Myanmar Real Estate ANALYSIS PROJETS & …realestate.frontiermyanmar.com/sites/all/libraries...water, transport, telecoms, banking, tourism and consumer goods. The firm recently partnered

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Myanmar Real Estate & Construction Brief

Part of the Myanmar Real Estate and Construction Monitor

Market Updates

Kajima, MOC kick off $400m Yankin project

Japanese contractor inks agreement for largest development

undertaken by a Japanese entity alone in Myanmar

SHC Capital Asia to acquire MM Myanmar

Investment holding company signs deal for Yoma Strategic’s Myanmar tourism businesses

Two logistics facilities open in Dagon Seikkan

Two companies open logistics centres in Yangon’s new warehouse capital

Mottama Holdings signs $30m office tower agreement

Interview: Baker McKenzie Managing Partner Jo Daniels

Uncertain outlook for construction sector: World Bank

CHDB plans to increase loan repayment period

Bids total $5.8m for Rakhine market tenders

NDC seeking companies for Naypyitaw Cement Factory lease

Century Steel ups investment in Thilawa steel manufacturing

Fisheries Federation seeking thousands of acres in Yangon

Work begins on Rakhine commercial park

Myotha Golf Club to be completed in December

Myanmar Railways invites EOI for Bauk Htaw Station redevelopment

Demolition of historic buildings in Pyin Oo Lwin delayed after protests

MIC releases priority investment list for Kayin State

MIC to publish actual FDI data

Nearly 800 construction companies register with Bago investment committee

Yangon zoning plan to be completed next month

Tax revenue from Bago property transactions reaches almost Ks1m

Yangon Region to restrict construction on old ponds and reservoirs

Parliament approves third-party system for construction work

Urban plan for Naypyitaw in drafting process

Serviced suites being added to Parkroyal Yangon

DUHD and City Properties JV to build supermarket

This week’s company and project updates

This Week’s Tenders

EOI for Myanma Railways Baukhtaw station area redevelopment

Joint venture EOI for Bago heavy industry

Cement and asphalt supply to southern Shan State

Staff housing construction in Pathein

Construction of rental housing in Magwe Region

Rebar provision to Taunggyi

Supply of various construction materials to Sagaing

Paving asphalt road in Kalaw, Shan State

Issue 1 | 28 November 2017

Company of the Week

Kajima Overseas Asia (Myanmar)

The Japanese firm has signed a contract with

the Ministry of Construction to

redevelop the former Yankin Storage Site.

NEWS ANALYSIS PROJECTS TENDERS COMPANIES DATA

Project of the Week

The former Secretariat complex is set to become

a cultural complex, including a new museum,

event and retail space, offices for creative

industries and gardens.

Calendar

MYANBUILD ‘17 Housing & Building 2018

energy.frontiermyanmar.com


B2B Kajima, MOC kick off $400m Yankin project Japanese contractor Kajima has signed a contract to develop a 45bn Yen ($398m) urban project in Yangon, with the scheme to comprise offices, hotel, a library and other facilities. A contract with the Ministry of Construction (MOC) was inked over the weekend at a commencement ceremony for the Yankin Storage Site PPP Redevelopment Project, located at the corner of Yankin Road and Sayar San Road in Yankin Township. The build-operate-transfer (BOT) agreement gives Kajima control of the facilities and land for up to 70 years. Kajima plans to build a 21-story office building, a 20-story hotel, a 27-story extended-stay hotel and commercial facilities on ministry-owned land. The GFA will total 170,000 sq m. The designs for the development include open space to help with traffic congestion and a food and water storage system for disasters and emergencies. Government representatives from Myanmar and Japan first met back in 2015 to discuss the potential project. Japanese companies were asked to create models to make use of government land in Myanmar through private-public partnership schemes. The Japan Conference on Overseas Development of Eco-Cities, acting for the Japanese land ministry, then picked Kajima to develop a project. The Kajima Yankin PPP project received approval from the Myanmar Investment Commission on 11 July.

Photo: Rendering of Kajima’s three planned high rises

The development will likely be the largest undertaken by Japanese entities alone in Myanmar. A number of Japanese developers are working with local Myanmar companies on several other high-profile projects. Partners, including Mitsubishi Corp, Mitsubishi Estate and the Japan Overseas Infrastructure Investment Corporation (JOIN), are collaborating with Yoma Strategic Holdings on the $700m Yoma Central Project, a major mixed-use development in downtown Yangon. Additionally, three Japanese entities, Fujita's subsidiary Fujita Singapore, Tokyo Tatemono's subsidiary Tokyo Tatemono Asia, JOIN and local conglomerate Ayeyar Hinthar Group are joining up to build a large mixed-use development project at the site of the former Defense Services Museum. The project includes a 400-room hotel, office building, and shopping mall.

Myanmar Real Estate and Construction Brief | 21-28 November 2017 2



Retail and hospitality SHC Capital Asia to acquire MM Myanmar Investment holding company SHC Capital Asia plans to acquire MM Myanmar for S$69.7m ($51m), according to a company press release on 20 November. SHC Capital is purchasing the shares of MM Myanmar from Yoma Strategic Holdings unit Yoma Strategic Investments (YSIL), which owns 63.1% of MM Myanmar, First Myanmar Investment Company (FMI) and Exemplary Ventures Limited (EVL). The acquisition will be financed by issuing 265m new consolidated shares at an issue price of 0.263 Singapore cents per share, following a seven-to-one share consolidation. As part of the deal, SHC Capital has proposed to change the name of MM Myanmar to Memories Group Limited to undertake a compliance placement of up to 93m new consolidated shares. MM Myanmar is a newly incorporated company. The businesses recently consolidated under it are as follows: MM (BL), Bagan Land, a commercial and

tourism-related hospitality development to be constructed and developed in Nyaung U.

MM (BOB), the hot-air balloon business operating under the name ‘Balloons over Bagan’ with operations in Bagan and Inle Lake including operating locations used for the storage and warehousing of hot-air balloons

MM (DMC), a tourism and destination management business operating under the name ‘Asia Holidays’ (the “AHTT Business”)

MM (HAL), ‘Hpa-An Lodge’, a hotel located in Hpa-An Township, Kayin State

MM (PHL), Pun Hlaing Lodge, a boutique hotel development under construction in Pun Hlaing Estate

Additionally, Yoma Strategic Holdings and SHC Capital Asia announced that they have entered into buyback undertakings for the BOB and the BL businesses upon the occurrence of certain events: The BOB Business If the BOB business is required to reduce its stake in Shwe Lay Ta Gun (the operator of Balloons over Bagan) as a condition to renew or maintain the air operator certificates and other required licences for the business, then Yoma will buy back the business. The BL Business Yoma will buy back the BL business if at any time within three years from the completion of the transaction, if : 1. BL Land has been demarcated as a

heritage site and not permitted or approved for commercial development

2. A final ruling is made by the MIC to reject the application for the long-term lease of the BL land

3. At the end of three years, BL MM has not obtained all the relevant approvals from the MIC to allow it to hold a long term lease of BL land

Yoma also announced a change in board composition on 20 November. Thia Peng Heok George will be appointed as an independent director while Basil Chan will cease to be one.

