Wednesday, February 28, 2018

Agreement for Myanmar’s biggest airport project expires



February 27, 2018
An agreement to design, build and manage a new $1.4 billion international airport in Myanmar has “expired,” according to a Yongnam Holdings Ltd., a Singapore company participating in a consortium that includes JGC Corp. of Japan.


Hanthawaddy International Airport was to have been built around 80 kilometers north of Yangon, near the city of Bago, by 2022, under a framework agreement signed in January 2016 between the consortium and Myanmar’s Civil Aviation Department.

“The FWA has not been renewed to-date as certain issues remain unresolved,” Yongnam Holdings said in a statement released Monday night in Singapore, without elaborating.

In 2014, the consortium won a government tender for the design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership for a 30-year concessional period.

The consortium had won the tender on the basis it would seek up to half of funding for the project from the Japanese government’s official development assistance program.

JGC Corp. holds a 55 percent stake in the consortium while Yongnam Holdings has 25 percent and Changi Airport Planners and Engineers, a subsidiary of Changi Airports International, has 20 percent.

Apart from the local authorities fencing nearly half of the 3,645-hectares-wide project area, construction has not begun for unknown reasons.

Authorities have in the past said all international flights would be moved to the new airport from the current one, Yangon International Airport, which is at full capacity with 3 million passengers annually.

The new airport is expected to initially handle four times that number of passengers, bringing about a boost in global air connectivity for Myanmar, bolstering the flow of business and leisure travelers as the country sees growth in trade and tourism industries.

Kyodo News
Ref; The Global New Light of Myanmar

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