ISDN Holdings signs MOU with Industrial Decisions to build coal-fired plant in Myanmar

Main Board listed ISDN Holdings has inked a framework agreement with Japan-based Industrial Decisions Inc (IDI) to build a coal-fired power plant in Myanmar.

When fully completed, the plant will have a total electricity generating capacity of 540 megawatts.

The latest memorandum of understanding (MOU) between IDI and ISDN follows an earlier one signed in June to collaborate and explore opportunities to develop and invest in energy projects and expand international power production business in Asia.

The earlier MOU outlined collaboration in areas such as funding, financial structuring and management as well as feasibility studies and technical support.

The coal-fired power plant has been identified by both companies as the first project for joint development and investment.

Situated 1.5 km from the Chindwin River Bank and 18 km north of Kalewa in North West, Myanmar, the Kalewa coal power facility is located near the mouth of a coal mine.

Under the MOU, IDI shall participate with an equity interest of up to 49 per cent in ISDN Myanmar Power, a Singapore-registered wholly owned subsidiary of ISDN.

ISDN Myanmar Power had earlier entered into a joint venture agreement with Myanmar-based Tun Thwin Mining Co for the formation of a joint venture company in Myanmar to engage in the business of investing, developing, constructing, operating and managing the Kalewa power plant.

Under this agreement, ISDN Myanmar Power will own 85 per cent of the joint venture power company, while the remainder will be owned by Tun Thwin.