Power Surge at MOEE (VDB Loi Insights)

30
Jun
2019

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INSIGHTS THIS MONTH
JUNE 2019
 
Highlight of This Month / In This Issue / Recent VDB Loi Work / New Myanmar Laws and Regualtions / Upcoming Events / Recent Publications
HIGHLIGHT OF THIS MONTH
Power Surge at MOEE
From our Energy and Infrastructure Team
Quite an eventful week for the power sector in Myanmar with the announcement of new electricity tariff for customers, the issuance of tender documents for five rental projects as well as the appointment of a new managing director of the Electric Power Generation Enterprise (“EPGE”).

IN THIS ISSUE
high court    
INGOs and NGOs Providing Microfinance Services Are Required to Transform Into Corporate Entities in Myanmar
[From our Energy and Infrastructure Team]
On 4 June 2019, the Financial Regulatory Department (“FRD”) issued a letter (“Letter”) directing International Non-Governmental Organizations (“INGOs”) and Non-Governmental Organizations (“NGOs”) which provide microfinance services to register as companies and apply for fresh Microfinance Business License (“MFI License”).
high court    
MBSC’s directive on interest rates on micro-credits and savings
[From our Banking and Finance Team] – Myanmar
On 5 June 2019, the Microfinance Business Supervisory Committee issued Directive 1/2019 (the “Directive”) which revises the interest rates applicable to micro-credits and savings of the members.
OUR UPCOMING EVENTS
CLMV (Cambodia, Laos, Myanmar and Vietnam) Projects and Finance Update
August, Singapore

1. Deal roundup

  • Cambodia
    • The Government’s new tender for a 100MW PV (solar) plant
    • Stake in an existing coal-fired plant for sale
    • Financing acquisition of microfinance institutions
    • Financing of PV (solar) and other construction projects
  • Laos
    • Transmission line financing update
    • Hydropower projects update
    • What is the status of the Lao-China expressway?
    • Financing agriculture projects
  • Myanmar
    • LNG to Power and hydropower projects progress update
    • Now allowed: acquiring a 35% stake in Myanmar banks and insurance
    • Update on Yangon Elevated Ringroad project and other PPPs
    • Retail and wholesale liberalized
    • Port terminal M&A and financing opportunities
  • Vietnam
    • The Hanoi-Ho Chi Minh City hi-speed railway project
    • Cai Mep Terminal project and opportunities in the port sector
    • Industrial infrastructures in Vietnam (steel and warehouses)
    • Retail sector updates

2. Due diligence case studies

  • Acquiring a stake in a Myanmar bank: what to expect in the due diligence?
  • Thilawa Special Economic Zone: advantages for investors and their lenders – model for the region
  • Case study: Financing of a medical facility in Laos
  • Financing the acquisition of a stake in a producing power asset in Cambodia
  • Lessons learned from the Xe-Pian Xe-Namnoy dam collapse in Laos
  • Case study: what went wrong with this (cancelled) expressway project in Vietnam?

3. Deal structuring

  • Financing the acquisition of a large MFI in Cambodia: case study in deal structure
  • How to best structure an LNG to power project in Myanmar? FSRU, LNG supply, surprising tax rules
  • Case study: Tax efficient structure for an infrastructure project financing in Vietnam
  • How to structure a transmission line financing in Laos?

4. Local approvals and government guarantees

  • How is the new regulation on PPP and Government guarantees in Myanmar affecting current projects?
  • How workable are Vietnam’s new Government guarantee rules?
  • Case study: Approval package for financing an expressway in Laos
  • Cambodia’s tax rules on approving foreign loans

5. Security package and debt enforcement

  • Security package for a solar plant in Cambodia: registration and enforcement issues
  • Real lessons learned from the first High Court and Supreme Court cases in Myanmar on foreign arbitration
  • Case study on enforcing security in Laos as a foreign lender
  • Litigation and debt enforcement experiences in Vietnam all foreign lenders should be aware of

RECENT VDB LOI WORK
Project financing: VDB Loi is acting for a Chinese multinational banking company on its multimillion dollar financing for a leading Myanmar conglomerate involved in infrastructure and development activities. The team is conducting due diligence and assisting with documentation and completion of the deal.

Engaged by numerous foreign investors for our regulatory and corporate compliance expertise: VDB Loi is advising a large Vietnamese conglomerate on labor and corporate compliance matters. We are also assisting a number of repeat clients with company incorporation matters.

NEW MYANMAR LAWS
AND REGULATIONS THIS MONTH
  • Law amending Bar Council Act (Law No: 21/ 2019)
    (10/June/2019)
    Newly enacted for the formation of a new Bar council members
     
  • Tax Administration Law (Law No: 20/ 2019)
    (7/June/2019)
    Newly drafted for the developments of tax administration
     
  • Law amending the investment law (Law No: 19/ 2019)
    (6/June/2019)
    Mainly changed on the definition of Ministry
     

VDB LOI NEWS
   
VDB Loi Hosted the “CLMV (Cambodia, Laos, Myanmar and Vietnam) Projects and Finance Update” Event in Tokyo

VDB Loi successfully hosted the “CLMV (Cambodia, Laos, Myanmar and Vietnam) Projects and Finance Update” event in Tokyo, Japan today.

We thank our partners, Japan Institute for Overseas Investment (JOI) and Japan Bank for International Cooperation (JBIC) for cooperating with us on this event.

 

VDB Loi Champion, Phoe Bushido Thaw Wins Again in Shanghai

After training in the United States with the partial sponsorship of VDB Loi, Phoe Bushido Thaw faced an Indonesian opponent at the One Legendary Quest event in Shanghai on June 15. He won with a TKO in the first round. Click on the following link to watch the fight.

   

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