Myanmar Real Estate and Construction Brief | 21-28 November 2017v 3



Commercial and Industrial Mottama Holdings signs $30m office tower agreement The property arm of Myanmar-based conglomerate Mottama Holdings signed a joint venture agreement on 18 November with Peace Myanmar Electric Holdings for the development of an office tower. Local media reports claimed that the building is named Harbour Trade Tower. The project is located on Kyimyindine Kanna road in Ahlone Township. It will comprise 21 storeys and 5-basement floors, which will house parking space for 92 cars. The upper floors are set to have a total space of 17,000 sq m to be leased on a custom basis. The foundation for the project is already complete. Daw Thet Yi Win, an operations director at Mottama Development, told Myanmar Real Estate & Construction Monitor that $30m will be invested in the project, and completion is slated for the end of 2020. She added that it is an office tower, and will not include any commercial space. Mottama Holdings is a locally-owned company with focus in property development and construction-related manufacturing. B2B Interview: Baker McKenzie Managing Partner Jo Daniels Baker McKenzie, Asia Pacific's largest law firm, opened its Yangon office in 2014. Over the past three years, the firm has advised clients in industries such as oil and gas, power, water, transport, telecoms, banking, tourism and consumer goods.

The firm recently partnered with The Economist to produce a Myanmar-focused report called “Bridging the Infrastructure Gap,” which identifies significant infrastructure gaps in areas such as transport, energy, telecommunications and water. Myanmar Real Estate and Construction Monitor recently sat down with Jo Daniels, the managing partner of Baker McKenzie’s Yangon office, to discuss the current and future prospects of public-private partnership (PPP) models for infrastructure projects in Myanmar. The views expressed in this interview are her own, and not necessarily those of Baker McKenzie or its business associates. Based on your experience, what is the government’s current view on PPPs and how has it changed over the past few years? It appears the government is very open to PPPs. My opinion is that Myanmar will not do broad scale tax reform for some years, but it needs a lot of infrastructure as soon as it can get it. Broad scale tax reform is very complex. This means that for at least the foreseeable future, there will be a relatively shallow and relatively narrow tax base. The Economist and Baker McKenzie’s Yangon office recently produced a report called “Bridging the Infrastructure Gap”. The report was launched in Singapore on 8 November and a follow-up event will be held in Yangon in early December. The report identifies a very large infrastructure gap for Myanmar. Whenever you have a shallow and narrow tax base, as well as a very large need for infrastructure, there is really only one obvious solution, which is the introduction of private finance.




Private finance can occur in two different ways. One is pure private financing, such as project financing. This is not common in Myanmar. There are examples, such as the Myingyan Power Plant which is project financed, though it has had its own challenges. It also needs an asset where there is a sufficient level of cash flow so that commercial banks will lend money to the project. Projects do exist in Myanmar where there are sufficient cash flows to attract project finance, but there are many challenges to them. My view is that when prioritising the projects that require government funding, projects that are attractive to the private sector should be left to private project finance; that’s one thing that the government does not have to use its precious resources on. The problem is that this can also be a political issue. That’s where PPPs work very well. The government still brings a significant amount of expertise, land, project approvals, etc., to the table, and the private sector brings finance. The public and private sector then share the risks, but also the rewards. PPPs can then eventually be a source of funding for the government. PPPs are quite unique in that regard, in enabling private sector financing while the government deals with the sovereign risk issues. Commercial banks hate uncertainty, so when they are looking to give a large loan to a project, the fact that the project might not get an MIC approval is a huge issue. When you have a PPP with government participation, that risk is much lower as it’s basically a government project.

Something that has somewhat derailed the debate is the question of whether we need a PPP law before the government can enter into PPPs. There are some countries that have PPP laws that work well and some that don’t. Additionally, you don’t necessarily need a PPP law. A country can just have a PPP policy, which is certainly common in Australia. A PPP policy would be flexible. It can be changed when it needs to be changed but establishes a framework. My view is that you don’t need a PPP law, although there are reasons why having a PPP law might be desirable. For example, having a PPP law can introduce certainty and can clarify the process around PPPs. With that being said, the Myanmar government has all the power it needs to enter into a PPP now. It has the power to contract and has been entering into what you could refer to as a PPP with build-operate-transfer (BOT) agreements, which are technically PPPs. PPP itself is very broad: it means a collaboration between the public and private sector. I do see quite an appetite for the government to introduce international standard PPPs. If you look at some of the old BOT agreements, they were very short, they failed to address a number of the key risks and they didn’t make the risk allocation clear. That all adds length to a PPP agreement, but I think it is quite critical if the public and private sectors are going to collaborate. Let's make it clear who has responsibility for each possible risk. I have seen a lot of movement in attitude towards what the agreements look like and I think that’s a good thing.




In part, I say that Myanmar doesn’t need a PPP law for a practical reason. To develop, draft, pass through the parliament and then implement the law, it would certainly take at least a year, possibly more than two years - Myanmar's infrastructure needs are too urgent for this potential delay. I worry that if legislation is coming, it will play out like the company and IP legislation: people are going to say let’s just wait for the PPP law. Baker McKenzie meets with a lot of international investors before they come into Myanmar and they ask many questions about the market. One of the subjects that is very high on their list of questions when they are interested in infrastructure is the question of open and transparent procurement. Myingyan Power Plant was run on international standard procurement, but many projects aren’t. Thus, a PPP framework can assist by providing certainty to the private sector, laying out the government's approach to PPPs. In my opinion, we can give the private sector certainty without having to go through an entire parliamentary process. This appears to be the best approach when the infrastructure gap is so significant. What do you think is the government’s viewpoint on PPP standardisation or a PPP law? There has been a lot of discussion about a law. There is a lot of advice being given to the government that a law is unnecessary, similar to my views, and indeed could impede basic infrastructure development for the Myanmar people, or the facilitation of trade. The government’s overall approach appears to be towards PPPs, standardisation and possibly some form of transport procurement.

Beyond that, it begins to get a bit divergent depending on which ministry you are dealing with: if you look at power, railways, roads, etc., all the ministries have different approaches. We have seen a lot of discussion of PPPs in power because it’s a huge priority for the government. We have also seen quite a bit of discussion of PPPs in relation to toll roads, but we have seen almost no debate on private sector participation in railways. I would like to see more investment in Myanmar’s railways as they could provide an efficient and relatively safer mode of transportation and trade, though investment in railways would most likely require legal reform. Not necessarily on the PPP side, but on railways generally, such as facilitating or enticing passengers onto railways, and getting passengers to pay for the use of those railways. Frankly, Myanmar has an amazing opportunity in railways. If it develops western ports such as Kyaukphyu into China, or even Dawei into Thailand, it could cut out the need for ships to go down and around the Strait of Malacca. If there is sufficient railway infrastructure between the ports and these destinations, Myanmar really could become a trading hub, and the source of trade access into Asia. But for that to become a reality, an enormous amount of port, road and rail infrastructure needs to be funded and constructed. The Myanmar government seems to lack a systematic method for choosing a financing method for large scale infrastructure projects. There doesn't appear to be a systematic approach and I don’t believe there has been a lot of movement towards a systematic approach when evaluating financing methods. It’s still very ad hoc.




