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July 7, 2020

NEWS
CONSTRUCTION

Yangon govt signs agreement with Berjaya Land for housing project

The Yangon Region government has signed a concession agreement with Malaysia-owned BDS Smart City Co Ltd to formalise a public housing and mixed-development project in Yangon, according to a stock exchange filing by Berjaya Land Bhd, the parent of BDS Smart City.

The project will be developed across 183 acres of land at the corner of Shweli Street and Mya Nanda Street in Dagon Seikkan township, Yangon. The agreement grants BDS Smart City Co exclusive rights over the land for 50 years, with the tenure  extendable for two consecutive terms of 10 years each.

In return, BDS Smart City will pay US$ 185.8 million to the Yangon Region Government, of which around US$182 million will be in the form of public housing units with an estimated net floor area of about 242,800 square metres.

The rest of the project will feature high-end residential, shop lots, a school, hospital and community centre, all of which will be developed in three phases at a gross development cost estimated at US$ 614.9 million. This will be funded by bank borrowings and funds generated by Berjaya Land.

The estimated gross development value of the project is US$746.1 million and is expected to be developed over a period of 9 years, according to Berjaya Land.

BDS Smart City first won the tender for the project in September 2019. The project has yet to receive approval from the Myanmar Investment Commission, Yangon City Development Committee and Ministry of Construction.

Source: Myanmar Times

 

Singapore investors explore opportunities in Myanmar construction

Image result for Myanmar constructions are invested by singaporeOver the years, the Myanmar government has stepped up its efforts to bring in foreign direct investment (FDI) to the country. Being more pro-business and open to FDI, potential opportunities for foreign companies willing to invest in Myanmar are vast, particularly in the construction industry as one of the main pillars of the economy.

Singapore is Myanmar’s largest foreign investor with a cumulative investment of US$22.1 billion.Transport infrastructure opportunities include trunk road network modernisation, expansion of interconnectivity through roadways and elevated highways, improving access to tier two and three cities via bridges and commuter rails, and alternative transport options such as water-taxi or structured bus system.A total of 16 industrial zones and the Thilawa Special Economic Zone in Yangon are listed as presenting potential opportunities for investors looking to manufacture in Myanmar and access the significant customer base in Yangon.

The bulk of the 113 investments in the Thilawa SEZ are focused on manufacturing – there are 89 entities accounting for a 79pc share – followed by logistics both in terms of volume as well as value of investments.The SEZ allows both 100 percent foreign investments and joint-Myanmar-foreign ventures to establish operations in Thilawa. Japan leads as an investor in terms of the number of enterprises permitted to establish their presence in the Thilawa SEZ with 39 entities as of August 2019.

Source: Myanmar Times

Hong Kong firm to invest $500 mln in power generation, supply in Yangon, Kyaukpyu

Image result for kyaukphyu special economic zoneA Hong Kong-based company will invest US$500 million to execute electricity generation, supply, and sale projects in Yangon and Kyaukpyu cities, said U Thant Sin Lwin, Director-General of the Directorate of Investment and Company Administration (DICA). Hong Kong-listed CNTIC Vpower Company will invest $363.070 million in the generation of electricity from LNG, and supply and sale of electricity on IPP (BOO) basis at the Thakayta power plant in Yangon Region.

Additionally, the company will invest $140.47 million in the generation of 150 MW of electricity from LNG, and supply and sale of electricity on IPP (BOO) basis in Kyaukpyu Township in Rakhine State. The company has not set the period for starting operations, but it plans to begin as soon as possible. At an MIC meeting, the company committed to providing power supply at the soonest.

Hong Kong topped in the list of investors in the first two months of the current financial year, pumping in over $1 billion in real estate development, electricity, and garment businesses, according to data from the DICA. The total foreign direct investment stood at $1.39 billion as of 29 November in the current financial year.

