Commissioned to Conduct a "Preparatory Survey for a Project to Improve Electric Power Facilities in the Yangon Urban Area of Myanmar"

Chubu Electric Power accepted an assignment from the Japan International Cooperation Agency (JICA) today to perform a "Preparatory Survey for Power Sector Improvement Project in Greater Yangon."

The Japanese government has announced that it will support infrastructure development and human resource development in Myanmar, involving both the public and private sectors. This study is scheduled to take place for a period of approximately eight months, from June 2013 to February 2014, as part of that support. The study will be conducted to contribute to development of the power distribution network in Yangon City.

The Chubu Power Distribution Company (Chubu Haiden KK), which was a corporate predecessor of Chubu Electric Power, dispatched a total of 81 engineers to Myanmar where they engaged in restoration of electric power facilities, support for the power business, and other such activities over a three-year period starting in 1942. Myanmar is therefore a country that has a deep historical connection with Chubu Electric Power.

The present situation of electric power in Myanmar is very similar to the circumstances that prevailed 60 years ago, when Chubu Electric Power was founded. We believe that the experience and expertise that energetically promoted electric power infrastructure development during the first two decades of that span of time, and that subsequently supported rapid economic growth in Japan, will be directly applicable to infrastructure development in Myanmar.

We intend to take this survey as an opportunity for us to engage in continuing support of Myanmar.

Project outline

(1) Project location

Yangon City, Myanmar

(2) Project period

June 2013 - February 2014 (approx. 8 months)

(3) Project overview

• Review of plans for Yangon City power distribution network facilities and formulation of priority investment plans
• Select power distribution projects that are of high priority, in anticipation also of the future possibility of yen-denominated loans being provided, and evaluate the appropriateness of those projects

(4) Project background

As of 2011, the total capacity of Myanmar's power generation facilities amounted to approximately 3,460 MW. Due to the deterioration of facilities, lack of sufficient fuel for thermal power, limits on hydropower generation capacity during the dry season, and other such factors, however, current power output is no more than approximately 47% of the total capacity of power generation facilities. Consequently, even the Yangon metropolitan area, which receives approximately 50% of the entire country's power supply, is subject to planned power outages because of the tight power supply situation. In addition, transmission and distribution loss for the country as a whole is high at approximately 25%, and there is also a high risk of faults occurring due to obsolescent facilities being used for prolonged periods of time under overload conditions.

Yangon City, in particular, is anticipated to experience increasing electric power demand due to its upcoming economic expansion. In that context, securing a stable supply of electricity and increasing supply reliability are urgent issues.