It depends on the piece of infrastructure and if it has been proposed by the government or pushed by the private sector. To a certain extent, I don’t believe that we can make that process completely systematic. For better or for worse, when you invite private sector financing there are certain things the private sector wants to finance and there are certain things they will never finance. In that sense the government can never entirely choose where private financing goes. I would approach it from the perspective that certain infrastructure projects could currently, or with minor tweaks, be profitable in and of themselves. For example, a certain number of toll roads in Myanmar would fall into that category. Smaller projects in regional areas with nearby commercial activity or collections of factories can probably stand alone. In those projects, I do not believe there should be too much government funding; they should be left to the private sector. Within the PPP structure, there are a number of ways you could finance those projects, such as joint finance or private sector capital and government assistance to deal with sovereign risks. While I do not consider that a systematic approach can be taken to selecting private finance projects, there does need to be a systematic approach to what infrastructure Myanmar wants and needs. Having identified that, we can work out which projects should be wholly-allocated to the private sector and which projects should be PPPs. There have been some good plans in power, but when you look at projects outside the power sector a lot less planning has been done.

We watch port developments very closely, especially the debate regarding whether Myanmar needs a deep-sea port and where it would be located. It’s a critical debate to have, but there is no obvious resolution. There does not seem to be a clear plan for ports and if you don’t have a clear plan for ports, you can’t have a clear plan for railways. If you can’t have a clear plan for ports and railways, you don’t have a clear plan for roads. Infrastructure is very integrated. How is planning on the Yangon Region level? The Yangon Region government has a number of good plans for infrastructure, however the Yangon Region government plans cannot be isolated. As I mentioned before, infrastructure is integrated: for example, you can’t know whether Yangon needs significant rail or road upgrades from its port facilities until you know whether Yangon needs a deep-sea port. Further, until you have worked out where the deep-sea port can and should be, a port operator will not invest significant money (for example, large port investors require some form of exclusivity to protect their significant investment, and if they think the government will allow a new port 50km down the road they will not invest). I understand that none of this is easy, but I would be more minded to have an integrated plan (from multiple levels of government), announce it and seek consultation. There are many talented companies that are happy to provide expertise for free. I would then do a final plan and implement it as soon as possible. An imperfect plan is better than no clear plan.




The idea of PPPs in airports seems to be gaining traction considering Hanthawaddy Airport and with the Department of Civil Aviation (DCA) recently inviting private firms to bid on upgrading and operating three regional airports. What is your take on airport PPPs in Myanmar? The regional airport projects are good projects. It’s one way of facilitating trade, especially for agriculture. You can’t have agriculture production 500km away from Yangon servicing Yangon if it’s on the back of a truck and requires seven days travel to get produce to Yangon. It’s ripe for PPP involvement and should be explored further. What do you think the role of state-owned enterprises (SOE) is in infrastructure development? It’s a complex issue and definitely industry-specific. SOEs can be very important, however, they do need to operate at international, efficient levels. If they can’t, then that sector should be opened to private investment. The private sector does bring with it an enormous amount of expertise, which can make things more efficient. Overall this is much better for the country because the government can spend money in markets where government finance is required. Fundamentally, I like the idea of private sector competition. I understand that it can be confronting because people feel there is a loss of control. They feel that if it’s controlled by the State, then it’s run by the State for the good of the people. I feel that having SOEs and private sector companies competing can bring the best of both worlds, such as greater efficiency, lower prices and higher quality, but they need to compete on a level playing field. In other countries we call this competitive neutrality,

and that’s something that is not even part of the debate yet in Myanmar. In summary, SOEs can be an important vehicle for the delivery of services to the public, though I would encourage opening up to the private sector where it is possible. In what way are multilaterals helping to develop project financing methods in Myanmar? I see multilaterals as the bridge from what we have now (mostly government-funded projects) to fully private-sector-funded projects. The risk profile is not yet quite right for fully private sector projects. I’m an advocate for project financing, but we are not quite ready for that here in Myanmar. A multilateral agency can help bridge that gap. The role they took in Myingyan, in my view, is the perfect role for multilaterals in hard infrastructure. First of all, they provided some finance. Second, they helped address what we call sovereign risk through sovereign risk insurance and leveraging their close relationship with the government to address issues. I believe that they will have a very important role in almost all funding projects. Importantly, once multilateral agencies are involved, foreign banks will generally be more comfortable financing a project. In Myanmar we should see multilateral agencies involved in the first of these types of port, railway and power projects. How can Myanmar apply the PPP structure to affordable housing? This is an example of where private sector funding is difficult. PPP funding is possible and there are examples of successful social infrastructure and housing projects.




What does that look like? It looks like the government granting land for the development of affordable housing and then that project company receives the return. Making it worthwhile for a private sector company to develop affordable housing is a complex issue as rent is necessarily restricted. It’s not as if they can build the development and then charge whatever they like: the idea is to keep rent below a certain level. Construction costs in Myanmar are quite high, which adds another layer of complexity. They’re not going to make money overnight. This is one of the areas ripe for creative PPPs. Other than building a block of apartments and charging rent to the individuals, the private sector could construct other things related to that land. For example, there could be a retail component (mixed-use development) to the complex or you could build cell towers on the roof. This is where to make a project such as affordable housing attractive to the private sector: there needs to be sufficient ancillary benefits. From a property ownership perspective, the restriction of 50 years plus 10 years plus 10 years for a foreign land lease under the Myanmar Investment Law isn’t actually that long. After 70 years, the developer is handing the land, and whatever it has developed on the land, back to the government for free. The developer needs to make its money well inside the 70-year timeframe, which most likely requires a creative PPP for social housing projects.

Government and local authorities Uncertain outlook for construction sector, claims World Bank Despite presenting a cautiously optimistic outlook for overall economic growth in 2017/2018, the World Bank Group reports less positive developments in the construction sector. The World Bank Group recently released the October 2017 Myanmar Economic Monitor, which found that although overall growth slowed to 5.9% in 2016/17, compared to 7% in 2015/16, the economy is expected to recover to a 6.4% growth rate in 2017/2018. However, the construction sector’s recovery has been slow after last year’s slump, while early signs of a decline in the quality of overall lending to the sector could be of concern. Equally noteworthy, a prudent warning on the risks resulting from the recent escalation of conflict in Rakhine State echoed throughout the report, warning that the tension has the potential to stall the overall economic reform process. Construction sector overview A contraction in gas production has had an effect on construction sector performance. Decreased gas output and sales resulted in reduced or postponed spending on public infrastructure projects, which were expected to be a major driver of construction activity. Overall, the sector has seen a slow recovery from last year’s sharp decline, the report said. While investors might have indicated a downward adjustment in government contracts, several important reforms were initiated. One such example is the National Building Code (2016), which aims to improve quality and standards compliance in the construction sector.




