New Yangon business district to cost $350m

A New central business district in the north of Yangon will be built at a cost of almost US$350 million, with construction to begin next year, pending Myanmar Investment Commission approval.

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.”

The company received its soil testing permit in December last year, and the tests have taken some time to complete, he told The Myanmar Times.

“The project has its initial approvals and we are now waiting on final approval from Myanmar Investment Commission. This is likely to come through once we have secured a recommendation letter from the Myanmar Engineering Society,” he said.

The company has a contract to develop the project and operate it for 50 years, with the option to extend the contract with YCDC twice, by 10 years each time.

Once construction is complete, First Myanmar Construction will pay $120,000 per year to the local authority in rental fees, said head of the engineering department (building), U Than Htay.

“Construction will take five years, and they have to pay annual rent, but can pay it in six-month installments,” he said.

Under the terms of the deal, the company has agreed to build a convention centre worth $72 million to be operated by YCDC.

The estimated total project cost is $345 million, including infrastructure worth $98 million, he said.

The area was previously a plant nursery with around 100 shops and 400 residents. YCDC has taken responsibility for relocating all the shopkeepers, who left the area on the first week of November, he said.

Source: Myanmar Times

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