SINGAPORE – Sembcorp Industries has said it is actively monitoring the developing situation in Myanmar in the wake of the military coup.
On Tuesday (Feb 16), the company provided updates on its two investments in Myanmar. The first is a 225-megawatt gas-fired power plant in Mandalay, operated through Sembcorp’s subsidiary Sembcorp Myingyan Power Company Limited. The plant commenced full commercial operation in October 2018.
Amid the situation in Myanmar, Sembcorp said the power plant continues to be in operation and added that its employees are safe.
As at the end of last December, the net book value of the plant stood at US$57 million (S$75.4 million); some US$230 million of the project’s loan currently remains outstanding. Sembcorp said the outstanding loan is backed by a corporate guarantee issued by its wholly-owned subsidiary, Sembcorp Utilities.
The group’s other investment in Myanmar, an industrial park development announced on Aug 17, 2020, has not yet commenced.
To recap, Myanmar’s military had on Feb 1 declared a one-year state of emergency after arresting civilian leader Aung San Suu Kyi and other senior officials. The military had later announced that 24 ministers and deputies had been removed, and 11 replacements across sectors such as finance and health had been named.
Following the coup, there were reports of interruptions to telecommunications and Internet services across the country. There was also a military order to block Twitter and Instagram after the authorities said some people were using these platforms to spread false news.
Despite the chaos, Myanmar’s military chief Min Aung Hlaing had reportedly said that the country remains open to foreign and local investments, and that he plans to support business projects from the previous government that are already underway.
Sembcorp said it will continue to monitor the situation and provide updates if there are material developments.
Shares of Sembcorp closed flat at $1.69 on Tuesday before the announcement.