Power issue at Mawlamyine Cement

The Myanmar Ministry of Electricity and Energy has revealed that Mawlamyine Cement (MCL), a joint venture between Siam Cement Group and Pacific Link Cement, has not sought permission to run the power plant. The statement has been refuted by the cement producer.

"From the ministry's reply, we can confirm that MCL didn't follow the electricity law. They did discuss with the ministry the installation of two 20MW turbines. But they didn't get any permission," U Aung Kyaw Thu, chairman of the Mon State parliamentary committee, said.

However, MCL executive officer, U Zaw Lwin Oo,  said at a public consultation meeting that MCL had in fact received permission from the Ministry of Industry to generate 20MW of electricity.

"The industry ministry has given its approval for the production of 20MW. It gave permission on 19 March 2017. If you have any questions, please ask the concerned ministries. We can only operate with permission," U Zaw Lwin Oo told the press.

According to Mr Lwin Oo, MCL has two 20MW turbines and a 9MW spare turbine, but the industry ministry has only given approval for 20MW. The cement factory is powered by a single 20MW turbine.

MCL signed the contract to operate the cement plant for the next 45 years in 2013 with the previous government, according to the Myanmar Investment Commission. With estimated MMK159.8bn (US$117.1m) of income and a profit of MMK32.57bn, the plant is expected to require around 9.5 years to break even. The factory started commercial operations in April despite local opposition.