Myanmar launch tender for expressway PPP with IFC backing
The International Finance Corporation (IFC) is to advise the Ministry of Construction of the government of Myanmar on a 20.5-kilometre elevated toll road project in Yangon, the largest city in the country, located on the south coast. This is the country's first greenfield road PPP project.
Local press reported that the IFC signed an advisory services agreement to design and implement the public-private partnership transaction for the project with the Ministry on 11 January.
The four-lane expressway is proposed to be implemented on an elevated viaduct above existing roadways to connect Yangon's central business district in the south with the Yangon Industrial Park in the north. The expressway will also provide a link to Yangon International Airport.
The project has a estimated total investment of between US$350 million and US$400 million. The IFC aim to award the contract in early 2019. Construction will take two to three years.
Eager to get the ball rolling, the IFC have launched a tender for a consultant firm to provide technical advice for the project. The Request for Expression of Interest details that the selected firm will prepare an updated traffic demand and tolling study, design specifications for the expressway, project costing, and provide ad hoc technical support during the PPP design and tendering process.
The deadline to submit Expressions of Interest is 22 January 2017. For more information, see the Business Opportunity.
The expressway is intended to foster economic development by improving connectivity between Yangon Port and Thilawa Special Economic Zone in the south, and Yangon International Airport, Yangon Industrial Park and the Yangon-Mandalay expressway in the north.
It will also help to cut losses arising from lower productivity and higher vehicle operating costs due to heavy traffic congestion on north-south routes in Yangon.
The Ministry of Construction hopes to use this process as a model to tender future PPP projects concerning the inner and outer ring roads of Yangon.
Mr Vikram Kumar, IFC country manager for Myanmar, commented:
"With IFC’s PPP transaction advice, the project will be structured in line with international best practices to create a competition-enabling market for qualified investors to come in. As the first greenfield road PPP project adopting best international practices in Myanmar, it will set a precedent for developing transport PPP transactions to attract private sector investments. In addition, while improving connectivity and mobility for people and businesses across sectors, it will enhance the country’s competitiveness and productivity."