Myanmar announces PPP for domestic airports

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Myanmar announces PPP for domestic airports

Myanmar's Department of Civil Aviation (DCA) has announced that it plans to issue a tender process in the last quarter of this year inviting local and foreign companies to upgrade 39 underdeveloped domestic airports.

Myanmar top 10 domestic airports based on passenger traffic are shown in the graph below:

At the Myanmar Civil Aviation Development Conference, hold on 24 March, the Minister of Transport Nyan Htun Aung stated:

The government has set a vision that aims at making Myanmar the major logistics hub in Asia. For fulfilling this vision, we have defined a mission that will drive us to develop and strengthen the safe, secure, efficient, sustainable and environmentally friendly aviation industry in the country

The projects to develop domestic airports are framed within the national strategy that involves:

  • pursuing liberalisation of economic regulations,
  • establishing new air linkages to worldwide destinations,
  • promoting national airlines and
  • improving infrastructure.

DCA said it wants to sign public-private partnership agreements in which the agency continues to be responsible for airport security and air traffic control. According to the DCA, the government currently spends about US$12 million annually on running the 69 domestic airports.

Burma's aviation industry is expected to grow rapidly in the coming years, as the number of foreign tourist visits and domestic air passengers is projected to rise sharply, from 4.2 million in 2013 to 30 million in 2030.

The government launched two PPP projects to update two international airports last year.

In August 2013, the government initiated talks with a consortium led by Korea's Incheon International Airport Corp about the Hantawaddy International airport project, in Rangoon, but in February it decided to also invite Singapore's Changi Airport Group, Yongnam Holdings Ltd, and Japan's JGC Corp to start negotiations.

In August 2013,  Mitsubishi Corporation was awarded a PPP contract to upgrade Mandalay international airport.

Graph: CAPA - Centre for Aviation & Myanmar DCA

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