YANGON – The World Bank is lending Myanmar $140 million to upgrade an aging power plant in southeastern Mon state in a small step toward overcoming the country’s chronic power shortages.

Myanmar, which exports natural gas to neighboring Thailand under contracts signed by its former military government, has suffered an energy deficit for years.

The World Bank said Wednesday the interest-free loan will fund a refurbishment of the Thaton gas-fired power plant, increasing its generating capacity by 250 percent without an increase in its gas consumption.

It is the first World Bank loan to Myanmar since it forgave $440 million of unpaid debt in January.

A lack of funds, rising demand for energy, aging hydroelectric plants and poor grid infrastructure have resulted in frequent power cuts and rationing of electricity.