Russia to implement projects to build oil refinery, port, coal TPP in Myanmar - Russian minister

NAYPYIDAW. Feb 24 (Interfax) - Russian Economic Development Minister and Myanmar Investments and Foreign Economic Relations Minister Kan Zaw have signed a memorandum on investment cooperation in the Dawei Special Economic Zone.

The document was signed on the sidelines of the fifth intergovernmental Russian-Myanmar commission for commercial and economic cooperation during the Russian delegation's official visit to the capital of Myanmar, Naypyidaw.

"The text of the memorandum contains the basic parameters of several major infrastructure and energy projects implemented in Myanmar in cooperation with Russian companies," Reshetnikov said on Sunday.

"They are the projects to build a port, a coal-burning thermal power plant, and an oil refinery," he said.

Reshetnikov told reporters that the most difficult project from the financial point of view, regarding which no final decisions have been made, is the construction of an oil refinery.

"The feasibility study regarding the cargo port is already underway, there are potential investors both ours and from the other side. Everyone understands that the port is in demand. The work on the thermal power plan is currently ongoing, an agreement on the feasibility study is being drafted. It is also a promising matter, they have their own coal, and we could always import ours. We will still discuss the plant's capacity, the construction of power transmission lines and other things. In other words, it is a more complicated project, but can also be realized in principle. The oil refinery is the most difficult element so far," he said.

"As for the oil refinery, the Myanmar side wishes to have its own oil refinery. Our companies are still studying the economy of such project, it is very difficult in terms of economic viability specifically. We're making requests, requesting additional consultations to understand the size of the market, what its defense is like, what export capacities are like," he said.

The Dawei Special Economic Zone in Myanmar is a project on an area of 196 square kilometers in the Andaman Sea. High-tech industrial areas, transport hubs, IT and export processing zones are planned to be opened there in the future.