The International Finance Corporation (IFC), the private lending arm of the World Bank Group, has proposed to invest $3.85 million for the phase one of the Semeikhon river port project in Mandalay Region, according to the disclosure on September 22.
The port and harbor operations project, located at the east bank if Ayeyarwady river, will be funded by IFC InfraVentures, a $150 million Global Infrastructure Project Development Fund, set up to address constraints to private investments in infrastructure projects.
The port project is a co-development with Mandalay Myotha Industrial Development Public Co Ltd (MMID), a Mandalay-based developer of mixed-used industrial zones including logistic development, residential development and road and transportation.
The funding through IFC InfraVentures offers early stage risk capital and experienced project development support while the funding is convertible to equity.
The project saw a joint venture signatory between MMID and IFC last month and is the first inland water port that aims to support Mandalay’s economic growth and facilitate trade in the region.
The announcement stated that the Semeikhon river port project will house one floating berth, and barges and 50 tonne cranes to handle 200,000 tonne general cargo, containers and roll on-roll off cargo.
The 380-acre Semeikhon river port project is located at the east bank of Ayeyarwady River, about 17 Km from the 10,337 acre Myotha Industrial Park (MIP) in Mandalay region, also developed by MMID in partnership with the Mandalay Region Government. MMID is chaired by Aung Win Khaing who also leads Royal Hi-Tech Group.
Myanmar is in need of more private public partnership investments for its infrastructure needs. Developing countries are said to need around $2 trillion a year for infrastructure investments until 2020 to meet current growth rates and future demands.
Other similar projects that IFC InfraVentures co-developed include 100MW Kipeto Wind power project in Kenya and 216 MW Upper Trishuli-1 hydropower in Nepal.