Source: Global New Light of Myanmar 

Four hydropower projects to continue implementation in 2019-2020 FY

Image result for hydropower projects MyanmarThe four hydropower projects—671-megawatt (MW) Shweli (3) hydropower project, 280-megawatt (MW) Upper Yehwa hydropower project, 111-megawatt (MW) Thahtay hydropower project and 51-megawatt (MW) Upper Kyaingtaung hydropower project—will continue implementations during 2019-2020 fiscal years, said a source from the Ministry of Electricity and Energy. The whole project will be finished in 2020-2021 FY.

The implementing projects during 2019-2020 FY include 622.38 miles of 66-KV power lines, 22 66-KV sub-power plants, 132-KV, 230-KV, 500-KV, 1488.15 miles of power lines, 25 sub-power plants, 23-megawatt Myanaung natural gas-fired power plant, 152-megawatt Ale Paunglaung hydropower project, 671-megawatt (MW) Shweli (3) hydropower project, 280-megawatt (MW) Upper Yehwa yydropower project, 111-megawatt (MW) Thahtay hydropower project and 51-megawatt (MW) Upper Kyaingtaung hydropower project, said Dr. Tun Naing, Deputy Minister of the Ministry of Electricity and Energy.

Upper Yeywa hydropower project is situated on the dam built on Dokhtawaddy (Myitnge) 280-megawatt (MW) power plant is built and it generates 1,409 million kilowatt hours annually. It is aimed at distributing power to all parts of the country through Myanmar national grid. It is a type of roller compacted concrete (RCC). It can store 277,000 acre feet of water. A 38.73 percentage of the construction of the dam has been so far finished.

Source: Eleven Myanmar 

Yacht jetty, Eco Smart City planned in Yangon Region

Image result for Yacht jetty, Eco Smart City planned in Yangon RegionApproval has been granted for the construction of a yacht jetty on Bago River and a Smart City, with 6,000 apartments, at Shu Khinn Thar in Thakayta Township of Yangon Region. The projects were introduced at a ceremony held at the jetty hall on October 1.

Construction of the yacht jetty will begin very soon. Emerald Bay will be the first Eco Smart City with a sailboat jetty in Yangon Region. A Yacht Club will be established to develop the best living community by celebrating the river festival.

As part of the project, eleven 32-storied buildings will be constructed on 27 acres of land within five-and-a-half years. The first phase of the project will begin in March, 2021. The project will have over 6,000 apartments, with parking capacity for 7,200 cars. The urban planning project is being implemented by the Yangon Golden Paragon Investment Company for six months now. Currently, the project is 25 per cent complete.

Source: Global New Light of Myanmar 

Yangon to Upgrade Night Market Under PPP Scheme

The Yangon Regional Government is going to upgrade the night market located on Strand Road. It will undertake the project in collaboration with A25 Myanmar Development under a private/public partnership (PPP) scheme.

The K2 billion upgrade plan is going to be implemented in two zones. It will include 90 restaurants with an eight-foot-square footprint each, other shops, and two car parks. The Yangon Regional Government opened the night market on Strand Road in 2016, with the YCDC providing a water, electricity, and drainage system. The government charged shop-owners K 200-500 per night. Shop owners also agreed with the plan to upgrade the night market.

The night market was intended to provide fresh food to visitors, both local and foreign, and it is now in need of an upgrade because the shops are wanting in cleanliness and hygiene.

Source: Myanmar Business Today 

New online building permit system in Yangon goes on live

Image result for construction siteIFC, a member of the World Bank Group, has been supporting the Building Control Authority of the Yangon City Development Committee (YCDC) in efforts to reform the construction permit system and improve the ease of doing business in the city.

The Yangon Building Permit System, an automated, paper-free system, went online on July 1 and will be piloted until the end of the year. The system is estimated to reduce the processing time for 90 percent of the 4000 construction permits submitted yearly from an average of 95 days to 49 days. The new online building permit system, available in English and, Myanmar languages, was custom-built for YCDC. ‘Dealing with construction permits’ is one of the 10 indicators used to determine the Ease of Doing Business index, on which Myanmar now ranks 171 out of 190 countries.

