The Hong Kong based V-Power Company said in its financial report this week that it had ceased four of its five gas-fired power generation projects in Myanmar after incurring losses.

V-Power, which has been in power generation projects for many years, said that though the domestic economic situation was seemingly stable in the first half of this year in Myanmar, foreign companies were facing difficulties in doing their business as the foreign exchange reserve was dwindling in the country.

The Financial Report said that these projects ceased as the contracts expired and only one project in Myingyan with 109.7 MW-capacity was still in operation.

Among the V-Power’s projects in Myanmar, Kyaukphyu 3, Thanlyin and Thaketa projects ceased their operations in July and October last year.

Similarly, CNTIC V-Power Energy vessel which supplied LNG for LNG-to-Power projects in Yangon with installed capacity of 750 MW also left Myanmar at the end of March this year.

For the six months ended 30 June 2023, the segment revenue from IBO (Investment, Building and Operating) business was approximately HK$408.0 million, representing a decrease of approximately HK$458.3 million or approximately 52.9% as compared to the corresponding period in 2022. The decrease in revenue was mainly attributable to the decline in contribution from projects in Myanmar of approximately HK$141.4 million, the financial report said.

In the near future, the Group will focus on overcoming the operational and financial challenges brought by its previous business exposure in Myanmar, including executing an asset redeployment plan, enhancing cost control and optimising inventory management, the financial report further said.

V-Power has investments in Europe, South America and Asia of which Myanmar stood first in profit making for the group and it earned nearly US$60 million from investments in Myanmar in 2020 before the military staged a coup in 2021.

V-Power said that they were currently disassembling the power generation equipment in Myanmar for redeployment of these assets in other areas having investment and profit-making potential.

The dollar exchange rate with Myanmar currency Kyat was rising and has reached a record-high mark after economic sanctions imposed by the international community and deterioration on all fronts.

The ministers of the Military Council are inviting international investors to make investments in solar, hydro and wind power. They invited Chinese investors to come and invest in Myanmar in these renewable energy projects.