| Regional Affairs
Myanmar hopes to boost South Korea trade ties Myanmar Times 25th Nov 2015
Nine Myanmar companies took part in the “ASEAN Fair 2015: Touch and Taste ASEAN” from November 18 to 21, along with about 100 companies from other countries across the regional bloc. The event was organised by the ASEAN-Korea Centre as its yearly flagship program showcasing food, beverages, culture and tourism in the 10 ASEAN countries. Participants from Myanmar included Ah Yee Taung tea leaf company, cashew nuts from Cheen Cheen, traditional htoe mout from Myint Myint Khin, green tea from Power Maw Shan, dried mango from Tha Zin New Family Trading, coffee from Ywar Ngan, and companies Golden Horse, Kaung Ko Group and Myanmar Phoenix Manufacturing. Daw Mya Mya Sein, deputy director of the Myanmar Trade Centre under the Ministry of Commerce, said in Seoul last week that it was Myanmar’s second trip to the Korean trade show.
Suu Kyi Says China Ties Deserve Close Attention Myanmar Business Today 25th Nov 2015
Aung San Suu Kyi has pledged to pay “special attention” to ties with China when her party takes office after its election triumph, and said foreign investments would need public support to help improve relations. In an interview with China’s state-run Xinhua news agency, the National League for Democracy (NLD) leader said Myanmar had no enemies, but relations with neighbours were more sensitive than others and needed to be carefully handled. China was Myanmar’s lifeline for two decades when sanctions prevented most Western businesses and financial institutions from engaging with the country during military rule from 1962 to 2011 that left the nation underdeveloped. But the stakes are now far higher for Beijing, with business competition heating up and the NLD’s anticipated sweeping-out of the last remnants of the old military guard with which Chinese firms enjoyed a close bond.
Border Trade with China to be Expanded Through Co-op Zones Myanmar Business Today 25th Nov 2015
Border trade cooperation zones will be implemented in Chinese provinces bordering Myanmar to promote economic cooperation between Myanmar and China, said Dr Myo Thet, vice chairman of UMFCCI. “We have signed MoUs with Yunnan and Sichuan provinces in order to enhance cooperation with China. The Border Trade Cooperation Zone in Yunnan is already under construction, but I’m not sure when it will finish,” Dr Myo Thet said at a China-Myanmar trade and investment cooperation forum. Improving the economic cooperation between Myanmar and China must be welcomed, but both countries should be careful about national security and the environment, while the relationship must be transparent and open, he added. “China’s direct investments reached nearly $3.9 billion in July, mainly in electricity, mining, oil and natural gas sectors. At the same time the trade between China and Myanmar has been rising every year,” said Yang Xiu Ping, secretary general of ASEAN-China center.
National Affairs
Speculation rife over transition talks Myanmar Times 1st Dec 2015
President U Thein Sein and Commander-in-Chief Senior General Min Aung Hlaing have ended three weeks of uncertainty by agreeing to meet Daw Aung San Suu Kyi separately tomorrow to discuss the transition of power to Myanmar’s next government. But it remains to be seen whether the separate meetings in Nay Pyi Taw will amount to more than symbolic handshakes or go into detailed discussions of next steps. None of the three parties are giving anything away over what could amount to a prolonged and delicate negotiating process. Citing “a spirit of national reconciliation”, the National League for Democracy leader requested the top-level meetings on November 10 as the scale of her party’s landslide victory in elections two days earlier became clear.
Myanmar’s foreign debt totals $9 billion: finance minister Myanmar Times 1st Dec 2015
Union Minister for Finance U Win Shein told the Pyidaungsu Hluttaw that almost half of that sum, $4.27 billion, had been acquired before 1988. Between 1988-89 and 2010-11, the country borrowed a further $3.3 billion, and had borrowed another $1.5 billion since 2012, he said. He told MPs that foreign loans and financial aid went toward supplementing the national budget in implementing reforms, funding infrastructure and improving human resources through healthcare and education. Agricultural and electric power installations were also beneficiaries of the loans, which were the cheapest available, he said. The Treasury Department of the finance ministry handles the debts, in collaboration with the debt management division, helped by financial experts from the Asian Development Bank, he said.
Debt management law draft submitted to parliament Myanmar Times 1st Dec 2015
The draft, written with assistance from the Asian Development Bank, was first published in local newspapers in mid-July along with a request for feedback. U Maung Maung Win, permanent secretary at the Ministry of Finance, said he had received comments and in response had adjusted the wording of the law, to make it clearer. He submitted the new draft to parliament’s bill committee before the November 8 election, he said, and hopes it will be enacted during the next fiscal year. Under the new law, the Ministry of Finance alone will be authorised to approve and manage government debt, while ministries, state-owned enterprises, and state and regional governments will borrow money only with approval from the Union government, or from the government directly. “We manage their debt under the State Budget Law at present, but we plan to co-operate with them for more effective debt management after the new law has been passed,” said U Maung Maung Win.
CSOs urge government to take action against negligent mining companies Eleven 1st Dec 2015
More than 300 civil society organisations (CSOs) have urged the incumbent government to take serious action against those responsible for the loss of life caused by the Hpakant landslide. The CSOs released a statement saying the landslide was caused by waste deposits piled by jade mining companies near the homes of the victims. However, the statement said, the companies, some of which are closely associated with the government, have not taken responsibility for the tragedy or for their own negligence. According to the statement, the government knows that the respective companies are violating waste dumping regulations and has chosen to ignore it. Global Witness recently reported that the Myanmar military, its cronies and their related have held a monopoly on the jade mining industry in the country for several decades and have made billions of dollars of unreported profits. The Global Witness report said although the government and its cronies are benefitting from Myanmar’s wealth of natural resources, most of the public gains nothing from the mining industry, and many have to suffer its side-effects.
Suu Kyi to meet president and commander-in-chief separately Eleven 1st Dec 2015
Aung San Suu Kyi, the chairperson of the National League for Democracy, which dominated the 2015 general election, will meet President Thein Sein and Commander-in-Chief Senior General Min Aung Hlaing separately on December 2 in Nay Pyi Taw. The President’s Office announced on November 30 that President Thein Sein will meet Suu Kyi on Wednesday morning at the presidential palace in the capital. Additionally, the Military Authoritative Information Team announced on the same day that the commander-in-chief will meet Suu Kyi at 2pm on that day at his office. Suu Kyi requested meetings with President Thein Sein, Commander-in-Chief of Defence Services Min Aung Hlaing and Union parliament speaker Thura Shwe Mann in separate letters addressed to each of them. Thura Shwe Mann met Suu Kyi on November 15, 17 and 19. After their last meeting, they released a joint statement. Suu Kyi also met with Thura Shwe Mann on the morning of November 30 at his parliamentary office in Nay Pyi Taw.
