Myanmar Energy Brief Issue December 2016

Transcription

1 Myanmar Energy Brief Issue December 2016 NEWS ANALYSIS DATA TENDERS COMPANIES Part of the Myanmar Energy Monitor IN THIS ISSUE Oil and gas majors the largest foreign taxpayers in The annual list of largest taxpayers released by the Internal Revenue Department has foreign oil and gas companies in the top spots ENERGY NUMBER OF THE WEEK 3,080 sq km Phase one of PTTEP s planned seismic study in M-9 is to cover 3,080 sq km in early Analysis: fuel prices spike on weakening kyat, rising global prices Prices at the local pumps have spiked in December, a trend which is likely to continue over the short term as import prices also rise Q&A: Daw Ei Phyusin Htay, managing director of Barons & Fujikura EPC Daw Ei Physuin Htay discusses her views of the electricity and energy sector with Myanmar Energy Monitor More details on PTTEP s planned M seismic study Waste-to-energy facility planned for Thaketa township Kyaukphyu farmers keep up pressure for pipeline compensation Myanmar Awba fertiliser facility to continue despite controversy Yangon Region said to reverse controversial transformer policy Mandalay has one-quarter of country s 2,004 fuel stations Three heaving drilling rigs moved to Sagaing Region Over 150 temporary oil refinery permits issued Sagaing Region township forms a petroleum trade committee after violations Maungdaw township villagers claim electricity necessary for security MoEE spends to ensure public safety with electricity Villagers near Upper Yeywa project to be relocated soon Transformers installed in east Shan State Micro-hydropower project installed in Sagaing ABB wins order to automate Myingyan 225MW plant Phase two of the study is to be based partly off the results of Phase one. Together, the two phases are to cover about 7,500 sq km of the block, which is the same block which houses the Zawtika offshore area. PTTEP posted its IEE this week ahead of its planned surveys beginning in February. THIS WEEK S NEW TENDERS Tender for procurement of various items to ESE Sale of household used meters by YESC Petroleum machinery and equipment supply to MOGE THIS WEEK S NEW DATA Weekly fuel retail and import prices, December 2016 Fuel retail prices by city, December 2016 CALENDAR Myanmar Oil and Gas Summit MiTA Myanmar Energy and Environment Exhibitions & Conference

2 Myanmar Energy Brief 16 December - 22 December Production and exports Oil and gas majors the largest foreign taxpayers in Large foreign-owned energy companies were the highest taxpayers in the country in , according to the annual lists released by the Internal Revenue Department (IRD). The IRD s lists laid out the top 1,000 local income and commercial taxpayers, as well as the top 183 foreign income taxpayers and the 157 foreign commercial taxpayers. While Kanbawza (KBZ) Bank paid the most tax of any Myanmar company, at Ks23bn ($16.4m), it was far outpaced by the large international oil and gas companies. The largest foreign income taxpayer in Myanmar in was Moattma Gas Transportation at Ks170bn ($121m). Four of the top five foreign income tax payers were in the oil and gas business, with the rest of the list including: Similarly, Tanintharyi Pipeline (Myanmar) is associated with the Petronas-operated Yetagun offshore field. Meanwhile, the top domestic commercial tax payer was Denko Trading at around Ks21bn ($15m), while the top foreign commercial tax payer was Myanmar Brewery at Ks78bn ($56m). Transportation and distribution Analysis: fuel prices spike on weakening kyat, rising global prices The local price of petrol has jumped significantly this month as the kyat slides against the US dollar and international oil prices continue to climb. Octane 92 and diesel both cost Ks690 per litre on 19 December, according to the Myanmar Petroleum Trade Association. This is a 7.8% increase on Ks640 per litre for diesel at the start of the month, and a 7.6% increase on Ks650 per litre of Octane 92. Tanintharyi Pipeline (Myanmar) company at Ks121bn ($86m) PTTEP International at Ks36bn ($26m) The increase comes as the dollar has recently gained strength against most emerging market currencies, including the kyat. Myanmar Brewery at Ks25bn ($18m) Unocal Myanmar Offshore at Ks22bn ($16m) Moattma Gas Transportation Company is a joint venture company set up between Total (France), Unocal (Chevron, US), PTT-EP (Thailand) and Myanma Oil and Gas Enterprise (MOGE) to build and operate gas transportation facilities to support the Yadana field. The market exchange rate as tracked by Naungmoon.com on 1 November was about Ks1290 per dollar, though it reached Ks1360 per dollar on 1 December and Ks1400 by 20 December.

3 Myanmar Energy Brief 16 December - 22 December Similarly, the price of oil in international markets has recently been on the upswing. The price of WTI was about $45 a barrel in early November, but was trading at above $52 a barrel as of 19 December. Local media generally keeps an eye on rising fuel prices, due to the potential impact on consumers. The previous Union Solidarity and Development Party government was frequently criticised for high prices, particularly if they stayed buoyant as international prices dropped, though so far there appears to have been less criticism of the National League for Democracy government on fuel prices. 7Days Daily quoted Myanmar Petroleum Trade Association secretary Dr Win Myint as claiming the recent price increase is more rapid than usual. He pointed to increases in the cost of dollars and of international oil as the reason behind the increase, but added rising fuel prices will have a knock-on effect for commodity prices. The U.S. dollar is rising day-by-day. It really is a worry, he said. Retail prices have generally climbed by about Ks40 to Ks50 per litre this month, though import prices have generally risen by even more. Octane 92 imports cost Ks611 per month at the start of December, though reached Ks700 per litre by 19 December. This may signal further increases ahead for retail prices. Businesspeople such as taxi drivers are already feeling the pinch from higher prices, according to local media. 7Days quoted one taxi driver as pointing out that fares do not increase even as fuel prices do. Reports have also warned importers against importing low-standard fuel in response to rising prices. Myanmar has little refining capacity, and nearly all of its fuel for vehicles is imported from abroad, often Singapore or Thailand. Power and electricity Q&A: Daw Ei Phyusin Htay, managing director of Barons & Fujikura EPC Myanmar Energy Monitor met with Daw Ei Phyusin Htay, managing director of Barons & Fujikura EPC to discuss her views of the electricity and energy sector. Thank you for sitting down with us to talk about your experiences and outlook in the energy sector. To start off, please tell us a little bit about the history of BFE and the JV with Fujikura (Japan) Our company had started to develop a relationship with Fujikura Japan since 2009 or We had very good chemistry with their management right from the beginning. Myanmar and Japan have a long standing relationship, and I think at the root we have quite similar cultures, so both sides felt quite comfortable working with each other. After some time, they decided to make Myanmar their next investment. Fujikura is primarily a cable manufacturer even though they have some EPC projects over the world, and at the beginning they started to look at Myanmar for investment in manufacturing.

