InfoAnda - Insight: Myanmar's power struggle endangers economic boom |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Sanofi-Aventis widens Asian dengue vaccine trials | 21 April 2009
'Demjanjuk: a Holocaust cabaret' hits German stage | 2 May 2010
Suu Kyi makes historic debut in Myanmar parliament | | 2 May 2012

Ericsson wins $1.3 billion India deal | | 31 March 2010

Forum Views () Forum Replies ()

Read more with google mobile : Insight: Myanmar's power struggle endangers economic boom |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Slideshow Full Focus Photos of the week Our top photos from the past week. Full Article Images of March Follow Reuters Facebook Twitter RSS YouTube Read Taliban attack Afghanistan in "spring offensive" | 5:27pm EDT Latin America rebels against Obama over Cuba | 4:47pm EDT Titanic's dead mourned 100 yrs later in poignant ceremony at sinking site | 1:46pm EDT At least five dead in Oklahoma as tornadoes pound U.S. Plains 2:26pm EDT At least five dead in Oklahoma as tornadoes pound U.S. Plains 10:59am EDT Discussed 128 Obama paid 20.5 pct tax rate in 2011: White House 119 Obama healthcare law could sharply worsen U.S. deficits: study 106 North Korea launches rocket amid international condemnation Watched Transgender beauty says she wants to compete for Miss Universe Tue, Apr 3 2012 10-year-old gives birth in Colombia Tue, Apr 10 2012 Kim Il-Sung's 100th birthday celebrated in North Korea 1:03am EDT Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more Inside North Korea Rare scenes from within the reclusive state. Slideshow Goat in the city Cocoa the goat takes Manhattan. Slideshow Insight: Myanmar's power struggle endangers economic boom Tweet Share this Email Print Related News Obama streamlines oversight of shale gas Fri, Apr 13 2012 British PM, Suu Kyi back suspension of Myanmar sanctions Fri, Apr 13 2012 Special Report: An image makeover for Myanmar Inc Thu, Apr 12 2012 Natgas plummets to 10-year low Wed, Apr 11 2012 CORRECTED-UPDATE 5-Cameron agrees joint defence deal with Japan Tue, Apr 10 2012 Analysis & Opinion The promise and peril of energy tax revenues 2nd Circ. to Internet (and YouTube): You can’t knowingly infringe Related Topics World » Special Reports » 1 of 5. Win Maung attempts to repair the diesel motor for his private generator that supplies electricity to more than 200 homes in the village of Kya-oh in Myanmar April 1, 2012. Despite being located at the historical heart of Myanmar's oil sector, Kya-oh and numerous other poverty-stricken villages near the tourist haven of Bagan do not receive public electricity, but must depend instead on their own limited funds to keep the lights on at night. Picture taken April 1, 2012. To match Insight MYANMAR-ENERGY/ Credit: Reuters/Staff By a Reuters staff reporter KYA-OH, Myanmar | Sun Apr 15, 2012 4:05pm EDT KYA-OH, Myanmar (Reuters) - The banging of Win Maung's hammer echoes across the farming village of Kya-oh in parched central Myanmar, as twilight descends upon its thatched-roof homes. His arms and legs streaked in oil, the 48-year-old is struggling to repair a 22-horsepower diesel engine in a wheezing generator, the only power source for about 200 villagers whose homes will soon be enveloped by darkness. It is a familiar scene in rural Myanmar. "I'm not sure it can be fixed quickly. I'm not sure what the problem is," he says. Kya-oh lies in Myanmar's oil-rich heartlands but is not connected to the nation's power grid, a problem shared by hundreds of poor villages where electricity is elusive, and homes are sometimes powered by car batteries or lit up at night by the glow of campfires. A year of dramatic political changes after half a century of isolating military rule has convinced the West to start lifting sanctions imposed years ago in response to human rights abuses, encouraged by this month's historic by-elections that saw Nobel Peace Prize-winning dissident Aung San Suu Kyi win a seat in parliament. But the lack of a cheap and reliable energy supply could slow an expected economic boom, forcing consumers and businesses to rely on costly private generators and imported fuel. For the multinational companies descending on one of Asia's last frontier markets, the shortages are both a curse and a blessing: some say the erratic power could lead them to delay investments. Others see opportunity in expanding power supplies. In Kya-oh, Win Maung charges each household 3,000 kyat ($3.65) a month for 2 1/2 hours of electricity a night, and an extra 1,500 kyat if they own a television. That translates into nearly a week's wage for some villagers, who, like a third of the country's 60 million people, live on less than a dollar a day. "We do not believe the government will give us power, so we have to do it ourselves," said Win Maung, shirtless and sweating as he hovers over his broken engine. "We can only hope foreign companies will come in and help us." The