MMRDRS
MMRD BULLETIN
June 18, 2019

NEWS
CONSTRUCTION

New Yangon port to be constructed as trade volumes rise

Adani Yangon International Terminal is developing a container terminal in Ahlone township, which is by the Yangon River, in anticipation of higher trade volumes in the coming years.

The company, which is registered in Myanmar and incorporated in Singapore, received approval from the Myanmar Investment Commission on April 26 to develop, operate and maintain the Ahlone International Port Terminal (2) (AIPT) under a 50-year Build, Operate and Transfer agreement with the government, according to the Directorate of Investment and Company Administration (DICA).

AIPT (2) will be developed across 50 acres of land owned by Myanmar Economic Corporation, which is currently operating AIPT (1), according to DICA. The company will enjoy income tax incentives for the first three years of operations, said Daw Mya Sandar, director of DICA.

Construction of the US$290 million port, which will be built from scratch, is expected to begin in September. Phase 1 of development will involve enough capacity to handle between 100,000 and 150,000 twenty-foot equivalent units (TEU), or twenty-foot containers, when it is completed within the targeted 12 months.

Phase 2, which will take an additional six months to construct, is expected to take the port’s total capacity to a maximum of 800,000 TEUs.

The Yangon River has a draft of nine metres, allowing for vessels of 167 metre in length and 15,000 tonnes in weight. This includes containers ships of between 1100 TEUs and 1500 TEUs. When complete, the new terminal will be able to handle container ships of this size, said Sunil Seth, CEO of Adani Myanmar.

“Our focus will be on bringing modern technologies that will raise productivity and shorten the turnaround time of vessels that call at our port. We will set new benchmarks to throughput time and serve all the major shipping lines that service Yangon,” he said.

Higher volumes

AIPT (2) will be part of Yangon Port cluster on Strand Road in downtown Yangon, which includes Asia World Port Terminal and Myanmar Industrial Port. A separate deep-river multi-purpose container port, Myanmar International Terminals Thilawa, is located south of Yangon, adjacent to the Thilawa Special Economic Zone. These ports handle about 90pc of the country’s exports and imports.

“Total container throughput in Myanmar is currently 1.2 million TEUs but we are looking at GDP growth of around 6.5 percent, which will take the market to 2 million TEUs within the next four to five years. Hence, we feel there is room for more players in this industry,” said Mr Seth.

This is in line with Myanmar’s strategy to increase exports over the next five years. During the last fiscal year, total trade volumes for the country amounted to just over US$33 billion, with exports valued at around US$14.8 billion, according to the Ministry of Commerce.

In comparison, Cambodia, with a population amounting to just a third of Myanmar’s, exported around US$15 billion in 2017, according to official data.

“In that light, we are bullish over the growth potential for Myanmar exports. We believe agricultural products, fisheries, garments and light machinery exports will grow substantially and that overall throughput will rise,” Mr Seth said.

Traffic at Yangon’s ports has already been rising. In the last fiscal year, a total of 2,267 vessels called at the Yangon Port, which is up by almost 13pc over the past four years, according to data from the Myanmar Port Authority (MPA). Meanwhile, Yangon’s container ports handled just over a million TEUs, which is a rise of 40pc over the same period.

Keen on Myanmar

The project is one of the largest Indian investments in Myanmar infrastructure to date and represents Adani Group’s commitment to channelling more investments to the country, Mr Seth said. “The Adani Group is keen on expanding in Myanmar as we believe we have a role to play in infrastructure development here,” he said.

It is also aligned with Adani Group chair Gautam Adani’s goal of “good and sustainable growth across the company,” said Mr Seth.

The Adani Group is a US$10 billion, privately-owned Indian company focused on power generation, logistics and ports. The company has built ten ports in India.

Source: Myanmar Times

Govt to hold tender for construction of Muse airport this year

Plans are being drawn out for the construction of an airport in Muse, which is a major hub for trade at the Myanmar-China border. A tender will be held this year, according to the Department of Civil Aviation (DCA).

The new Muse airport will be constructed under a Public-Private Partnership. The size and capacity of the airport have yet to be confirmed and will depend on the size of land available, the DCA said.

Six private companies have already been selected to participate in the tender after an invitation to submit Expressions of Interest (EOI) was called in 2017.

“The Yangon- Muse route has always been a popular one. If a domestic airport is constructed in Muse, it will make traveling much more convenient for traders who have business dealings with the Chinese. It will also improve the tourism industries of Myanmar and China.

Currently, travelers from Yangon must first fly to Lashio, which is a five-hour drive away from Muse. As such, direct flights from Yangon to Muse are expected to facilitate business and trade between Myanmar and China.

Muse is now the largest hub for border trade between Myanmar and China. Currently, there are also arrangements between the Chinese Tourism Authority and local authorities to allow Chinese visitors to enter Myanmar via the Muse gate.

“At present China is quite interested in cross-border tours. When Muse airport is implemented, it would be likely to run Muse-Mandalay flights and tourism is expected to improve for both countries,” said U Toe Aung, a travel agent.

There are 31 domestic airports and three international airports in Myanmar but only 24 airports have the capacity to handle commercial aircraft, according to the DCA.