Woman MPs up, but hluttaw still 90% male Myanmar Times 1st Dec 2015
An analysis by The Myanmar Times of the number of female MPs elected to the Pyidaungsu Hluttaw on November 8 indicates there will be a total of 64 elected female MPs across the Amyotha Hluttaw, or upper house, and Pyithu Hluttaw, or lower house. That amounts to 9.7pc of a total of 657 seats, including the 25pc reserved for the military. (Elections were cancelled in some areas, leaving seven lower house seats empty.) The figure compares with 4.4pc after the 2012 by-elections. The military has not yet confirmed whether it will change its representatives when the new parliament convenes in January. However, at present just two out of 166 military MPs are female. Their presence would push the total of women in parliament up to 10pc – just below Malaysia, which has the second-lowest number of female MPs in ASEAN with 10.4pc.
President, Senior General to meet Daw Aung San Suu Kyi on December 2 Myanmar Times 30th Nov 2015
President U Thein Sein and Senior General Min Aung Hlaing released statements this morning saying they had agreed to meet Daw Aung San Suu Kyi separately this Wednesday. The National League for Democracy leader had requested the meetings on November 10, two days after a general election that her party won in a landslide. She said she was acting “in the spirit of national reconciliation” and suggested talks the following week. The president and Tatmadaw commander-in-chief accepted her invitation, but it was only today that they confirmed a date for the talks, releasing statements almost in unison. The President’s Office said U Thein Sein would meet Daw Aung San Suu Kyi in Nay Pyi Taw on the morning of December 2.
Corrupt NLD MPs will be jailed: Suu Kyi Eleven 30th Nov 2015
If National League for Democracy MPs break the law and if they give or take bribes, they will be jailed, says party chairperson Aung San Suu Kyi. MP Dr Thet Thet Khaing reported that Suu Kyi told the successful NLD candidates at the Royal Rose Restaurant in Yangon: “The NLD will constitute a scrutiny committee. The elected candidates must show their capabilities through their performance within their five-year term and whether they are worthy candidates. The scrutiny committee will monitor them. “Suu Kyi said there would be no compassion for any NLD candidate if they were found guilty of something. Any NLD candidate can ask if they do not know something. They can ask for help any time. The party is poised to help. If an MP breaks the law, legal action will be taken,” she said. Suu Kyi apparently warned that if personal assets exceeded the submitted amount, the party would first sue for breach of trust and then legal action would be taken under the corruption law. Dr Myat Nyarna Soe, who won an Upper House seat in Yangon Region, said: “All NLD candidates submitted their moveable and immoveable assets before the election and they made a pledge to collaborate with the party. They have to sign an agreement. A Ks300 stamp is stuck on the agreement, meaning a claim can be made at court. The party’s disciplinary committee wants a corruption-free government and Parliament.”
NLD leader lays down the law to incoming reps Myanmar Times 30th Nov 2015
Reprising themes that she had repeated throughout the campaign, such as “Vote for the party, not the candidate”, and “We will punish candidates who do not serve the people”, the NLD leader laid down the law that her MPs must follow. While campaigning across the country, Daw Aung San Suu Kyi had told voters it was their responsibility to vote for her party. Once in power, the NLD would assume its responsibilities toward them. Now the voters have done their bit, electing a total of 887 NLD candidates, or 77.1 percent, of all the 1150 seats contested on November 8, enough to form a government, nominate the president, and push through both houses of parliament a complete legislative program.
Armed groups seek to speed up drafting process Myanmar Times 30th Nov 2015
Representatives of the eight armed groups that signed the nationwide ceasefire in October said during talks in Yangon on November 27 and 28 that they wanted to work with the government and political parties on a single text. All three stakeholder groups are represented on a 24-member drafting body formed by the Union Peace Dialogue Joint Committee last week. Under the terms of the ceasefire, the framework should be finalised by December 14 so that political dialogue can begin a month later. Currently there are multiple drafts of the framework for political dialogue. The armed groups and government both have one, while political parties have written several.
External debt reaches Ks10.2 trillion Eleven 30th Nov 2015
State-owned newspapers have quoted Maung Maung Win, permanent secretary of the Ministry of Finance, saying that Myanmar had an external debt of Ks10.2 trillion. “The country can maintain the current debt conditions. The ministry will have to warn people about it when there is a heavy debt burden. For instance, foreign debt will be Ks9 trillion within the next two or three months but it is now Ks10.2 trillion. The country pays off some debts approved by Parliament. We will get current debt figures after deducting external debts repaid. External debts will vary daily,” Maung Maung Win reportedly said. “We are taking public debt management measures with the technical assistance of the Asian Development Bank (ADB). The Public Debt Management Bill has been sent to Parliament. After the enactment of this bill, the government will follow the facts pertaining to internal and external debts. The Debt Management and Cash Management departments will carry out the submission of debt reports and analysis and measurement of debt sustainability,” Maung Maung Win added.
Foreign investment down 5.1% Myanmar Times 26th Nov 2015
The statement confirms the widespread impression that investors had adopted a wait-and-see attitude for several months in advance of the November 8 election. DICA’s director general U Aung Naing Oo told The Myanmar Times a few days before the poll that investment was likely to slow as foreign investors waited for greater political certainty before committing to new projects. This could be set to change given the positive attitude the international community has toward the election winners, Daw Aung San Suu Kyi’s National League for Democracy, said U Aung Tun Thet, economic adviser to the president, to The Myanmar Times. “Economic sanctions may well be lifted, after which the country will gain many opportunities. The economy will grow as a result of politics and in turn, the political situation will improve in parallel with the economy. It is an opportunity to take advantage of this change,” he said.
Anti-Corruption Commission Says ‘No Plans’ to Examine Assets of Govt Employees The Irrawaddy 24th Nov 2015
Burma’s Anti-Corruption Commission has “no plans” to scrutinize the assets of government employees in order to guard against potential graft, the agency’s head told lawmakers on Monday. During a Lower House session on Monday, outgoing lawmaker Tin Maung Oo asked commission chair Mya Win what measures had been taken against cases of bribery and corruption, and whether these measures had been successful. In his reply, Mya Win stated that the commission had not made any plans to audit the possessions of government officials, citing the 18-month delay in the passage of parliamentary bylaws to determine the commission’s remit. “I understand that the commission has difficulty in doing its functions while the bylaws are not in place,” Tin Maung Oo, a Union Solidarity and Development Party lawmaker for Shwepyithar Township in Rangoon, told The Irrawaddy after the session.