4 Myanmar Energy Brief 16 December - 22 December But even today, manufacturing is quite a highrisk sector to get started in Myanmar, so when we started to work together it was decided that we would focus more on EPC (Engineering, Procurement and Construction) service, which is not Fujikura s core business. But for us, it is our core business, and we finally agreed to develop EPC business together in Myanmar first. In EPC, the most valuable asset is human capital. And we were lucky that Fujikura understood that, and we are able to invest in our human capital for Myanmar s development. With human capital as an asset, you can always decide the next venture easily. Can you describe what aspects of EPC your company works in, and what your focus is in Myanmar? We work primarily in the areas of transmission and distribution of power, but also have a partnership facilitating with a German company for engines used in generation sector. Just recently we worked with them to install the first high-voltage generator in Myanmar, which outputs at about 4 MW at 11kV-- much bigger than traditional backup generators. For transmission and distribution, we have several projects working to do transmission lines (230kV) expanding the national grid. We also have been working on distribution lines. The national roll-out of distribution infrastructure is not aggressive yet so our activities are not too aggressive yet in this sector. Your company also works with telecoms; many towers have been recently installed all across the country. Have you seen or worked on any improvement in the power infrastructure to places where the towers are being installed? Well, we do work with telecoms, because our partner is one of the largest manufacturers of fibre core globally. As for towers, the JV is not involved in tower construction, although our parent company, BME did. These mobile towers could play an important role in rural electrification. During implementation phase of tower roll-out, I have been to several mobile tower sites while they are being constructed, and I enjoyed talking to local residents to really try to understand their needs and their expectations, their current electricity supply source etc. Many of them are actually not expecting anything at the beginning, which was surprising. But sooner, I felt that, when they look at a mobile tower powered by noisy diesel generators, where they are living literally in the dark, these local residents would expect more on the electricity supply. The Telecom industry should expect that change in need and be prepared to respond to such changes requirement. So how do you see the goal of 100% electrification by 2030? What do you think are the primary challenges Myanmar faces in achieving that goal? Yes, there are so many challenges! But I would say that, in my opinion, there are a few main things that could be improved and must be addressed. If we hit to solve few key problems in a complex situations, many other problems can be automatically solved.

5 Myanmar Energy Brief 16 December - 22 December The first part is policy clarity. If we read the Energy Master Plan or National Electrification plans closely, you will note that many of the consultant did the studies in 2012, 2013, 2014 etc, then the report is prepared, approved and launched. There is already time lapsed. The projections or the plans illustrated in the plans contains a lot of projects that are now on the shelves in MOEE not to be opened again or nobody seem to continue to consider anymore. If we combine all such proposals in the pipeline, Myanmar seems to have enough electricity but in fact, there are many plants that will not be implemented. What we [the government] need to be able to do is assess the list of projects and say ok, these are the projects that are stalled, these ones will be delayed and at the same time say what will be the expected demand in the medium term to see if there is a need for new projects or new tenders to fill the gaps that might exist. Then for the long term we can look at the pipeline and say are we going to accept these projects or reject them and we need to state that clearly. Only then, credible investors who are looking at Myanmar and thinking about new proposals could come and find projects. The second key is the legal framework. In telecoms, for the most part the law is very clear who has what responsibility, and what aspects of the industry are regulated and exactly how they are regulated. But in power, it is much less clear. For example, according to the Electricity Law, it appears that deregulation is planned as the role of Regulator is mentioned. However, beyond that there is not much indication about how such deregulation will proceed. When would regulator be formed, how they will function, how they could issue what kind of license etc need to be followed up. Such de-regulation frame would allow more investors to look at various type of businesses this industry need and this could help achieve electrification targets. Do you have an opinion on the World Bank-funded National Electrification Project, with large tenders for poles and transformers, for example. What do you think of this project? Well, firstly I think it s important to note that the World Bank loans are for material procurement only, and are only the first installment which is supposed to last until Of that money, just $310m is for grid rollout. So the burden is still on the ESE (Electricity Supply Enterprise) for the actual roll out, and they are currently already overburdened with existing network. So as I said at the beginning, human capital is actually the most important factor in this plan. Will we have the capability to adhere to this plan and to invest in capacity building now, although we still haven t seen much on that. Similarly, there could be plans for empowerment to the local people such as village heads and other stakeholders, because not only do we have the task of building out this infrastructure, but we then need to maintain it. I would like to see the local villages and towns to take part through some sort of partnership with the ESE to handle local maintenance. Because the roll-out is not the only hurdle, maintenance is the hurdle. So we need that capacity building. It is do-able, with the use of trained subcontractors and engaging with local villages and towns for that maintenance.