Major renovation to airport facilities and extension of runways were carried out for the ten domestic airports including Myitkyina, Heho, Thandwe, Loikaw and Nyaung-U airports, which have received the highest numbers of visitors over the third year of the government, according to a statement released by Ministry of Transport and Communications.

Two companies picked to build new Mandalay market

Two companies have been chosen to build a new Mingalar Market to replace the one that burnt down in March 2016 in Mandalay city, and construction work is expected to begin at the original site this year, according to the Mandalay City Development Committee. 

The MCDC’s Tender Analysing Team chose Capital Development Ltd and Mandalar Consortium Co Ltd to carry out the joint venture, and it is forming a committee to select a suitable design, said U Kyaw San Myint.

“The committee was formed with 13 members chosen from municipal, general administration, fire brigade and market affairs officials. Their first meeting was held on April 4, at which they decided to set a date and seek a suitable design to meet international standards. Work is expected to be started this year,” he said.

However, vendors at the market said at a press conference on April 5 that the new design of the market – which was shown at the meeting of MPs, head of the MCDC’s Markets Department, and Market Affairs Committee at the regional government office on February 10 – totally contradicts the promises that the regional government made to the sellers.

A fire broke out at Mingalar Market in the downtown area at the corner of 73rd and 30th streets on the evening of March 22, 2016. The blaze destroyed 297 shops, including showrooms, garment shops and shops where people also lived. The public still has not been told the cause of the fire.

Source: Myanmar Times

Property investments now more clear-cut for foreigners

https://www.mmtimes.com/sites/mmtimes.com/files/styles/mmtimes_ratio_c_normal_detail_image/public/news-images/property_7.jpg?itok=3mB4TjHj

Property developers and investors have been looking forward to stable regulations and foreign participation in the local real estate sector since the Condominium Law was enacted in 2016 and gradually enforced.

Firmer home ownership laws are expected to draw higher volumes of foreign investment, which, in turn, will benefit businesses along the supply chain, from construction to interior design.

The 2016 Condominium Law addresses land ownership as well as foreign participation in the local property market.

According to the law, foreigners now have the right to own up to 40 percent of the units in a condominium project, while each individual can buy up to 25pc of the units.

Foreigners who do not hold a National Registration Card can purchase condos in Myanmar, excluding those who have been blacklisted by the country. The purchase can only be done via official foreign currency remittance from overseas.

The law allows not only purchasing rights but also construction rights and joint venture investments as well. Units of a joint venture development can be sold only after this is reported to the Management Committee via a registration officer.

If a condo unit holder, both foreign or local, wishes to resell his property, this can be sold to another foreigner, until foreign ownership in the project hits the 40pc threshold.

Within the next 2-3 months, units registered under the Condominium Law will be in the market and can be sold to foreigners, said U Myo Myint, a member of the Yangon Regional Condominium Management Committee.

Only buildings constructed on a minimum of 0.5 acre (20000 square feet) of land exceeding six-storeys will be classified as condominium apartments.

In the recently-enacted condominium rules, it was also stipulated that all condo buyers, including foreigners, will own the land title of the condo according to the number of shares or units owned. However, property ownership of foreigners is limited to the duration of the life of the building.

As the Condominium Law lays out clearer regulations for foreign participation in the real estate sector, sales and investments are expected to improve as well as benefit the construction and other sectors in the years to come, real estate agents said.

Before this law, foreigners coming to Myanmar on long term business or for education were forced to rent apartments which were subject to high and volatile rental rates. Now they have more options to invest in a unit or rent at more stable rates.

Source: Myanmar Times

Hantharwady International Airport back on radar

Image result for hantharwady international airport

The Department of Civil Aviation (DCA) will conduct a field study on the construction of Hantharwady International Airport in Bago, according to deputy director U Zaw Min on March, during a meeting on crop compensation for farmers living within the vicinity of the project site. The US$1.5 billion project will be fully funded by Japan, which is now making its fifth attempt to revive the project, U Zaw Min said.

As such, in addition to compensating farmers, appeals to remove squatters living in the area have been sent to the regional government. The airport was to have been built around 80 kilometres north of Yangon, near Bago city, by 2022, according to a framework agreement signed in January 2016 between a consortium and the DCA. The consortium included Japan-based JGC Corp as well as Singapore’s Yongnam Holdings Ltd and Changi Airports International.

Source: Myanmar Times

Five areas designated for systematic Yangon urban development

Yangon Region Government decided to classify Yangon into five areas to ensure the emergence of a control system for the systematic development of Yangon urban area.

According to Yangon City Development Committee (YCDC), the five areas are: conservation, development control, guided densification, development promotion and redevelopment upgrade.

Hlawgar, Kandawgyi  and Inya lakes and parks are included in the conservation area.

Development control area covers six downtown townships, namely Lanmadaw, Latha, Pabedan, Kyauktada, Botahtaung and Pazundaung, and Seikkan, the area near Shwedagon Pagoda, Bahan, Dagon and Kamayut Township and other designated areas.