Private investors have also held back after the high-rise freeze on 200 building projects in Yangon. Moreover, around 90% of the construction sector is reportedly made up of Small and Medium Enterprises, which are less flexible in adjusting production capacity to sudden changes in economic policy or conditions. Credit growth to the construction sector While there has been an overall slowdown in economic activity, credit growth to the private sector has been positive and expanded at over 30% per year in nominal terms in the last three years (Figure 51).

However, the rapid growth in lending in construction and manufacturing might be hiding a more nuanced story and could be of concern if the lending pool is made up of so-called overdraft or evergreen loans. “Rapid credit growth does not necessarily reflect a deepening of financial markets. Continued loan ever-greening in sectors facing economic challenges and emerging signs of sector concentration of credit (Figure 52) suggest that the quality of banking sector assets may be lower than highlighted by official indicators,” the report said.

Private bank profitability also declined in 2016/2017, which could be further indication of declining quality of the overall lending portfolio, which is in part prompted by the slowdown in sectors like construction. Investor commitment overview Investor interest this year has remained strong and there have been several large investments recorded, such as a several major hotel chains investing in new properties across the country. But a lag between investment commitments and implementation has started to grow. Some industrial and manufacturing investors that have held back due to perceived and actual risks. Repercussions of localised conflict While the recent escalation of conflict has thus far remained geographically contained, there may be ripple effects throughout the wider economy. The report highlights that the violence and humanitarian emergency draws government expenditure and ODA. The conflict also increases security concerns and negatively impacts international relations and public perception. The latter concerns may impact future opportunities in the tourism, transport and hospitality sectors.




According to the report, “a slowdown in investments would feed into slower growth in financial services. A slowdown in investment flows to light manufacturing and the power sector would have negative spill over effects on infrastructure construction activity.” Annex: Construction Data The annex at the end of the report has data showing number of days taken to get construction permit and percentage of firms expected to give "gifts" to get permits actually rose between 2014 and 2016. The time it takes to obtain a construction permit rose from 32.9 to 53.5 days and the percentage of firms to give gifts for permits rose from 46.5 to 47.6.

Residential CHDB plans to increase loan repayment period The semi-government owned Construction and Housing Development Bank (CHDB) is planning to provide 20-year loans to buyers of low and medium-cost housing units. The scheme will not include high-end housing units, according to The Daily Eleven on 22 November. “The 20-year repayment is aimed at buyers of low and medium-cost housing units worth up to Ks 50m ($37,000). We will not offer 20 years to high-end unit buyers,” according to CHDB executive director Daw Myint Myint Mu. She added that there is a 15-year repayment schedule for high-end unit buyers, as those buyers have the financial resources for higher upfront payments.


Corruption MMR2014 MMR2016

% of firms experiencing at least one bribe request

42.9 29.3

% of firms expected to give gifts for construction permit

46.5 47.6

% of firms expected to give gifts for government contracts

32.5 9.8

% of firms expected to give gifts in meetings with tax officials

37.1 20.4

Regulations and Taxes

MMR2014 MMR2016

Senior management time dealing with regulation (%)

2.0 0.8

Number of visits or required meetings with tax officials

n.a. 0.9

Days to obtain an import license

15.5 19.5

Days to obtain a construction-related permit

32.9 53.5

Days to obtain an operating license

26.6 39.2



Buyers looking to purchase low-cost and affordable housing from the Department of Urban and Housing Development (DUHD) under a long-term instalment plan will have to open a housing savings deposit account with a minimum balance of Ks1000 and save 30% of the apartment value. The buyers can then deposit any amount of money in the account, depending on their monthly income. The bank will pay 8.5% per annum interest on their savings. At present, both state-owned and private banks provide mortgages with a maximum repayment period of 15 years at an interest rate of 13%, which is mandated by the Central Bank of Myanmar. Currently, it is a trend for the developers to start selling their property in cooperation with banks. Buyers who have deposited 30% of the unit price at the cooperating bank or with the developers, are then eligible for a loan worth 70% of the unit price. Commercial and Industrial Bids total $5.8m for Rakhine market tenders Rakhine State has awarded a total of Ks7.8bn

($5.8m) in contracts for market developments

in six townships in the state, according to a 23

November article in The Voice Daily.

The Rakhine State government reportedly opened the tenders for the development of markets in Sittwe, Kyauktaw, Ramree, Taungup and Gwa townships, and awarded the contracts to the following five companies: 1. Kyauktaw Market: Wai Thar Li Company,

Ks 1.7bn ($1.3m) 2. Gwa Market: RT&K, Ks 1.6bn ($1.2) 3. Ramree Market: Linn Lat Wadi, Ks 1.4bn

($1m) 4. Sittwe Market: Thar Gi Swe, Ks 1.6bn

($1.2m) 5. Taungup Market: Super Sunshine, Ks

1.5bn ($1.1m)

The Rakhine State government released the tender in late September 2017 and set a submission deadline for 16 October. Earlier this year, the Rakhine State

Development Committee also called for bids

for joint venture developments of two markets

in Thandwe and a market in Gwa township

Building Materials NDC seeking companies for Naypyitaw Cement Factory lease Naypyitaw Development Committee (NDC) is informally seeking companies to lease the Naypyitaw Cement Factory in Lewe township. Currently under NDC operation, the wet process cement plant manufactures only 400 tpd, although it has a total capacity of 500 tpd In July 2017, the NDC released an EOI for lease of the facility for 30 years, with a deadline set for 1 September for EOI submissions. U Aye Ko Ko, head of NDC’s City Planning and Land Administration told Myanmar Real Estate & Construction Monitor that Max Myanmar and Pyi Hlwan Kyaw passed the EOI stage, but pulled out of the process when asked to submit formal bids. The companies may have also withdrawn their bids due to the price floor, which, according to U Aye Ko Ko was between Ks 50m ($37,000) to Ks 100m ($74,000) per month. Max Myanmar’s subsidiary Max Manufacturing is currently operating a 2,100 tpd dry process plant in Lewe township. Pyi Hlwan Kyaw is said to be a joint venture between local and Chinese companies. Before a formal EOI is released, U Aye Ko Ko said the minister asked the NDC to wait and see if any interested companies approach them to discuss cooperation informally.




“Foreign companies must work through a joint venture, and winning contractors can upgrade the plant. Then negotiations can be flexible, unlike the formal bidding process for the lease of the plant,” he added. Building materials Century Steel ups investment in Thilawa steel manufacturing Taiwanese steelmaker Century Iron & Steel Industrial is making additional investments in its manufacturing plant in the Thilawa Special Economic Zone (SEZ). Century Iron & Steel Industrial (CT) will be putting in an additional $8 m in its steel manufacturing in the Thilawa SEZ for the construction sector, according to an official from the Directorate of Investment and Company Administration, as quoted in Deal Street Asia. The additional $8m investment was approved in mid-2017. CT has forged a joint venture, Myanmar Century Steel Structure, with Hsin Kaung Steel for manufacturing steel construction products. The Myanmar Century Steel Structure factory in Thilawa SEZ covers a space of 100,500 sq m and handles manufacturing of steel structures such as box columns, H-beam, large truss and large steel pipes. The company made a $12-million investment in 2015. In 2016, CT completed the first stage of its Myanmar plant.

