Just a quick note to let you know that the Union Ministry of Electricity and Energy (MOEE) in Myanmar will commence amending all Power Purchase Agreements (PPA) in force.
The purpose of the amendment is to give effect to the restructuring of the Ministry’s state owned enterprise, the Myanma Electric Power Enterprise or “MEPE”. The MEPE is followed up by the Electric Power Generation Enterprise or “EPGE”.
Most PPAs state that any assignment of the PPA by MEPE to another Government entity could trigger a termination, except when certain conditions are fulfilled. It is not yet clear whether EPGE is just a new name for MEPE or if a new state owned enterprise will be created. But in either case, the MOEE prefers to proceed with the amendments.
We advise clients to proceed as fast as possible with the amendment, particularly given the uncertainty surrounding the legal aspects of the change.
Hope this was useful information.
Edwin Vanderbruggen I Senior Partner
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