Soaring price of onions confronts NLD with challenge of governing Myanmar Times 24th Nov 2015
Restaurant and tea-shop owners in Myanmar’s largest city said yesterday they are struggling. The cost of some basic commodities such as onions has doubled over the past month. Small-shop owners say sales are falling, as buyers grow increasingly frugal. Talk over the soaring price of onions in particular dominates marketplaces, bringing home the scale of the task facing Daw Aung San Suu Kyi as she starts to put together her cabinet and government program. At least one of her senior economic advisers is anxious that tackling these basic issues take priority over her sweeping election campaign agenda, which focused more on constitutional change and rule of law. The price of onions rose from between K1000 and K1700 per viss (1.6 kilograms, or 3.6 pounds) at the start of October to between K2350 and K3050 on November 18, according to latest figures from the Yangon Commodity Exchange. At Yangon’s Bayintnaung market, large Myingyan onions wer
Micro-business should be a priority sector, say entrepreneurs Myanmar Times 23rd Nov 2015
USAID grant manager U Win Maung told participants in a seminar held as part of Global Entrepreneurs’ Week, that micro-businesses could help reduce poverty and promote rural and agricultural development. He called for the government to focus efforts on developing the sector which, in turn, would assist in the development of small and medium enterprises. “Without SMEs there is no development,” he said, adding that the problem of rural poverty was too big to be dealt with by government aid, or civil society programs. He said the government should redirect its focus to take into account the lack of capacity and skills in drawing up micro-business plans and making finance available. The sector could also contribute substantially to raising Myanmar’s gross domestic product, he said, adding that GDP did not measure people’s economic comfort level. Though large companies – and “cronies”, he said – could push up GDP, rising production alone was not enough to lift workers’ wages or improve living conditions. Nor could it guarantee farmers the best price at harvest time.
Suu Kyi to Lead Peace Process NLD Says The Irrawaddy 19th Nov 2015
Aung San Suu Kyi will take the lead in Burma’s peace process following the transfer of power early next year, according to a spokesperson for her party, the National League for Democracy (NLD). Speaking to The Irrawaddy by phone on Wednesday, NLD senior member Win Htein said ethnic armed groups are committed to working with the incoming Suu Kyi government to build on the peace process initiated by the current administration of President Thein Sein. Structure of the talks and key stakeholders may be shifted, he said, without elaborating on what role Suu Kyi herself might assume or whether the Myanmar Peace Center (MPC), a government-affiliated facilitation body, would continue to play a key role.
Myanmar Investment Commission to delegate power to state authorities Myanmar Times 19th Nov 2015
The laws will be changed to allow the Myanmar Investment Commission to delegate power to regional authorities, said Daw Le Le Thein, deputy minister for National Planning and Economic Development who put forward the bills. “The intention is to share the mandate with regional governments,” she said, adding that if foreign investments can be approved locally it will speed up the approvals process and expedite regional economic development. The Myanmar Citizen Investment Law will also be amended to allow regional governments to approve domestic investments, depending on the type of business, whether it will create job opportunities or help to develop the region. U Win Oo from Ye-U constituency, Sagaing Region said he accepted the proposed changes in principle, but urged caution. “For foreign investments, we need to be very careful,” he said. “If we allow the regions and states to approve foreign business, it might lead to local concerns. In such cases, we will object, or will review how to control the situation.”
Former Junta 'Crony' Sees Business as Usual After NLD Win The Irrawaddy 18th Nov 2015
Aung San Suu Kyi’s landslide election win might be bad news for Burma’s businessmen like construction magnate Khin Shwe, who lost his parliament seat and remains barred from doing business with US nationals due to his ties to the former junta. Or maybe not. Sitting comfortably on a beige leather sofa in his plush Rangoon office next to a large portrait of himself, Khin Shwe says he is in pole position to team up with the global investors who will be lured by Suu Kyi’s clean image and a renewed reform push. “When the investments come in, there is no one else apart from us, the ‘cronies’, who will be able to work on the same level as the foreign investors,” Khin Shwe told Reuters, in a rare interview with an international media organization.
Delayed post-election talks put transition in doubt Myanmar Times 18th Nov 2015
A representative of the president says talks with the National League for Democracy leader will not happen until all complaints about election results have been resolved by the Union Election Commission. The process could take months and run beyond the transition period running up to the convening of the new parliament in late January and its election of the president in February. The disclosure contrasts sharply with initial responses by U Thein Sein, when he appeared gracious in defeat and keen to promote steps toward reconciliation. Only three days ago he met with representatives of all 91 parties that competed in the November 8 elections and reiterated his pledge of a smooth transition. Three days after the election, as the scale of the NLD landslide became evident, Daw Aung San Suu Kyi wrote three separate letters to U Thein Sein, parliamentary Speaker Thura U Shwe Mann, and Commander-in-Chief Senior General Min Aung Hlaing requesting talks by the end of this week on the basis of “national reconciliation”. The president and the Tatmadaw commander-in-chief responded that they would arrange for meetings after the UEC finished its electoral process. That was initially interpreted to mean after all official results were published by the UEC, and confirmed as such by a presidential aide. The commission has said final results would be in by November 20 at latest.
Customs
DICA issues revised list of ‘out of touch’ companies Myanmar Times 30th Nov 2015
In August, the regulator issued a request for confirmation from all companies still in business, as it seeks to clean up its database by removing out-of-date company names. However, the list of 20,165 local and 2015 international “out of touch companies” published earlier this month contained a number of errors. Some companies such as Myanmar Red Dot Network and Capital Diamond Star Group confirmed that their companies are currently active in Myanmar and that they have submitted documentation notifying DICA. Others said that former incarnations of their business were named on the list, leading to confusion among clients. These included international companies such as Singapore-based Surbana International Consultants, who have since confirmed their operating subsidiary status in Myanmar with DICA.
Laukkai casinos thrive under military Myanmar Times 30th Nov 2015
In their crisp uniforms, the hundreds of young men and women who work as croupiers have become a well-recognised symbol of the town. Police officers of the Kokang Self-administered Zone, their uniforms similar to the regular Myanmar police force, stand guard outside the casinos, backing up their private security services. Police say they have trouble getting exact data but they believe there are about 50 casino “clusters” in the town, suggesting there could be up to 7500 gambling tables. All are operating without official licences. Most of the gamblers are Chinese citizens who cross the nearby border with a one-week pass. Chinese yuan is the currency they gamble with.
Exporters Must Expand Businesses before 2020: UMFCCI Vice Chair Myanmar Business Today 26th Nov 2015
Myanmar exporters should search international markets and build their capacity before 2020, suggested Dr Myo Thet, vice chairman of UMFCCI. “The amount that Myanmar can currently export is very small. If they keep going like this, small exporters will suffer. For the medium exporters or large enterprises, it depends on the government policy, some businesses may rise but some businesses might fall,” he said. Currently, exporters are not working hard enough to improve their businesses, said Dr Myo Thet. “If local exporters work hard and with the help of technology, they can improve their business 40 percent within 10 years,” he added. Also according to an ASEAN-China trading agreement, all kinds of goods will be exported tax-free between China and Myanmar in 2020. “Trade between China and Myanmar will be tax-free on all kinds of goods in 2020. We don’t need to be afraid that, we can get experiences from AEC and prepare our best for that time,” said Dr Myo Thet.
