Logistics zone, transport jetty to be built under public-private partnership

The Yangon Regional Gvernment is going to develop the Ngwe Pin Lel Integrated Logistics Zone and Inland Water Transport Jetty under a public-private-partnership (PPP) agreement, U Myint Thaung, the regional minister of planning and finance for Yangon Regional Government, said.

The matter came up when regional representative Daw Sandar Min questioned U Myint Thaung about the project during a sitting of the regional hluttaw last week.

The project will be located on 78.9 hectare site in Hlaing Thar Yar Township, Yangon Region, and is expected to cost K151 billion. It is scheduled for completion in 2021. The construction of the zone is expected to boost the region’s manufacturing sector and the distribution of goods. It is also hoped that the jetty portion of the project will help to improve the traffic situation in Yangon.

The project will be designed, built, financed, operated and transferred under a PPP agreement, U Myint Thaung, said.

“Under the agreement the government does not have to use public money for the project. At the same time, the government will receive revenue from the lease for the land and the annual concession fee for the project. Overall, this benefits, the government, the private sector and the people, which is the essence of a PPP agreement,” U Myint Thaung, said.

To oversee the project the regional government has formed a consulting body comprising PWC as finance consultant, B4 Design & Engineering and Spiral Architects & Planners as technical consultants, Rajah & Tann as legal consultants, and Yangon Metropolitan Development Public Co Ltd as procurement agent.

At present, the regional government is analysing tendered proposals for the project. After a winning bid is selected, the project will be submitted to the Myanmar Investment Commission. Among of the requirements for the project is that fees for public services at the site are to be reasonable and that the services fall under the authority of the regional government, U Myint Thaung, said.

The regional government invited international bids for the ports and warehouse in May and the tender was closed in July. The proposals were required to detail the bidders’ business plan for running the site as the regional government will receive a percentage of the total income from the project as a concession fee for the project.

SOURCE: MYANMAR TIMES

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