The project will involve upgrading and expansion of substations and distribution lines to improve reliability of the power supply system, reduce power distribution losses, and enhance energy efficiency. Upon completion, the additional capacity of the substations will be 180 megavolt ampere (MVA).

The project is to be implemented with loan financing from the Neighbouring Countries Economic Development Cooperation Agency (NEDA) and budget contribution from Yangon Electricity Supply Corporation (YESC).

The project will be implemented in four townships and one town (North Okkalapa Township, East Dagon Township, North Dagon Township, ShwePaukKan Town and Mayangone Township) located in the eastern and western districts with residential areas, urban development areas, and industrial zones.

Yangon is the largest city as well as the economic center in Myanmar with a population of about 7.3 million. It has 45 townships and 15 industrial zones. The eastern and northern parts of Yangon Region have seven and eight industrial zones, respectively. The Thilawa Special Economic Zone is located in the southern district.

At present, Yangon’s electrification ratio is about 86%. The electric power demand in Yangon has rapidly increased in recent years due to economic growth. The maximum electric power demand in Yangon was recorded at 1,590 megawatts (MW) in 2019. Taking into account the forecasted economic growth in 2022, the maximum electric power demand is expected to be about 2,524 MW in Yangon Region. Hence, it is essential to upgrade and extend the existing Yangon electricity distribution network to meet demand for stable and reliable electric power supply.

The project supports prioritization of rapid development of fundamental economic infrastructure such as energy generation, which is the fourth policy enumerated in the Government’s 12-Point Economic Policy.