The guided densification area includes South Okkapala, North Okkapala, Thaketa, Dawbon, Dagon Myothit (South, East, North and Seikkan) Townships, Shwepyithar and Hlaingtharyar Townships.

The townships included in the development promotion area are: Insein, Mingalardon and Mayangon Townships. Hlaing, Yankin, Dalla, Seikgyikhanaungto, Tamwe, Mingala Taungnyunt, Thingangyun, Ahlone, Kyeemyindaing and Sanchaung Townships are included in the redevelopment and upgrade area.

Source: Daily Eleven

State Counsellor and Prime Minister of Thailand attend the opening ceremony of a new bridge

https://elevenmyanmar.com/sites/news-eleven.com/files/styles/news_detail_image/public/news-images/daily11-march20-2019-akk02.jpg?itok=m4S3yaUT

State Counsellor Aung San Suu Kyi and Prayut Chan-o-cha, Prime Minister of Thailand attended the opening ceremony of No.2 Friendship Bridge on March 19.

The new bridge will link between Greater Mekong sub-region and east and west economic corridor.

The State Counsellor and Thailand Prime Minister delivered opening speeches at the ceremony. Transport Minister from Thailand explained about the bridge.

The State Counsellor and Thailand Prime Minister opened the inscription to mark the successful building of the new bridge.

“We can see both countries gave special consideration about the bridge. It will be an example of cooperation between governments and their people. It will be a success for Myanmar and Thailand which established diplomatic relation on August 14, 1948,” said the State Counsellor.

It is connecting between Myawady and Mae Sot.

Both officials start discussed to build the bridge in 2013 and built by the Department of Highways from Thailand on August 30, 2015.

The four-lane bridge is 21 meters in length and cost Baht 4.253 billion.

Commercial transaction activities will be smooth and it is expected to be beneficial not only for both countries but also for Greater Mekong region.

Source: Daily Eleven

Over 82 billion Yen to be loaned for 3 projects

The Ministry of Planning and Finance and the Ministry of Electricity and Energy submitted a proposal to Union Parliament seeking a loan of 82.273 billion yen from the Japan International Cooperation Agency (JICA) to implement three projects including measures to reduce flooding and traffic congestion in Yangon city.

The proposal was submitted during a Union Parliament session held in Nay Pyi Taw on March 12. The projects aim to promote socio-economy in Yango and extend power supply in Yangon and Mandalay.

Maung Maung Win, Deputy Minister for Planning and Finance, said that with the Japanese loan, the Yangon sewerage development project and Yangon urban development project would also be implemented.

The Yangon City Development Committee (YCDC) will act as executing agency to implement those Yangon projects. For the sewage project, a feasibility study was conducted from November 2017 to February 2019. The project period is nine years from 2019 to 2028. For the urban development project, a feasibility study was conducted in 2016 and the project period is five years from 2019 to 2024.

The Yangon urban development project has three components—retaining walls, pumps and sluice gates—to reduce flooding. For reduction in city traffic congestions, measures will be taken such as construction of traffic islands, erecting of road and traffic signals and educative talks on traffic enforcement and safety.

A feasibility study on power supply improvement project was conducted in 2018 and the project period is from 2019 to 2026.

Of the JICA loan of 82.273 billion yen, 45.900 billion is for Yangon sewage project, 24.085 billion for Yangon urban development and 12.288 billion for urban power supply improvement.

Source: Daily Eleven

Dhalet Chaung bridge on Yangon-Sittwe road

As the Dhalet Chaung bridge on Yangon-Sittwe road construction was completed, vehicles can now pass through the bridge commencing on February 20 according to Special Bridge Construction Group-7.

Dhalet Chaung bridge is 960 feet long and situated on milepost (27/0) in Ann-Sittwe road section in Kyauk Phyu District, Rakhine State. It is steel box girder reinforced concrete and it is the very first steel box girder type in Rakhine State.

It was constructed in August 2016 and completed in February 2019. The strength of the bridge is 75 tons.

It is 30 feet wide and vehicle land is 24 feet while pedestrian lane in 3 feet.

Source: Daily Eleven

Korean company conducts survey to build a dry port in Monywa

https://elevenmyanmar.com/sites/news-eleven.com/files/styles/news_detail_image/public/news-images/daily11-feb21-2019-akk02.jpg?itok=h4LGmsp1

A Korean company is conducting a survey to build a dry port in Monywa, Sagaing Region to transport containers using railroad.

At the present, the ministry is built a dry port each in Ywarthagyi in Yangon Region and Myitnge in Mandalay Region and seven places are proposed to build dry ports, said an official from Myanma Railways (MR).

Seven places proposed to build dry ports are Yangon, Mandalay, Tamu, Muse, Mawlamyaing, Bago and Monywa.

The places where dry ports are planned to be built are intended to become cities for regions and states, to locate close to Asia Railroad and expressway, to produce goods and to place next to industrial zones.

Source: Daily Eleven

HOME PAGE

NEWS BY SECTOR

If you prefer to read previous version with PDF format, click here to go to our bulletin library .

MMRD BUSINESS INSIGHT

MMRD helping clients unlock growth opportunities and shape tomorrow’s Myanmar.
MMRD Insight—Editor