Commercial & Industrial Two logistics facilities open in Dagon Seikkan Two logistics companies, Damco Logistics Myanmar and Nordic Technology Group Myanmar, have opened facilities in Dagon Seikkan over the past week. Logistics companies are increasingly drawn to warehousing and logistics centre investments in Yangon’s Dagon Seikkan township due to the area’s proximity to growing industrial zones and easy access to Thilawa SEZ and Yangon's ports Damco Logistics Myanmar Damco Logistics Myanmar has opened a new logistics centre, partnering with local group Star Light Group to construct the facility. The Damco Myanmar Logistics Center in Dagon Seikkan township has a combined space of 10,000 square metres. The centre is 8.7 km (5.4 miles) northeast of the South Dagon Industrial Zones, 20 km (12.4 miles) southeast of Yangon International Airport, 27 km (16.7 miles) north of Thilawa SEZ and about 25 km (15.5 miles) northeast of Yangon’s downtown ports. The company plans to use the facility to service the garment and retail sectors, according to a release from Damco. Inventory management, RF scanning, order processing and bar coding will be available to customers, as well as services such as inland and cross-border trucking. Damco Myanmar Logistics began its Myanmar operations is 2013. The company claims it established Myanmar's first international standard warehouse and container freight station facility in 2014. It is a subsidiary of the Damco Logistics, a global freight forwarder and supply chain management group that specialises in garments, retail, FMCG and chemicals.




Damco is part of A.P. Moller-Maersk Group, a Danish transport and energy conglomerate. The group’s Maersk Line is the largest container shipping company in the world. Star Light Group, Damco’s local partner on the project, is a local conglomerate made up of nine companies with businesses interests in trading, healthcare, construction, property, education and hospitality. Established as a trading company in 1993, the group eventually moved into real estate and construction, with a focus on commercial and industrial projects such as warehousing, factories and logistics centres. Star Light has previously worked with international companies such as Nestle and Thailand’s C.P. Group.

Nordic Technology Group Myanmar Nordic Technology Group Myanmar, a logistics and warehousing company, began operations at a new container freight station in Yangon that packs garments for export on November 14, according to Frontier.

The container freight station in Dagon Seikkan Township checks, sorts and packs garments and footwear for export to Europe and the United States, NTGM said in a news release. NTGM’s two warehouses in Dagon Seikkan, occupy a total of 33,000 sq ft with nine loading bays. The company is currently building a third, much larger, warehouse of 72,000 sq ft, which will start operations in February 2018. It also plans to open a new site in Mandalay later this year. NTGM has grown rapidly since its start in Myanmar in 2014. The company provided project logistics for the oil and gas and telecoms sectors, before moving into warehousing and providing CFS services. NTGM is a subsidiary of Singapore-based Nordic Alliance Services. Commercial and Industrial Fisheries Federation seeking thousands of acres in Yangon The Myanmar Fisheries Federation is planning three zones for export-oriented fishery products in Yangon by 2018, reported The Irrawaddy on 20 November. Some 10,000 acres are allegedly earmarked for the zones, which will include fish and prawn breeding ponds and aqua feed formulation and production plants, as well as cold-storage facilities. Myanmar Aqua Feed Association chair Dr Thet Hmu said that the Myanmar Fisheries Federation, led by Yangon Region chief minister, is currently finding land, although no site has yet been confirmed.




Land preparation will be carried out in December 2017 once the organization has found the right location and the project will commence in 2018. Roads and other necessary infrastructure will also be developed at the project site. Foreign investors will reportedly be allowed to invest in the zones. However, they will not be able to take 100% ownership, said Dr Thet Hmu. Commercial and Industrial Work begins on Rakhine commercial park The commencement ceremony for a commercial park was held in Rakhine State’s capital of Sittwe on 18 November, according to the official Facebook page of the Rakhine State chief minister U Nyi Pu. Danya Gone Yee Development Public Company is set to develop the commercial park on the new site of the highway bus terminal. The military-run Myawady Daily reported on 19 November that the project will serve as a logistics hub once completed and will include a modern bus terminal and warehouses. The project director, U Min Naing, said that the earthworks are complete, while road and other infrastructure works remain under construction, but are on track for a 2018 opening. Neither the project’s total acreage nor its detailed components are mentioned in local news sources. U Khin Maung Aye, the chair of KMA Group of Companies, and CB Bank, and the state chief ministers and other officials reportedly attended the ceremony.

Design & Architecture Myotha Golf Club to be completed in December The construction of the Myotha National Golf Club in the Mandalay-Myotha industrial park will be completed in December, the club’s managing director said, according to The Myanmar Times. “The whole 18 hole golf course will be finished in December,” said U Tun Tun Aung, managing director of Mandalay-Myotha Industrial Development Public Company. “People can play but we need to add further Club Houses and Facilities. It will be fully operational by April 2018,” he added. The 688-hectare golf course was designed by Schmidt-Curley’s Design Team from America and built by Green Dynasty with an investment of $25m. Construction on the project reportedly started in May 2014. The course was set to open in 2015, but faced delays. A $48m housing project comprising 1,700 residential units will also be developed within the golf course area, according to U Tun Tun Naing.




Transport and Infrastructure Myanmar Railways invites EOI for Bauk Htaw Station redevelopment Myanma Railways (MR) invited local, international and joint-venture companies to submit expressions of interest (EOI) for the development of the Bauk Htaw Station area and the construction of an over bridge on Thitsar Road. Bauk Htaw Station is one of Yangon’s 39 stations on the circular railway line. It is located about 8 km (5 miles) northeast of Yangon Central Railway Station. MR’s announcement was published on 20 November in state-run newspapers, after MR was unable to pick a winner from a previous tender. MR is planning to develop the 4.16-acre site at the border of Yankin and Thingangyun townships into a commercial development with high-rise buildings. The overpass bridge near Thitsar road would presumably be north of the development, MR claimed in the release. It is also a part of the Greater Yangon City development plan. MR will be in charge of the selection process of the potential developer. Interested developers must submit an original hard copy of the EOI with one duplicate copy, as well as an electronic copy of the EOI in CD-ROM to MR’s head office in Yangon. If a developer passes the prequalification stage, it will be invited to prepare and submit technical and financial proposal documents. The bid winner will carry out the design, financing, procurement, construction and maintenance of the project.

