The Myanmar electric power authorities have signed a memorandum of agreement with two foreign companies -- the Toyo-Thai Corporation Public Co., Ltd of Thailand and Toyo-Thai Power Corporation Pte Ltd of Singapore, to implement 120-megawatt (mw) gas-fired and waste heat power station in Yangon 's Ahlone township, according to official media Sunday.

The project would play a part in fulfilling power demand in next summer, the authorities said, adding that power supply is to follow the non-environmental degradation policies.

Last month, Myanmar launched a 500-mw gas-fired combined cycle power plant project in Yangon's Thakayta township in cooperation with five South Korean companies including Busan Korea Biotechnology Co, Korea Western Power Co, Hyundai Engineering and Construction Co, Hana Daetoo Securities Co and Hexa International Co.

Myanmar produced up to 9.71 billion kilowatt-hours of electricity in 2011-12 but the demand is still not met.

Due to the high demand, the government is striving to produce electricity from natural gas, diesel, coal fire, solar power, wind power, biogas and waste fuel in addition to hydropower.