US Quasar Resources looks to invest up to $400 m in Myanmar power sector

Photo: Quasar Resources LLC

Texas-based Quasar Resources, an energy development company, is planning to invest from $300 million to $400 million in the Myanmar power sector over the next five years.

“We’re going to replicate the US model (in Myanmar) where things work efficiently,” said Lin Tun, founder and managing director of Quasar Resources.

The company is looking at developing a 100MW solar power station in Sagaing Region in which it is looking to invest about $150 million. The firm is currently in talks with the government on taking the project forward.

Following approvals, the company is hopeful of completing the project in a year.

The power sector in Myanmar presents a huge opportunity for private players across the value chain from transmission, distribution, generation to industry know-how and affordable access.

“About 70 per cent of electricity in Myanmar comes from hydel sources making it especially suitable for solar. Adding more solar to the system will help since water runs low in dry areas during summer,” he said during an interaction with DEALSTREETASIA.

Quasar is also in talks with the local government for developing a 64MW hydel power plant in the Upper Saedawgyi region. The project involves building a new dam to increase capacity, requiring an investment of up to $150 million.

In the Thilawa Special Economic Zone, the company is looking at developing 33MW dual fuel power plant. “In Thilawa, we have enough land to set up a 100 MW plant. We can build it in three phases of 33MW each,” said Tun.

Power is available to residential consumers at K50 (about 4 cents) per unit in Mynamar.

“No place in the world can you buy electricity for four cents and it is hard to attract investments at this level,” Tun reasons, adding, cost of solar power generation is expected to be 12 to 13 cents per kilowatt hour in Myanmar.

To date, Quasar Resources has raised private capital and is currently in advanced discussions with some more entities to secure additional funding. “There’s a lot of investor interest in the space and we are close to a deal,” he said.

Myanmar has seen a spate of investments in the power infrastructure space give the wide demand-supply gap. Some of these include US based ACO Investment Group and Convalt Energys 300MW project in Myingyan and Thailand’s Green Earth Power Co Ltd plant in Minbu.

Also Read: 

Myanmar Dealbook: Industrial estate developer Amata to enter Myanmar; Thailand and Singapore to invest $400m in solar parks

Vintage buys stake in Myanmar solar plant firm

JFE-backed waste-to-energy plant to start production in Myanmar in April 2017

 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.