6 Myanmar Energy Brief 16 December - 22 December A lot of excitement in SE Asia is around micro-grids as opposed to a unified national grid. Where do you stand on the debate of effectiveness of mini-grids in electrification for Myanmar? I think they are definitely good, but the challenges are the same as what I talked about regarding the need for clear directives and regulations from government. When you build a micro or minigrid, there are currently no clear guidelines on who is responsible for the maintenance, how the price of electricity is determined, and things like this. I think they have potential given the right framework. So all things considered, do you think Myanmar will be able to follow through with full electrification? What are some things that need to happen to achieve the goal besides better regulations and laws? Well, first I need to say that I am on the coal side! Really? Yes. I don t like coal, but I believe that for the time being, it will be necessary for Myanmar to look at coal in order to achieve the costeffectiveness that it needs to provide enough service for the people. I don t personally like mine-mouth power plants. And big coal fired power plants may have bankability issues. So in my mind, I would still favour coal projects of sizes MW a few projects may be up to 1,000-2,000MW in the grid. I think the government needs to be wise in this regard. They need to weigh very carefully the environmental impact and the impact on local communities, but coal is a very cost-effective fuel source so it should not be discarded as a fuel source at this time. Outside of government s current capacity, one way to acquire such objective is by being selective of funders for the coal projects. Because even without the government, depending on the funder, they will still have their own international standards of environmental compliance for the implementation of the coal projects. I If the government is wise in their selection projects by looking at funders, the funders will do their part to ensure the developers to comply to required standards and I think it s possible to have effective power-generation projects that do not negatively impact the local communities or harm the environment (besides normal emissions). Exploration More details on PTTEP s planned M seismic study Thai firm PTTEP is planning a 3D seismic survey of about two-thirds of Block M-9 to take place from February to May 2017, according to the Initial Environmental Examination (IEE) the firm posted to its website this month. While data already exists for the southeast corner of the block, the remaining data will be collected in two survey phases, the report said. Together the two phases cover about 7,500 sq km. Phase one is for a 3D seismic survey in about 3,080 sq km in Q1, with Phase two consisting of a proposed 3D seismic acquisition within the remaining area. The report, which was posted on PTT s website this month and submitted to MOGE and the Environmental Conservation Department on 1 December, said that the actual seismic acquisition area of phase 2 will be subject to phase 1 results. The seismic survey is to take sixty days.

7 Myanmar Energy Brief 16 December - 22 December The firm was said to be in the tendering process for the vessel for the 3D seismic survey. M-9 is also the site of the Zawtika offshore area, which is operated and 80% owned by PTT (the remainder is owned by MOGE). The report said that 3D seismic data in the main Zawtika area was acquired by different service companies from , covering 4,812 sq km, though acquisition and processing parameters varied from old to new technology. Meanwhile, PTTEP said in October it planned expansion at the Zawtika offshore area with the target of maintaining the project s production plateau. The firm has started production operations from Phase 1B, and intends to increase production capacity from its 7th production platform in the fourth quarter of 2016, the release accompanying its third quarter 2016 results said. Planned timetable for 2017 M-9 exploration: In general the existing seismic data quality is poor to moderate, the report said, pointing to effects of seismic energy being heavily absorbed and the pushdown phenomena due to low velocity caused by shallow gas anomalies and fault shadow effects. Myanmar s 2015 Environmental Impact Assessment Procedure specifies that all offshore seismic activity requires the conduct of an Initial Environmental Examination, with the report submitted to relevant authorities for consideration and approval before the project starts, the report said. It noted that the most important aspect in terms of social environment in M-9 is fisheries. PTTEP conducted a courtesy visit to Tanintharyi Region government office, including Chief Minister. The chief minister suggested further public consultations at Dawei and Yebyu townships, which are the key townships that could potentially be impacted. Public consultations were arranged by Environmental Resource Management (ERM), through local partner Resource & Environment Myanmar (REM), with all key strategic stakeholders. ERM-Siam prepared the report. Power and electricity Waste-to-energy facility planned for Thaketa township Yangon is preparing a master plan for the construction of a new waste-to-energy plant in Thaketa township, according to an article in Union Daily. The township is located to Yangon s southeast, and hauling rubbish to the dumps on the city s outskirts involves a time-consuming 16 or 17 mile journey, said Yangon City Development Committee (YCDC) associate head of environmental protection and cleaning department U Aung Myint Maw. We have been hauling the waste to the dumps, but this contributes unnecessarily to Yangon traffic jams. This situation has led to plans to construct a waste-to-energy plant in Thaketa, he said.

8 Myanmar Energy Brief 16 December - 22 December The plant is to service a total of six downtown townships. Yangon currently collects over 2,000 tonnes of waste a day, enough to fuel waste-to-energy plants with 150MW capacity. Further details of the planned project were not disclosed in the article, though the project is likely some time from being built. A separate waste-to-energy plant is due for completion at Shwe Pyi Thar industrial zone in April The plant is a cooperative venture with Japan. Communities Kyaukphyu farmers keep up pressure for pipeline compensation Farmers have continued to protest the cross- Myanmar oil and gas pipelines in Kyaukphyu, near the starting point of the twin pipelines, according to Daily Eleven. On 20 December at 2pm about 150 farmers gathered near Kyaukphyu township s Kantkawtaw Pagoda, marching past the offices of pipeline majority owner China National Petroleum Corporation (CNPC). The farmers claim they have not receive proper compensation for 18 acres of farmland that was destroyed by the pipeline, causing financial loss for local people. Campaign leader Daw Kyi Kyi Hnin said the farmers are now seeking full compensation. Negotiations have been ongoing for some time in Kyaukphyu, which is off the coast of Rakhine State. A meeting had been held on 14 November at the Kyaukphyu meeting hall, with representatives from CNPC, Myanma Oil and Gas Enterprise (MOGE), local officials, community leaders and five farmers. But no data has been released, and the company is dishonest and has manipulated us so many times, she said. Protests are set to continue until proper compensation is received, she said. The article also quoted South-east Asia Gas Pipeline (SEAGP) PR department deputy manager Henry Zhang as saying that the company takes the farmers complaints seriously and wants to end the matter, but also wants MOGE and the government to be involved in problem solving. SEAGP, which is majority-owned by CNPC, is still waiting for a reply from MOGE, though is ready to pay the farmers as soon as a reply is received, claimed Zhang. MOGE senior official U Ko KO Htwe was quoted as saying the situation is a dilemma, as it not only affects the 18 acres in Kyaukphyu, but that farmers in Rakhine State s Ann township, as well as Yangon, Mandalay, Magwe regions and Shan State will also likely claim compensation payments for the pipeline running through their land. MOGE is a minority partner is both pipeline projects. Until the payments are received, protests are likely to continue. They often march with banners with sayings such as Take the Right Action on Land Confiscation Because of Shwe Gas Pipeline NOW!, Respect the Rights of Land Owners, CNPC GET OUT and so on, said the article. The local people have been campaigning for compensation since 2 April, though recently restarted efforts at the start of November. Daw Kyi Kyi Hnin claimed at the meeting the company promised to solve the dispute by the first week of December.