The Bauk Htaw Station announcement comes as the tender for the Yangon Central Railway Station redevelopment is reportedly in the final stages. In mid-November, the Deputy Minister of Transport and Communications said that a tender winner for the project will be announced in December. Government & Local Authorities Demolition of historic buildings in Pyin Oo Lwin delayed after protests The Department of Urban and Housing Development (DUHD) issued a notice to demolish historic buildings located in a multi-office compound in Pyin Oo Lwin township, Mandalay Region, though the demolition work will be suspended following letters of protest from residents. A Union-level letter requested the demolition of the old buildings in Pyin Oo Lwin to build civil service housing, a playground and park on the site, said U Kyaw Min, assistant director of DUHD, Pyin Oo Lwin, as quoted in The Myanmar Times on 22 November. U Kyaw Min said authorities received a letter to form a committee to dismantle the buildings, but the public protested against it, leading the department to inform the Union government of the situation. “Officials will come and study the case at the site. We will make a decision on what to do following their visits,” he said. A few local organizations such as Sein Lan Pyin Oo Lwin, an environmental conservation team and Thani Thu Kha, a social welfare association protested against the demolition, according to The Myanmar Times. U Ko Ko Gyi, vice chair of Sein Lan Pyin Oo Lwin said that one of the buildings set for demolition is over 100 years old and constructed during the British period.




U Ko Ko Gyi said they will submit the required conservation documents and advocate for the conservation of other similar buildings. If the building is conserved, residents will also provide financial assistance, he added. “We have a map of ancient buildings in Pyin Oo Lwin. After the buildings are renovated, we will organise an exhibition of British colonial materials,” he said. Pyin Oo Lwin, formerly known as Maymyo, was a colonial-era hill station, located about two hours from Mandalay in the Shan highlands. It is still a popular place to escape the heat and is famous for the historic National Kandawgyi Botanical Gardens. The town also boasts a number of old examples of colonial country mansions, which have recently been converted into hotels. According to local media reports last month, the government also plans to promote Pyin Oo Lwin as a flower city. A private company will import quality flower seeds from the Netherlands to grow more flowers and export the flowers to the international markets, according to the Ministry of Agriculture, Livestock and Irrigation. Government and Local Authorities MIC releases priority investment list for Kayin State Myanmar Investment Commission (MIC) released a list of priority sectors for Kayin State on 20 November. Those who submit proposals for investments in the priority sectors in the state will reportedly receive fast approvals from the MIC.

The priority sectors are as follows: Electricity Generation and Distribution Bonded Warehousing Facilities Establishment of Industrial Estate Transport Infrastructure Industrial Manufacturing Agriculture Hotels and Tourism The number of days it will now take to process an application at the MIC has not been confirmed, though it is likely to still be dependent on how investors complete their proposals. For example, it currently takes 60 days to receive an approval from MIC, on the condition that the application is fully complete. MIC will launch an investment fair in Kayin State capital Hpa-an on 24 November 2017 that will be accompanied by a seminar, exhibition, and business matching. The fair will reportedly host 300 participants from across the country. Myanmar Real Estate & Construction Monitor notes that the MIC also released ten priority sectors after the launch of the new Myanmar Investment Law in June 2017. The ten sectors are as follows: Agriculture and related services, plus

value-added production of agricultural products

Livestock production and breeding, and production of fishery products

Export promotion industries Import substitution industries Power sector Logistic industries Education services Health care industry Construction of affordable housing Establishment of industrial estates




Government and Local Authorities MIC to publish actual FDI data The Myanmar Investment Commission (MIC) will release information about the inflow of actual foreign direct investments every three months, said commission secretary U Aung Naing Oo, as quoted by Eleven News on 19 November. “Now, the MIC has released the list of FDI and will issue the real FDI in the next three months,” said Aung Naing Oo. Currently, the Directorate of Investment and Company Administration (DICA) releases officially approved investments, which indicates investor confidence, but does not show accurate inflows of foreign capital each month. According to DICA representatives, DICA does collect information on quarterly inflows of actual FDI. However, companies often do not comply with the surveying, which has led to unreliable data in the past. As of 30 September, the FDI permits granted by the MIC totaled over $4bn in the first half of the 2017-2018 fiscal year, increasing by $3bn compared to the same period during the 2016- 2017 fiscal year. The actual FDI was much lower, amounting to only $2.8bn, according to the MIC. The United Nations Conference on Trade and Development (UNCTAD) and the IMF currently publish their own calculations of Myanmar’s actual FDI. Both international organisations usually report much lower numbers than the official DICA approved statistics; however, the figures are also affected by underreporting.

Government and Local Authorities Nearly 800 construction companies register with Bago investment committee A total of 776 construction companies have registered at the investment committee of Bago Region as of 14 November 2017, according to the regional government. The Bago Region government announced in mid-2017 that companies are required to register in order for them to compete in bidding for construction projects in the region. The number of registered companies chronologically are as follows:

The majority of the registered companies are based in Yangon, though several dozen have addresses in Naypyitaw, Bago and Mandalay Regions.


Date No. of

Companies

7 – 9 June 22

12 – 16 June 70

19 – 23 June 114

26 – 30 June 70

3 – 14 July 45

17 – 31 July 61

1 – 11 August 84

14 – 31 August 70

1 – 15 September 92

18 – 30 September 95

1 – 14 November 53

Total 776



The registration process appears to be different from the initial company registration at the Directorate of Investment and Company Administration (DICA), as it requires forms VI and XXVI, which are only received by companies after DICA registration. While companies are required to register with the Directorate of Investment and Company Administration (DICA), some states such as Yangon, Bago and Tanintharyi also require an additional level of registration with local authorities for the companies to be eligible for bidding in local infrastructure and construction projects. Legislation Yangon zoning plan to be completed next month The Yangon City Development Committee (YCDC) is set to finally complete a zoning plan for the city in December, according to a 21 November article in Pyi Myanmar Journal. An updated zoning plan has been in discussion for years, though it has never been formerly adopted. However, many in the construction industry would welcome greater clarity on zoning rules and regulations, especially after the fallout from the high-rise freeze in 2016, which developers say lacked transparency. YCDC has been working with the Japan International Cooperation Agency (JICA) to draft the final zoning report, which will be completed in December and is likely to be published in early 2018, said a YCDC official. This new zoning plan will reportedly include high-rise and non-high-rise zones, with height restrictions in designated areas. Myanmar Real Estate & Construction Monitor also notes that the zoning draft reportedly divides Yangon into 10 zones, with different activities allowed in each zone.

Under the current draft, about 30-35% of the city’s total land area is available for high-rises, while 20% is set aside for open public space. U Toe Aung, director of YCDC’s Urban Planning Division, previously said at a Building Yangon event, hosted by VDB Loi on 4 April, that the zoning plan includes a height restriction of 190ft from sea level in the area surrounding the Shwedagon Pagoda. Legislation Tax revenue from Bago property transactions reaches almost Ks1m The Internal Revenue Department (IRD) of Bago Region collected over Ks900m ($670,000) in tax revenue from property transactions between April to October 2017, according to a 19 November article in The Myanmar Times. Taxes are levied on property transactions in line with values appraised by the Bago Region government, in addition to a 5% stamp duty. U Hla Win head of the Bago township IRD said contracts without stamps are illegitimate and will be fined ten times the stamp duty rate, if discovered. According to the article, Union Tax Law mandates the following rates on property transactions that are made with funds on which taxes have not been paid (locally known as “black money”): 15% for property valued between Ks1

and Ks3m ($22,000) 20% for Ks3m-Ks100m ($22,000-

$77,000) 30% for Ks100m ($77,000) and above Myanmar Real Estate & Construction Monitor notes that the government of Bago Region is planning to amend the appraised value rates on residential and industrial land.