unprecedented reforms over the past year have raised expectations of a wave of foreign investment that could help improve power supplies if the government gives priority to fixing the sector. But even if reform and capacity building progress quickly, gains will take time. Western energy firms say that once sanctions are lifted it will take at least two years to significantly boost Myanmar's power capacity due to decades of neglect and mismanagement. "The power infrastructure is extremely important. That is one of the main questions you hear from people looking to set up manufacturing," said Jeremy Kloiser-Jones, chief executive of Bagan Capital, a new private equity firm dedicated to investing in Myanmar. Billions of dollars of investment in the power sector would be needed, he said. The government announced nationwide rolling blackouts on April 2, the day after the historic landslide victory for pro-democracy leader Suu Kyi and her other party members in by-elections. "Things are not going to change overnight. We have plans on paper but implementing them in a country where we haven't operated will obviously take some time," said a senior official with a major Western company, who asked not to be identified because sanctions are still in place. Concern over power supply and future investment have been exacerbated by the scrapping of two major electricity projects, the China-led Myitsone dam and Thailand's Dawei coal-fired power plant, by Myanmar's government, in an apparent response to public concern over damage to the environment. LEFT IN THE DARK Power consumption in Myanmar, where only 25 percent of the population has access to the national grid, is one of the lowest in the world, averaging 104 kilowatts an hour per person, near the same level as the Democratic Republic of Congo and Nepal, according to the World Bank and Asian Development Bank. Government officials believe demand would be at least double if supply was available. Neighboring Thailand, with a similar population of about 65 million, consumes 20 times more electricity per capita with access available to more than 99 percent of its population, thanks in part to natural gas imported from Myanmar. "Needless to say, for a developing country, energy demand is always a problem. We are always facing the big challenges with demand and supply," Htin Aung, director general of the Ministry of Energy's planning department, told an oil conference in Yangon on March 28. For those lucky enough to have access to the national grid, the price of electricity varies sharply from one region to another. In the commercial capital of Yangon, electricity costs 35 kyat per kilowatt hour but surges more than 12 times that amount in the western city of Sittwe. The government has embraced hydropower as the main source of electricity for the immediate future, allowing the country to continue exporting most of its natural gas output to Thailand, rather than burn it. Myanmar will also pipe gas to China from next year. Hydroelectricity represents nearly 70 percent of Myanmar's power generation, while natural gas fuels more than 20 percent and coal 9 percent, according to the state-run Central Statistical Organisation. Installed power capacity for fiscal 2011-12 was estimated at 2,544 megawatts, up from 1,717 four years ago. "The policy for the electric power sector is to employ gas turbine power generation only for the short term and rely on hydroelectric power as the vital source of energy sufficiency," Kyaw Sar Soe Naing, executive engineer for the Ministry of Electric Power, told the same oil conference. Relying on limited water resources for power, however, has forced Myanmar to ration its electricity supplies, especially during the dry season, which can last for half the year. To keep the power on, businesses use their own generators that run on diesel. The oil is purchased at fuel stations that typically smuggle in supplies from Thailand and China due to Myanmar's limited refining capacity. At the Myanmar Treasure Resort in Bagan, for instance, the 94-room hotel spends the equivalent of about $100 an hour to run both of its generators during a blackout, a heavy financial burden in the dry season, said its deputy manager Myo Myo Latt. Myanmar diesel imports are on the rise since the government reformed the sector to facilitate imports by private companies, surging to $1.39 billion in fiscal 2010-11 from $673 million the year before. FOREIGN HELP Myanmar's government is optimistic that it will be able to meet domestic power demand within a few years with help from foreign investors. A senior official with a Western energy firm said his company could increase Myanmar's power capacity by more than 15 percent, or an additional 400 megawatts, within a 26-month period by simply upgrading the current infrastructure. Much more could also be done with billions of dollars of credit support and loans from multinational organizations such as