Authorities Crack Down on Illegal Rice Myanmar Business Today 26th Nov 2015
The Ministry of Commerce has issued instructions to tighten inspections on the illegal rice trade as rice from Thailand are being illegally imported to Myanmar. An anti-smuggling mobile team found out a truck loaded with 63 rice bags weighing 50kg each, along with other local goods on the Myawaddy-Yangon trade route last month. It is believed that the rice was being smuggled in from Thailand, and the team arrested the truck. “We keep doing normal checks and inspections on traded goods. The border gate is still open,” said a director from the Ministry of Commerce. The rice have been sent to a government laboratory to check whether it is Thai rice or not. If it is found out to be Thai rice, the smugglers will be punished according to Customs Law. Thai rice is cheap but it doesn’t have valid consumers’ protection certificate, so imported Thai rice may harm local rice farmers, officials say.
Onion traders lobby for open borders Myanmar Times 26th Nov 2015
Onions are a vital ingredient in a number of Myanmar dishes including fried snacks, salads and curries. Stocks began to fall after nationwide flooding in July and August deposited thick silt across hundreds of thousands of acres of farmland, preventing farmers from planting. Over the past month, prices have soared. One viss (1.6 kilograms or 3.6 pounds) of onions usually costs less than K1000 but has reached nearly K4000 in Magwe Region, said farmers. In Yangon, the market price of onions this week was around K2500 per viss. Fear that stocks are low is a contributing factor to the rise in prices, said onion farmers in Magwe. To combat the problem, the Myanmar Onion, Garlic and Culinary Crops Production and Exporting Association has suggested that the country’s border trade points are opened to onion imports.
Commerce ministry opens trade to foreign companies Myanmar Times 25th Nov 2015
The Ministry of Commerce has relaxed long-standing trade restrictions on foreign companies, to allow onshore imports for the first time, though these will initially be limited to agricultural products and healthcare equipment. A circular issued in mid-November (96/2015) allows foreign businesses to import fertilizers, insemination seeds, pesticides and hospital equipment, on condition they partner with a local company. Until now, international firms have been prohibited from participating in any form of onshore trade. U Win Kyi, the ministry’s deputy director in Nay Pyi Taw, said the new rule is aimed at meeting urgent requirements in Myanmar’s agricultural and medical sectors.
Border trade up by US$500m over last year Myanmar Times 24th Nov 2015
Total trade at the 15 border stations stands at more than US$4 billion, $500 million more than at this time last year. The first eight months of the current financial year has seen an increase in trade of $492.917 million compared to last year, that is, from $3.751 billion to $4.244 billion. The busiest station, last year and this year, was Muse on the Chinese border, which has recorded $306.899 million more than last year, an increase to $3.258 billion from $2.951 billion. The second largest was Myawaddy on the Thai border, which nearly doubled its trade from $210.623 million last year to $410.118 million this year, an increase of $199.495 million. Chinshwehaw, in the troubled Kokang region, was in third place despite a reduction of $45.07 million, falling from $262.582 million to $217.512 million. Fighting broke out in Kokang last February and continued for much of the year.
Ruby miners leave Mogok as Chinese demand plummets Myanmar Times 18th Nov 2015
Traders in ruby-rich Mogok, Mandalay Region, have traditionally relied on custom from Chinese buyers, but over the past year businesses has become slower and slower, leading many miners to pack up and move to the quartz mines in Tanai township, Kachin State. The lacklustre market looks likely to continue at least until early next year, traders told The Myanmar Times. “With the election and the slowdown in China’s economy, business is tough,” said Daw Hla Kyi, a jewel trader in Mogok’s gems market, Yote Shin Hta Pwae. “We have managed to make a profit, but sales are slow. Perhaps they will improve during the Chinese New Year.” Every year demand for rubies rises during China’s major holiday, when gifts are traditionally given. However, U Thant Naung, a Mandalay-based jade and rubies merchant, said the slowdown in Chinese demand is likely to be structural.
Energy
BG Group and Woodside to start offshore exploration Myanmar Times 19th Nov 2015
BG Group will undertake 3D seismic surveys in blocks A-4 and AD-2 in the Rakhine basin off the western coast of Myanmar, starting from November 23. The company will conduct seismic campaigns using a Ramform Sovereign ship until the end of April 2016, according to the statement. Woodside Energy also will carry out 3D seismic surveys with a Ramform Titan vessel in deep water block AD-5 and shallow water A-7, also in the Rakhine offshore basin. The company will begin exploration on November 20 until mid-April 2016. “The four blocks cover a total area of nearly 30,000 square kilometres, which is why the seismic surveys will take around six months,” said an official from Myanma Oil and Gas Enterprise (MOGE). In 2013, the two international oil companies were awarded the right to exploration and production activities in two shallow water and two deepwater blocks in Rakhine basin.
Renewable energy around the world: opportunities in Asia Pacific Out-Law 30th Nov 2015
urrently, the US and China are the world’s top producers of renewable energy, with China’s five-year outlook for additional wind and solar installation set to double that of the US. India and Brazil have also been rising up the global ranks, with abundant natural resources and supportive governments. India’s government in particular has been strongly behind a transition to renewable energy production, with ambitious targets and large inflows of foreign investment. In this special series of forward-looking articles, renewable energy experts at Pinsent Masons, the law firm behind Out-Law.com, outline the current status of, and challenges and opportunities for, the development of renewable energy resources in Asia Pacific, the Middle East and Australia. You can also find out about developments in Europe in this companion piece. Asia Pacific What is the current status of the Asia Pacific renewables market? China has the strongest market for renewables in Asia Pacific, moving from 1st to 2nd place worldwide in the latest EY Renewable Industry attractiveness index. Since 2010, China has had the world’s largest installed onshore wind capacity, with a total of 115.6GW installed as of the end of 2014. However, poor grid planning and wind data monitoring in earlier years have meant that many wind projects do not generate at planned levels, if at all, either due to lack of grid connections or lack of suitable wind. Solar has become increasingly popular in Asia Pacific over the last five years. For example, Thailand has significantly increased its solar capacity over the last five years from practically zero to a current installed capacity just shy of 3GW as a direct consequence of government policy, and there are ambitions to take this up to 6GW by 2036. Japan has also seen a push towards solar post-Fukushima with a new feed-in tariff approved in 2012, although that tariff has since been reduced due to the success of the programme. Total installed solar capacity in Japan increased from just under 5GW in 2011 to over 23GW in 2014. Large dam hydro power plants provide a large capacity of hydro electricity in the region. However, these projects are often controversial and some governments do not consider hydro as a form of renewable energy.
