Myanmar will need to pursue substantial growth in power generation supply to meet its increasing demand. Employing published MOEE data, our analysis projects that the generation capacity gap between the available generation capacity and peak load demand is estimated to be 335MW in 2022. Strategically, this calls for a more diversified approach to procuring energy (from more efficient technologies and different energy sources).

THE PROJECT

Myanmar will need to pursue substantial growth in power generation supply to meet its increasing demand. Employing published MOEE data, our analysis projects that the generation capacity gap between the available generation capacity and peak load demand is estimated to be 335MW in 2022. Strategically, this calls for a more diversified approach to procuring energy (from more efficient technologies and different energy sources).

THE PROJECT

There is a rapidly growing need for mobile network coverage within Myanmar and its growing economy. To date, Mobile Network Operators (MNOs) in the remote areas of Myanmar have had to rely on pollution-heavy diesel-based power sources to power up their sites. With more efficient, greener, hybrid power generation solutions, there is a potential to displace 440,000 litres of diesel, 889 tons of CO₂ per year as well as noise and inefficient generators that run 24/7. In addition, a majority of Myanmar remains unelectrified which prevents the majority of the country’s isolated regions from sustainable development.

THE PROJECT

There is a rapidly growing need for mobile network coverage within Myanmar and its growing economy. To date, Mobile Network Operators (MNOs) in the remote areas of Myanmar have had to rely on pollution-heavy diesel-based power sources to power up their sites. With more efficient, greener, hybrid power generation solutions, there is a potential to displace 440,000 litres of diesel, 889 tons of CO2 per year as well as noise and inefficient generators that run 24/7. In addition, a majority of Myanmar remains unelectrified which prevents the majority of the country’s isolated regions from sustainable development.

The Project, developed in conjunction with SolaRiseSys (SRS), aims to supply power to off-grid networks and telecommunication towers in Myanmar through a proven Energy Service Company (ESCO) business model. In so doing, the Project will:

• Improve the design of the existing power systems and incorporate renewable energy generation options for improved energy efficiency and cost savings;
• Utilize hybrid technologies consisting of diesel generators, batteries and solar pv panels;
• Provide access to social infrastructure such as community centres that will host medical clinics, community libraries, charging stations, etc.

The end objective of the Project is to provide electricity to local communities and end-users that have currently no connection to the main power grid, thus enabling growth and economic development in these areas.

At an annual per capita consumption of 20kg – 40 kg/capita, Myanmar has one of the highest marine animal per capita consumptions in the world. Fish is the most important source of animal protein in Myanmar. Given that (i) currently only 20% of fish produced in Myanmar comes from domestic aquaculture, (ii) a depreciating MMK rendering imports more expensive and (iii) the inability of capture fisheries to sustain the current intensity of catch, the domestic aquaculture industry faces attractive growth prospects. A major bottleneck to Myanmar’s aquaculture industry is access to quality inputs due to the absence of quality feeds, lack of farming knowledge, affordability and working capital constraints. Small scale fish farmers especially, who dominate the Myanmar market, are trapped in a poverty cycle due to a fragmented value chain that causes low yields and low quality output.  

This Project is the development of an aquafeed facility that will process waste into high-value fish feed. This facility aims to improve multiple aspects of the aquafeed industry, including:

• Reducing the time for fish to reach maturity and lower overall cost of fish feed, thus improving fish farmer’s revenue, overall livelihoods and will reduce poverty;
• Transferring skills and knowledge to the local workforce. It is expected that up to about 540 farmers would benefit from increase in livelihood income.

In December 2019, ICM managed the sale transaction of the Project from IAD to Aller Aqua Group (AAG), a Danish fishfeed producer that caters to 30 species across 60 countries. ICM’s development efforts started in 2016 with the intention of converting local agri by-products into fishfeed. The initial annual capacity was 24,000 MT. Aller Aqua had been monitoring the Myanmar market for several years. The Project offered Aller Aqua an opportunity to concentrate its efforts on developing its customer base, meanwhile ICM assists with factory development activities. Currently, Aller Aqua is in the process of building a state-of-the art factory with an annual output capacity of 60,000 MT. ICM continues to support Aller Aqua in capital raising and permitting activities.

There is tremendous potential for growth in Myanmar’s agriculture and rice industry. Untapped potential in crop production is held back by weak infrastructure, underdeveloped technology and machinery use, a lack of available credit as well as poor field management and agricultural practices. The country’s rice yield is below the global average of 3.92 metric ton per hectare, and its milling ratio of around 60% is the lowest in Asia. Despite this, Myanmar is the seventh largest rice producer in the world and has the potential to become one of the largest exporters of rice globally.

This Project’s development of a hybrid seed center and community organizations of small holder farmers, ultimately aims to improve multiple aspects of this localised agricultural chain by:

• Improving farmer’s yields by way of the high-quality seeds;
• Improving and expanding farmers’ access to seeds, input and knowledge;
• Reducing inefficiencies along the fragmented rice value chain.

In November 2018 ICM managed the sale transaction of the Project for IAD. ICM had been working with the project partners since early 2017 and together brought the Project to the point where new private sector investment could be raised, taking it to the next stage of commercialisation and operation. The Project operates today as a rising agri-start-up under the name Golden Sunland. More information can be found under https://www.goldensunland.com/