A consortium comprising JGC Corporation, Yongnam Holdings Limited and Changi Airports International has signed a framework agreement with Myanmar’s Department of Civil Aviation (DCA), reaching a milestone in the Hanthawaddy International Airport PPP project.
In August 2013 a consortium led by South Korea's Incheon International Airport Corp was named as preferred bidder to build the airport but discussions broke down.
Then the new consortium was invited by the government of Myanmar to enter negotiations for the airport concession in early February 2014.
In October 2014, the consortium was officially named by Myanmar’s DCA as the successful tenderer for the design, construction and management of the airport.
A spokesman for the consortium said the concession agreement for the estimated US$1.5 billion project is expected to be signed in the third quarter of 2016.
Located on a site of approximately 3,642 hectares, 80 kilometres northeast of Yangon near Bago, Hanthawaddy International Airport is expected to have an initial capacity of 12 million passengers per annum, making it the largest airport in Myanmar.
Once operational, the airport will become the main international gateway into Myanmar, particularly the Yangon metropolitan area. The Hanthawaddy International Airport project is planned for completion by 2022. The project will be developed on a design, construction, operation and maintenance basis for a period of 30 years.
It is expected that part of the project will be funded through an Official Development Assistance loan from the Japanese government.
JGC Corporation, which is one of Japan's leading engineering contractors, holds an interest of 55% in the consortium. Singaporean companies Yongnam and Changi Airports International hold 25% and 20% respectively.