ADB to fund power transmission improvement project in Myanmar Energy Business Review 25th Nov 2015
The Asian Development Bank (ADB) has granted $80m loan to fund the project to upgrade electricity transmission ring line system to 230kV in Yangon, Myanmar. transmission The project will upgrade the Thida-Thaketa-Kyaikasan transmission ring lines from 66kV to 230kV and also involves construct of two new substations at South Okkalapa and West University. The project is expected to complete the critical 230kV ring for Yangon straddling the substations of Ahlone, Thida, Thaketa, South Okkalapa, Hlawga, Myang Tagar, West University, Hlaing Thayar and back to Ahlone. ADB Southeast Asia Department senior energy economist Bui Duy Thanh said: "The aging and overloaded transmission network requires urgent improvements to provide stable and ample supplies of power to support the country's economic growth targets and poverty reduction objectives. "Yangon plays a central role as an economic hub for the country and this assistance will help the government ensure reliable power supplies are provided to the city and surrounding areas." The project is expected to complement associated upgrades which are being implemented by the Myanmar Electric Power Enterprise. According to ADB, the Myanmar Government is required to develop new generation sources and to expand and strengthen the transmission and distribution networks in order to meet the growing demand for power. Power demand in the country is estimated to increase over 9% of annually through to 2030 as the economy is expected to grow at around 7.8% each year. ADB has been supporting the government, which is currently assessing ways to meet its energy goals, in infrastructure upgrades, regulatory development and institutional capacity building. In 2013, ADB approved a $60m loan to Myanmar to rehabilitate sections of its power distribution network.
LSIS boosts cooperation with Asian electricity authorities Korea Times 24th Nov 2015
LSIS, the nation's largest electricity equipment maker, formerly known as LS Industrial Systems, said Tuesday it has discussed cooperation in the smart energy business with several electricity executives from Southeast Asia. The company said it welcomed a group of high-ranking officials of electricity authorities from eight Asian countries ― Thailand, Myanmar, Vietnam, Laos, Bangladesh, Nepal and Kazakhstan ― to its headquarters in Anyang, Gyeonggi Province, to inspect its smart grid facilities here. The eight countries have seen their energy consumption continuously increase in recent years, the company said. "LSIS has led the global smart energy market based on converged smart technologies connected to existing electricity infrastructure," President Han Jai-hoon said. "We expect to contribute to the Southeast Asian countries in helping them to expand their electricity infrastructure and establish smart energy management systems." The visit was arranged under an agreement between LSIS and Korea International Cooperation Agency to introduce Korea's expertise in electricity and energy to developing Asian countries. In a meeting with the LSIS head, the visiting executives discussed application of smart grid technologies such as microgrids, energy storage systems, factory energy management systems, building energy management systems and solar power arrays. The visitors also showed interest in LSIS' eco-friendly energy management technologies, raising the possibility of new business opportunities for the company.
Puma Energy’s $100m fuel storage facility Deal Street Asia 24th Nov 2015
Activities at Thilawa Port and Thilawa Special Economic Zone are on full swing with Puma Energy looking at operating a fuel storage facility by early 2016. US-based Ball Corp, that is being set up at the Thilawa Special Economic Zone, is also expected to be seeing full production soon. Puma Energy to expand petro business in Myanmar Singapore-based Puma Energy is building a $100-million fuel storage facility, with a capacity of 90,000 cubic meter, in Myanmar’s Thilawa port by early 2016, according to a Bloomberg report. This investment is in addition to Puma Energy’s proposed joint venture with state-owned Myanmar Petrochemical Products Enterprise (MPPE) for a liquid petroleum gas distribution project. Puma is currently already engaged in the sale and distribution of aviation fuel in Myanmar through the JV. According to an earlier report in this portal, Puma Energy and the ministry would be investing $51 million in the project, where Singapore firm will invest in the development of distribution channel. US Ball Corp to start production by early 2016 US-based supplier of metal and plastic packaging for the food and beverage industry, Ball Corporation, will start its production by early 2016. The US major will invest $400 million in its unit at Thilawa Special Economic Zone. The firm has contracted with local companies including Coca-Cola Pinya Beverages, under a long-term agreement.
ADB Loan Supports Upgrade of Yangon 230 kV Transmission Network ADB.org 24th Nov 2015
The Asian Development Bank (ADB) is providing an $80 million loan to upgrade Yangon’s electricity transmission ring line system to 230 kilovolts (kV) which will benefit more than one million customers. “The aging and overloaded transmission network requires urgent improvements to provide stable and ample supplies of power to support the country’s economic growth targets and poverty reduction objectives,” said Bui Duy Thanh, senior energy economist at ADB’s Southeast Asia Department. “Yangon plays a central role as an economic hub for the country and this assistance will help the government ensure reliable power supplies are provided to the city and surrounding areas.”
Financial Services
Myanmar aims to beat VN stock exchange The Nation 1st Dec 2015
The Yangon Stock Exchange has good prospects and could catch up with Vietnam's bourse within three years, said Maung Maung Thein, deputy finance minister. THE Yangon Stock Exchange has good prospects and could catch up with Vietnam's bourse within three years, said Maung Maung Thein, deputy finance minister. The deputy minister said: "Our conditions are much better than those in Vietnam, which is why Vietnam has taken 15 years to reach the current stage. An economist said people have ages and their actual ages in their minds. Someone may be 20 but they might only have five years' worth of knowledge. Some people get a PhD when they are 20 so they may have 40 years worth of knowledge." "Vietnam's stock market may be bigger than ours in term of figures. But our experience is not so different. According to economists' estimations, our stock exchange may catch up with Vietnam's within three years," Maung Maung Thein added.
Deposit rate at Myanma Economic Bank set to triple Myanmar Times 27th Nov 2015
Between April and September, deposits to Myanma Economic Bank (MEB) totalled K442 billion – almost twice the K290 billion deposited during the entire financial year 2014-15, according to a report presented by the Pyidaungsu Hluttaw Public Accounts Committee on November 24. “While it’s good that the rate of deposits has increased, MEB should take care to prevent against losses if it does not operate commercially,” the committee said. Members of parliament in the past have advised the Ministry of Finance to reduce the size of uncompetitive state banks, as their private sector counterparts become stronger. MEB is the largest bank in the country, with 307 branches, and is loss-making, with deficits funded through Myanmar’s central bank.
