Local group, KKATH, wins rights to develop Kyisu industrial zone
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KKATH Group won the bid to develop Kyisu Industrial Zone in Yangon's Dagonseikkan Township, which may require an investment of Ks 17 billion.
The Yangon regional government announced recently that from five bidders, KKATH Group won the bid to develop the 170-acre land plot.
An official said that the developer would be responsible for infrastructure and facilities development. The construction works are expected to start in this fiscal year, added the official who asked not to be named.
“Of 170 acres, 45 acres are set aside from roads and other infrastructure and facilities. The industrial land will cover 125 acres. We estimated that the development would require an investment of Ks 17 billion,” the official said.
The industrial land will be leased on a 50-year term and after that the contract can be renewed every 10 years.
The Yangon regional government, to reap leasing fee from the land, promised to provide water, power and waste management service to the industrial zone.
Located on the East of Yangon, the industrial zone targets both local and foreign businesses, said Yangon regional government Vice President Nyan Htun.
He promised that it would be up to international standards.
It is one of several in the pipeline that aim to draw local and foreign investment to the region.
There are about 4,000 factories at 29 industrial zones in the region. The industrial sector generated an estimated 36 per cent of the region’s gross domestic product.
Poor infrastructure and utilities have been the major problems in drawing more investment. Investors have been complaining on poor waste disposal, sewage systems, and lack of electricity.
Kyisu Industrial Zone is the latest project in Yangon. According to Myanmar Industries Associations, there are 20 industrial zones in the region spawning in all directions. The biggest, covering 1,208 acres, is Dagon Seikkan industrial zone, which is located in the East of Yangon.
