Upgrade of Yangon airport approved

THURSDAY, MAY 22, 2014
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Capacity to be almost doubled in 18 months to receive 6 million visitors

The government has given the greenlight to upgrade Yangon International Airport, to boost its annual capacity from 2.7 million passengers to 6 million.
The work will start soon for completion in 18 months, according to the Department for Civil Aviation.
The government's economic committee chaired by President Thein Sein recently approved the upgrade of Yangon International Airport. The economic committee is chaired by President Thein Sein and comprises ministers of 15 ministries.
"We have received the economic committee’s approval for the upgrade. As we have finalised details of the upgrade with a pre-selected contractor, the upgrade will soon begin," said Tin Naing Tun, Director General of the Department for Civil Aviation.
According to the upgrade plan, the local arrival/departure building of the airport will be demolished and a new building will be erected for completion in the next 18 months. Meanwhile, the airport's honourary hall will be used for the domestic terminal during the construction period. The international arrival/departure building of the airport will remain unchanged. 
The Pioneer Aerodrome Services, a subsidiary of Myanmar's conglomerate Asia World, was selected for the upgrade of the airport. 
Yangon International Airport is one of the three international airports in Myanmar and is regarded as the major gateway to the country. As the country opens its door to the world, the airport has seen a dramatic increase in international arrivals. The airport accommodated over 3 million of passengers in 2012, from 1.6 million in 2009.
In 2011, the old terminal was used exclusively for domestic flights while the new terminal – in operation since May 2007 – handles international flights. In the year, the international terminal handled 1.4 million passengers, while the domestic terminal handled nearly one million passengers.
Congestion is expected in line with Myanmar’s booming tourism. The country, which welcomed 2 million visitor arrivals last year, expects the number to exceed 3 million this year. 
To help ease the congestion at this airport, Myanmar is also planning to build a new international airport in Hantharwady which is expected to start operations in 2017. The Hantharwady International Airport in Bago is 80km from Yangon.
 
Two vie for Hanthawady airport 
South Korea-based Incheon Airport Consortium and Singapore-based Yongnam-CAPE-JGC Consor-tium are the only two companies vying to win the Hanthawady contract. 
From four shortlisted bidders for the construction of Hanthawady International Airport, they are the only two that submitted their financial proposals when the deadline came on April 22, according to the Department for Civil Aviation.
South Korea-based Incheon Airport Consortium and Singapore-based Yongnam-CAPE-JGC Consortium outlined their financing plans for the project. The other two shortlisted bidders - TAI SAE Corporation and VINCI Airport - failed to revise their plans.
The four previously proposed to finance the construction. Later, in light of the Japanese Official Development Assistance Loan being made available, the government invited them to revise their financial proposals.
“Two companies, namely Incheon Airport and Yongnam submitted renewed financial proposals. TAI SAE Corporation and VINCI Airport just re-submitted their previous plans. Now, we are reviewing their financial proposals,” said Tin NaingTun, Director General of the Department for Civil Aviation.
Currently, Myanmar has three international airports, located in Yangon, Mandalay and Nay Pyi Taw respectively. Among them, Yangon International Airport is regarded as the gateway to the nation. However, the increasing number of flights connecting Yangon with many other cities worldwide has led to congestion at the airport.
Hanthawady is designed to ease the congestion at the main airport, which now operates with only one runway. To be built in Bago Region, it is located about 80km away from Yangon.
Pioneer Aerodrome Services, a subsidiary of Asia World Company, is operating Yangon and Nay Pyi Taw international airports. 
Most international airlines fly to Yangon International Airport.