Contractor cancels costly Nay Pyi Taw airport contract
The government has accepted to take back the management of Nay Pyi Taw International Airport from Asia World Company, the current contractor, which cited financial losses for the contract termination.
The airport handover contract will be made next week.
Since 2013, Pioneer Aerodrome Services Co Ltd, under Asia World, has looked to terminate the contract because so few airlines use the airport. A deputy director from the Department for Civil Aviation in November 2013 said the issue was still under discussion.
The decision to scrap the contract was reached on December 28.
Despite the airport handover, Pioneer Aerodrome will make a new contract to continue to provide services at the airport.
The first phase of the airport project was implemented in the capital after the government and the Export Import Bank of China signed a loan agreement.
The airport building, not including the runway, was built at a cost of US$235 million and it started to operate in 2011. Pioneer Aerodrome then took over the responsibility for ground services.
After the airport handover, the state will pay off the debt owed by the company.
Pioneer Aerodrome also provides services at Yangon International Airport.
Some critics say that the next government should launch an investigation into the construction Nay Pyi Taw airport.
