to make the case that there is no need for foreign firms to

be allowed into the market.

.



http://www.frontiermyanmar.com/




Government and local authorities China changing stance on negotiations over Myitsone China is willing to give up on the disputed Myitsone hydropower project in return for other opportunities in Myanmar, according to a 6 April article by Reuters news agency. President U Htin Kyaw is to discuss the Myitsone project during a visit to China, which is to begin on 6 April. The article said China had been “pushing hard” for resumption of the 6,000MW project, despite widespread opposition, though Beijing has recently switched to looking for alternate solutions. Project developer Upstream Ayeyawady Confluence Basin Hydropower, which is majority owned by China’s State Power Investment Corp (formerly China Power Investment Corp), is reportedly concerned the project will be scrapped, as China shifts to seeking approval for other projects such as the Kyaukphyu SEZ or other smaller hydropower projects. Upstream Ayeyarwady Confluence had planned to build seven hydropower projects on the Ayeyarwady and its two main tributaries, though voluntarily halted all other projects with the freezing of Myitsone, which was the most advanced project. Reuters reported the company said it was looking forward to an impartial and fair review into the environmental and social impact, and was confident of an appropriate solution. Myanmar national security advisor U Thaung Tun said the review, led by the president, was in its final stages.

The $3.6bn hydropower project has been a diplomatic sticking point since 2011, when then-President U Thein Sein froze the controversial dam as one of his first major acts in office. The dam stayed frozen during his term, and it has been left up to the current government led by Daw Aung San Suu Kyi to decide what to do with it. A high-ranking committee was formed in August last year, days before the state counsellor’s first trip to China after the NLD victory. The committee has subsequently written two reports on the hydropower project, neither of which have been publicly released. Transportation and distribution Cross-Myanmar oil pipeline to start in April The Myanmar-China crude oil pipeline is likely to start operations at the end of April, an anonymous official from the consortium developing the project was reported as saying. The pipeline has been largely complete since early 2015. It is intended to allow China to import crude without the need to import through the Malacca Straits. However, disputes over taxes and fees as well as a delay building a refinery in China meant the pipeline has so far only been used for testing purposes.

Myanmar Energy Brief | 31 March - 6 April 2017 2



Earlier this month, reports suggested that disputes over fees between the two countries were nearly resolved, essentially awaiting a final sign-off by Myanmar authorities. An oil tanker was reportedly already on its way to the terminal at Made island in Rakhine State. On 31 March, the Democracy Today newspaper quoted an anonymous official as claiming the pipeline will be ready near the end of April. The 770km SEAOP oil pipeline largely twins the SEAGP pipeline, which has been operational since 2013. SEAGP is a gas pipeline connecting with the Shwe Gas offshore area and southern China, while SEAOP is intended to transfer oil from the Middle East to southern China The largest owner in both pipelines is China National Petroleum Corporation. Myanma Oil and Gas Enterprise also has stakes in both, while SEAGP has a number of other private-sector participants. Transportation and distribution Analysis: Fuel importers associations scrambles to prevent foreign entry The Myanmar Petroleum Trade Association is circling the wagons, after a recent announcement that foreign retailers will be allowed to enter the domestic fuel import and distribution market. Current rules keep out foreign companies, leaving the market dominated by local players. But complaints over high cost and poor quality have persisted, and it appears the government has had enough of the status quo.

Minister for Planning and Finance U Kyaw Win told local and international businesspeople on 18 March that the government is planning to allow foreign investors and distributors to enter the fuel retail market. Ministry permanent secretary U Tun Tun Naing was later quoted in News Watch Weekly as saying a majority of comments he had heard or seen on social media were supportive of the plans, with only the local companies in the business thought to be in opposition. Consumers believe foreign companies could deliver better quality at lower prices, he said. The reputation of local companies in the fuel retail business also varies significantly. Taxi drivers are known to avoid some stations, in favour of others such as the Max Energy station on Yangon’s Theim Phyu road, where there are frequent line-ups due to the station’s positive reputation. While U Kyaw Win said foreign companies will eventually be allowed in, he did not describe in his speech exactly how this would take place. There is currently one foreign company allowed to operate, Puma, which is specifically involved in importing and distributing jet fuel,. This concession was awarded via a tender in 2014. A separate tender was launched in 2015 to find a foreign partner for Myanmar Petroleum Product Enterprises’ 12 publicly-owned station stations, though a winner has yet to be announced. Currently, the method of allowing in foreign fuel companies is unclear, such as through JVs, tenders, or full foreign subsidiaries, though it is clear the MPTA is opposed to such plans.




