This document discusses implementing power projects in Myanmar. It outlines key legislation related to state-owned enterprises, electricity, foreign investment, labor reform, and the environment. It describes the various government ministries and departments involved in the power sector and independent power producer (IPP) process. The document advises that experience navigating Myanmar's complicated legal system is important, and working with local partners and experienced advisers can help foreign energy companies develop power projects as IPPs in Myanmar.

1. www.duanemorris.com
©2010 Duane Morris LLP. All Rights Reserved. Duane Morris is a registered service mark of Duane Morris LLP.
Duane Morris – Firm and Affiliate Offices | New York | London | Singapore | Los Angeles | Chicago | Houston | Hanoi | Philadelphia | San Diego | San Francisco | Baltimore | Boston | Washington, D.C.
Las Vegas | Atlanta | Miami | Pittsburgh | Newark | Boca Raton | Wilmington | Cherry Hill | Princeton | Lake Tahoe | Ho Chi Minh City | Duane Morris LLP – A Delaware limited liability partnership
Myanmar
Implementing Power Projects
1
OLIVER MASSMANN – PARTNER
DUANE MORRIS SELVAM

2. www.duanemorris.com
Key Legislation:
• State-Owned Economic Enterprises Law, 1989
• Electricity Law, 2014
– Awaiting Implementing Rules from Ministry of
Electric Power
• Foreign Investment Law, 2012 (FIL), its
rules and notifications:
– FIL rules as promulgated by the Ministry of National
Planning and Economic Development, January 2013
– Myanmar Investment Commission Notification No.
49/20142

3. www.duanemorris.com
Key Legislation continued:
3
• Labour Reform – Implementing Minimum Wage
• Presidential Directive No. 1/2013
– Regulations to be abided by when issuing Tenders
for Investment and economic activities

4. www.duanemorris.com
Key Legislation continued:
4
• Environmental Conservation Law, 2012
– Implementing Rules, 2014
– Empowers Ministry of Conservation and Forestry to
determine (i) liability owed due to environmental damage
and (ii) contributions to environmental management
fund.
• Environmental Social Impact Assessment is
required (ESIA) for submittal to the Myanmar
Investment Commission

5. www.duanemorris.com
Ministry of Electric Power
5
Yangon City
Electricity
Supply Board
Distribution
TransmissionGeneration
Generation
System
Operator
Department of
Hydropower
Implementation
Hydropower
Generation
Enterprise
Department of
Hydropower
Planning
Department of
Electric Power
Myanma
Electric Power
Enterprise
(MEPE)
Electricity
Supply
Enterprise

6. www.duanemorris.com
Union Government involvement
6
• Union Cabinet
• Office of the Attorney General (OAG)
• Ministry of Electric Power (MOEP)
• Department of Electric Power (DEP)
• Ministry of National Planning and Economic
Development (MNPED)
• Myanmar Investment Commission (MIC)
• Directorate of Investment and Company
Administration (DICA)

7. www.duanemorris.com
Process for IPPs
7

8. www.duanemorris.com
Investment climate:
 Foreign energy companies are allowed to act as
Independent Power Producers (IPP) in Myanmar
 Land concessions for natural gas turbine, hydro, solar
waste-fired and wind are possible
 Union Government's main objectives is to promote
electricity production from new and renewable sources of
energy
8

9. www.duanemorris.com
Experience counts:
• Myingyan IPP BOT project
• Tendered Project
• Duane Morris advising the Singapore consortium
awarded the project
• Complex transaction – 80% debt financed by the likes
of IFC and ADB to name a few
9

10. www.duanemorris.com
Experience counts:
• Solar power project by Thai Conglomerate
• New Yangon Partner, has previously given
transactional assistance regarding the IPP process
• Corporatization of YESB
• New Yangon Partner, has previously given assistance
in the corporatization process and structuring for
potential foreign investment
10

11. www.duanemorris.com
What we can share…
• Tariffs
• What is the basis for negotiation?
• What are considered acceptable rates of return on project
investments?
• Security Package / Project Financing
• Is it able to be lawfully provided to financial
institutions to secure debt financing?
11

12. www.duanemorris.com
What we can share…
• Uncertainties concerning the Union Government
• MEPE and its ability to purchase power
• What protections will be made from payment defaults
on the part of the government counterparty in the
PPA?
• Union Government guaranties (stand-by letter of
credit) is a non-starter for discussion.
12

13. www.duanemorris.com
Recommendations
• Local Partner – may help or be hindrance
• Not legally required
• Due Diligence suggested
• Engage Experienced Professional Advisers
• IPP process is complicated and time consuming
• Deal with experienced advisers to help navigate
through the process
• Remain Patient – very slow pace in Myanmar
13

14. www.duanemorris.com
Thank you very much!
14
Contact email:
omassmann@duanemorris.com
DUANE MORRIS & SELVAM MYANMAR