It is reported by International Sugar Journal.

«The first phase of the mill construction and cogeneration plant is expected to be completed in a year and a half followed by another US$20 million investment for the second phase», — said Win Htay, managing director, Myanmar Sugar Development Public Co Ltd.

«The current domestic sugar supply is 400,000-500,000 tonnes per year and has an annual shortage of 250,000-300,000 tonne. We hope to fill the gap», — said Htay.

The factory will be sited on an 83.95-acre (34 ha) plot and a 70,000 acre (28,328 ha) sugarcane plantation within 10 miles of the factory.

The project includes building an ethanol plant with the capacity to produce up to 35,000 litres per day. The project also expects to produce between 80 and 100 tonnes of fertilizer. To cover the entire project cost, the company will need to raise around US$65 million.

The company plans to have a rights issue and look other options like bank loans. It is currently in talks with a foreign bank, said Htay, who also is the vice chairman of the Myanmar Sugar and Sugarcane Entrepreneur Association.

Challenges remain as the company is yet to come up with an answer for a deal with the government to sell up to 30 to 35 MW electricity produced out of their cogeneration plant.