Importers respond MPTA secretary U Win Myint held a press conference at the MPTA offices on 5 April, in an apparent response to plans to allow in foreign companies. At the event, which was widely covered in local media but not international press, U Win Myint said that local companies have little experience, poor technology and low investment levels, since they were allowed into the business only in 2011, when the government ended its monopoly and privatised its roughly two hundred and fifty stations. U Win Myint claimed that profits from the fuel business are slim. Currently, fuel distributors have been earning profits of about $20m a month, or between $200m and $300m a year, he said, implying that the companies were not engaging in price gouging. However, U Win Myint also advanced an apparently contradictory argument that local companies can properly serve the local market, even though they are lacking in experience, technology and investment levels. The MPTA secretary claimed that the association is not a monopoly. While it is necessary to join the organisation to import fuel legally, U Win Myint said that about 70 to 80 businesses are operating, and that new applications are processed within one week. There are thought to be hundreds of fuel retailers, though most are small-scale shops with only one or two outlets. U Win Myint also claimed that will Thai companies make 12% profit on each litre of fuel, local firms only claim about 6% due to strong local competition.

He also claimed that the one foreign company allowed to import fuel to Myanmar, specifically jet fuel, has been taking profits of 25%. Thingyan gouging Price hikes during the April new years festival are often unavoidable, though this has not eased consumer anger. The Myanmar Times Myanmar Edition reported U Win Myint as claiming that MPTA members have pledged not to raise prices during Thingyan, and that prices would reflect swings in international prices. However, it is unclear what enforcement would be taken against retailers who do raise prices. It is ultimately up to the Ministry of Electricity and Energy and law enforcement to take action on price gougers, though in practice this appears to rarely happen. U Win Myint also said the association is planning to open a laboratory for fuel tests within one month. The tests will be mandatory for importers, and intended to improve the quality of locally-sold fuels. He also said the association would “try its best” to prevent unfair business practices, particularly in rural areas.




Power and electricity YESC plans load shedding for summer Yangon Region is planning to systematically load shed in the coming summer months rather than the pushing the system until breakdown, an official from Yangon Electricity Supply Corporation was quoted as saying by military-owned Myawady journal. The official claimed that if users reduced their power consumption, there would be enough electricity to go around, as current blackouts happen because power use is more than demand. Recent work on the Yadana offshore area has cut available gas for use in Yangon electricity generation, as well as in Thailand.

The fall was partly offset by production from the Zawtika area, while industrial zones in Yangon also potentially faced outages. However, The Bangkok Post quoted Thai officials as claiming the impact of working on Yadana was smaller than anticipated, as the repair work was completed quickly. Yangon is now entering its summer months, when electricity demand most typically exceeds supply. Plans to have 600MW of fast-track capacity installed by April have now been missed, as PPAs for the two 300MW projects have not been signed.

Parliament did vote to purchase a 25MW dual-fuel generator, and there are plans to coax more power out of existing projects, though it is thought these efforts will be insufficient to meet demand. Power outages were significant in the 2016 summer, with local people criticising the newly-elected NLD government. Transportation and distribution Q&A: Auto Trust oil analysis The Myanmar Energy Monitor recently met with U Zayar Tun and U Tayza Tin Lin from Auto Trust to discuss the sector. Auto Trust claims to be the first lube analysis and diagnostic company in Myanmar, opening in Thaketa township in late 2016. Can you discuss how you came to found Auto Trust? I worked for many years in Singapore in a similar line of work. I’m very interested in this job, in doing diagnostic and troubleshooting for machinery. I wanted to come back to my country and set up my own business. This business was my professional job in Singapore. I found some clients who sent oil sample from Myanmar, and noticed that there is no international standard oil analysis lab in Myanmar. So I decided to bring this technology to Myanmar and set up an international standard lab in Myanmar.




Can you discuss what oil analysis is? Oil is very important for lots of machinery, like gear boxes, engines, hydraulics, turbines, transformers. The oil is going through the parts inside the machinery. This oil can tell us what is happening inside machinery and also oil health. Oil analysis is very important in proactive maintenance technology. In maintenance technology, we can basically categorize in three types – the first is breakdown maintenance, the second is preventive maintenance, and the third one is predictive / proactive maintenance. Let’s say for example an engine is not working properly, then its operating temperature will become high. This increasing temperature will affect its lubricant. Through oil analysis we can know this lubricant has suffered from the effects of high tempera-ture, and can conclude that the engine is over-heating. So we can consult our customer that their machinery is not working properly, what the root cause is and what should they do to eliminate it. Finally our customer can prepare very well with their maintenance team proactively. That is what our customer can get from oil analysis and how we can proactively maintain our customers’ machineries by oil analysis.

