South Korea’s state utility firm Korea Electric Power Corporation (KEPCO) said on Thursday that it has signed a $5.34 million contract with Myanmar’s Ministry of Electricity and Energy to provide consulting service on network connection construction and set designing standards for the next four years.
Under the deal, KEPCO will provide bidding evaluation support on national power supply projects launched by the Myanmar government, provide construction supervision support, and set power distribution design and equipment standards. The company won the contract after competing with European consulting firms from Spain and Sweden.
Shares of KEPCO ended Thursday 3.2 percent up at 33,950 won ($31.74).
KEPCO said the latest contract is significant in that it is the first time it has won a project funded by the World Bank in the power distribution sector.
About 70 percent Myanmar’s population, meanwhile, have no access to electricity, and its electric power transmission and distribution loss ratio is 17 percent, which is significantly higher than 3.6 percent in Korea.
KEPCO has been engaged in five consulting services in the power transmission and transformation sector including technology service contracts in Myanmar since 2001.
An unnamed official from KEPCO said Korean equipment manufacturers will find more business opportunities in Myanmar once infrastructure is built on KEPCO advice and design.
By Kang Doo-soon and Lee Eun-joo
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]