9 Myanmar Energy Brief 16 December - 22 December Transportation and distribution Myanmar Awba fertiliser facility to continue despite controversy A fertiliser facility in Hmawbi township on the outskirts of Yangon will proceed, even as local residents hold events to protest the project. Residents of the nearby War Net Chaung village held a press conference on 16 December aimed at opposing the project, with former political prisoner U Aye Lwin joining in. The article said that on 18 December, the company announced it would continue construction, with the first phase to be finished in March and the entire project complete by Once the project is complete in 2020, the outstanding debt is to be converted to equity. Villagers claimed that the complex would damage the surrounding environment as well as the village, an article in The Irrawaddy said, citing Kamayut Media. Villagers reportedly said that while they did not want to attach the interests of the developers, they are worried about negative consequences. The project is worth an estimated $15m, and is to produce liquid and powder fertilisers for plant crops, the article said. Called the Hmawbi Agricultural Input complex, it is partially funded through a $10m loan from the International Finance Corporation. The project is to produce 3m litres of liquid fertiliser and 2m kg of power fertiliser per year, which is reported to be enough to supply 50% of total agri-input for the country. Myanma Awba leases the land from the government on a 50-year BOT contract. Myanmar Awba has begun landscaping the eight-acre site, the article said, citing U Nyan Lin Phyo, chief operations officer of Awba subsidiary Piti Pyae Sone. He added that the company has approval from the Myanmar Investment Commission, and has submitted its environmental impact report, but it planned to speak with villagers about their concerns. Power and electricity Yangon Region said to reverse controversial transformer policy A controversial policy instituted by Yangon Electricity Supply Corporation (YESC) requiring buildings constructed by contractors over a specific size to install their own transformers has been reversed, Yangon Region Minister for Electricity, Industry and Transport Daw Nilar Kyaw wrote on her personal Facebook page, according to Pyi Myanmar. Instead of setting up transformers, a fee of Ks550,000 will be collected for each unit in a new building, the 20 December report said. The report does not specify if this is a one-time fee or if it is due annually, though it did add that buildings with elevators or more than 18 units must still install their own transformers. A Yangon City Development Committee official said the committee has not yet received official notification of the new rules from the Region government, though had heard that the policy had been approved, the article said.

10 Myanmar Energy Brief 16 December - 22 December The information about the rule change was also only carried by privately-owned Pyi Myanmar and not by government publications, meaning no official statement has likely been made. YESC announced in August that buildings with more than four separate units are required to install their own private transformers. The decision was widely opposed by developers, who would have to shoulder the expense of the transformers or pass the cost on to customers. On 28 September, the Yangon Contractors Association sent a joint letter signed by 40 local companies to chief minister U Phyo Min Thein, claiming that not all companies could afford to pay more. On 14 October, Daw Nilar Kyaw said that the transformer policy was being reviewed. Transportation and distribution Mandalay has one-quarter of country s 2,004 fuel stations Local press reports that there are now 2,004 licensed petrol stations in Mynamar, with a break-down of locations provided in military-owned The Myawaddy journal. Some 511 stations, or more than 25% of the total, are located in Mandalay Region, a relatively prosperous area at the centre of the country. The fewest number of stations are in Chin State, which only has one licensed fuel station. The Ministry of Electricity and Energy is working ensure that fuel stations follow the law, while charging a reasonable price for quality products, the report said. The government dominated the fuel station market before 2011, but later privatised over 200 stations. It now owns only twelve stations, with one in Naypyitaw, three in Yangon Region, two in Mandalay Region, two in Bago Region, one in Kayah State, one in Kayin State, one in Chin State and one in Shan State. In addition to the fuel stations, there are reportedly six fuel storage and distribution centres, 14 legal licences for ships to import fuel and 13 licences for aviation fuel, according to local press. The article broke out the number of fuel stations in the states and regions as follows: Regions No of retailers Naypyitaw 72 Yangon 148 Mandalay 511 Ayeyarwady 206 Bago 217 Sagaing 136 Magway 133 Tanintharyi 16 Kachin 72 Kayah 13 Kayin 32 Chin 1 Mon 94 Rakhine 33 Shan 320 Exploration Three heaving drilling rigs moved to Sagaing Region Cranes and Equipment Asia Logistics (CEA Logistics) has moved three heavy drilling rigs and related equipment to Kawlin, Sagaing Region, according to a 16 December article by Breakbulk. The rigs are 9 tonnes each, and with four additional 20-foot containers, traversing the difficult retain required the use of a UD Quester 6 4 prime mover, a step deck trailer, a 20-foot crane truck and a dedicated escort vehicle, the article said.