Can you tell me a little more about the business – when did it launch? What products are you testing? In October 2016 we launched our opening ceremony at Novotel Hotel Yangon. Within the first three months we’ve occupied a small percentage of market, fortunately. These are customers already doing oil analysis, but they cannot do it in Myanmar and they have to send their oil samples to other countries, maybe Singapore or Thailand. We approached to them and tried to run our business with their help but did not approach to new clients yet who are not familiar with oil analysis. But they are in the industry. So sooner or later we will approach them and try to explain what oil analysis is and what advantages they can get from it. As for our service packages, until now we are giving two types of condition monitoring techniques namely oil analysis and thermography analysis. Based on these two analysis, we can do engine performance analysis, condition monitoring program, lubrication program management for heavy industry, lube match analysis program, consultancy in lube-related problem and root cause analysis. You worked in Singapore before and now you’re working in Myanmar. What’s the difference in your experience? In Singapore, most of the clients have already known about oil analysis. So we don’t need to emphasise in marketing too much. Here, in Myanmar, we have two types of clients. Some have already known about oil analysis and Condition-Based Maintenance while the other clients don’t know about oil analysis yet, though they are in the industry.




Thus, we have to emphasise in marketing totally. We have to take long time to develop the existing market sector for oil analysis. This is the major difference in our business. How are you approaching clients? In Myanmar, it is very difficult to find and get an appointment with the right person to discuss and let them know we can do oil analysis service here. Let’s say, for example, Caterpillar. Caterpillar already knows very well about oil analysis and is doing it since many years back. For such a client we can easily approach them and just announce we are doing this type of service. But for the other clients who don’t know about oil analysis, while we try to get an appointment over the phone, we will tell them we are doing oil analysis, and make some presentation. But they don’t know about oil analysis and they don’t want to give their time to us. That’s why mostly we find out our potential customers on their websites and try to meet with their right person and explain them directly in person.

I imagine one of the reasons is that people use international labs is that they are certain about the quality, with proper certificates. So how do you make the argument that ‘our laboratory is just as good as Singapore’? For the certification and qualification, we have two types. One is for testing equipment, and the other is for technical engineers. For testing equipment, we have used ASTM certified equipments namely ASTM (American Society for Testing and Materials) D6595, D4739, D664, D7889 and D445. How do you prioritise what you do? Our first priority is oil analysis. Thermography analysis and oscilloscope analysis are used to support oil analysis to complete condition monitoring diagnosis. What is the service fee? We have two types. For an individual or ad hoc sample, it will cost Ks40,000. For the contract clients, we’ve given different rates depending on their monthly number of samples tested. How much does it cost for those using the current method of sending to Singapore? Ks40,000 is only delivery charges for them if they need to send the oil sample to other countries. Since we are trying to develop oil analysis in Myanmar and expand our market, we make our rate as low as possible.




Our clients don’t need to think about service charges. We just make them to think about what they get from it and how they improve with it. And then we can give our analysis report within 48 hours. If they will submit to other country, they need to wait for the report at least one week. Power and electricity YESC upgrades Dala township electricity

Yangon Electricity Supply Corporation is working to extend the grid in Dala township, directly across the Yangon river to the south of the city. A budget of Ks250m ($185,000) have been set aside for the work, which includes adding transformers, increasing the size of distribution lines, upgrading lights, and transitioning from wooden to concrete utility poles. Dala township’s electric engineering office has complete the installation of 17,300ft of 6.6kV power lines, four units of 200kV transformers, and 8,300ft of 400V power lines. It has also replaced 160 wooden poles with concrete. The work has specifically taken place in the following villages: Yay Dagar Nyaung Chaung Rakhine Chaung (South) Rahkine Chaung (North) Additional work has been done in Yarza Thingyan Ward and Targyi Ward. There are 24 wards as well as 23 groups of villages and 54 villages in Dala township.

The main wards already have electricity, along with 26 of the 54 villages. Exploration PTTEP holds Dawei consultation for Zawtika expansion PTTEP held its second public consultation for work on block M-9, with the meeting taking place in a Dawei hotel in Tanintharyi Region on 29 March, according to state-owned Myanmar Ahlin journal. The Thai firm previously announced plans to expand Zawtika with Phase 1C, consisting of four remote wellhead platforms, beginning in late 2017, and Phase 1D of eight remote wellhead platforms in 2020. The plans are aimed partly at maintaining production at the offshore area, which is Myanmar’s newest, coming online in 2013. At the recent Dawei meeting, officials from PTTEP discussed the company’s expansion plans, while officials from SEM advisory firm discussed the planned EIA and SIA. U Naing Win Aung, a representative from Myanmar Oil and Gas Enterprise (MOGE), gave the opening speech. Block M-9 is located in the Moattama offshore area. It is about an equal distance from Tanintharyi Region and Ayeyarwady Region.




