China, Thailand invest in Hydropower

China and Thailand are interested in investing in hydropower projects in the Thanlwin River, said a senior official from the Ministry of Electric Power’s Department of Hydropower Implementation on March 20.

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“They [China and Thailand] are interested because they are worried about future electricity demand. Due to increasing populations and development, the production rate cannot meet the consumption rate of electricity in these countries,” he said.

There are six hydropower projects scheduled to be implemented in the Thanlwin River. In northern Shan state there is the 1400 megawatt (MW) Kounloan project, 1000 MW Noungpha, 200 MW Manthaung and 7110 MW Mountone projects.

Additionally there is the 4000 MW Yourthit project in Kayar state and the 1360 MW Hatgyi proect in Kayin state.

“It is just at the research stage. There are so many stages that need to be done in order to implement a hydropower project. But some people think we are starting and they want to protest against the projects for the sake of environment,” he said.

Chinese companies Hanergy Holding Group Ltd, Hydrochina Corporation, China Three Gorges Corporation (CTGC), China Datang Overseas Investment Co, Ltd (CDOI) and Sinohydro Corporation have each signed a Memorandum of Understanding with local companies.

Thailand’s EGAT International (EGATI) is interested in a build operate transfer agreement with a local company and has already signed an MoU with local companies and investors.

Thailand has begun to worry about its long term future power sources after it was announced on March 6 that the Yadana offshore block will stop exporting gas to Thailand from April 4 to 15 for some maintenance work, the official said.

“If we have no plan management to uncover the public for SIA and EIA, we will not continue the projects. This is a new era and everything will go on very openly and we will listen to what the people say,” he said.

There have been rumours that the excess water from the dams would flow to Thailand, causing activists from the country to demand the projects be cancelled.

The Deputy Minister of the Ministry of Electric Power, U Myint Zaw, said at the sixth regular sectional meeting of the first Pyithu Hluttaw that the rumours are not true.

Source; mmtimes

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Myanmar Investment Law to be enacted soon, says DICA director

A draft of the long-awaited Myanmar Investment Law has been submitted to parliament and will be passed soon, bringing a more strategic and nuanced approach to tax exemption in addition to simplifying investment, according to U Aung Naing Oo of the Directorate for Investment and Company Administration (DICA).

People use ATM machines at a roadside in Yangon. Photo: EPA

“We have already put the bill to parliament after finalising the draft, and it will be enacted during the next parliament,” the DICA director said at a press conference in Yankin township last week. The next meeting of parliament will be held in the first week of November.

The new law combines into one document the Myanmar Citizens Investment Law, which governs investment by locals, and the Foreign Investment Law, which governs foreign entities. Drafted with help from the International Finance Corporation, U Aung Naing Oo said the new framework would simplify investing in Myanmar.

One significant point in the draft law is a reduction in the number of investment projects that require permission from the Myanmar Investment Commission (MIC), he said.

“Investors don’t need to apply to the MIC to invest in all businesses,” he said. Application will only be required for projects that are highly capital-intensive, that have potential impact on the environment or that the government deems “strategic”, according to U Aung Naing Oo. This latter category would include key infrastructure projects.

“But all investors [will still] need to inform the MIC about what businesses they are investing in so that there is a record,” he said.

U Aung Naing Oo added that under the existing Foreign Investment Law, foreign investors doing business with an MIC permit qualify for tax benefits, including an income tax exemption. Under the new law, tax benefits will be tailored and strategic rather than automatic, he said.

“Tax exemptions will be granted only to businesses in sectors that the state needs to boost the economy,” he said.

Local firms have argued that they are at a disadvantage because they do not qualify for the same tax exemptions as international competitors. An MIC permit typically requires a high level of investment. Although this differential treatment is concerned with the size of the investment, some observers say it is important to lure international entrants into Myanmar, bringing a higher level of investment than local business in the same sector cannot match.

“Generally local companies reinvesting profits would struggle to satisfy the conditions for an MIC permit required for the tax breaks,” Robin Scott, general counsel of City Mart, told The Myanmar Times. “Their [local firm’s] large set up costs will have been incurred some time ago.”

The duration of the tax exemption will also be tailored under the new law, according to U Aung Naing Oo.

“For example, three years [for investment] in developed regions and seven years in less developed regions,” he added.

The draft also takes seriously the issue of environmental and social impact, and updates long-outdated offences and punishments in the old Myanmar Citizen Investment Law, he said.

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Source; mmtime
Translation by Thiri Min Htun

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