New Wärtsilä operation and maintenance agreement

Source: press release, 12 March 2019

The contract was signed by U Maung Kyay, Managing Director, PowerGen Kyaukse Co. Ltd. and Nicolas Leong, Managing Director, Wärtsilä Myanmar Co. Ltd.
The contract was signed by U Maung Kyay, Managing Director, PowerGen Kyaukse Co. Ltd. and Nicolas Leong, Managing Director, Wärtsilä Myanmar Co. Ltd. (photo: Wärtsilä)

The technology group Wärtsilä will support the 145 MW Kyaukse gas engine power plant in, Mandalay region, Myanmar, in meeting its availability guarantees and other obligations through a 5-year operation and maintenance agreement. The agreement has been signed with the plant owners, PowerGen Kyaukse Co. Ltd., in February 2019 and the order was booked in Q1 2019.

The newly installed power plant, powered by eight Wärtsilä 50SG gas fuelled engines, is being built on a fast-track basis to alleviate the shortage of electricity in Myanmar. The electricity produced is fed to the national grid, and under a Power Purchase Agreement with the Ministry of Electricity and Energy (MOEE) of Myanmar, the owners are obliged to provide plant availability and heat rate guarantees. By contracting Wärtsilä to operate and maintain the facility, compliance with these requirements can be assured.

U Maung Kyay, Managing Director of PowerGen Kyaukse comments, “Wärtsilä engines provide the necessary efficiency and baseload power that Myanmar needs today, and in the future it will provide the flexibility required to integrate more renewables into the system. Wärtsilä’s expertise in running and maintaining power plants is a valuable advantage that we are pleased to utilise. This project will create jobs locally and in addition, it will enable knowledge transfer between Wärtsilä and the local staffs of the power plant owner.”

U Aung Hlaing Oo, Board of Directors of PowerGen Kyaukse adds, “We consider Wärtsilä to be our long-term partner as we help to build up the energy sector in Myanmar.”

In response, Sushil Purohit, Vice President, Middle East Asia, Wärtsilä Energy Business says, “This Operation and maintenance agreement is the first Wärtsilä Lifecycle solution to a power plant in Myanmar. Wärtsilä’s experience and track record in operations and maintenance services dates back almost 30 years, which is a convincing reference for our customers. Having supplied this power plant with the generating sets, this follow-up agreement is a clear endorsement of the added value that we can bring to our customers.”