By Panu Wongcha-um

BANGKOK (Reuters) - A plan to build a nuclear power plant will continue in Myanmar, a war-torn Southeast Asian country partly devastated by a massive earthquake in March, the Russian state-owned firm leading the project told Reuters.

Myanmar's junta chief Min Aung Hlaing and Russian President Vladimir Putin last month signed an agreement for a small-scale nuclear facility, three weeks before the 7.7 magnitude quake flattened communities and left more than 3,700 people dead - the country's deadliest natural disaster in decades.

The agreement involves cooperation to build a Small Modular Reactor (SMR) in Myanmar with an initial 110 MW capacity, consisting of two 55 MW reactors manufactured by Russia's state nuclear corporation Rosatom.

"The recent earthquake has not affected Rosatom's plans in Myanmar," the company's press office said in an email.

"Rosatom adheres to the highest international safety and reliability standards, including strict seismic resistance requirements."

The company's intention to go ahead with the nuclear plan despite the quake, which crippled critical infrastructure, has not been previously reported.

Rosatom declined to provide any construction timeline or details of the location of the proposed nuclear facility that will be powered by RITM-200N reactors, which were made by the company for use initially on icebreaker ships.

A Myanmar junta spokesman did not respond to calls from Reuters seeking comment.

The push for nuclear power in Myanmar comes amid an expanding civil war triggered by a 2021 military coup that removed the elected government of Nobel laureate Aung San Suu Kyi.

Facing a collection of established ethnic armies and new armed groups set up in the wake of the coup, the ruling junta has lost ground across large parts of the country and increasing leaned on its few foreign allies, including Russia.

The conflict, which stretches from the border with China to the coast along the Bay of Bengal, has displaced more than 3.5 million people and left Myanmar's mainly agrarian economy is tatters.

Myanmar is currently evaluating options for financing the Russia-backed nuclear power project. "This may involve both own and borrowed funds," Rosatom said. In places such as Bangladesh and Egypt, Russia has funded conventional nuclear power projects through low interest loans.

Authorities in neighbouring Thailand, which is closely monitoring Myanmar's nuclear developments, assess that a plant could be built in Naypyitaw, a fortified purpose-built capital that was heavily damaged by the earthquake, according to a security source briefed on the matter.

Two other potential sites include a location in the central Bago region and the Dawei special economic zone in southern Myanmar, where the junta and Russia have announced plans to build a port and an oil refinery, according to the Thai assessment.

Myanmar lies on the boundary between two tectonic plates and is one of the world's most seismically active countries.

MONEY AND MANPOWER

Southeast Asia's first nuclear facility - the 621 MW Bataan Nuclear Power Plant in the Philippines - was finished in 1984 with a price tag of $2.3 billion but mothballed in the wake of the Chornobyl disaster in the then Soviet Union two years later.

The Philippines and other regional countries have since mounted repeated efforts to explore nuclear energy but made limited progress.

Vietnam is, however, renewing a bet on nuclear power after it suspended its programme in 2016.

Russia and Myanmar have been collaborating in the sector for years, with Burmese students studying nuclear energy and related subjects in Russian universities under government quotas since 2019, according to Rosatom.

In comparison to a large conventional nuclear power reactor, components of SMRs can be assembled and transported as a single unit to the installation location, according the International Atomic Energy Agency.

"I do not foresee any complication, technology-wise," said Doonyapong Wongsawaeng, a lecturer at the Department of Nuclear Engineering at Bangkok's Chulalongkorn University.

"I feel that the main challenge would instead be the continuous commitment from the Myanmar government."

With the Myanmar junta prioritising exports of natural gas, which could be used to fuel cheaper domestic power generation, to earn foreign exchange, the nuclear plan makes no economic sense for a cash-strapped administration, said Richard Horsey, senior Myanmar adviser at International Crisis Group.

"Nuclear power is very expensive, and Myanmar simply can't afford it," he said.

(Reporting by Panu Wongcha-um; Editing by Devjyot Ghoshal and Kate Mayberry)