Power and electricity Southern Mon State to wait longer for electrification Villages in southern Ye township will have to wait until after Thingyan for electricity to arrive, according to officials quoted by ethnic officials from Mon News Agency and posted online by Burma News International. Work is being conducted by the Southeast General Energy and Power Company (SEGEP) in the township, which is in a sparsely populated area at the south end of Mon State, near the border with Tanintharyi Region. State minister for electricity, energy and industry U Min Htin Aung Han was quoted as saying that while the project has been approved by the state cabinet, it was delayed by slow approval from the state legislature. SEGEP has signed an MoU in December 2016, and begun work on that basis, but formal approval of the project by parliament was delayed until March. The company had intended to finish the work by the start of Thingyan, but by the end of March had only installed utility poles in four villages and not complete a planned power plant. Mon State parliamentarian U Chit Tin said the project had been approved with the understanding it would be finished by Thingyan. “If they do not finish the project in time they will lose our support and we will organise against them,” he said. Although the fuel oil power plant is not complete, a local resident said the company could bring in diesel generators to help meet the goal.

A previous report by Mon News Agency stated that company director U Maung Maung Myint had said in December that the fee would be between Ks202 and Ks256 per unit of electricity. Homes on the company’s grid would receive meter boxes, while new homes being connected would receive what were described as “pre-paid” meter boxes. The article does not discuss the size of the power plant, other than to say it is under the 30MW limit which requires approval by the Union government rather than states or regions. However, SEGEP may add capacity to the plant once complete, which may put it over the limit and require Union-level approval, including from the Myanmar Investment Commission. In addition to the project at Zi Phyu Thaung, the firm is also planning a 9MW project at Kalaw village and a 28MW project at Kyaung Ywa village at the end of 2018. Transportation and distribution Petronas India lubricant blending plant to export to Myanmar Petronas plans to expand its lubricant sales in Myanmar after completing a large facility in India later this year, according to an article by Business Standard. The Maharashtra facility in India will be complete in December, and will start production in early 2018. The lubricant blending facility is to cost $50m, with 110m litres of lubricant capacity, the article said. While Petronas intends to increase its market share in India to about 4% with the facility, it is also planning to use the facility as an export hub in countries including Myanmar, Nepal and Sri Lanka.




Petronas currently has a 1.1% share in the Indian lubricant market, equating to about 22m litres. In Myanmar, Petronas opened a lubricants representative office in 2015. Its local partner is M.Y. Associates, a local group of companies distributing overseas products including engineering equipment, industrial materials and cement. M.Y. Associates was established in 1996 and had a 2012 turnover of $10m, according to the group's website. Renewables InfraCo Asia signs MoU with Magwe Region to look at wind potential InfraCo Asia Development has signed an MoU in collaboration with Magwe Region government to study the feasibility of wind power in the region, according to a press release. Infra Capital Myanmar will be the project principal on behalf of InfraCo Asia. The effort is to demonstrate the technical and commercial viability of wind power in Myanmar. The firm aims to develop medium-scale wind power projects based on a Public Private Partnership model. Pre-feasibility analysis has been completed with positive findings, using funding from a grant facility from a sister entity, the Technical Assistance Facility, the release said. The MoU was signed by the Magwe Region minister for natural resources, environmental conservation, electricity and energy, and by InfraCo Asia CEO Allard Nooy, in the presence of Magwe Region chief minister Dr Aung Moe Nyo.

Infra Capital Myanmar director Yanis Boudjouher was quoted as saying the study will build the solid foundations required to shape sustainable development of Myanmar's wind resources. He added that Myanmar needs to attract private investment to significantly increase its generating capacity to support economic growth. "We understand that this issue is at the top of Myanmar's government priorities and on InfraCo Asia's behalf, we are committed to supporting these efforts, and catalysing this investment," he said. InfraCo Asia Development is a commercially managed infrastructure development and investment company under the Private Infrastructure Development Group. It is headquartered in Singapore, and aimed at stimulating greater private sector investment in infrastructure in South and Southeast Asia. The firm takes equity stakes in high-risk infrastructure developments, with a focus on social responsibility and commercial viability. InfraCo Asia is funded by the Australian Department of Foreign Affairs and Trade, the Swiss State Secretariat for Economic Affairs and the UK Department for International Development.





B2B Fuel importers association explains price calculation The Myanmar Petroleum Traders Association (MPTA) has been on the defensive over the last week, after a senior government official said the plan is to open the door to foreign fuel retailers and distributors. One of the main complaints frequently levelled at the association is the high price of fuel on the domestic market. Fuel importers must be members of the MPTA, and some have criticised the group as a monopoly, keeping up prices. The MPTA does not have authority to regulate prices, but its members do meet every Tuesday to come up with a reference price for petrol. It then reports the price to the Ministry of Electricity and Energy, which has the authority to crack down on those overcharging. Myanmar Energy Monitor met with MPTA officials last month, partly to discuss how this reference price is set. The MPTA claims to have a standard template for both fuel importers and for domestic retailers, which is explained with an example below. The example is for 16 December 2016, and uses an exchange rate of Ks1437 per dollar. FUEL IMPORTERS - STANDARD PRICE CALCULATION Wholesale price The wholesale price section covers the cost of purchasing the fuel in Singapore and transporting it to Myanmar.