11 Myanmar Energy Brief 16 December - 22 December It is thought that the rigs are meant for Indian firm ONGC, and are being moved to block PSC B2. Some of the bridges had a capacity of 15 tonnes, meaning that sometimes trucks had to be unloaded and then reloaded to adhere to the limits, the article said. CEA Logistics is based in Laem Chabang, Thailand, and has offices in Thailand, Myanmar and Singapore, with about 250 total staff. Government and local authorities Over 150 temporary oil refinery permits issued A total of 156 businesspeople have received temporary licences from state entity Myanma Petrochemical Enterprise (MPE) allowing small -scale oil refining, according to a 17 December article in state-owned Myanma Ahlin newspaper. The temporary licences are valid until 31 March They are meant to cover operational, small-scale businesses that intend to cooperate with the rules but have so far been operating outside of the legal framework. A total of 156 businesspeople received licences, from the following regions: 126 licences for Sagaing Region 25 licences for Ayeyarwady Region 2 licences for Bago Region 1 licence for Yangon Region 2 licences for Mandalay Region The licences were awarded only to companies engaged in collecting crude from artisan wells. Applicants were required to describe the volume of crude oil and the region or state in which it is collected, and must not be located in forests or on designated farmland. Refineries are expected to have capacities of between 1,000 and 3,000 gallons per day, and must be at least one mile from the artisanal wells and at least 30,000 sq ft for its area. The article said that factory staff and officials from the Myanma Petrochemical Enterprise, as well as other concerned parties, have held educational discussions on safe and systematic operations. A pamphlet was also prepared for regional oil refineries in November. While the article did not explicitly lay out a path to making the licences permanent, the Ministry of Electricity and Energy has issued a number of recent temporary permits to businesses such as LPG traders that provided a path to make the permits permanent if certain conditioners were met. Transportation and distribution Sagaing Region township forms a petroleum trade committee after violations Myinmu township in Sagaing Region has formed a petroleum trade committee, according to an announcement by the Region government. The township has faced significant challenges from unlicensed and dangerous mobile fuel retailers, which are essentially trucks outfitted with fuel tanks that drive around the city looking for customers. The newly-formed committee is intended to supervise fuel and oil traders, particularly through improving procedures such as importation, storage, transportation, distribution and refining, according to Myinmu township administration and planning committee chairman U Tin Aung.

12 Myanmar Energy Brief 16 December - 22 December The committee has been set up by eight businesspeople in the fuel trade, with members selected through a vote, a 17 December article in 7Day Daily said. Daw Khine Zin Win was chosen as chairwoman of the new Petroleum Trade Committee, with U Myo Zaw Win as committee secretary. The founding ceremony for the committee was held on 17 December at the office Administration and Planning Committee in Myinmu township. Communities Maungdaw township villagers claim electricity necessary for security Local residents in troubled Maungdaw township of Rakhine State are requesting an electricity supply from authorities, according to a 19 December article in 7Day Daily. Villagers in the township s rural area have submitted a request to government officials to receive electricity. They have never received government electricity connections. Maungdaw is at the centre of the ongoing problems in Rakhine State, though officials claim receiving electricity will help ensure the safety of the villages. Tamanthar villager elder U Kyaw Than said that government officials have often promised electricity to the outlying villages in the township, though it had not arrived. We always discuss this matter with Union and Region government officials when they visit, and they always reply that electricity is coming, but it does not, he said. However, electricity is essential for the safety of our villages. The article said a Union government official said discussions were ongoing with an international NGO over developing solar electricity in the frontier villages of Maungdaw. The main areas of Maungdaw township are already on the grid, though have been receiving intermittent electricity generally from 6pm to 4am since the start of violence in October. Accounts differ on the nature of the violence in the Maungdaw area. While most sources agree a police station was stormed by attackers thought to be of a Rohingya / Bengali background in October, the degree of the Myanmar army s response is disputed. Some Rohingya and human rights groups claim there is a significant amount of violence directed at the Rohingya people, claims generally denied by the government. Power and electricity MoEE spends to ensure public safety with electricity The Ministry of Electricity and Energy will spend Ks14.4bn ($10m) as well as $30.5m on ensuring public safety regarding electricity, as well as ensuring steady and regular voltage, according to a 17 December article in The Global New Light of Myanmar. The funds are from an Asian Development Bank loan, and are being spent for a new sub-power station, changing dilapidated lamp posts and damaged wires, and expanding power lines to improve public safety as well as ensuring regular voltage. The funds are to be spent during the fiscal year, the article quoted ministry deputy permanent secretary U Htay Aung as saying at a Naypyitaw press conference on 15 December.

13 Myanmar Energy Brief 16 December - 22 December The article added that the ministry is unravelling the complicated wires specifically in Yangon s Tarmwe, Hlaing, Dala and Hlaing Thar Yar townships. Yangon Electricity Supply Corporation director U Aung Kyaw Oo said the ADB s loan is being used to prevent possible electrocution. It is unclear from the article if the funds are part of previous package of loans, and if so, what loan it specifically refers to. In November 2015, the ADB detailed the scope of its $80m loan to Myanmar for work on the Thida-Thaketa-Kyaikkasan transmission lines, with the Myanma Electric Power Enterprise (MEPE) conducting additional upgrades. According to a 24 November 2015 press release, the project will involve building two new substations at South Okkalapa and West University, and upgrading the transmission rig lines from 66kV to 230kV. The lines extend across Yangon from the substations of Ahlone, Thida, Thaketa, South Okkalapa, Hlawga, Myang Tagar, West University, Hlaing Tharyar and back to Ahlone. Communities Villagers near Upper Yeywa project to be relocated soon Some villagers in Kyaukme township along the Myitnge (Namtu) river in northern Shan State are demanding to be relocated due to dangers of flooding from construction of the Upper Yeywa hydropower project, according to a 16 December article in News Watch Weekly. Residents of the Tarlone East and West villages will be affected by rising waters, and need to be relocated "soon", according to the Ministry of Electricity and Energy. Ministry officials also said that a plan needs to be drawn up to make sure the relocated villagers will be placed in a region with better conditions. The two Tarlone villages have about 143 households totalling 486 people. Some 328 acres of their farmland is also under danger of being flooded. The article did not detail when the relocations are to occur. A committee will be composed of officials including the Shan State government, state parliamentarians and community leaders to ensure the relocation is carried out properly and that livelihoods are preserved, the article quoted U Mya Thura from the department of hydropower implementation as saying. Relocation of local people is a complicated subject in Myanmar. The government has faced significant criticism for relocations that have failed in the past. The Upper Yeywa project was announced in 2013, and is due for completion by It has a planned installed capacity of 280MW, with the lead contractor being Myanmar s Electric Power Enterprise. Power and electricity Transformers installed in east Shan State Minesat township in eastern Shan State have received new transformers as part of efforts to improve electrification, according to an article in state-owned Myanma Ahlin. The Shan government supplied the three 200kVa transformers and one 160kVA transformer. They were installed this month in Myothit, Melsat, Wonhone and Naungbo villages by Minesat township Electric Power Generation Enterprise and U Kyi Thein Family Company.

