China’s state-owned financial services firm CITIC and the Myanmar Rice Federation are partnering to conduct a feasibility study for a plan to establish 33 agricultural business centres in ten states in Myanmar.
The project is estimated to cost $400 million and aims to provide a one-stop service for farmers in the country, said Dr Soe Tun, vice chairman of Myanmar Rice Federation.
The agricultural business centres will enable farmers to buy equipment, use warehouse facilities and avail financial services.
“We are looking to get a development loan from the Chinese government for the project,” Tun told DEALSTREETASIA.
Working with the Chinese state-owned firm will help the financing for the development of agricultural sector as Myanmar looks to revitalise the agriculture sector which accounts for 38 per cent of the national GDP and 23 per cent of exports.
Corporations like Myanmar Agribusiness Public Corporation, which is planning to get listed on the Yangon Stock Exchange, is also planning to set up agricultural industrial parks in the Delta Region to provide better agricultural infrastructure.
CITIC is also leading the Chinese consortium that will develop the Kyauk Phyu Special Economic Zone around 2019.