Initial costs (per

barrel) RON 92 RON 95 Diesel

Price of oil from Singapore per barrel

(MOPS price) $62.98 $65.77 $62.57

Shipping $3.00 $3.00 $2.80




Cost from Singapore (in different units) This section shows the price of fuel in different units. The MPTA keeps track on a kyats -per-litre basis in Myanmar, so units need to be converted from dollars-per-barrel. Taxes on import This sections shows the taxes Myanmar levies on one litre of fuel.

Total initial cost

from Singapore (in

four different units)

RON 92 RON 95 Diesel

CIF Price

(Cost, Insurance, Freight) USD per

BBL

$65.98 $68.77 $65.37

CIF Price

(Cost, Insurance, Freight) USD per

Gallon

$1.89 $1.96 $1.87

CIF Price (Cost, Insurance, Freight) Kyats per

Gallon

Ks2,708 Ks2,823 Ks2,683

CIF Price (Cost, Insurance, Freight) Kyats per

Litre

Ks595.9 Ks621.1 Ks590.4

Taxes per litre RON 92 RON 95 Diesel

Custom Duty (1.5%) Ks8.94 Ks9.32 Ks8.86

Special Goods Tax

(5%) Ks29.79 Ks31.05 Ks29.52

Commercial Tax (5%) Ks31.73 Ks33.07 Ks31.44

Advance Income Tax

(2%) Ks11.92 Ks12.42 Ks11.81

Total Tax (applied for

one litre) Ks82.38 Ks85.87 Ks81.62

Total Cost of one

litre, including tax Ks678.28 Ks706.96 Ks672.01




Miscellaneous fees This sections shows the extra fees the MPTA includes in its calculation, on a per litre basis. Profit The article claims a 2% profit is included for importers in its calculations. Final price for imported fuel

Miscellaneous fees

(per litre) RON 92 RON 95 Diesel

Fuel tank rental fee

plus loss rate of 1% Ks8.80 Ks8.80 Ks5.50

License and money

transfer fees Ks2.20 Ks2.20 Ks2.20

Loss from shipping

(of 0.3%) Ks3.30

Total price after fees

(for one litre) Ks689.28 Ks717.96 Ks683.01

Profit RON 92 RON 95 Diesel

2% profit Ks13.79 Ks14.36 Ks13.66

Final prices RON 92 RON 95 Diesel

Reasonable whole-sale price per litre

(recommendation) Ks703.06 Ks732.32 Ks696.67

Initial price (details are unclear what this price is for, since it is below the calculated

cost to importers)

Ks670 Ks710 Ks673




FUEL RETAILERS - STANDARD PRICE CALCULATION This section shows how the MPTA calculates the standard price that fuel stations are to charge. It uses the import price (labelled on the last page as "Reasonable wholesale price per litre") as a starting point.

RON 92 RON 95 Diesel

Reasonable import price (calculated for

importers) Ks703.06 Ks732.32 Ks696.67

Transport cost Ks7 Ks7 Ks7

Staff fee Ks8 Ks8 Ks8

Electricity and water

use Ks2 Ks2 Ks2

Land cost Ks13 Ks13 Ks13

Building cost Ks5 Ks5 Ks5

Investment cost Ks5 Ks5 Ks5

Shortage of product Ks6.89 Ks14.36 Ks6.83

Overall cost Ks46.89 Ks54.36 Ks46.83

Imported price including delivery

(Yangon) Ks749.96 Ks786.68 Ks743.5

4% profit Ks30 Ks31.47 Ks29.74

Reasonable retail price (final

recommendation) Ks779.76 Ks818.15 Ks773.24



Organisation Description Deadline Contact

Department of Electric Power Transmission and System Control (DESPTC)

The Department of Electric Power Transmission and System Control

(DESPTC) under the Ministry of Electricity and Energy (MoEE) invites interested parties to submit bids to supply 230kV, 132kV, 33kV Transformer Gantry, Line Gantry, Bus Gantry and associated items that are required in the upgrades of Main Transformers at the Main

Substations.

Bids must be submitted in Myanmar Kyats only.

Interested applicants must submit the tender documents not later than

14:00hr on 8 May 2017.

8/5/2017

Ministry of Electricity and Energy, Tender Calling Committee, Department of Electric Power Transmission and System Control, Planning Department, Office 27,

Naypyitaw.

