Thursday, 17 July 2014

Investment attraction to Hpa-an industrial zone drops

Foreign business owners are reportedly losing interest in investing in the Hpa-an Industrial Zone due to electricity shortages.

It is the 19th industrial zone in Myanmar and covers nearly 1,000 acres of land. Moreover, it is divided into four parts and 59 land plots have been earmarked for foreign investors at industrial zone-1.

“The industrial zone project has started since September, 2011. During the construction period, Japan, Thailand, China as well as South Korea have sent investment proposals to the authorities. But, the project can’t be operated because the government can’t provide full electricity sources. Electricity supply plays a vital role in project implementation. If electricity can’t be used sufficiently, projects will not be successfully carried out,” commented some entrepreneurs.

“Although 66/11 KV main power cable has already been installed in Hpa-an industrial zone, the factories can’t enjoy full electricity. That’s why the factories are now running by using their own generators. Under current circumstances, we can’t expect foreign investments,” a local entrepreneur who has invested in Hpa-an industrial zone told Eleven Media.

Although the government has allocated 59 land plots in industrial zone-1 for foreign investment, some armed groups have bought the land plots from zone-1.

During last month, some Korean entrepreneurs visited the industrial zone, but they were not satisfied with the zone geographical conditions.

source: Eleven Myanmar

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