International Finance Corporation (IFC), the private lending arm of the World Bank Group, is extending a long-term financing facility of $15 million for the development of a greenfield bulk terminal at Thilawa, it announced on March 27.
The total cost to develop the port is estimated to be $65 million.
This comes three months after IFC proposed to invest $30 million in the port project to be developed and operated by the International Bulk Terminal (Thilawa) Company Limited.
“IFC’s long-term debt financing is a necessity for infrastructure projects,” said Ko Ko Gyi, managing director of Lluvia. After completion, the greenfield bulk terminal will be the first of its kind in Myanmar.
The Thilawa terminal is a 75:25 joint venture between Myanmar’s Lluvia, an agri-processing company and Japan’s Kamigumi, an integrated logistics firm respectively. Lluvia itself is a joint venture between Myanmar’s Capital Diamond Star Group, which holds an 85 per cent stake, and Mitsubishi Corporation.
“As one of the first providers of specialized bulk cargo handling, this project contributes to the diversification of port services in Myanmar. It also supports the government’s ongoing plan to increase private sector participation in port, logistics and transportation services to drive economic growth,” said Vikram Kumar, IFC country manager for Myanmar.
Thilawa port zone, situated on the eastern bank of Yangon River, will have a capacity to handle 1 million metric tonne cargo. The port will house a 230-meter jetty and an onshore complex with 40,000 metric tonnes of silos and 20,000 metric tonnes of grain warehouse.
The port will help reduce transport and logistics costs, supplement trade and increase the competitiveness of the country’s supply chains. With the lack effective bulk facilities, traders containerise commodities, which involves high handling costs.