MMRDRS
MMRD BULLETIN

If you’d like to receive our news roundup direct to your mailbox, let us know at [email protected]

December 11, 2018
Issue 11 is available now!

NEWS
CONSTRUCTION

Exploratory oil well starts work in Myanaung

Image result for Exploratory oil well

Drilling of an exploratory well – Shwesitaw Well No 1 in IOR 7 Block in Myanaung, Hinthada District, Ayeyarwady, has started on November. Based on 3D seismic survey data, oil and gas prospects were found in the block which Shwesitaw Well No 1 will explore. The target depth of the well is 2450 metres.

Within the block, Myanma Oil and Gas Enterprise (MOGE) discovered the Shwepyitha oil field in 1967 and a total of 70 wells have been drilled. About 4 million barrels of oil and 92 billion cubic feet of gas have been so far produced from Shwepyitha oil field. The ceremony to begin drilling of Shwesitaw Well No 1 was attended by U Win Khaing, Minister for Electricity and Energy, dignitaries from the Ayeyarwady regional government and partner firms.

Source: The Mirror

First high-rise steel office tower to be complete in 2020

Image result for First high-rise steel office tower to be complete in 2020

Local property developer Mottama Holdings held a topping out ceremony for its project, M Tower, which is the first high-rise steel-structured office building in Myanmar.

More than 8000 tonnes of steel is being used to construct the 26-storey, 111-metre tall building, which will be fully complete by 2020, said U Yang Ho, chair of Mottama Holdings.

The 5A-grade office tower, which is being constructed using Japanese and Taiwanese technology, is located on Pyay Road in Yangon. The structure will be produced by Min Dhama Steel Structure Co Ltd (MDSS), which is a subsidiary of Mottama Holdings.

Indeed, Motamma Holdings actually has eight other major projects in the pipeline. Including M Tower, the properties are valued at a total of US$1 billion and expected to be all completed by 2022, according to the company’s announcement. The projects include residential apartments, office towers, shopping malls and public-recreation centres.

Source: Myanmar Times

TTCL meets with government officials to set up 388 MW LNG plant

Related imageTTCL Public Company Limited, a joint venture between Japan and Thailand, is in talks with the Union Government to establish a Liquified Natural Gas plant capable of generating 388 megawatts.

As part of this project, a combined-cycle power plant will be constructed on 8.16 acres of the compound of Ahlone power plant. An LNG terminal will be constructed on 15 acres near Yangon River in southern Dala Township, said U Htet Aung Mon, general manager of TTCL Public Company Limited. A gas pipeline connecting to the LNG plant and 230 KV new transmission line projects will also be carried out.

The LNG gas pipeline network is planned to start from LNG terminal, pass through Twantay canal, and Seikkyi Kanaungto port and then cross the Yangon River to Ahlon plant. The pipeline will be 24.4 km long.

Source: Daily Eleven

Sembcorp’s Myingyan power plant begins full operations

Image result for sembcorp myingyan power company

Sembcorp Industries’ US$300 million gas-fired power plant in Myingyan, Mandalay commenced full commercial operations following its first phase of operations in May.

 The 225-megawatt Sembcorp Myingyan Independent Power Plant (IPP) is one of the largest power plants of its kind in the country and also among the most efficient. The plant is expected to generate around 1,500 gigawatt hours of power which will be supplied to state-owned Electric Power Generation Enterprise (EPGE).
The project’s completion follows the signing of a long-term power purchase agreement as well as a build-operate-transfer agreement with the Ministry of Electricity and Energy. Sembcorp will operate the plant for 22 years, after which the facility will be transferred to the government.
Source: Myanmar Times
MPIE, NSKRE Residence (Myanmar) ink agreement to build 12-storey structure in Tamway

Image result for tamwe 12 storey housingMyanmar Pharmaceutical Industrial Enterprise-MPIE of the Ministry of Industry and NSKRE Residence (Myanmar) Co.,Ltd signed an agreement to build a high-rise structure on the land owned by MPIE in Tamway.
The building will be constructed with the build-operate-transfer (BOT) system and it is set to include 230 apartments, fitness center, mini-mart, restaurant, business offices and car parking.
The land lease agreement was signed by U Ko Ko Aung, Managing Director of MPIE and Mr. Hirosato Fukimbara, Managing Director of NSKRE Residence (Myanmar) Co.,Ltd, in the presence of Union Minister for Industry U Khin Maung Cho.
The signing ceremony came after the two parties received permit from Myanmar Investment Commission which gave a permit of 50-year land lease. NSKRE Residence (Myanmar) Co.,Ltd is a consortium of two Myanmar companies namely Mann Myanmar Family Ltd and Asia Business Solution Co.,Ltd and Japanese company Nippon Steel Kowa Real Estate.

Source: Global New Light of Myanmar

Army confiscates land plots including Mya Yeik Nyo Hotel from Zay Kabar Co.

Army confiscated land plots included in Yangon New World property project in Yangon region from Zay Kabar Company as the company failed to follow the agreements stated in the Memorandum of Agreement (MoA) signed between Quartermaster-General Office and the company, according to Secretary of Office of Garrison Town Development Committee (Yangon).