“Compared to other sectors, Myanmar’s construction sector has the highest earning potential. An efficient, transparent, and affordable permit system will enable a conducive business environment in Myanmar,” said Vikram Kumar, IFC Country Manager for Myanmar.

Source: Myanmar Times 

Korea Land and Housing Corp. to Build an Industrial Complex in Myanmar

Image result for The Korea-Myanmar Industrial Complex (KMIC)Korea Land and Housing Corp. (LH) signed a memorandum of understanding (MOU) with the Urban and Housing Development Department (UHDD) of Myanmar’s Ministry of Construction (MOC) and Global Sae-A Co on August 7, 2019, establishing a joint venture to build an industrial complex in Nay Pyi Taw, the capital of Myanmar.

The Korea-Myanmar Industrial Complex (KMIC) is the first industrial complex project promoted by LH in the ASEAN region. It will be built on an area of 2,249,000 square meters in Nyaung Hnit Pin, about 10 kilometers north of Yangon city. The project period will be divided into two stages from 2019 to 2024, and the total construction cost is 130 billion won (US$107.45 million).

LH and the Myanmar government will hold a 40 percent stake in the joint venture each and Global Sae-A will own the remaining 20 percent. The joint venture will place an order for the industrial complex design by the end of this year and start construction and attract investments next year.

Source: Business Korea 

Master Plan for New Yangon City Completed

Image result for new yangon cityNew Yangon Development Company Ltd (NYDC) said that the master plan for New Yangon City, which is planned to accommodate 1.2 million people, was recently completed by AECOM. Master plan was drafted in a way to identify the most efficient land use which included infrastructure, economic development, environmental planning, transportation planning, social and cultural planning after conducting a thorough analysis.

NYDC selected one of the three proposed alternate plans prepared by AECOM under the scientific approach of Sustainable Systems Integration Model, which measure the KPIs in four major categories: Connected Neighborhood, Workforce Environment, Sustainable Urban Structure, and Green Infrastructure. Moreover, the proposed transitional zone between the existing villages and the new city development will provide a livable city and satisfy the sustainable development goals.

The role of the master planner for New Yangon City is to create a safe, smart, and livable city for up to 1.2 million habitants, as well as achieve a land-use mix that would lead to the creation of 900,000 jobs by 2050 as per New Yangon City’s Socio-Economic Study, conducted by McKinsey.

Source: Myanmar Business Today 

China-Backed Venture Proposes $800M Development Near Kyaukphyu Seaport

Related imageA Chinese petrochemical giant and a Myanmar firm have jointly proposed to the Rakhine State government the development of nearly US$800 million (1.21 trillion kyats) worth of projects near the Kyaukphyu Special Economic Zone (SEZ)’s deep seaport and Ramree Island.

The centerpiece of the proposal is a new logistics terminal on Maday Island situated 10 kilometers east of Kyaukphyu to support the deep seaport project. It also includes a project in Za Yet Pyin Village on Ramree Island called the Sea View Beach, 40 kilometers south of Kyaukphyu District, as well as a US$5 million fishery in the Than Zit River.

Myanmar Bright Prospect International Logistics (MBPIL) held a meeting with Rakhine State Chief Minister U Nyi Pu, which was also attended by several state cabinet members, in Sittwe on June 28. During the meeting, U Ding Ying laid out MBPIL’s plans, including an estimated budget for each project, to the cabinet members, the minister said. MBPIL is joint venture (JV) company established by Chinese firm Yunnan Baoshan Hengyi Industry Group and Myanmar firm Delco. MBPIL officially registered as a foreign company with the Directorate of Investment and Company Administration (DICA) in April 2019.

Source: The Irrawaddy 

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Thae Oo Myintzu
MMRD Insight—Editor
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