14 Myanmar Energy Brief 16 December - 22 December Minesat township also receives electric power from two 600kW hydropower turbines at the Mel Pan station. However, the article said this is not quite enough electricity for the township, and it is provided on a rotating basis, township by township. Power and electricity Micro-hydropower project installed in Sagaing A micro hydropower generator has been installed in Sagaing s Kyunhla township, according to an article in Myanma Ahlin. The 30kW generator was reportedly purchased at a cost of Ks11m ($7,900) from the Union budget. It is located near the Chaung-Sauk village group in Kyunhla township. The product is said to improve performance monitoring by combining intelligent data analysis with an algorithm using data generated from the plant. The company said the product helps customers maintain plant availability and efficiency, improving performance and profitability. The Myingyan combined-cycle power plant is set to be complete in It is to be operated by Sembcorp Myingyan Power Company, and will supply power to the Electric Power Generation Enterprise under a 22-year power purchase agreement. The article claimed that up to 240 households will benefit from the project. It added that Kanblu Region Administration and Development Department deputy director U Kyaw Kyaw and other government officials have officially visited the project site. B2B ABB wins order to automate Myingyan 225MW plant Industrial technology company ABB has won an order from Singapore-based Jurong Engineering Limited to automate the 225MW project at Myingyan, Mandalay Region, according to a press release from the company. The firm s Symphony Plus system will control and monitor the power plant, including the turbine, heat recovery steam generator, and balance-of-plant.

15 Myanmar Energy Brief 16 December - 22 December NEW TENDERS Organisation Description Deadline Contact Electricity Supply Enterprise (ESE) The Electricity Supply Enterprise (ESE) under Ministry of Electricity and Energy (MoEE) is seeking to tender the following projects, in Myanmar Kyats. (1) Purchase for required concreted poles and items in the installments of 33/11kV 5MVA substation, 33kV, 11kV & 400V power line in Sagaing and Bago regions during fiscal year 30/12/2016 Ministry of Electricity and Energy, Electricity Supply Enterprise, Planning Department, Office (27), Naypyitaw. Contact: , , Fax: (2) Purchase for the associated equipment of power line and substation for various regions The Yangon Electricity Supply Corporation (YESC) invites interested parties to buy its household used (49977) meters that were returned from the different townships in Yangon Region. Yangon Electricity Supply Corporation (YESC) Tender start selling date is 19 December /1/2017 Yangon Electricity Supply Corporation, Planning Department, Yangon within office hours. Contact: Tender application form must be submitted not later than 12:00hr on 2 January 2017.

16 Myanmar Energy Brief 16 December - 22 December NEW TENDER Organisation Description Deadline Contact The Myanma Oil and Gas Enterprise (MOGE) invites companies to supply the following items. Myanma Oil and Gas Enterprise (MOGE) Tender No. Description Remarks IFB-069(16-17) OTECO Gate Valves and Spares for Rig Pumps(16) Items US$ IFB-070(16-17) Assorted Sizes of Steel Casing & Accessories (8) Items US$ IFB-071(16-17) Assorted Sizes of PDC and Tri-Cone Bits(13)Items US$ IFB-072(16-17) Spares for BOP Ex ZJ-70L Drilling Rigs(6)Items US$ IFB-073(16-17) Spares for FA-1600 Triplex Pump Ex, Ex EMSCO Rig(9)Items US$ IFB-074(16-17) Spares for NAT-55 and EMSCO Drilling Rigs(40) Items US$ DMP/L-016 (16-17) Spares for Allision Transmission Ex KB-150 Well Servicing Truck (32) Items Ks DMP/L-017 (16-17) Spares for MWM D /Set Engine Ex MTBN-3 River Craft (30)Items Ks DMP/L-018 (16-17) Steel Wire Rope (2) Items Ks DMP/L-019 (16-17) Mud Testing Equipments (6) Items 16/1/2017 Myanma Oil and Gas Enterprise (MOGE), Office 44, Naypyitaw. Tender must be submitted in person. Contact: , Tender application forms can be purchased at Myanma Oil and Gas Enterprise, Office 44, Naypyitaw. Tender application deadline is 16 January 2017 (16:30hr).

17 Myanmar Energy Brief 16 December - 22 December OPEN TENDERS Organisation Description Deadline Contact The Myanma Petrochemical Enterprsie (MPE) under Ministry of Electricity and Energy invites companies to purchase Blue Oil produced from N0(2) oil refinery (Chauk) in Chauk township in Magway region. The price rate will be Ks 1,650 per gallon and all parties interested may apply. Myanma Petrochemical Enterprsie (MPE) Terms state that the applicant must purchase a minimum of 3,000 gallons blue oil with cash. Application forms can be directly purchased at the head office, Naypyitaw, Office 44 or N0(2) oil refinery (Chauk). The applicant must handle collection and transport within the days defined by the amount purchased as follows: 31/12/2016 Myanma Petrochemical Enterprise, Manufacturing Department and N0(2) Oil Refinery (Chauk) during business hours. No. Blue Oil gallon Defined days Contact: , , (1) 3,000-10, (2) 10,000-50, (3) 50, , (4) 100,000-up 30 The Myanma Petrochemical Enterprsie (MPE) under Ministry of Electricity and Energy invites companies to purchase Coker Gas Oil (CGO) produced from Thanpayarkan Petrochemical Factory in Min Hla township in Magway region.t he price rate will be Ks 1,850 per gallon and all interested parties may apply. Myanma Petrochemical Enterprsie (MPE) Terms state that the applicant must purchase a minimum of 100,000 gallons CGO with cash. Application forms can be purchased at the head office, Naypyitaw, Office 44 or Thanpayarkan Petrochemical Factory. The applicant must collect and arrange transport within the defined period, based on the amount purchased, as follows: 31/12/2016 Myanma Petrochemical Enterprise, Manufacturing Department, Thanpayarkan Petrochemical Factory during office hours. No. CGO gallon Defined days Contact: , (1) 100, , (2) 200, , (3) 300, , (4) 500,000-up 30