the Asian Development Bank, industry officials said. "If the world is now going to be serious about welcoming Myanmar into the fold, then multinational institutions are going to have to open up funding opportunities," said Bagan Capital's Kloiser-Jones. POWER AND CHINA The country - the biggest in mainland Southeast Asia - has more than 48 planned power projects, 45 of which are for hydropower stations, that would boost installed capacity more than 14 times to 36,635 megawatts, the ministry said. But many of those projects have come under question following September's unexpected scrapping of the Chinese-led $3.6 billion Myitsone dam, Myanmar's largest hydropower project. Myanmar said it canceled the project because of environmental worries, but the decision was also seen as an attempt by its government to distance itself from Beijing. China's ties with Myanmar have since been strained, raising concern over future investment from its second biggest trade partner. Chinese firms, including state-owned China Power Investment Corp and China Datang Corp, were due to build at least 33 of the 45 planned hydropower stations, the ministry said. Myanmar could also help increase its power capacity by tapping more into its natural gas reserves, estimated at between 11 trillion and 23 trillion cubic feet. An energy official said a gas-fired power plant would likely be built at the multibillion-dollar Dawei Special Industrial Zone after the government halted construction of a 4,000 megawatt coal plant in January due to environmental worries. Myanmar's energy minister in January promised to keep gas from new projects beyond 2013 for the country's fast-growing energy needs, but would not use natural gas to power Dawei. The country produces about 1.47 billion cubic feet of gas per day (cfd), but exports 1.2 billion cfd to Thailand. The 270 million cfd kept at home met only 48 percent of domestic demand, according to Zaw Aung, director of planning for the state-run Myanma Oil & Gas Enterprise. "We are now very much deficient in natural gas for our domestic utilization," said the Ministry of Energy's Htin Aung. "Natural gas to the private sector is negligible with just 1 percent of our supply. In the future, we plan to give the private sector more gas." Back in Kya-oh, promises and plans mean little for Kyaw Soe Khaing, who faces a night without light if his friend, Win Maung, doesn't fix the village engine before sunset. "Electricity for us is a luxury," the snack seller said with a smile. "We can manage without it, we have to make do with what we have." (Additional reporting by Aung Hla Tun in Yangon; Editing by Jason Szep and Robert Birsel) World Special Reports Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Monday, 16 April 2012
Summit sex scandal takes shine off Colombia efforts |
U.S. political rhetoric to stay as China widens yuan band |
Swiss woman taken by gunmen in Mali's Timbuktu |
Worst of crisis over, governments must act: ECB's Asmussen |
Israel moves to thwart pro-Palestinian fly-in |
Insight: Myanmar's power struggle endangers economic boom |
Hunger Games rings up 4th box office win |
Matilda the Musical wins record 7 Olivier Awards |
Tom Petty offers $75,000 reward for stolen guitars |
Adele sets a new record with 21 |
Kabul fighting ends with explosions, heavy gunfire |
U.N. peace monitors in Syria set to begin mission |
Exclusive: Briton killed after threat to expose Chinese leader's wife |
Turkey jails 1997 coup suspects pending trial |
Norway killer Breivik refuses to recognize court |
Mexico's Pena Nieto extends lead over main rival |
Insight: Malawi paid price for ego of Economist in Chief |
U.S. political rhetoric to stay as China widens yuan band |
Secure despite rocket fiasco, N.Korea's Kim lauds military |
Web freedom facing greatest threat: Google founder |
Oracle suit vs. Google over Android hits trial |
Google fined $25,000 for impeding FCC investigation |
King.com overtakes Electronic Arts on Facebook |
U.N. condemns North Korea launch, warns on nuclear test |
Iran says ready to resolve nuclear issues |
New verdict deepens mystery on Italy bombings |
Sarkozy not seeking ECB mandate change, aides |
Pope turns 85, says is in last stretch of his life |
Freed anti-government Belarus leader says was pushed to kill self |
UK would-be shoebomber sentence cut over deal |
Can an app help you craft the perfect dream? |
Nokia defends cash position after Moody's downgrade |
Google fined $25,000 for impeding FCC investigation |
Samsung says to unveil new Galaxy S smartphone on May 3 |
Openwave Systems to sell core businesses |
Iron Man 3 to be co-produced in China |
Teller speaks out, sues over magic trick |
Author Rowling writing Harry Potter encyclopedia |
Miniature royal fairy tale to grow and grow |
All five 'Star Trek' captains unite at London event |
Tom Petty offers $7,500 reward for stolen guitars |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01