According to IRD statistics for this fiscal year, appraised land values for Bago township for the 2017-18 fiscal year, are set between Ks4,591 ($3.40) and Ks114,787 ($85) per sq ft, depending on the location of the land plot. Legislation Yangon Region passes motion to restrict construction on old ponds and reservoirs Construction on land that was once ponds or reservoirs will not be allowed because the sites still serve a valuable purpose in helping to control flooding, said regional Hluttaw representative, U Yan Shin, on 14 November. “We should not allow the construction of buildings over dried up ponds and water reservoirs by filling land into it, even if these ponds and water reservoirs are no longer included in the [municipal] map. Those ponds and reservoirs should be restored,” said U Yan Shin, the Regional Hluttaw representative from Mayangone Constituency 1, according to state-owned The Global New Light of Myanmar. U Yan Shin proposed a motion to the Regional Hluttaw to restrict the construction of buildings over dried up ponds and water reservoirs and to restore those areas. “These ponds and reservoirs collect water and prevent flooding during times of heavy rains. Now that these ponds and reservoirs are dried up and no longer exist, the Yangon Region faces flooding annually,” he said. The ponds and water reservoirs dried up because of the garbage thrown into the spaces and illegal squatters settling on them, he added. U Kyaw Kyaw Tun, the Hluttaw representative from Hlaing Constituency-1 also said construction on former pond and reservoir sites should be controlled and funding from the World Bank will be used for further flood prevention infrastructure.

Region Hluttaw representatives decided to accept the motion. During the new government’s term, Yangon City Development Committee has not allowed the construction building over ponds and water reservoirs included on the city map, said the mayor of Yangon, U Maung Maung Soe. Legislation Parliament approves third-party system for construction work The Lower House of Parliament has approved a proposal calling for the government to utilise a third-party system for construction work across the country. The current structure of ministries proposing budget estimations for projects, as well as designing and overseeing the projects, has resulted in significant inefficiency, MP Daw Yin Min Hlaing from Gangaw township said earlier this month at a 1 November parliament meeting. "That’s why we need a system where a third party can carry out the quality checks independently and responsibly. In the past, the government’s direct involvement in administering quality checks and controls at construction sites has also resulted in unnecessary corruption," MP Daw Yin Min Hlaing was quoted as saying in The Myanmar Times earlier this month. MP Daw Yin Min Hlaing originally drafted the proposal. Then, Deputy Minister of Construction U Kyaw Linn supported the proposal after a discussion with 15 MPs, according to various local media publications. The Lower House of Parliament announced that the proposal was approved on 14 November after two weeks of discussions.




MP U Naing Naing Win from Tamu township claims the new policy will allow the development of actual quality infrastructure projects to occur. Moving forward, bylaws will be developed before the policy is implemented. The ministries should form supervisory committees tasked with choosing suitable third parties and monitoring their work, MP U Myint Oo suggested. Legislation Urban plan for Naypyitaw in drafting process A 30-year master plan aiming to make Naypyitaw into a logistics hub is currently being drafted, according to Naypyitaw Development Committee member U Min Thu. The military government did not build Naypyitaw in accordance with a specific urban plan, apart from designating five different zones, so a new plan is being created. “At that time, the military government built Naypyitaw with five zones, though it is unclear what the government’s ambition was. Perhaps they had security concerns,” U Min Thu said, as quoted in a 17 November article by 7Day Daily. Work began on the draft urban plan in February 2017. However, the organisation working on the draft remains unconfirmed. Revenue collected by Naypyitaw Development Committee will be used for the plan. Naypyitaw was founded by the military government about a decade ago, when then the capital city moved from Yangon. Naypyitaw includes five zones, Uttarathiri Zone, two Dekkhina Thiri township zones, a hotel zone and a zone for ministries and staff housing.

Civil servants make up the majority of the population in Naypyitaw, but with the new city plan, the government is hoping to change the city from one solely based on government employees to also being a logistics hub. Retail & Hospitality Serviced suites being added to Parkroyal Yangon A two-storey building for serviced suites is under construction and will replace the tennis court at the Parkroyal Hotel in Yangon. The Parkroyal Yangon’s sale representative told Myanmar Real Estate & Construction Monitor that a separate building will house eight serviced suites, which will have a view of the swimming pool. “Construction is about 50% complete, and it is earmarked to open in early 2018, possibly in the first month, though it is not confirmed yet,” said the source. The 334-room Parkroyal Yangon opened in the early 2000s and recently underwent a refurbishment in 2015. The hotel is owned and managed by the Pan Pacific Hotels Group, a subsidiary of Singapore-listed UOL Group. Pan Pacific Hotels Group has around 20 Pan Pacific hotels and 14 Parkroyal hotels in Australia, Bangladesh, Canada, China, Indonesia, Malaysia, Philippines, Singapore and Myanmar. The group also launched Myanmar’s debut Pan Pacific Hotel in Yangon’s Junction City on 1 November 2017. The Pan Pacific has a total of 336 rooms. The group has a 20% stake in Pan Pacific

Yangon hotel, with the remaining balance held

by two joint-venture partners.




Retail & Hospitality DUHD and City Properties JV to build supermarket A ground-breaking ceremony was held to start the development of a supermarket in Yangon’s Dagon Seikkan township on 19 November, according to an article in Myawady Daily. The supermarket will reportedly be developed through a joint venture between the Department of Urban and Housing Development (DUHD) and City Properties. The exact location of supermarket is not described in the article, though it is thought to be located near the Yazana and Yadanar Hninsi housing projects in Dagon Seikkan township. The ceremony took place before the opening ceremony of Yuzana Housing Phases 1 and 2, and the Myathida Garden nearby. After the supermarket ground-breaking ceremony, minister of construction and electricity and energy,U Win Khaing and minister of planning and finance U Kyaw Win, proceeded to a ceremony for the hand-over of units at Yadanar Hninsi Residence. The Yadanar Hninsi Residence is part of the large-scale Ayeyarwun Yadanar Housing project, which is ultimately set to have residential units and amenities such as supermarkets, schools, fire stations and parks. The planned supermarket is the first commercial facilities dedicated to a housing project developed by the government. City Properties is believed to be an affiliate of the famous retail chain City Mart Holding Limited (CMHL). City Properties recently opened the St. John City Mall in Dagon Township on 4 August.




