WB to fund $260m of projects
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Loans secured for telecoms, education, other infrastructure
World Bank Group will lend a total of US$261.5 million (Bt8.41 billion) to Myanmar for infrastructure projects, according to President Thein Sein.
Myanmar cleared its decades-old debt to the World Bank with the help of a bridge loan from Japan Bank for International Cooperation in January.
The government’s political and economic reforms have also paved a way for the country to re-engage with foreign creditors, and to receive new loans from the World Bank.
The bank has already lent $520 million to Myanmar this year – $440 million to repay the Japan Bank for International Cooperation, and $80 million for community development projects.
A further $261.5 million loan will be provided at zero interest by the World Bank for Myanmar’s telecommunications, electricity, education and financial projects, according to Thein Sein’s message to parliament on August 26.
About $140 million will go to the Ministry of Power for a gas-fired and waste-to-energy power plant project in Thaton township. Another $31.5 million will go to the Ministry of Communications and Information Technology for the national telecommunications development projects.
The Education Ministry will be given $60 million for school development projects, scholarships and management training for senior officers. The Ministry of Finance is to receive $30 million to reform public-finance management systems.
The 40-year loan will need to be partially repaid starting in 10 years. No interest is charged, but a service fee of 0.75 per cent on the loan needs to be paid each year, Thein Sein said.
Myanmar’s parliament has also approved the loan from the World Bank in accordance with the Union Budget Law.
Since launching political reforms in 2011, Myanmar has secured funding for its development plans from several sources. In a recent report, the government announced it will implement several projects with help from loans from the Export-Import Bank of India.
In the 2013-2014 fiscal year, Myanmar will be provided foreign development aid from Austria, China, India, Japan, South Korea, Germany, Britain, Denmark, New Zealand and France.
Along with the World Bank, Asia Development Bank, UN organisations and international NGOs will also provide assistance.
