Hanthawaddy Airport project delays

 

Incheon Airport Consortium from South Korea, which was initially chosen to construct the airport, was instructed by Department for Civil Aviation to start the project in December 2013 and finish in four years.

However, there were differences in the proposal when the tender was submitted during the negotiations between Incheon Airport Consortium and Department for Civil Aviation.

The South Korean company initially proposed when it submitted the tender that the new airport will be capable of handling 12 million passengers but later changed it handling capacity to 10 million. As this is an important and main factor, the Myanmar authorities refused to accept the change and decided to hold talks with the second company from Singapore which also won the bid to construct the new airport.

After that, Myanmar side decided to adjust the contract, allowing the bid winners to construct the airport with the company’s own money and ODA loan.

Since the tender regulations had been changed, the tender scrutinising board has asked the four companies to resubmit the monetary proposal.

Out of the four companies, only the companies from South Korea and Singapore resubmitted the monetary proposals but Myanmar side has still not selected which company will be given the permission to construct the new airport.