Nearly two dozen private companies submitted expressions of interest letters to join a state-owned firm in a joint venture distributing jet fuel, though authorities plan to restrict the tender to international firms only.
The successful firm will partner with state-owned Myanmar Petroleum Products Enterprise (MPPE) to import, sell and distribute jet fuel throughout Myanmar.
MPPE director U Myint Zaw said that while some local firms showed interest, they will not be chosen as the aim of the tender is to gain foreign expertise.
“We are going to do a joint venture with an experienced international company,” he said.
He added many of the Myanmar-based applicants do not have enough qualifications or experience in managing jet fuel.
Most of the foreign applicants came from Singapore-based firms, while other expressions of interest were also submitted from Korean and Thai firms.
MPPE plans to select a suitable international partner in July, with the partnership to be formalised by the end of the year, said U Myint Zaw.
MPPE is the sole jet fuel supplier in Myanmar. It aims to update imports, sale and distribution of jet fuel with the support of its foreign partner.
It currently distributes jet fuel in 11 domestic airports, but the first target for support from the joint venture is Yangon’s Mingalardon airport. Legal advisory firm VDB Loi will assist in the process creating the joint venture.
Another MPPE official from the finance section requesting anonymity denied the call for a joint venture was due to profitability problems but rather a desire to update services as Myanmar sees more air traffic.
“The business is going to boom as the country gets new airlines,” he said.
The Ministry of Energy also attempted an international tender for jet fuel import licences last year, though received few applications. Statistics show MPPE currently imports about 35,000 metric tonnes of jet fuel a year.
Source: MYANMAR TIMES