The Ministry of Construction and International Finance Corporation (IFC) on January 11 signed an advisory services agreement to build an elevated expressway connecting Yangon port, Thilawa SEZ, Yangon International Airport, Yangon Industrial Zone and Yangon-Mandalay expressway.
The 20.5-kilometre elevated expressway will cost US$400 million (535.86 billion kyat), with maintenance costs to be paid for by collecting taxes. According to the agreement, the IFC will be entitled be the leading advisory corporation for the project.
The IFC said it would implement a tender selection process to choose an experienced and high-profile construction company with good management, diversified operations and high-quality maintenance capability.
IFC said the project will help to develop the economy.
“The big investment in basic infrastructure, especially in the transportation sector, is very important to develop the economy in the long term. That’s because it can promote a link between the economy and services in the social sector,” said Kyi Zaw Myint, deputy director general (planning) at the ministry.
If the project is successfully implemented, it will set a standard for Yangon’s inbound and outbound road projects.
The government expects that investment in the transportation sector will require expenditures of $48 billion by 2030. A public-private partnership (PPP) with the private sector taking on most development costs, will reduce the burden for the government.
The 2-3-year project is slated to start early next year.
“The IFC will create an international market standard to attract high-profile investors to implement the project,” said Vikram Kumar, residential representative of IFC (Myanmar). “It will create a good precedent to attract projects under public-private partnerships (PPP) across the country as it is an elevated expressway project developed under the PPP. It will also promote competition and production in addition to boosting connection between people and business enterprises and commercial business,” said Kumar.