Sunday 13 January 2013

Japan to loan Myanmar for infrastructures around Thilawa SEZ

Japan will provide loan if Myanmar wants to establish necessary infrastructures outside Thilawa Special Economic Zone (SEZ), Set Aung, Deputy Minister for National Planning and Economic Development said.
Acting as the chairman of the Management Committee of the Thilawa SEZ, he discussed the issue at the workshop between the two countries at the headquarters of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industries on January 9.


Myanmar, being responsible as the developer of Thilawa SEZ, has to finance the construction of infrastructures such as power station, roads and bridges outside Thilawa SEZ. However, in case Myanmar lacks enough finance, Japan will provide 40-year loans at the interest rate of 0.01 per cent.

Myanmar has the option to seek local or outside investors for developing the area, meanwhile it can turn to the Japanese loans as a last resort.

Deputy Minister Set Aung said, “Japan will not loan to the individual developer of the area. It is a government-to-government loan.”

Last week, Japanese Finance Minister Taro Aso visited Myanmar. During his stay, he paid a trip to the Thilawa SEZ project area.

Japanese and Myanmar officials also discussed on the upcoming Industrial Zone Law and the Special Economic Zone Law under review.

The Master Plan for Thilawa SEZ, which has been on the process of drawing up, is expected to complete towards the end of January.

A total of 380 businessmen participated in the workshop, and most of them highlighted the need to control high rising land prices around Thilawa.

Myanmar and Japan signed a Memorandum of Understanding on December 21 to cooperate on Thilawa SEZ where companies will set up factories of various sizes.

Meanwhile, Japan is urging Myanmar to form a public company to make the project off the ground getting necessary finance from private entities. Japan also insisted the government to take a portion of shares to prove its commitment in the project.
 
source: Eleven Myanmar

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