Foreign direct investments in the electric power and mining sectors of Myanmar require a permit issued by the Myanmar Investment Commission (MIC). An MIC permit provides an investor tax, land use and other benefits. Under the Foreign Investment Law foreign investors can lease land for an initial maximum term of 50 years, and can be extended for two additional ten-year terms. With prior MIC approval, a long-term lease may be subleased or mortgaged.
Electric power in Myanmar. Currently foreign companies invest in electric power projects on the basis of build, operate and transfer (BOT) and Joint Venture (JV). Firstly, a memorandum of understanding (MOU) with the Ministry of Electric Power (MoEP) must be executed for conducting a feasibility study.
A memorandum of agreement (MOA) will be signed if the feasibility study has been approved. In this phase, environmental and social impact assessments will be conducted. Then the foreign sponsor(s) negotiate with the MoEP and other relevant ministries the details of various project documents, including, but not limited to, the JV agreement (JVA), BOT agreement, power purchase agreement and various loan and security documents.
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William D Greenlee, Jr, is the managing director, Myanmar, and head of China desk of DFDL in Yangon. He can be contacted on +95 1 526 180 or by e-mail at william.greenlee@dfdl.com
Rupert Haw is the managing director, Lao PDR, of DFDL in Vientiane. He can be contacted on +856 21 242 068 or by e-mail at rupert.haw@dfdl.com
