South Korean government’s Korea Land and Housing Cooperation, Myanmar’s Alliance Star Group of Companies and Shwe Taung Company will be engaged in three mega city development projects, requiring an investment of $2.29 billion, in Myanmar.
The ministry of construction has announced plans to develop three projects in Yangon and a new city in Pyin Oo Lwi in Mandalay region. For the development project in Mandalay, the Ministry of Construction is still in the process of choosing a developer. These projects are yet to be approved by the Myanmar Investment Commission.
One of the three projects in Yangon is an industrial project named Korea Myanmar Industrial Complex in Hlegu township, to be jointly developed by the Ministry of Construction (40 per cent) and Korea Land and Housing Cooperation (60 per cent).
Located on a 555-acre land, the project will require an estimated $110 million for development and will house small, medium and large industries.
The construction of the project is expected to finish by 2023.
The second project, Eco Green City in Hlegu township on the Yangon-Mandalay highway road, is a 1,453-acre development in a joint venture between the Ministry of Construction and Alliance Star Group.
The new city aims to supply low cost housing in Yangon. The project will later include residential housings, hospitals, agro park and hotel zones in the second phase.
The project is estimated to cost about $2 billion and is being planned over the next five years.
The third development, dubbed Ayarwun-Yadanr Smart District Project, is at Dagon Seikkan township in Yangon region. This will be undertaken as a joint venture between the Ministry of Construction and Shwe Taung Company.
The project is estimated to cost K250 billion ($185.7 million) for housing development.
In Mandalay Region, the Ministry of Construction has targeted to create a new city named New Mandalay Resort City on a 9,893 acre land. Six companies have been chosen as part of a preliminary selection process.
“The current NLD-led government will focus more on investments in the infrastructure development in Myanmar for the next three years,” said Kyaw Win, former union minister for the Ministry of Planning and Finance.
The new development projects are in addition to the four new cities, Dala New City, East Dagon New City, Thilawa SEZ New City and Southwest new Yangon City in Kyee Myin Daing.
Southwest new Yangon City will be developed by New Yangon Development Co Ltd, under a public private partnership scheme. Estimated to cost $1.5 billion, the Yangon region government has contributed 10 billion kyats (US$7.5 million) as capital. The project is now open for private sector participation.