Double A, a Thai firm, announced yesterday that it has won a 30-year contract for an advanced paper plant in Thabaung, which is under the Ministry of Industry, for US$ 80.5 million (Ks 78.32 billion).
The ministry had invited tenders from interested local and foreign firms, starting from September to October, to enter a joint venture for the plant.
Although 10 local and foreign firms eyed the tender offering, only five companies submitted proposals to the tender securitizing committee. Among them, the three finalists were Bamboo World, JK Paper and Double A.
According to the committee, Double A Co won the bid because it was seen to have more job creation potential for local people than the other companies. Although Bamboo World could have paid higher rental fees to the Ministry, their document was ineffective and their plans were very weak, according to the committee.
“The factory is very important for the country. Our government is going ahead with the reform process and has planned to reduce the State’s sector for development of the private sector,” said Thein Aung, Deputy Minister for Industry.
“We said earlier at a press conference that the factory will be handed over to the private sector, and at the parliament we explained the hand-over of the factory. We are now cooperating with some experts to lease the factory to potential private firms.”
According to the land lease agreement, Double A Co will pay US$ 2 million per year and a five-percent increase on the rental fee every two years.
After signing the agreement, the company will build a new factory that can produce 300,000 tons of paper per year and pay the staff’s salaries and construction charges.
“We will also do some good for the country and local people. We will create job opportunities for local people,” said Zaw Lwin, managing director of the firm.
Source: ELEVEN Myanmar