Companies and Project Profiles The Myanmar Real Estate and Construction Monitor database now includes over 450 company profiles, as well as 200 profiles of in-progress or planned real estate projects. The database is continually updated with new information. This week, the following company and project profiles were updated: Company Profiles Kajima Overseas Asia (Myanmar) SEAFCO (Myanmar) EPCM Myanmar Myanmar Native Land Public TZTM Construction Huationg-Nippo Logistics KMA Construction and Real Estate Development Acura Engineering Sun Myat Tun (SMT) Construction Project Profiles The Garden (Kajima Corporation) Harbour Trade Tower Malikha Condominium [completed] Royal Sayarsan Condominium Former Secretariat complex Please note that access to our Company Profiles and Project Profiles is available to Premium Subscribers only. For information on Premium Subscriptions, please contact: Jordan Zele [email protected] +95 9979420841 Kyawt K Khine [email protected] +95 943198458


Company and Project Profiles


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NEW TENDERS


Overview EOI for Myanma Railways Baukhtaw station area redevelopment Deadline 19 December 2017 Contact The EOI in original hard copy, one duplicate copy and an electronic copy the CD shall be submitted to the Deputy General Manager, Supply Department, Myanma Railways, Corner of 51st Street and Merchant Street, Botahtaung Township, Yangon, Myanmar. Phone: (+95)1 291 985, 291 994 or 393 424 not later than 14:00 hours on (19th) December 2017. Submission by email shall not be entertained. Description Myanma Railways (MR) is committed to develop Baukhtaw Station Area as Rail Concerned Business, High-rise Building, Comprehensive Development in the planned area of 1.68 ha (4.16 acres) and Thitsar Road Over Bridge Construction and Transport System also the essential part of the Greater Yangon City development. During previous Tendering process Myanma Railways was unable to select a successful developer.

Myanma Railways now invites Expression of Interest (EOI) from reputable local, international or joint venture developers to undertake design and build works for Baukhtaw Station Area as Rail Concerned Business, High-rise Building, Comprehensive Development, Thit Sar Road Over Bridge Construction.

Interested Developers shall submit EOI documents to prove themselves capable enough for the development. MR shall be in charge of the selection of potential developer as prequalification.

Developers passing the prequalification shall be invited to prepare and submit technical and Financial proposal documents.

The successful Tender (hereinafter referred to as the 'Concessionaire'), shall be responsible for designing, financing, procurement, construction and maintenance of the project and in accordance with the provisions of a concession agreement to be entered into between the successful Tender and the Myanma Railways.

Myanma Railways reserves the right to accept or reject any EOI, and to annual the selection process and reject all expression at any time, without there by incurring any liability to the affected Developers or Myanma Railways Managing Director Myanma Railways Ministry of Transport and Communications



NEW TENDERS


Overview Joint venture EOI for Bago heavy industry Deadline 19 December 2017 Contact Planning Department, No.1 Heavy Industries Enterprise, Office 30, Ministry of Industry, Naypyitaw Phone: (+95)67 405 159, 405 322 Description Invitation of Expression of Interest (Eol) for Cooperation with No. Heavy Industry (Thagaya), No.(1) Heavy Industries Enterprise, Ministry of Industry No.15 Heavy Industry (Thagaya) in Yedashe Township of Bago Region(to produce Earth Moving Equipments/ Automobile Vehicles) under No.(1) Heavy Industries Enterprise, Ministry of Industry is intended to cooperate with local (and) foreign entrepreneurs as PPP (JV, Lease, etc.) Interested entities can inquiry and take over the Eol form and other indications by presenting the Company's documents at the following Dates and Place: Eol Form Issued Date: 21.11.2017 Eol Form Submitted Date: 19.12.2017, 16:00 pm EoI Form Issued/Submitted Place: Planning Department, No.1 Heavy Industries Enterprise, Office 30, Ministry of Industry, Naypyitaw

Overview Cement and asphalt supply to southern Shan State Deadline 20 December 2017 Contact Tender evaluation committee, Road Department, Taunggyi Phone:(+95)81 212 1016, 212 1162 Description The Road Department of Southern Shan State invites interested parties to bid for the supply of 1) cement and 2) asphalt to be used in construction of roads and bridges. Payment will be made in Myanmar kyats. Tender application forms can be bought and submitted at the Director Office (Civil) of Road Department in Taunggyi by 20 December. Tender opening will be held at 1:30 pm on 21 December.



NEW TENDERS


Overview Staff housing construction in Pathein Deadline 1 December 2017 Contact Ayeyarwady Region Parliament Office, Pathiein, Ayeyarwady Region Phone: (+95)42 236 37, 236 77, 239 82 Description The Ayeyarwady Region Parliament Office invites interested companies to tender for the construction of a two-storey reinforced concrete staff housing building with four units per floor. Tender application forms can be bought and submitted at the Ayeyarwady Region Parliament Office in Pathein by 1 December, in addition to contractor licenses, company registration and profiles.

Overview Construction of rental housing in Magwe Region Deadline 19 December 2017 Contact Department of Urban and Housing Development (DUHD), Magwe Phone: (+95)63 202 8652 Description The Department of Urban and Housing Development (DUHD) in Magwe Region invites interested parties to bid for the following rental housing in Pakokku, Minbu and Thayat townships. Three six-storey reinforced concrete buildings with eight units on each floor Tender application forms with terms and conditions can be bought and submitted at the DUHD in Magwe by 19 December.



NEW TENDERS


Overview Rebar provision to Taunggyi Deadline 15 December 2017 Contact Tender Evaluation Committee, Road Department, Taunggyi Phone: (+95)81 212 1016, 212 1162 Description The Road Department of Southern Shan State is seeking suppliers of assorted sizes of rebar required for road/bridge construction projects in the state. Tender application forms can be bought and submitted at the Director Office (Civil) of Road Department in Taunggyi by 15 December. Submitted tenders will be opened at 1:30pm on 19 December.

Overview Supply of various construction materials to Sagaing Deadline 12 December 2017 Contact Department of Irrigation and Water Resource Utilisation, Monywa, Sagaing Region Phone: (+95)71 265 26, 236 24 Description The Department of Irrigation and Water Resource Utilization Management is seeking suppliers of the following building materials to Tat village in Sagaing District and Twingyi River Pumping Project.

Brick ( Class A) - 100

Sand - 34,200 cubic ft

Single - 19,700 cubic ft

Chipping stone - 14,700 cubic ft

Cement - 11,435 bags

Rebar - 13.3 tons

J/Wood - 16.16 tons

Diesel - 22,887 gallons

Red soil - 3,646,500 cubic f

Interested parties can collect and submit the tender application forms at the Department of Irrigation and Water Resource Utilisation in Monywa by 15 December.



NEW TENDERS


Overview Paving asphalt road in Kalaw, Shan State Deadline 7 December 2017 Contact Shan State Development Committee, Taunggyi Phone: (+95)81 208 523 Description The Department of Border Areas Development invites local companies to bid for paving asphalt road for 2 miles in Kalaw Township, Shan State. Tender application forms can be bought and submitted at the Shan State Development Committee in Ayetharyar Ward in Taunggyi, by 7 December.



CALENDAR

Myanmar Real Estate and Construction Brief | 20 - 27 November 2017 29

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