Japanese government provides ODA loans for development of Myanmar's basic infrastructures
YANGON - The Japanese government has pledged to provide
Target infrastructure projects will include the development of the Thilawa Special Economic Zone (SEZ) and a project to improve electric power distribution, according to Thilawa SEZ Management Committee.
The Japanese government handed over the ODA loans to Myanmar through the Japan International Cooperation Agency (JICA).
“Although Japan is directing the ODA loan toward the development of the Thilawa SEZ, this will include the basic infrastructure of the entire area surrounding the SEZ. Infrastructure projects will include a power plant project to be implemented by the Ministry of Electric Power and the construction of a jetty, which will be carried out by the Myanma Port Authority,” said Sett Aung, Chairman of Thilawa SEZ Management Committee.
“Basic infrastructures to be targeted by the loan also include electricity, road construction and water distribution projects. We will supply water not only to the Thilawa SEZ but also to the whole of Yangon. Generally, we expect that construction of these basic infrastructures will be finished by the end of 2015. Some construction will be completed in 2017 and 2018,” he added.
Sett Aung also said it will take Myanmar 40 years to repay the Japanese loans.
At present, the prospect of investing in Thilawa remains attractive to foreign companies. Sweden has recently invested in the SEZ, joining one company from United States as well as several companies from Taiwan, Hong Kong, Thailand, Singapore, China, Japan and Myanmar in investing in the Thilawa SEZ. Companies from Japan, Myanmar and Taiwan make up a majority of the investments in the SEZ.
Plans to develop the Thilawa SEZ were first established by an MOU between nine Myanmar companies and consortium of Japanese companies including Mitsubishi, Marubeni and Sumimoto, signed on May 25, 2013.
Development of the first 400 hectares of the SEZ broke ground on October 29, 2013. The event was commemorated by the signing of a joint venture agreement between the Myanmar Thilawa Holdings Public Limited, the Thilawa SEZ Management Committee, and Myanmar Japan Thilawa Development Limited.
According the agreement, Myanmar retains 51 per cent of the shares in the SEZ, while Japan retains 49 per cent.