As inflation rises, Central Bank aims at monetary tightening Myanmar Times 24th Nov 2015
Amid signs of overheating, the Central Bank has been holding deposit auctions every fortnight since 2012 to reduce the currency in circulation, said deputy governor U Set Aung. While monetary authorities elsewhere in the world are able to carry out open market operations to remove liquidity, Myanmar has no secondary bond market and monetary policy tools are limited, he said. The International Monetary Fund has recommended the Central Bank mop up liquidity by scaling up deposit auctions to contain inflationary pressures and support the kyat, which has fallen by over 25pc to the US dollar this year, to K1299 yesterday. The IMF believes inflation will rise to 13pc by the end of this fiscal year. The latest figures published by Myanmar’s Central Statistical Organization put year-on-year inflation figures for April at 8.18pc. While deposit auctions have not yet been scaled up, the Central Bank is offering higher interest rates of 8pc, compared with the 4pc to 5pc offered in 2012, said a senior official yesterday, and has plans to increase the size of auctions in the future.
Central Bank to publish de-dollarisation plans Myanmar Times 23rd Nov 2015
Reducing the use of US dollars in the economy will help the CBM to use monetary policy tools more effectively, said deputy governor U Set Aung. Encouraging the use of electronic payment systems will also help resist dollarisation and reduce dependence on cash, he added, speaking during a meeting in Yangon on November 21 to discuss a recent decision to revoke thousands of foreign exchange acceptor and holder licences. Times of political instability or change in Myanmar typically result in a flight to gold, US dollars or real estate, with confidence in the domestic currency falling, said U Set Aung. Certain types of transaction are still carried out in US dollars, he said, a practice that may be hard to change. “Myanmar has not yet succumbed to dollarisation, but we have noted the signals and are planning to implement policies to counter it,” he said. The CBM’s Payment Union (MPU) was set up to issue credit and debit cards, and encourage a shift away from cash, but many shop owners are reluctant to buy point-of-sale terminals, he added.
Kyat Continues Slide as Central Bank Mulls Options The Irrawaddy 23rd Nov 2015
Two weeks since Burma’s general election on Nov. 8, the country’s reference foreign exchange rate has slid further against the US dollar, sitting at just under 1,300 kyat against the dollar as of Monday. While the exchange rate hovered at around 1,270 kyat during the election period, as of Monday it was 1,299 kyat against the dollar, while the black market rate was believed to have tipped over 1,300 kyat for the first time since late October. “The black market rate is over 1,300 kyat today because of the [higher] Central Bank rate,” said one speculator in Rangoon Division’s Pabedan Township. At a meeting with tourism operators on Saturday, Central Bank of Myanmar (CBM) deputy governor Sett Aung told reporters the bank was seeking to reverse the local currency’s months-long depreciation in several ways, including by selling US dollars to local private banks in an attempt to drive down the value of the greenback.
Myanmar card payments on the rise as MPU widens network Myanmar Times 20th Nov 2015
Card payments in Myanmar are set to rise over the next few months as local shops and supermarkets sign up to Myanmar Payment Union, signalling the beginning of a shift in one of the world’s last cash-based economies. MPU got off to a slow start when it launched in 2012, but with the rise of connectivity, this is starting to change. Card transactions jumped from K40 million in September to K70 million in October, said MPU chair U Mya Than. Growth is driven by the participation of large retail chains, he said. Myanmar’s largest supermarket group City Mart Holding began accepting MPU payments in April, and now gives customers the option to pay by card in seven of its 20 outlets.
President’s Office and Central Bank discuss regulations Myanmar Times 18th Nov 2015
Union ministers and private sector bankers met with the Central Bank of Myanmar earlier this week to discuss rules and regulations for the entire banking industry, as well as the development of mobile banking in the country. Ministers in the President’s Office have met with the Central Bank periodically since June, when the official exchange rate set by Central Bank auctions began to depart from the market rate. “The meetings were instigated by the President’s Office,” said U Mya Than, chair of Myanmar Oriental Bank, who attended. “Ministers are willing to help with the country’s financial problems – they highlight the weak points and encourage the Central Bank to intervene more in the market.” They provide the Central Bank with alternative advice to that given by international financial institutions, he said.
Food & Agriculture
Ayeyar Hinthar opens Ayeyarwady Farmers Development Bank Myanmar Times 1st Dec 2015
The regional government, with 15 partners of the Ayeyar Hinthar Companies Group, is launching the bank, known as the Ayeyarwady Farmers Development Bank, or Abank. Farmers can take out loans using their farmland work permit certificate, known as form 7, as collateral. Bank chair U Zaw Win Shein said at the bank’s launch in Pathein that rice millers and exporters can also borrow money when they need to settle shipment costs. He said if an industrial zone was established in the region, the bank would offer loans to factories, as well as for rubber production, tourism, fisheries, livestock and construction. Chief Minister of Ayeyarwady Region U Thein Aung said the government had permitted similar banks to open in five regions, adding that financial support for agriculture, the mainstay of the region’s economy, was crucial.
Bamboo Exporters Seek Foreign Support Myanmar Business Today 26th Nov 2015
The Myanmar Bamboo Producer and Exporter Group said it is trying to gain skills from foreign countries to improve the quality of locally produced bamboo. Bamboo planted in Myanmar does not last long, which prompted the Group to be in discussion with Indonesia and China to get advanced technology to produce long-lasting types of bamboo. “Our bamboos always get infected and only last for around three years. So products made with this bamboo do not fetch good prices. That’s why we will try to use new technology,” said Dr Myint Sein, chairman of the Group. If the bamboo farmers get technology to plant long-lasting bamboo, we will be able to produce high quality products and export more, he added. “We must upgrade our bamboo products’ quality to have a place in the international market.” Bamboo farmer U Kyaw Thu said that the farmers know how to use insecticide and apply other treatments, but the problem is the farmers don’t how much insecticide should be used. “Bamboo farmers should apply insecticides systematically; if not the bamboo will get spoiled,” said U Kyaw Thu.
Winter peanut harvest drops amid heavy rain Myanmar Times 25th Nov 2015
Production of the winter crop has fallen by half at the townships in Magwe Region, they said. “Heavy rain caused the blossom to drop. As the area flooded, rats appeared. In the past we have just had ‘peanut rats’ but this year other rats, scared of the flooding, fled to this area and ate the plants,” said U Tin Moe Win, a resident of Oo Yin Village. While production has fallen in Minhla and Minbu, it has risen in Yenanchaung township, said resident U Aung Kyaw Oo. “The eastern villages of Yenangyaung experienced normal rain and a good crop,” he said. The price of peanut kernels fell from K3000 per viss (1.6 kilograms, or 3.6 pounds) last year to K2700 this year, said farmers. Peanut seller U Soe Tint said falling prices and lower production has left many out of pocket, worried about what the next rainy season will bring.
