IFC to handle PPP deal for toll road in Yangon 

According to the agreement, the MoC has appointed IFC as the exclusive lead adviser for the 20.5 km four-lane, north-south elevated expressway toll road project in Myanmar’s largest population and commercial centre.
 As part of the transaction, IFC will undertake due diligence and structure an internationally competitive tender to select a qualified private sector developer with established experience in the construction, management, operation and maintenance of similar facilities.
The expressway project is expected to foster economic development by improving connectivity in Yangon for goods and services between the Yangon Port and Thilawa Special Economic Zone in the South, and the Yangon International Airport, Yangon Industrial Park and the Yangon to Mandalay expressway in the North. It will also reduce costs that are triggered by lower productivity and higher vehicle operating costs due to heavy traffic congestion along the city’s south-north routes.
 It is estimated that the country needs investments worth $48 billion in transportation infrastructure until 2030. The expressway project will facilitate about $350-$400 million of private investments in Yangon’s road infrastructure, helping reduce the capital investment burden on the government. The tender award to the winning bidder is expected to be granted by early 2019 and the road will be constructed over two to three years.
“With IFC’s PPP transaction advice, the project will be structured in line with international best practices to create a competition-enabling market for qualified investors to come in,” said Vikram Kumar, IFC Country Manager for Myanmar. “As the first greenfield road PPP project adopting best international practices in Myanmar, it will set a precedent for developing transport PPP transactions to attract private sector investments. In addition, while improving connectivity and mobility for people and businesses across sectors, it will enhance the country’s competitiveness and productivity.”
Earlier, in 2014, IFC stepped up to promote private investment in Myanmar’s electricity sector in response to severe shortage of electricity in the country. It supported the development of the largest thermal power plant in Myanmar — the 225 MW Combined Cycle Gas Turbine Myingyan Power Plant in the Mandalay region. As the sole adviser, IFC helped structure the PPP framework of the Myingyan gas-fired power plant project in line with international best practices. With the Singapore-based experienced developer SembCorp Utilities Pte Ltd, selected from the country’s first international competitive tender for the power sector, the Myingyan power plant is set to come into operation later this year. 
This successful PPP model is now being replicated for the nation’s transport sector with IFC’s continued advice.