A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research studies project report (M.B.A) - Asian Institute of Technology, 1999

Understanding the vital role of electricity in the industrialization process and developing the national economy, Myanmar Government is trying to upgrade the current Myanma Power sector. by inviting the participation of private Independent Power Producers (IPPs) through o Build , Operate, and Transfer (BOT) and Joint Venture schemes. In case of power generation the gap between demand and supply is so wide that is not possible for the Myanmar Government to finance this gap through public financial resources. MEPE( Myanmar Electric Power Enterprise), like utilities in other developing countries, relies on foreign equity for privatization and commercialization of power sector. The demand for power in Myanmar has been growing at an annual rate of nearly 5.5% and will tend to be increased to 1500 MW. The supply has not been able to keep pace with the demand in the current power crisis situation due to paucity of development funds in the public sector. Although the Government has announced the privatization of Myanma Power Sector Development since 1994, the prevailing low tariff structure and unfavorable market conditions for having small amount of affordable customers are the main reason for drawback of this process. So the Government need to adjust the present pricing structure to get commercial scale, let transparence regulatory frameworks and specific incentives regarding the private power plants. This paper is presented about the current electricity supply and demand situation and perspective in future. Also the existing main inefficiencies were analyzed with the regardless of MEPE operational performances and the gaps at present in implementing of IPPs. Besides, the favorable market condition of development of Industrial Parks are most suitable situation to start up the power plants and recommendation for short-term and long-term planning are carried out.