Myanmar has entered into an agreement with ACO Investment to develop two solar-energy plants in Mandalay region.
The project, consist of two 150 MW solar facilities, at a value of $480 million, according to a release from the Office of the U.S. Trade Representative.
The plants are expected to account for 10 – 12 percent of Myanmar’s power generation when completed in 2016.
Myanmar had developed a new policy outlay to encourage renewable energy investments of the country.
The fund is betting $700 million on Myanmar, offering investors a growth opportunity in Southeast Asia, stated, Hari Achuthan, co-founder, a former Credit Suisse Group AG banker, ACO.
In July 2012, the U.S. has dropped economic sanctions against Myanmar after a democratic process that elected Aung San Suu Kyi to parliament after 15 years of house arrest.
The solar projects are expected to create 400 construction jobs in Myingyan and Meiktila districts, where the two plants are expected to be located.
An additional 100 permanent jobs will be created from the project, which will be managed by Convalt Energy, a portfolio company owned by ACO.
ACO’s project development in the Mandalay region will help Myanmar provide stable energy because the country depends on hydropower mainly.
Recently, the Asian Development Bank announced a plan to bring power to 25 off-grid villages in Myanmar through a $2 million grant project.
In a recent initiative, the U.S. Foreign Commercial Service has opened its new office in Rangoon in Burma to promote partnerships in the region.
The United States also signed an agreement to work with Myanmar to strengthen labor rights and improve labor conditions.