18 Myanmar Energy Brief 16 December - 22 December OPEN TENDERS Organisation Description Deadline Contact The Myanma Petrochemical Enterprsie (MPE) under Ministry of Electricity and Energy invites companies to purchase diesel produced from Thanpayarkan Petrochemical Factory in Min Hla township in Magway region. The price rate will be Ks 2,400 per gallon and all the parties interested may apply. Terms state that the applicant must purchase a minimum of 30,000 gallons diesel with cash. Application forms can be directly purchased at the head office, Naypyitaw, Office 44 or Thanpayarkan Petrochemical Factory. Myanma Petrochemical Enterprsie (MPE) The applicant must collect and arrange transport within the defined period, based on the amount purchased, as follows: No. Diesel gallon Defined days 31/12/2016 Myanma Petrochemical Enterprise, Manufacturing Department, Thanpayarkan Petrochemical Factory during office hours. (1) 30, , (2) 100, , Contact: , (3) 300, , (4) 500,000-up 30

19 Myanmar Energy Brief 16 December - 22 December OPEN TENDERS Organisation Description Deadline Contact The Electric Power Generation Enterprise (EPGE) under Ministry of Electricity and Energy (MoEE) invites companies to supply transportation services for Gas Filtration Skid and Power Line associated items, under the following plan. Electric Power Generation Enterprise (EPGE) 1. From Ahlone power plant, Yangon to Industrial Zone (east), Kyaukse township, Mandalay 2. From Ahlone power plant, Yangon to Myaukpyin Substation Compound, Aungmyaythazan township, Mandalay 28/12/2016 Electric Power Generation Enterprise (EPGE), Logistic Department, Office (27), Naypyitaw within office hours. Contact: , Interested bidders must submit their tender applications forms not later than 13:00hr on 28 December Electricity Supply Enterprise (ESE) The Electricity Supply Enterprise (ESE) under the Ministry of Electricity and Energy (MoEE) invites companies to submit bids for concrete poles, as well as 33kV, 11kV and 0.4kV power lines, 11/0.4kV transformer and associated items, as it has become necessary to relocate lines that are presently blocking the Maubin-Kyaiklat-Pyapon Road in Ayeyarwady Region. Bids must be submitted in Myanmar kyats. 23/12/2016 Ministry of Electricity and Energy, Electricity Supply Enterprise, Planning Department, Office (27), Naypyitaw. Contact: , Fax: Tender application forms must be submitted not later than 12:00hr at noon on 23 December 2016.

20 Myanmar Energy Brief 16 December - 22 December OPEN TENDER Organisation Description Deadline Contact The Ministry of Electricity and Energy has received financing from the World Bank towards the cost of the National Electrification Project, and intends to apply part of the proceeds towards payments under the contract for Concrete Poles for National Electrification project. The Ministry of Electricity and Energy now invites sealed bids from eligible bidders for supply of spun concrete pole 10 meter and 12 meter, for the total quantities of 94,786 poles to be delivered in calendar year 2017 to multiple destinations in all Regions and States of Myanmar. Domestic preference with the margin of 15% will apply. The goods will be grouped into 10 lots and bidders may submit bid for any one or more lots. Bidding will be conducted through the International Competitive Building procedures as specified in the World bank s Guidelines: Ministry of Electricity and Energy (MoEE) Procurement of Goods, Works and Non-Consulting services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers [ edition of January 2011 revised on July 2014] ( Procurement Guidelines ) and is open to all eligible bidders as defined in the Procurement Guidelines. In addition, please refer to the paragraphs 1.6 and 1.7 setting for the World Bank s policy on conflict of interest. Interested eligible bidders may obtain further information from Project Manager, Office No(27), Ministry of Electricity and Energy, nep.pomoep@gmail.com and inspect the bidding documents during office hours 10:00 to 16:00 hours at the address given below. 19/1/2017 Director General Office Department of Electric Power Planning Office No(27), Ministry of Electricity and Energy, Naypyitaw The Republic of the Union of Myanmar A complete set of bidding documents in CD with English Language may be purchased by interested eligible bidders upon the submission of a written application to the address beside and upon payment of a nonrefundable fee of Ks100,000. The method of payment for the nonrefundable fee will be transferred to the following account: Telephone: Facsimile: nep.pmomoep@gmail.com Web site: Electricity Supply Enterprise, account no.see10316 at Myanma Economic Bank in Naypyitaw, Myanmar. The transferred slip shall be submitted with the above application. Once the application and the transferred slip received, the bidding documents will be provided in the CD. Remarks: Bids must be delivered to the address below on or before 10:00 am, 19th January Electronic bidding will not be permitted. Late bids will be rejected. Bids will be publicly opened in the presence of the bidders designated representatives at Director General Office, Department of Electric Power Planning Office No (27), MoEE, Naypyitaw at 10:00 am, 19th January All bids must be accompanied by a Bid Security as described in the bidding document.

