Republic of the Union of Myanmar／NEXI Provides Overseas Investment Insurance and Reinsurance to Support Natural Gas-fired Power Project
- First Reinsurance Approved Under Reinsurance Agreement Signed With THAI EXIM -

Nippon Export and Investment Insurance (NEXI; Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Investment Insurance for the equity participation by the Chugoku Electric Power Company Incorporated (Chugoku Electric Power) and Shikoku Electric Power Company Incorporated (Shikoku Electric Power) into the operation of the Republic of the Union of Myanmar’s Ahlone natural gas-fired power plant, and to underwrite reinsurance ceded from the Export-Import Bank of Thailand (THAI EXIM) concerning the project.

Through wholly owned subsidiaries, the Chugoku Electric Power and Shikoku Electric Power will acquire part of the shares held by a subsidiary of TTCL Public Company Limited, a leading engineering company in Kingdom of Thailand, and will participate in commercially managing Ahlone natural gas-fired power generation business that is currently operational in Yangon, the largest commercial city in Myanmar, by utilizing their operational and maintenance technology founded on their long years of experience.

In Myanmar, further increase in power generation capacity has become imperative with growing power demand, backed by its ongoing economic growth. It is meaningful to realize effective and stable business operations of the gas-fired power plant by the two companies, taking advantage of their technology and expertise because that would contribute to resolve the tight power supply in the country.

Based on the reinsurance agreement concluded with THAI EXIM in 2019¹, we will support the project in both of Japan and Thailand through a form of Overseas Investment Insurance underwriting and the operation of reinsurance ceded from THAI EXIM Political Risk Insurance for a part of the investment amount issued by the two electric companies.

Furthermore, the project is also expected to contribute to the overseas expansion of Japanese utility industries, which is enforced by the Government of Japan. For the both electric power companies, this is the first participation in the power generation business in Myanmar, and first time to make use of NEXI Overseas Investment Insurance.

As a governmental financial institution of Japan, NEXI will actively support for Japanese companies expanding business operations overseas.

Contact: Overseas Investment Insurance Underwriting Group,
Underwriting Department
Tel: +81-(0)3-3512-7668

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¹ Reinsurance Agreement with EXIM：
(https://www.nexi.go.jp/en/topics/newsrelease/2019062401.html)