Thursday 14 February 2013

Japanese loans for improving Myanmar’s infrastructures

Japan will soon provide loans to Myanmar to prepare preliminary tasks for the basic infrastructures in line with suggestions coming from top Japanese companies’ discussion about the needs for strengthening of infrastructures.   

The suggestions came from the gathering of the Myanmar-Japan Business Forum attended by more than 100 Japanese companies and Keidanren, the largest business group based in Tokyo, focusing on requirements for foreign investment to be made in Myanmar.


Keidanren-led Japanese businessmen pointed out that Myanmar needs electric power development of reasonable price and stable. It is required to improve the country’s infrastructures such as main roads, ports, transport networks, communications and information links, and to explore natural gas.

An official from Keidanren said that the country needs nurturing skilled workers and experts for industrial development; effective Japanese aids will be provided for human resources development, in fact.

One of the investing countries in Thilawa Special Economic Zone project, Japan has pledged to grant loans to build infrastructures outside the project such as power plants, ports, roads and bridges with interest rate of 0.01 percent for 40 years with Government to Government (G to G) system, in case of Myanmar’s inadequate finance for the construction.

Keidanren group also said that Japan has invested in garment and consumer products industries at a cost of  US$43.6 million. According to the statistics of the foreign investment in Myanmar, Japan invested US$259.860 million until the end of December 2012, standing at the 11th position.   

The largest automobile companies in Japan - Itochu Enex Co;Ltd and Auto Server Co; Ltd which is online vehicle trading, are still holding discussions to invest in vehicle trading in Myanmar.

Moreover, Japanese top companies such as Toyota, Nissan, and Honda are also under preparation to build automobile assembly factories in Myanmar.

After approving the Foreign Investment Law and by-laws in Myanmar, Japan companies are more than 100 in total to discuss investment matters with Myanmar for the first time.
 
source: Eleven Myanmar

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