Myanmar gets ADB soft loan for electricity supply network

Myanmar has got 60 million U.S. dollar new soft loan from the Asian Development Bank (ADB) for the development of its electricity supply network, official media quoted Minister of Electric Power U Khin Maung Soe as reporting Thursday.

U Khin Maung Soe told the ongoing parliament session that 4 percent of line loss or 98 million units of electricity line loss could be reduced and annual income of 6.958 billion Kyats (7.24 million dollars) based on the selling price of 71 Kyats per unit could beearned by saving such amount of loss, reported the New Light of Myanmar.

With the soft loan, new transformers will be installed, old power lines be substituted, and aerial bundled conductors and analog meter boxes be replaced as suggested by ADB consultants.

Under the loan agreement, the pay-back period is 24 years, including an 8-year grace period and the interest rate is 1 percent in the grace period, while 1.5 percent in the pay-back period, the report added.

ADB has pledged to assist in Myanmar's infrastructural development in terms of technology, finance, communication and sustainable energy.

ADB President Haruhiko Kurodamade made the offer when meeting with Myanmar President U Thein Sein in Nay Pyi Taw in February.

Myanmar was able to settle 512 million dollar debt in January this year long owed to the ADB.