2020 21 May

Myanmar Legal Update: Invitation for Tender for Solar Power Projects Across 30 Locations in Myanmar

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On 18 May 2020, the Electric Power Generation Enterprise (“EPGE”) under the Ministry of Electricity and Energy (“MOEE”) issued an invitation for tender for the purchase of electricity at the Designated Connection Points (“DCP”) from independent power producers (“IPPs”) operating ground-mounted solar power projects on a build-operate-own (“BOO”) basis.

The list of DCPs include 30 locations, appended as Annexure. The stated concession period for the projects is 20 years from the commercial operation date.

Interested bidders shall prepare the proposal pursuant to the Request for Proposal (“RFP”) and submit the proposal within 18 June 2020. The tender form in respect of this bid may be purchased from the EPGE by paying a fee of MMK 300,000.

A few noteworthy points under the RFP are highlighted herein. Firstly, a bidder must submit evidence in support of acquisition of project land. The details which must be included are:

  1. The map of the location (including the plot of land, land map, Google map, satellite map);
  2. The Memorandum of Understanding or the land lease agreement entered with the land owner;
  3. Supporting letter by the respective Region/ State Government;
  4. The type of land to be used;
  5. Land documents such as:
    1. Land use certificate (Form 7);
    2. Land tax receipt (Form 8);
    3. Map of a plot of land (Form 105); and
    4. History of land (Form 106).

The successful bidder is responsible for all costs in acquiring the land for the power plant and the transmission line right of way. The EPGE has indicated it will assist the successful bidder to get any necessary permission required under Myanmar law.

Finally, the bidder shall propose the tariff inclusive of all applicable taxes and must also include all other costs in relation to the construction and operation of the power and transmission facilities in the proposal.

We would be pleased to discuss further as this is a welcome step, initiated by the MOEE and paves way to alleviate Myanmar’s severe power shortage.

ANNEXURE 1 – List of Designated Connection Points

The information provided here is for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.


Authors & Contacts

William Greenlee

Partner & Managing Director, Myanmar/Singapore

william.greenlee@dfdl.com

Nishant Choudhary

Partner, Deputy Managing Director & Head of Banking and Finance Practice, Myanmar

nishant.choudhary@dfdl.com

Dave Seibert

Deputy Head of the Regional Energy Mining and Infrastructure Practice

Senior Legal Adviser, Vietnam

dave.seibert@dfdl.com

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