The Quartermaster-General Office and Zay Kabar Company signed the MoA on January, 2014 to develop the property project. The company agreed to pay US$41.382 million as land leasing fee in five installments within a two-years term but they only paid two times. The rest of the leasing fee is still overdue. The company also announced to cooperation with China based Human Land Overseas Real Estate Development Co. Ltd. without seeking approval from the authorities. Furthermore, the company demolished two ancient heritage buildings and two historical buildings without approval before the MoA was signed.

Although the company has to pay US$24.829 million before January 16 2016, they had failed to comply. The authorities have been sending notices of overdue payment to the company but had repeatedly failed to pay up. Sources also claimed that even now as the contract is voided, the company is continuing to use Mya Yeik Nyo Hotel and its hall for business purposes.

Authorities found out from the state-owned Mirror newspaper that Zay Kabar Company entered into cooperation with China State Construction Engineering Corporation to develop Yangon New World property project using US$500 million. The Garrison Town Development Committee made an objection to the company that the international cooperation was not in line with the agreements in the MoA signed with the Quartermaster-General Office in 2014 as well as the demolishing four buildings including two ancient heritage buildings without approval. The company announced the joint-venture with Chinese company in state owned newspapers without seeking any approval from respective authorities.

The company demolished four buildings out of 12 buildings located on 6.879 acres of land owned by the army. They are House C, House D, House E wings of the old Mayor’s Residence as well as a showroom building. YCDC informed commander No. 954 Works Company (Engineer) on August 1 that House D (Mya Yeik Nyo Hotel) and House C (Mya Yeik Nyo Royal Hotel) were recognized by the YCDC as ancient heritage buildings announced in June 1996.

Source: Daily Eleven

Government and JICA sign agreement worth 6,033 million yen to implement Mandalay port project

The Directorate of Water Resources and Improvement of River Systems and Japan International Cooperation Agency signed an agreement worth 6,033 million yen in grant aid for a Mandalay port construction project. The agreement signing ceremony was attended by Director General Tun Lwin Oo and officials from the directorate and JICA officials.

The Mandalay port construction project will be implemented this month under the programme. Plans are also underway to pay land compensations. The port project area will cover area from Shwe Hlan Bo Monastery between Amarapura and Mahaaungmyay townships to the bank of the Ayeyawady River.

The project will include construction of a 300 foot-long three-land approach road, a 180-metre-long jetty, a container yard, warehouses and port offices and installation of machinery and equipment for handling of goods. The Mandalay port project is aimed at shipping goods from Yangon to Mandalay and then to upper Myanmar.

Source: Daily Eleven

 

Zaykabar, Chinese Company to jointly develop Yangon New World project

Yangon New World Project, which would be the biggest project in Yangon, will be implemented with USD 500 million investment after getting permission from Myanmar Investment Commission (MIC), according to Zaykabar Company.

The project is on 14 acres of land in Bahan Township, Yangon where the old Mya Yeik Nyo Hotel was situated, and it will become the biggest project in Yangon that includes a 5 Star hotel, apartments, offices and shopping centers.

Yangon New World project is jointly developed by China State Construction Engineering Corporation and Zaykabar Company, and 40 percent of the investment is from Zaykabar while 60 percent is from the Chinese company.

Source: The Mirror

US power firm Eaton expands into Myanmar

US-listed power management company Eaton Corporation announced its expansion into the Myanmar market through a partnership with Myanmar Golden Rock International Co (MGR), which provides technology solutions in the country.

Together with MGR, Eaton will bring its expertise in power management technologies to the data center, healthcare, utilities and commercial building sectors with the aim of improving the reliability of existing and newly-developed power generation, transmission and distribution infrastructure in the country.

Kidsada Santisak, Eaton country manager for Indochina West, said Myanmar displays growth potential in the power and energy market, with only a third of the country’s population currently enjoying access to a stable supply of electricity. Demand for power and energy solutions will only grow as the country races towards electrifying 100 percent of Myanmar households, the primary goal set out in the Myanmar National Electrification Plan, he said.

Eaton is listed on the New York Stock Exchange and headquartered in Ireland. The company registered sales of US$20.4 billion in 2017 and employs some 96,000 globally.

Source: Myanmar Times

Yangon-Dala river crossing bridge to begin construction in December

Yangon-Dala river crossing bridge marking friendship between the Republic of Korea and the Republic of the Union of Myanmar will begin its construction in December, said an official from the Ministry of Construction.

The main bridge structure of Yangon-Dala has been approved at the final stage. The new design of the bridge is being drafted by Korean Consultancy Company, including 49 meters of water clearance height and 370 meters of width, and plans are underway to start constructing Korea-Myanmar Friendship Bridge in December, said Deputy Director-General U Kyaw Kaung Cho.

The Ministry of Construction, the Ministry of Transport and Communications and the Ministry of Planning and Finance worked together and finalized the negotiation of the main bridge design. The project is expected to cost US$168.173 million. Out of this amount, US$137.833 million will be funded through a loan from Korean’s Economic Development Cooperation Fund (EDCF) and the Ministry of Construction will incur the remaining amount of US$30.341 million.

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