Rolls-Royce to supply power plant in Myanmar

Monday, 7 July 2014

Rolls-Royce signed a long-term service agreement with RGK+Z&A for spare parts supply, supervision and maintenance for the Hlagwa Power Plant (Phase II) project today. The agreement was signed at the Foreign & Commonwealth Office in London by Lars Eikeland, President and CEO of Bergen Engines, and Mr Zeya Thura Mon, Group CEO of RGK+Z&A Group & Managing Director of Zeya & Associates; and witnessed by Hugo Swire, Minister of State at the Foreign & Commonwealth Office, and His Excellency Mr U Khin Maung Soe, Minister of Electric Power (MOEP), The Republic of the Union of Myanmar.

Earlier this year, Bergen Engines, part of Rolls-Royce Power Systems (RRPS), signed a contract with RGK+Z&A Group of Myanmar for delivery of engines and associated systems for Phase II of the country's first medium speed gas engine-based power plant, the Hlagwa Power Plant.

The Hlawga Power Plant, located in Yangon near the Hlawga CCPP and Main Substation of MEPE, is a gas engine-based Independent Power Plant (IPP) owned by RGK+Z&A Group. It will deliver power to the Yangon grid and the contract stipulates a capacity of 25 MW. A Power Purchase Agreement (PPA) and other related agreements for the power plant have already been concluded by RGK+Z&A Group with MOEP.

RGK+Z&A Group is an engineering company based in Myanmar which focuses on the thermal power generation, green energy, transmission and distribution industries. The Hlawga Power Plant (Phase I) was built last year using high speed engines and was the first plant to conclude a PPA with MOEP.

"We are excited to be a partner in further developing the electrification of Myanmar," said Lars Eikeland, at the ceremony. "Z&A is a very competent partner and we are confident that this will be a successful project. We are also very pleased that this project could be financed by loan facilities from GIEK, the Norwegian Exoprt Credit Agency."

"We are committed to provide uninterrupted electricity to Myanmar by Power Generation with minimum resources. We believe that with the state of art solutions from Rolls-Royce Power Systems, we could achieve more output to deliver the Power needs", said Zeya Thura Mon.

The energy infrastructure in Myanmar is still developing. The country's electrification rate is 26% and demand is expected to grow rapidly. Annual growth of 15% is projected. Gas is available in centres of electricity demand and can be the source of more environmentally friendly power through the use of high efficiency gas engines.

The new power plant will be the first medium speed gas engine based power plant in the country. The contract scope includes the supply of three B35:40V20 gas engines plus complete system engineering.

About Rolls-Royce Holdings plc

  1. Rolls-Royce's vision is to create better power for a changing world via two main business segments, Aerospace and Marine & Industrial Power Systems (MIPS). These business segments address markets with two strong technology platforms, gas turbines and reciprocating engines, for use on land, at sea and in the air.
  2. Aerospace comprises Civil Aerospace and Defence Aerospace. MIPS comprises Marine, Energy & Nuclear and Power Systems (RRPS). On 7 March 2014, Daimler announced their intention to exercise their option to sell their 50% share in RRPS to Rolls-Royce Holdings plc. On 16 April 2014, the valuation was agreed and the transaction is expected to complete within the coming months, subject to the usual regulatory approvals. On 6 May 2014 Rolls-Royce announced it had signed an agreement to sell its Energy gas turbine and compressor business to Siemens for a £785m cash consideration. On completion, expected before the end of December 2014, Rolls-Royce will receive a further £200 million for a 25 year licensing agreement.
  3. Rolls-Royce has customers in more than 120 countries, comprising more than 380 airlines and leasing customers, 160 armed forces, 4,000 marine customers, including 70 navies, and 1,600 energy and nuclear customers.
  4. Our business is focused on the 4Cs:
    • Customer - placing the customer at the heart of our business
    • Concentration - deciding where to grow and where not to
    • Cost - continually looking to increase efficiency
    • Cash - improving financial performance.
  5. Annual underlying revenue was £15.5 billion in 2013, around half of which came from the provision of aftermarket services. The firm and announced order book stood at £71.6 billion at 31 December 2013.
  6. In 2013, Rolls-Royce invested £1.1 billion on research and development. We also support a global network of 31 University Technology Centres, which position Rolls-Royce engineers with the forefront of scientific research.
  7. Rolls-Royce employs over 55,000 people in 45 countries. Over 17,000 of these are engineers.
  8. The Group has a strong commitment to apprentice and graduate recruitment and to further developing employee skills. In 2013 we employed 379 graduates and 288 apprentices through our worldwide training programmes.

About Bergen Engines, a Rolls-Royce Power Systems company

Bergen Engines produces gas and diesel engines for land and marine power systems. Since its foundation in 1946, Bergen Engines has produced 6,500 medium speed engines of which 4 000 are still in operation. Bergen Engines has its headquarters, technology development and manufacturing facilities in Norway and has delivered engines for land power applications for nearly 20 years. These can range up to 9.4MW unit size. Bergen Engines has power installations across the world. In Bangladesh, for instance, facilities powered by Bergen Engines deliver approximately 14% of the country’s electrical supply.

About RGK+Z&A Group

The vision of RGK+Z&A Group is to develop a portfolio of generating assets with a capacity of 500 MW supported by a strong EPC and Operations & Maintenance team. The target for the group in power generation is to develop around 100 MW of generation capacity based on natural gas by end of 2015. Beyond this stage, the company would explore generation projects - gas fired as well as renewable sources including Municipal Waste to Energy, wind and solar.

Over the long term, the company plans to be publicly listed in the upcoming Myanmar Stock Exchange and raise capital for larger projects.

For further information, please contact:

Erin Atan
Head of Communications, Asia & Pacific
Rolls-Royce plc
Tel: +65 6501 7600
Mob: +65 9068 8639
Email: erin.atan@rolls-royce.com

Stephanie Watters
External Communications Manager
Rolls-Royce plc
T: +44 (0)20 7227 9140
M: +44 (0)78 2460 7328
E: stephanie.watters@rolls-royce.com

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