Letter: Myanmar gets good solar tender deal
MADAM – Your story dated September 9 “Chinese developers sweep up 1GW solar bids in Myanmar” reported that “firms from China have swept up all but one of the solar projects after a tender which was widely criticised for effectively keeping out local and most international bidders.” The article described the rate as “far lower than the industry’s expectation with the average winning price at US$0.0422 per unit.”
Some winners, such as Shwe Taung and its partners, are in fact consortia led by Myanmar companies. These firms can achieve competitively low rates through sourcing solar panels from Mainland China. It, therefore, makes commercial sense for them to join forces with Chinese counterparts In addition, the way the bid was carried out sends a signal to the international business community about the importance of having a team inside the country. It suggests that establishing a presence in Myanmar would give companies an advantage when competing for government contracts. Overall, this hyper-competitive bidding could lead to better electricity prices for consumers in Myanmar.
Source : mmtimes
