ADB to support Myanmar to develop transport projects through PPPs

February 1, 2017

THE Asian Development Bank will provide strategic and transaction advisory services to support the Myanmar government’s bid to identify and develop transport projects through public-private partnerships (PPPs), according to a press release issued by the ADB.

The advisory services agreement was signed by U Win Khant, Permanent Secretary of the Ministry of Transport and Communications, and Winfried Wicklein, ADB’s Country Director for Myanmar in Nay Pyi Taw on Wednesday.

The ADB and the Myanmar government have agreed to partner up in promoting PPPs in the transport sector.“ADB has been playing a very active role in supporting Myanmar with policy advice on PPPs, and improving Myanmar’s transport infrastructure is critical to achieving inclusive growth in Myanmar,” said Mr. Kaga, Head of ADB’s office of Public-Private Partnership.

“PPP is an important instrument to deliver infrastructure, and the ADB is looking forward to assisting the government in developing priority transport projects that could be structured on a PPP basis to mobilize private capital flows.”

Union Minister for Transport and Communications U Thant Sin Maung said, “A number of our priority transport investments will deliver better results if undertaken in partnership with the private sector.  “The improvement of transport infrastructure is a top priority for the government, as this is critical to improve people’s access to markets as well as to basic services such as health and education.”

As MOTC’s mandated strategic and transaction advisor, the ADB will help in screening and prioritising projects, undertaking due diligence, and structuring work with a view to placing these projects in the market for private sector investment.

The improvement of Myanmar’s transport infrastructure is critical to improve people’s access to markets as well as to basic services such as health and education. Only 40 per cent of the country’s road network is paved, and 20 million people — half of the rural population — have no access to all-weather roads. Weak inland waterways and river ports, high transport costs, and associated limited access to markets and services are among the main causes of poverty and regional inequality, according to a study.

Ref; The Global New Light of Myanmar