Grant Assistance to Myanmar for the Project for Rehabilitation for Baluchaung No. 2 Hydro Power Plant

May 10, 2002

1. The Government of Japan decided to extend emergency assistance of up to 628 million yen to the Union of Myanmar for the project for Rehabilitation for Baluchaung No. 2 Hydro Power Plant. Notes to this effect were exchanged on May 10 (Fri) in Yangon between Mr. Shigeru Tsumori, Japanese Ambassador to Myanmar, and H.E. U Soe Tha, Minister for National Planning and Economic Development of Myanmar.
   
   
2. Myanmar has been suffering from a chronic power supply shortfall caused mainly by the shortage of fuel for thermal power plants and problems of existing power generation equipment. Since 1990 the situation has been so serious that the country needed to cut off the power supply for six to twelve hours a day.
       The Baluchaung No. 2 Hydro Power Plant is the power plant of a largest scale in Myanmar with an installed capacity of 168 MW, accounting for about 24 percent of the total annual electricity production in the country. The overall power plant and three generators out of six were installed in 1960 with postwar reparations from Japan, and the remaining three were installed by Myanmar in 1974. The plant was partly renovated with a loan extended by Japan in 1986, enabling the plant to sustain its operation. If the plant were left in its present condition, however, it would run into a complete halt by damaged water turbines or by fires caused by insulation failure, affecting enormously the daily life of the people of Myanmar.
       In this situation, the Government of Myanmar formulated the rehabilitation project and has requested the Government of Japan to provide grant aid necessary for the procurement of materials and equipments to repair heavily damaged parts such as water turbines, generators, and electrical transformers, by replacing part of the equipment and adding electric lines.
   
   
3. The project will prevent serious accidents in the plant and will enable the plant to distribute a stable power supply necessary for the people of Myanmar.
   
   
4. The Government of Japan welcomes the lifting of the restrictions on the movements of Daw Aung San Suu Kyi on May 6. Japan has been supporting Myanmar's efforts for democratization and nation building, and from this point of view has decided to extend this grant assistance.

Related Information (Japan-Myanmar Relations)