The World Bank has approved a $350 million credit to help Myanmar to increase the output and efficiency of power generation.
The credit will fund the Myanmar Power System Efficiency and Resilience project which aims to strengthen the electricity system against climate change and disasters.
Myanmar will upgrade its Ywama gas-fired power plant with the aim to improve the availability and reliability of energy services to consumers in Yangon.
Improving the gas plant will free-up electricity supply in the rest of the country and will remove capacity constraints to enable more households to connect.
Myanmar needs to double its current installed power generation capacity over the next five to seven years to achieve universal electricity access by 2030.
In line with the National Electrification Plan adopted in 2014, Myanmar has to date connected 2 million new people, schools, rural clinics and community centers to the national grid.
Over 5,000 rural villages now have access to electricity via the grid and 7,200 villages via mini-grids.
The project also contributes to Myanmar’s climate change mitigation and adaption commitments under the Paris Agreement.
“Myanmar has the lowest electrification rate in South East Asia with only 50 percent of households connected to the public grid. This project will help close the power supply gap in an affordable and environmentally sustainable way, thereby removing one of the key constraints to achieving Myanmar’s goal of universal electricity access by 2030,” said Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR.