IFC pushes for PPP projects to spruce up Myanmar infrastructure

Photo: Juliet Shwe Gaung. Sule Pagoda in Yangon.

International Finance Corporation (IFC) – the private lending arm of the World Bank – is advising the implementation of Yangon’s first elevated expressway under a public-private partnerships scheme.

The Ministry of Construction and IFC signed an advisory services agreement on January 11 to implement the 20.5-km-long four-lane elevated expressway spanning north and south of Yangon.

The expressway will require an estimated private investment of $350 to $400 million.

The tender winner will be chosen by early 2019 followed by the construction, which is expected to take up to three years. A qualified private sector developer experienced in handling efficient construction, management, operation and maintenance will be chosen through a tender.

The emergence of the new expressway is expected to improve connectivity in Yangon and to pose further benefits across the flow of goods and services connecting the Yangon Region.

“Large-scale investment in infrastructure, especially in key transport areas, is critical for Myanmar’s sustainable economic growth as it improves the country’s access to markets and social services,” said Kyi Zaw Myint, Deputy Director General Planning, Ministry of Construction.

The project will improve connectivity between the Yangon Port and Thilawa Special Economic Zone in the South, and the Yangon International Airport, Yangon Industrial Park and to Mandalay expressway in the North.

Myanmar needs investments up to $48 billion in transportation infrastructure until 2030 and IFC has been encouraging the government to pursue PPP projects.

“With IFC’s PPP transaction advice, the project will be structured in line with international best practices to create a competition-enabling market for qualified investors to come in,” said Vikram Kumar, IFC country manager for Myanmar.

“As the first greenfield road PPP project adopting best international practices in Myanmar, it will set a precedent for developing transport PPP transactions to attract private sector investments. In addition, while improving connectivity and mobility for people and businesses across sectors, it will enhance the country’s competitiveness and productivity.”

The recent PPP project that IFC had advised is the 225 MW combined cycle gas turbine power plant in Myingyan, estimated at $300 million and to be developed by Sembcorp Utilities Pte Ltd and MMID Utilities Pte Ltd. The project was implemented as an example for the government to follow-suit the template, hoping to see more PPPs in Myanmar.

The Myingyan power plant is set to come into operation later this year.

Also Read:

IFC considers extending loan of up to $30m for Myanmar’s Thilawa terminal

IFC seeks to invest more in Myanmar agri businesses

Exclusive: IFC to extend $21m debt to half a dozen MFIs in Myanmar

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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