The project will involve conversion of the Thilawa Thermal Power Plant into a combined cycle power plant. The 50-megawatt (MW) Thilawa Thermal Power Plant, which was built using Japanese official development assistance (ODA) loan, is located within the Thilawa Special Economic Zone.

The 75-MW combined cycle power plant aims to enhance power generation capacity and stabilize power supply considering that maximum power demand is expected to exceed output by 2025 due to intense activity and business expansion in the Thilawa area. It will be connected to the national grid and will supply electricity not only within the Thilawa Special Economic Zone but also to all regions and states through the national electricity grid.

The project is aligned with the Government’s strategy involving provision of affordable and reliable energy to populations and industries via an appropriate energy generation mix. It will also help achieve the United Nations Sustainable Development Goal 7: Affordable and Clean Energy. It is likewise consistent with the Government’s National Electrification Plan’s goal of electrifying more than 7 million households and achieving access to electricity for 36 million people by 2030. The lack of affordable and reliable power is a key constraint to the delivery of vital services such as health, education and finance; and for private sector development and job creation.

This project will be implemented using Japan International Cooperation Agency (JICA) ODA Fund which is signed the Loan Agreement between Ministry of Planning, Finance and Industry and JICA dated on 31st March 2020.