Contact: +95 67 410209, +95

67 410282

Myanma Petrochemical

Enterprise (MPE)

The Myanma Petrochemical Enterprise (MPE) under Ministry of Electricity and Energy (MoEE) invites companies to submit bids to supply

the following items in both Myanmar Kyats and US Dollars.

Machinery and associated equipment:

Air Conditioner (10) Sets, Level Transmitter (Myanmar Kyats) (2) Nos, Fire

Fighting Truck (2) Units

Machinery and associated equipment:

LPG Viking pump with motor (filling pump), spare for PA compressor & turbine, MP carbonate solution pump with motor & MP absorbent return pump with motor, instrument air compressor with motor & N2 compressor with motor, river water pump with motor complete set,

carbonate solution pump with motor, industrial water pump with motor, distillation testing unit, condensate feed pump with motor complete set, differential pressure type level indicator, flow control valve with pneumatic positioner, heat exchanger (cooler) tube bundle, boiler unit,

cryogenic pump with motor complete set (US$).

Interested applicants must submit the bids not later than 12:00hrs on 9

May 2017.

9/5/2017

Ministry of Electricity and Energy, Myanma Petrochemical Enterprise, Planning/Finance Department, Office (44),

Naypyitaw.

Contact: +95 67 411123, +95

67 411193

NEW TENDERS





Myanma Oil and Gas Enterprise (MOGE)

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

following various items. Bids must be submitted in Myanmar Kyats only.

Interested applicants must submit the bids not later than 16:00hrs on 2

May 2017.

2/5/2017

Ministry of Electricity and Energy, Myanma Oil and Gas Enterprise, Office (44),

Naypyitaw during office hours.

Contact: +95 67 411206, +95 67

411274

NEW TENDER


No. Tender No. Description

1.

DMP/L-001(17

-18)

Redress Kit, Casing Packer, Shifting Tool & Sliding

Sleeves (6) Items

2.

DMP/L-002(17

-18)

OTECO Gate Valves and Spares for Rig Pumps (16)

Items

3.

DMP/L-003(17

-18) 2",3"&4" Pipe Fitting (13) Items

4.

DMP/L-004(17

-18) Welding Electrode (6) Items

5.

DMP/L-005(17

-18) Steel Wire Rope for Oil Field Truck (2) Items

6.

DMP/L-006(17

-18)

2" Oteco Pressure Relief Valves (PRV Type), Thread

End (2) Nos

7.

DMP/L-007(17

-18) Foreign Bentonite (500) Tons

8.

DMP/L-008(17

-18) Steel Helmet (2000) Nos

9.

DMP/L-009(17

-18) A3 Digital Multifunction Copier

10.

DMP/L-010(17

-18) 18 R 22.5 x 18 PR Tyre Tubeless (12) Sets

11.

DMP/L-011(17

-18) Assorted Sizes of PDC Bits (2) Items

12.

DMP/L-012(17

-18) 5 1/2" Change Nipple (2) Items




Electricity Supply Enterprise (ESE)

The Electricity Supply Enterprise (ESE) under Ministry of Electricity and

Energy (MOEE) invites interested parties to submit bids to supply the

following items in the 2017-2018 fiscal year.

Bids should be submitted in Myanmar Kyats only.

(1) Purchase to Concrete Poles

(2) Associated equipment (in lots) of substation

(3) Invitation of projects in Turnkey system within the regions and states,

as funded by additional amounts from JICA ODA loans.

(4) Purchase of associated machinery equipment (in lots) with delivery

services for diesel generators.

Bids must be submited not later than 12:00 on 25 April 2017.

25/4/2017

Ministry of Electricity and Energy, Electricity Supply Enterprise, Planning Department, Office 27,

Naypyitaw.

Contact: +95 67 8104244, +95

67 8104245, +95 67 8104246

Myanma Petrochemical

Enterprise (MPE)

The Myanma Petrochemical Enterprise (MPE) under the Ministry of Electricity and Energy (MoEE) invities companies to submit bids to supply

the following items (in Myanmar kyats only).

(1) Chemical items - Caustic Soda (200MT), Hydrochloric Acid

(400MT)

Tender application forms must be submitted not later than 12:00 on 9

May 2017.

9/5/2017

Ministry of Electricity and Energy, Myanma Petrochemical Enterprise, Planning/Finance

Department, Office (44),

Naypyitaw.

