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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