The Infrastructure of Myanmar Company plans to build 2 million affordable apartments across Myanmar and has secured its first contract – with the Kayin State government.
The company will build thousands of low-cost housing units near to Hpa-an Industrial Zone in Kayin State though a joint venture with local firm Mya Htay Kywe Linn.
The company has also set its sights on projects in Mandalay and Sagaing, officials told media in Hpa-an on August 31.
In Kayin, the two companies will build 2560 apartments on 20 acres of vacant land near to the industrial zone “as fast as possible”, U Saw Win Htein, Kayin State’s chief minister, said. Buyers will be able to pay for the apartments in installments of K30,000 (US$23.50) per month for 30 years.
“The government will open a bank account for the monthly payments,” said U Than Oo, director at Infrastructure of Myanmar Company.
Each building will have five storeys. The ground floor will be for car parking and the first to the fifth floors will be residential. Each apartment will be 600 square feet.
If buyers are able to pay upfront, the price per apartment is K8 million, but if they choose to pay in installments, the total cost over 30 years will be K10.8 million.
The first 30pc of units will be sold to local residents, the next 40pc to civil servants and the remaining 30pc of units can be sold to whoever the companies choose, said U Saw Win Htein.
The Kayin State government identified a plot of vacant land to avoid ownership conflicts, and sold it to Mya Htay Kywe Linn Construction for K13 million per acre, officials said to media. Infrastructure of Myanmar will be responsible for building the project.
U Than Mya, managing director of Mya Htay Kywe Linn told The Myanmar Times that the two companies will split the profits equally and that construction will begin in October, once they have signed a contract. The project is expected to take around two years to complete.
The development costs will be paid by the construction companies, which plan to take out insurance to cover any losses. “We can’t let anything happen to the company during this period as the project is too big,” said U Than Oo.
The 40-hectare (100-acre) Hpa-an Industrial Zone was developed by the UMH Company and opened on April 25, with the launch of the Japanese-owned Fulltex Sweater factory.
The Kayin State capital is in dire need of new housing as its population grows, said U Saw Win Htein, adding that he is also seeking companies to build accommodation in towns such as Myawaddy, which are also feeling the effects of urbanisation.
In May, Kayin State’s chief minister U Zaw Min told The Myanmar Times that the local economy was ready for change, after decades of instability and isolation.
Conflict has led to a mass migration of workers, mostly to Thailand, but once a national ceasefire accord is signed, he believes the region has plenty of potential for development.
The chief minister spoke of the need to develop vocational training for workers in the newly opened Hpa-an Industrial Zone, which covers 400 hectares but so far has only seen a handful of factories built.
Much of his optimism was based on Kayin State benefiting from its location along the East-West Economic Corridor, a much-delayed project backed by the Asian Development Bank.
When complete, it will link Da Nang in Vietnam with Laos and Thailand, passing through Kayin State to the port of Mawlamyine at the mouth of the Thanlwin River.
Source: Myanmar Times