Contact: +95 67 411123

OPEN TENDERS





OPEN TENDER

REPUBLIC OF THE UNION OF MYANMAR Ministry of Electricity and Energy

Myanma Oil and Gas Enterprise (MOGE) Naypyitaw

Request for Proposal for Joint Venture in Onshore Seismic Acquisition Services with Myanma Oil and Gas Enterprise Date: 24 March 2017 MOGE is a state-owned enterprise which is responsible the upstream oil and gas sector under the Ministry of Electricity and Energy ("MOGE") of the Republic of the Union of Myanmar. MOGE intends to establish a joint venture with an internationally proven service company in onshore seismic acquisition services. The main goals are to strengthen MOGE's technological know-how, upgrade its workforce, gain access to financing, adopt international best practices and widen market access. MOGE had initially launched a public invitation for interested parties to submit a Letter of Expression of Interest ("LOEI") for a Joint Venture in Onshore Seismic Acquisition Services with MOGE in June 2014. MOGE is now launching this Request for Proposal ("RfP") in the form of an open tender to interested parties, including but not limited to LEOI respondents from the LEOI exercise conducted in June 2014, to submit a response to this Request for Proposal (the "Application"). In this context, MOGE intends to select a suitable internationally proven seismic acquisition services company as the "Joint Venture Partner" through a step-by-step process: Phase 1: Request for Proposal; Phase 2: Evaluation Process; Phase 3: Negotiations and Signing. Interested parties are required to submit an Application no later than 3 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 24, 2017 to the following address: MOGE Tender Committee for Joint Venture Establishment in Petroleum Services (Seismic), Complex 44, MOGE Office, Naypyitaw, Republic of the Union of the Myanmar. The RfP, which includes guidelines for submission, can be purchased by any interested party starting March 24, 2017 (excluding Saturdays, Sundays and Public Holidays) at Complex 44, MOGE Office, Naypyitaw, Republic of the Union of Myanmar for a non-refundable cash payment of five hundred United States Dollars (USD 500). The pur-chaser will be provided with a payment acknowledge when payment is made. Only Applications from Applicants that had purchased the RfP document officially from MOGE will be evaluated. Interested parties who have purchased the RfP are welcome to submit questions regarding the RfP and comments on the draft Joint Venture Agreement attached in its annex, no later than 12 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 4, 2017, to which MOGE will duly respond to all questions submitted and issue a revised draft Joint Venture Agreement.

Myanma Oil and Gas Enterprise Ministry of Electricity and Energy




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Request for Proposal for Joint Venture in Onshore Drilling Services with Myanma Oil and Gas Enterprise

Date: March 24, 2017

MOGE is a state-owned enterprise which is responsible the upstream oil and gas sector under the Ministry of Electricity and Energy ("MOGE") of the Republic of the Union of Myanmar. MOGE intends to establish a joint venture with an internationally proven service company in onshore drilling services. The main goals are to strengthen MOGE's technological know-how, upgrade its workforce, gain access to financing, adopt international best practices and widen market access. MOGE had initially launched a public invitation for interested parties to submit a Letter of Expression of Interest ("LOEI") for a Joint Venture in Onshore Drilling Services with MOGE in June 2014. MOGE is now launching this Request for Proposal ("RfP") in the form of an open tender to interested parties, including but not limited to LEOI respondents from the LEOI exercise conducted in June 2014, to submit a response to this Request for Proposal (the "Application"). In this context, MOGE intends to select a suitable internationally proven drilling services company as the "Joint Venture Partner" through a step-by-step process: Phase 1: Request for Proposal; Phase 2: Evaluation Process; Phase 3: Negotiations and Signing. Interested parties are required to submit an Application no later than 3 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 24, 2017 to the following address: MOGE Tender Committee for Joint Venture Establishment in Petroleum Services (Drilling), Complex 44, MOGE Office, Naypyitaw, Republic of the Union of the Myanmar. The RfP, which includes guidelines for submission, can be purchased by any interested party starting March 24, 2017 (excluding Saturdays, Sundays and Public Holidays) at Complex 44, MOGE Office, Naypyitaw, Republic of the Union of Myanmar for a non-refundable cash payment of five hundred United States Dollars (USD 500). The pur-chaser will be provided with a payment acknowledge when payment is made. Only Applications from Applicants that had purchased the RfP document officially from MOGE will be evaluated. Interested parties who have purchased the RfP are welcome to submit questions regarding the RfP and comments on the draft Joint Venture Agreement attached in its annex, no later than 12 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 4, 2017, to which MOGE will duly respond to all questions submitted and issue a revised draft Joint Venture Agreement.





