IFC finances Myanmar port's expansion project
SINGAPORE - The International Finance Corp (IFC) provides US$40 million to Myanmar Industrial Port, as part of its help to improve the country's under-developed transportation sector.
MIP is one of two major container ports in Myanmar and a key trade gateway that handles more than 300,000 twenty-foot equivalent units (TEUs) annually or 40 per cent of the country’s container traffic, IFC said in a statement.
The $40 million is the first phase of a $200 million financing package which is expected to include $160 million in long-term senior loans to be provided by IFC and other foreign lenders. The financing package will help the company increase capacity and efficiency at its container terminal in central Yangon, the commercial capital of Myanmar, IFC said.
The expansion plan as well as efficiency improvements will increase the terminal’s annual handling capacity to 500,000 TEUs or more.
“Thanks to IFC’s investment, we will be able to further modernise our port operations and respond to the increasing demands of international shipping lines and local traders,” said Captain Ko Ko Htoo, MIP’s Chairman. “We are also keen on IFC’s advice on bringing our environmental, social and governance practices in line with international standards.”
The World Bank's financing arm noted that the investment is its first in the transportation sector in Myanmar and is part of a broader strategy to help Myanmar do business more efficiently and more competitively thereby unlocking the country’s potential for increased international trade and supporting job creation and economic development.
Myanmar’s container volumes are estimated to have increased by 90 per cent over the last 3 years due to rapid growth in imports and exports following the government’s implementation of political and economic reforms.
“IFC’s financing for MIP comes at a critical time in Myanmar’s development when transport infrastructure is urgently needed to realize the country’s growth potential,” said Hyun-Chan Cho, IFC’s Head of Infrastructure and Natural Resources for Asia. “The MIP loans will also help to catalyse investment by other private developers and financiers in Myanmar’s infrastructure sector for which long-term US dollar funding has not been readily available.”
