Investor interest in New Yangon City project rises, more Foreign Direct Investment (FDI) expected

Photo Yangon Chief Minister U Phyo Min Thein speaks during a press conference at the 2018 Yangon Investment Forum. Aung Htay Hlaing/The Myanmar Times

24 Apr 18 Since its launch in early April, investor interest in the New Yangon City project from China, South Korea and ASEAN has been on the rise, Yangon Chief Minister U Phyo Min Thein said during a press conference at the 2018 Yangon Investment Forum on April 20.

The Yangon Region Government is now courting foreign direct investments to develop the project. So far, interest in providing the infrastructure needed for the development of New Yangon City has been particularly high, U Phyo Min Thein said.

There have already been proposals to construct two bridges, which will provide access to the new city as well as link the city to the main roads connecting to the rest of Yangon. Others have also proposed to construct new roads in the city.

Meanwhile, there has also been a request to lease over 2,000 acres of land for development within the new city, U Phyo Min Thein said. The chief minister did not provide the names of the companies.

In the meantime, the regional government will also raise efforts to attract more FDI by helping to resolve legal issues pertaining to land use commonly faced by infrastructure investors, U Phyo Min Thein said.

The regional government launched the New Yangon Development Company (NYDC), which will develop the New Yangon City project, on March 31. Development will be primarily based on a Public-Private Partnership model, with businesses contributing in equity investments. The project planners aspire to rival the likes of Shenzhen, South Korea's Incheon and Malaysia's Iskandar, according to NYDC.

The total area of New Yangon City, encompassing Phase 1 and Phase 2, will cover 1,500 km2. Phase 2 will stretch all the way down from Dala to the Gulf of Martaban.

For Phase 1, NYDC will develop 20,000 acres of land west of central Yangon across from Kyeemyindaing into an urban industrial district.

Infrastructure works related to Phase 1 of the New Yangon City project are expected to amount to a sum in excess of $1.5 billion. This will include the construction of five village townships, two bridges, 26km of artery roads, 10km2 of industrial estate, power plant, transmission and distributions facilities as well as fresh water supply and wastewater treatment plants.

When complete, the new city will help cater to Yangon's growing population and help alleviate key issues such as employment and housing.

Source: The Myanmar Times

Date: 24 April 2018

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