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Request for Proposal for Joint Venture in Onshore Pipeline Construction and Maintenance Services with Myanma Oil and Gas Enterprise

Date: March 24, 2017

MOGE is a state-owned enterprise which is responsible for the upstream oil and gas sector under the Ministry of Electricity and Energy ("MOEE") of the Republic of the Union of Myanmar. MOGE intends to establish a joint vernture with an internationally proven service company in onshore pipeline construction and maintenance services. The main goals are to strengthen MOGE's technological know-how, upgrade its workforce, gain access to financing, adopt international best practises and widen market access. MOGE had initially launched a public invitation for interested parties to submit a Letter of Expression of Interest ("LEOI") for a Joint Venture in Onshore Venture in Onshore Pipeline Construction and Maintenance Services with MOGE in June 2014. MOGE is now launching this Request for Proposal ("RfP") in the form of an open tender to interested parties, including but not limited to LEOI respondents from the LEOI exxercise conducted in June 2014, to submit a response to this Request for Proposal (the "Application"). In this context, MOGE intends to select a suitable internationally proven pipeline construction and maintenance services company as the "Joint Venture Partner" though a step-by-step process: Phase 1: Request for Proposal; Phase 2: Evaluation Process; and Phase 3: Negotiations and Signing. Interested parties are required to submit an Application no later than 3 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 24, 2017 to the following address: MOGE Tender Committee for Joint Venture Establishment in Petroleum Services (Pipeline), Complex 44, MOGE Office, Naypyitaw, Republic of the Union of the Myanmar. The RfP, which includes guidelines for submission, can be purchased by any interested party starting March 24, 2017 (excluding Saturdays, Sundays and Public Holidays) at Complex 44, MOGE Office, Naypyitaw, Republic of the Union of Myanmar for a non-refundable cash payment of five hundred United States Dollars (USD 500). The pur-chaser will be provided with a payment acknowledge when payment is made. Only Applications from Applicants that had purchased the RfP document officially from MOGE will be evaluated. Interested parties who have purchased the RfP are welcome to submit questions regarding the RfP and comments on the draft Joint Venture Agreement attached in its annex, no later than 12 PM, local time (Naypyitaw, Republic of the Union of Myanmar), on April 4, 2017, to which MOGE will duly respond to all questions submitted and issue a revised draft Joint Venture Agreement.





Department of Electric Power Transmission and System Control (DEPTSC)

The Department of Electric Power Transmission and System Control (DEPTSC) under Ministry of Electricity and Energy (MoEE) invites interested companies to submit bids to supply required 245kV, 145kV, 72.5kV & 36kV Switch gear and Accessories for the main power

substations.

Bids must be submitted in Myanmar Kyats only.

Tender application forms must be submitted no later than 14:00Hrs on

25 April 2017.

25/4/2017

Ministry of Electricity and Energy, Tender Calling Committee, Department of Electric Power Transmission and System Control, Planning Department, Office 27,

Naypyitaw within office hours.

Contact: +95 67 410209, +95

67 410 282

Department of Electric Power Transmission

and System Control (DEPTSC)

The Department of Electric Power Transmission and System Control (DEPTSC) under the Ministry of Electricity and Energy (MoEE) invites companies to submit bids to supply the following power transformers

(bids in US dollars).

(1) Hlaingtharya Substation

230/11KV, (155) MVA Three Phase

Power Transformers - two

(2) Bè-Lin/Aung Pinle Substation

230/132/11kV, (100) MVA Three Phase

Power Transformer - one

(3) Aung Chan Thar/Nga Pyaw Daing Substation

132/33/11kV, (50) MVA Three Phase

Power Transformers - four

Tender documents must be submitted not later than 14:00Hrs on 25

April 2017.

25/4/2017

Ministry of Electricity and

Energy, Tender Calling Committee, Department of Electric Power Transmission and System Control, Planning Department, Office 27,

Naypyitaw within office hours.

Contact: +95 67 410209, +95 67

410282

OPEN TENDERS




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




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.



Retail fuel prices by week, March-April 2017

W/E 21 Mar W/E 28 Mar W/E 2 Apr W/E 4 Apr

Diesel Ks. 720 Ks. 710 Ks. 710 Ks. 705

Octane 95 Ks. 765 Ks. 760 Ks. 760 Ks. 760

Octane 92 Ks. 735 Ks. 720 Ks. 720 Ks. 710

660

680

700

720

740

760

780

9-Mar 13-Mar 17-Mar 21-Mar 25-Mar 29-Mar 2-Apr

Diesel

Octane 95

Octane 92



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, March-April 2017

W/E 13 Mar W/E 17 Mar W/E 1 Apr W/E 24 Mar

Octane 92 Ks. 634 Ks.634 Ks. 641 Ks. 634

Diesel Ks. 642 Ks. 642 Ks. 638 Ks. 633



610

620

630

640

650

660

670

680

6-Mar 10-Mar 14-Mar 18-Mar 22-Mar 26-Mar 30-Mar

Octane 92

Diesel



Source: Myanmar Petroleum Trade Association



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

Cities 20 March 29 March 3 April 4 April

Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel

Yangon 3,350 3,300 3,250 3,250 3,200 3,200 3,200 3,200

Pyimana 3,420 3,330 3,420 3,330 3,600 3,450 3,600 3,450

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 3,550 3,450 3,550 3,450



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