Peas, maize and sesame make a post-election comeback Myanmar Times 18th Nov 2015
The Brokers, Traders and Factory Owners Association in Mandalay said on November 13 that pent-up stocks were moving quickly. The week since November 8, election day, has seen a transformation in the country’s political architecture. Many feel the installation of a new government early next year will have positive economic effects too, starting with increased trade. Monywa sales centre owner U Myo Swe, an association member, said, “Trading has boomed since the election. Chinese traders are back.” Peas, maize and sesame are in high demand from India and China, while exporters are also looking to the European market under the next government, he said. “India and China buy Myanmar peas, maize and sesame depending on their weather. There are good markets and bad markets.” If their weather is good and their harvest successful, prices fall.
Low-quality rubber holds back tyres Myanmar Times 19th Nov 2015
In Myanmar hundreds of thousands of hectares of land is leased to investors for rubber plantations, often in controversial circumstances. Just 8 percent of total production is used within Myanmar, with the rest sent to China, 70pc of which is low quality, said U Khine Myint, secretary of the Myanmar Rubber Planters and Producers Association (MRPPA). Without a proper legal framework, foreign investment into rubber plantations tends to be short-term gambles by companies seeking natural resources for their own gain, he said. “The type of investors that we want will only come when they are 100pc covered by law,” he said. To attract more sustainable investment, rubber planters also need to consider the quality of their product, he said. “If it’s good quality, they will find it easy to sell at a higher price. If they produce low-quality rubber, they will have to sell to China at rock-bottom rates.”
Health & Life Sciences
Government allows foreign joint ventures to import medical products Frontier Myanmar 25th Nov 2015
The Ministry of Commerce has allowed foreign joint-venture companies to import clinical instruments, in keeping with World Trade Organization requirements, local media reported on November 25.
Higher public spending, surging investments in healthcare boosts Myanmar pharmaceutical industry The Nation 19th Nov 2015
New investments from Samitivej International Clinic, Bumrungrad International and Lippo Group, as well as a hefty increase in public spending on healthcare are boosting Myanmar's pharmaceutical industry. Win Si Thu, chairman of Myanmar Pharmaceutical and Medical Equipment Entrepreneurs’ Association, said this would make Myanmar an attractive investment destination for pharmaceutical companies. The Myanmar Investment Commission in 2013 allowed joint venture for the production of pharmaceuticals and equipment, which could be owned up to 80 per cent by foreign companies.
ICT
Malaysian telco issues $500m Islamic bond for Myanmar towers investment Myanmar Times 25th Nov 2015
This is the largest-ever corporate bond issued with proceeds to be invested into a Myanmar towers business, demonstrating considerable investor confidence in the frontier market. Telecoms towers companies have led the way in terms of innovative cross-border financing into Myanmar – last year Pan Asia Majestic Eagle completed the first cross-border, non-recourse financing arrangement in the country. A spokesperson for Axiata told The Myanmar Times yesterday that around $125 million of the bond’s proceeds will be used to fund the acquisition of a majority share in Myanmar Tower Company (MTC) under Axiata’s wholly owned subsidiary Edotco Group. The remaining funds will be used for “general corporate purposes,” she said, though did not disclose whether or not this would include capex for MTC’s Myanmar rollout. In the bond’s prospectus the use of proceeds is listed as “general corporate purpose/other”.
Myanmar named fourth-fastest-growing mobile market in the world by Ericsson Myanmar Times 20th Nov 2015
Mobile subscribers globally for the third quarter came to roughly 7.3 billion, in line with the global population. Meanwhile, mobile subscriptions in Southeast Asia and Oceania will cross the 1 billion mark before 2016 and hit about 1.3 billion by 2021. After a banner year for telecoms in Myanmar, the country has about 36 million mobile subscribers – up by 5 million over last quarter, the report said. Myanmar came in fourth place for net additions this quarter, trailing only giant neighbours India and China – which added 13 million subscribers and 7 million customers apiece – and the United States, whose base increased by 6 million. It beat Nigeria, which rounded out the top five and whose market expanded by 4 million net subscribers this quarter. Myanmar’s telecommunications industry has changed dramatically over the past two years, enabling millions to get connected and the country’s subscriber rate to skyrocket.
Satellite program aims at Myanmar’s skies Myanmar Times 19th Nov 2015
The bidding process comes as part of a broader national satellite program, with the government aiming to address existing needs in the market and to eventually fill the country’s slot in the sky with a Myanmar satellite. Myanmar has pursued a satellite program for five years now, with the country following the lead of others, according to Post and Telecommunications (PTD) director U Than Htun Aung. The program – which aims to vault a Myanmar satellite into the sky – chases commercial benefits, security and national prestige, he said. “If you can get all the bandwidth together from one satellite, it will reduce the cost very, very much and will benefit broadcast operators, telecom operators as well as private users,” he said.
Ministry ready to support 4G networks Myanmar Times 19th Nov 2015
U Thaung Tin said his ministry will not deter operators from using more advanced technology. “If operators want to launch a 4G network for their subscribers, we are ready to support the spectrum,” he said. The 4G Long Term Evolution, or LTE, networks are faster than their third-generation, or 3G, counterparts. They also require more expensive handsets and use up more data, requiring users to add credit to their phones more often. To date, 4G networks are not available in Myanmar. Operators Telenor Myanmar and state-owned Myanma Posts and Telecommunications (MPT) offer both 2G and 3G services, and Ooredoo Myanmar operates a 3G network.
Online buying frenzy to hit Myanmar with Daraz kicking off Black Friday sale in its Asian markets Deal Street Asia 25th Nov 2015
Rocket Internet venture Daraz will be bringing its popular Black Friday sale, kick-starting the Christmas shopping season, to buyers in Myanmar through shop.com.mm. The online platform, that was introduced in late 2014 in Myanmar, will have hundreds of items from 35 brands which will be on up to 60 per cent discount on Friday, November 27. Black Friday, which is the day after Thanksgiving day and regarded as the start of Christmas shopping season, will be conducted in Myanmar and Pakistan together and Bangladesh a week later, through the Daraz shopping portals. Such discount days on critical buying seasons have now become a regular feature with global online shopping engines who claim to generate record transactions going up to even a million products in a matter of hours on a single day.
Myanmar govt ready to allocate 4G licenses Telecomasia 20th Nov 2015
Myanmar's communications ministry is ready to facilitate the nation's rapidly developing mobile industry's migration to 4G as soon as operators are ready to roll out the technology. Deputy minister U Thaung Tin told the Myanmar Times that the ministry is ready to supply the spectrum needed for 4G rollouts if operators want to launch 4G services. Mobile operators Telenor Myanmar and Ooredoo Myanmar both indicated that they will consider deploying 4G networks in the market - but only once enough subscribers have migrated to 4G handsets. State-owned MPT said it had plans to support LTE services but has been unable to because 4G licenses have yet to be issued. The three operators will meanwhile soon be facing competion in the form of a fourth operator. The Myanmar Times has separately reported that Roland Berger has been engaged to help the joint venture of domestic technology companies established to partner with an international operator and roll out mobile services choose this partner.
