Japan has promised Myanmar US$5M for the restoration of six generators and related substation equipment at the Baluchaung No 2 hydro power plant in Kayah state, more than 320km northeast of Yangon, according to a Japanese Embassy statement.

The Embassy said the aid agreement was signed by Tsumori and Myanmar’s National Planning and Economic Development Minister Soe Tha. The Baluchaung plant was built in the 1950s with Japanese war reparation grants totalling US$200M. It is operational but is not functioning at full capacity.

Rehabilitating the Baluchaung plant is expected to cost about US$24M. It was not clear if Japan was planning to give more money to cover the bill. Myanmar rations electricity, and blackouts lasting up to three days are common in Yangon.