21 Myanmar Energy Brief 16 December - 22 December OPEN TENDER Organisation Description Deadline Contact The Ministry of Electricity and Energy has received financing from the World Bank towards the cost of the National Electrification Project, and intends to apply part of the proceeds towards payments under the contract for Distribution Transformer for National Electrification Projet. The Ministry of Electricity and Energy invites sealed bids from eligible bidders for supply of 11/0.4kV-50kVA, 100kVA, 200kVA, 315kVA and 33/0.4kV-100kVA, 200kVA and 315kVA distribution transformer, for the total quantities of 5389 transformers to be delivered in 2017 and 2018 to multiple destinations in all Regions and States of Myanmar. Domestic preference with the margin of 15% will apply. The goods will be grouped into 10 lots and bidders may submit bid for any one or more lots. Evaluation and award of contract will be on a lot-wise basis. Ministry of Electricity and Energy (MoEE) Bidding is open to all eligible bidders as defined in the Procurement Guidelines of the World Bank s policy. 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 [ edition of January 2011 revised on July 2014] (Procurement Guidelines). 30/12/2016 Director General Office Department of Electric Power Planning Address: Office No(27), Ministry of Electricity and Energy, Naypyitaw Country: The Republic of the Union of Myanmar In addition, please refer to the paragraphs 1.6 and 1.7 setting for the World Bank s policy on conflict of interest. Tel: Fac: nep.pmomoep@gmail.com Web site: Interested eligible bidders may obtain further information from Project Manager, Office No(27), Ministry of Electricity and Energy, nep.pmomoep@gmail.com and inspect the bidding documents during office hours 10:00 to 16:00 hours at the address given below. A complete set of bidding documents in CD with English Language may be purchased by interested eligible bidders upon the submission of a written application to the address below and upon payment of a nonrefundable fee of Ks100,000. The method of payment will be transferred to the following account: Electricity Supply Enterprise, account no. SEE at Myanma Economic Bank in Naypyitaw, Myanmar. The transferred slip shall be submitted with the above application. Once the application and the transferred slip received the bidding documents will be provided in the CD.

22 Myanmar Energy Brief 16 December - 22 December OPEN TENDER Organisation Description Deadline Contact The Republic of the Union Of Myanmar received a credit from the Official Development Association (ODA) of the Japan International Coorperation Agency (JICA) toward the cost of the Urgent Rehabilitation and Upgrade Project (Phase 1)(MY-P2). The funds will be used for Package 2 "Renovation Works of Transmission System" which includes rehabilitation work to four substations at the existing gas turbine power plants (Ahlone, Hlawga, Ywama and Thaketa) in Yangon Region. Electric Power Generation Enterprise (EPGE) intends to prequalify contractors for supply and rehabilitating of the four substations. Invitations for bids will be made after prequalification. Prequalification will be conducted in keeping with JICA's procedures. The prequalification notice includes the following content: Electric Power Generation Enterprise (EPGE) Urgent rehabilitation and uprade, "Renovation 1. Package Name Works of Transmission System" 2. Document issuance time 10:00 to 15:30 on 4 November Document fee Ks 300, Closing date & time 26 December 2016 by 14hrs 26/12/2016 Thermal Power Department, Electric Power Generation Enterprise (EPGE), Building No.27, Naypyitaw. Contacts: Fax: epgethermal@gmail.com Applications must be submitted at the Procurement Department, Electric Power Generation Enterprise, Ministry of Electricity and Energy, Building No 27, Naypyitaw. Remarks: Applications for prequalification should be submitted in sealed envelopes, and be clearly marked as "Application to Prequalify for Renovation Work to Four Substations in Yangon Region (ICB EPGE-G-02)".

23 Myanmar Energy Brief 16 December - 22 December THIS WEEK S NEW DATA Retail fuel prices by week, December 2016 W/E 7 Dec W/E 9 Dec W/E 13 Dec W/E 19 Dec Diesel Ks. 640 Ks. 640 Ks. 675 Ks. 690 Octane 95 Ks. 690 Ks. 690 Ks. 720 Ks. 730 Octane 92 Ks. 650 Ks. 650 Ks. 680 Ks Diesel Octane 95 Octane Nov 16-Nov 22-Nov 28-Nov 4-Dec 10-Dec 16-Dec 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.

24 Myanmar Energy Brief 16 December - 22 December THIS WEEK S NEW DATA Imported fuel prices by week, November-December 2016 W/E 28 Nov W/E 2 Dec W/E 9 Dec W/E 19 Dec Octane 92 Ks. 560 Ks. 611 Ks. 660 Ks. 770 Diesel Ks. 570 Ks. 600 Ks. 644 Ks Octane 92 Diesel Nov 10-Nov 16-Nov 22-Nov 28-Nov 4-Dec 10-Dec 16-Dec 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.

25 Myanmar Energy Brief 16 December - 22 December THIS WEEK S NEW DATA Cities Average retail prices of fuel in Myanmar (Kyat/Gallon) 13 December 14 December 16 December 19 December Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel Yangon 3,050 3,000 3,050 3,000 3,100 3,050 3,150 3,100 Pyimana 3,250 3,150 3,250 3,150 3,300 3,200 3,250 3,200 Lewe 3,300 3,150 3,300 3,150 3,300 3,400 3,400 3,250 Tatkone 3,300 3,150 3,300 3,150 3,300 3,400 3,400 3,350 Source: Myanmar Petroleum Trade Association

26 Myanmar Energy Brief 16 December - 22 December CALENDAR Myanmar Oil and Gas Summit January 2017, Sedona Hotel, Yangon, Myanmar MiTA Myanmar Energy and Environment Exhibitions & Conference February, Tatmadaw Exhibition Hall, Yangon, Myanmar ABOUT US The Myanmar Energy Brief and the Myanmar Energy Monitor are produced by Frontier Myanmar Research Ltd. Myanmar address Office 12, Building 27 Shwe Ohn Pin Yan Shin Street Yankin Township Yangon, Myanmar London address (Frontier MEA Ltd) International House 24 Holborn Viaduct London EC1A 2BN United Kingdom Subscription enquiries Antoine Drogoul antoine.drogoul@frontiermyanmar.com Myat Noe Han myat.noehan@frontiermyanmar.com Myanmar Energy Brief subscription rates One year: $2,200 Myanmar Energy Monitor subscription rates (includes Energy Brief and full website access) One year: $3,900 Rates are subject to 5% Myanmar sales tax where applicable