Infrastructure
Shwe Taung launches $300m project in downtown Yangon Myanmar Times 1st Dec 2015
Junction City, designed by DP Architects from Singapore, will include a five-star hotel to be operated by Pan Pacific Hotels and an office tower to be developed in collaboration with Singapore’s Keppel Land, in addition to a shopping centre and serviced apartments. For many years, U Serge Pun’s Yoma Strategic was the go-to partner in Myanmar for international developers but this is beginning to change as local competitors ramp up their branding and international reach. The pool of prospective partners remains limited, as many of Myanmar’s most experienced developers, such as Asia World Group and Htoo Group, are still subject to a wide-reaching US sanctions program. This leaves non-sanctioned groups such as Kanbawza Group and Shwe Taung – both of which were formerly under Western sanctions – free to reap the rewards of staying on the right side of the US Treasury Department.
Bago airport to improve Myanmar’s reputation: minister Myanmar Times 1st Dec 2015
Speaking at a seminar to discuss new laws needed to establish a national airport authority, U Nyan Htun Aung said the development of the new airport would improve Myanmar’s reputation. “A country may be considered to have high aviation standards only if it has a gateway,” he said, urging the swift completion of Hantharwaddy Airport. Hantharwaddy is located in Bago Region, about 48 miles to the north of Yangon, in close proximity to the special economic zones of Thilawa and Dawei, said U Nyan Htun Aung. Thilawa is located to the south of Yangon and Dawei is in Tanintharyi Region. Construction of the new airport has been repeatedly delayed completion is now targeted for 2022. Once finished, it is intended to take over from Yangon International Airport as the country’s major international entry point.
Yangon’s struggling industrial zones need support: interview Myanmar Times 26th Nov 2015
Almost all the infrastructure that keeps factories functioning, including electricity, roads and sewers, is provided by private owners, not the regional government or Yangon City Development Committee, he said. “We can’t compete with Thilawa and local industrial zones have suffered as a result of this.” Since they were introduced in 1996, industrial zones on the outskirts of Yangon – including the city’s largest at Hlaing Tharyar – have been beset with problems including controversies over land grabbing. Owners have struggled to turn plots held by speculators to industrial use, and the number of people building makeshift houses on the vacant land around the factories is rising quickly.
No more public investment needed for bus rapid transport Myanmar Times 26th Nov 2015
The project, which is being funded through a public private partnership called Yangon Bus Public Company, aims to upgrade Yangon’s antiquated bus system by introducing new buses to the roads which will drive in dedicated lanes. The initial stage, known as “BRT lite” will see new buses run along Yangon’s two main commuter routes – Pyay Road and Kabar Aye Pagoda Road. It will cost an estimated K25 billion (US$19.2 million), with 40 percent to be funded by the government and 60pc by private companies and public shareholders, through a public-private partnership system. If the cost of the project is higher than K25 billion, the company may decide to raise more money at a later date. The government has already put up K10 billion, and five private companies have invested K500 million each – Capital Diamond Star Group, Shwe Taung Group of Companies, Shwe Than Lwin Company, Zayar and Associates, and Fisheries and Marine Products 2000. Each of the five companies has the option to invest up to K2 billion.
New Yangon business district to cost $350m Myanmar Times 26th Nov 2015
The build, operate, transfer project was tendered by Yangon City Development Committee in 2014 and won by a subsidiary of Myanmar V-Pile called First Myanmar Construction. On a 36-acre site in Mayangone township near to Yangon’s airport, the development is aimed at relieving pressure on the city’s downtown area, where new businesses have piled in and cars commute each day, blocking already crowded streets. The new project is slated to include a number of high-rise buildings, including 12-storey office towers, a business hotel, a shopping centre, a trade centre and a five-storey convention centre, said U Sone Han, chair of First Myanmar Construction, adding that work would begin soon. “We have already started soil testing and small-scale work such as levelling the ground and tidying the site. We expect to be able to start building the project next year.”
ADB extends $80m loan for electricity transmission upgrade Myanmar Times 25th Nov 2015
The Asian Development Bank (ADB) will provide an US$80 million loan to upgrade the network used for power transmission across Yangon. The project will involve upgrading the Thida-Thaketa-Kyaikkasan transmission rig lines from 66 kilovolts to 230kV and building two new substations at South Okkalapa and West University, the ADB announced yesterday. This will complete the “critical” 230kV rig for Yangon across the substations of Ahlone, Thida, Thaketa, South Okkalapa, Hlawga, Myang Tagar, West University, Hlaing Tharyar and back to Ahlone, said the ADB. The Myanmar Electric Power Enterprise will carry out additional upgrades. “The ageing and overloaded transmission network requires urgent improvements to provide stable and ample supplies of power,” said Bui Duy Thanh, senior energy economist at ADB’s Southeast Asia Department.
ADB to Provide Loan for Rangoon Power Upgrade The Irrawaddy 24th Nov 2015
Manila-based Asian Development Bank (ADB) said in a statement on Tuesday that it would provide a US$80 million loan to “upgrade [Rangoon’s] electricity transmission ring line system,” a project forecast to benefit more than one million customers. This is a welcome announcement for many residents in heavily populated Rangoon, where more than half of Burma’s total supply of electricity is consumed. The Yangon Electricity Supply Corporation (YESC) previously stated that, starting in October, electricity would be available around the clock, though residents claim that this has yet to happen. The YESC also said last week that technical errors would temporarily cut off electricity in some townships. ADB’s new initiative, called the Power Transmission Improvement Project, aims to upgrade the Thida-Thaketa-Kyaikasan transmission ring lines from 66 kilovolts (kV) to 230 kV. It will also build two additional substations at South Okkalapa and West University. The Myanmar Electric Power Enterprise is conducting related upgrades to Rangoon’s electricity infrastructure.
APR signs Kyaukse power project extension Myanmar Times 19th Nov 2015
The fast-track turnkey plant supplies power to Kyaukse industrial zone and to the national grid. The industrial zone was built under the former government, in the hometown of senior general U Than Shwe. In 2013 the government called a tender for an 18-month contract to supply the project with power, which was won by APR energy in February 2014, marking the first power generation agreement between the government and a US company since the lifting of international sanctions. Switched on in May of the same year, the plant generates around 82 megawatts of its 103MW total installed capacity. In October, the company signed a year’s extension under similar financial terms, according to an APR statement on November 17. U Htain Lwin, managing director of Myanma Electric Power Enterprise said the new contract is for 12 months, with the option to extend it for a further six.
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