Japanese Contractor Takes on $400 Million Project in Yangon
Japan based general contractor Kajima will invest about $400 million for an urban development project in Yangon, according to Department of Urban and Housing Development.
According to Myanmar Investment Commission, Kajima Yakin PPP Co., Ltd, Kajima’s Myanmar company, was received an approval from MIC on 2017 July 11th for this project that occupies 9 plots of government owned land in Yankin Township, at the junction of Yankin Street and Sayar San street.
An agreement contract for this project between Kajima Yankin PPP Co.,Ltd and Ministry of Construction was signed on November 18th.
June 2017-2018 Fiscal Year. Under the two-stage loan program, 5,000 million Yen was used which was funded by the Japanese Government.
“To implement this project based on government to government agreement, Myanmar government lease the land to the company. The project is fully owned by a Japanese company,” U Win Naing, Deputy Director of Department of Urban and Housing Development, said.
According to the build-operate-transfer agreement; this will give the Japanese company control of the facilities and land for up to 70 years. In a residential area of Yangon where many office buildings are being constructed, Kajima will put up a 21-story office building, a 20-story hotel, a 27-story extended-stay hotel and commercial facilities on government-owned land. Floor space will total 170,000 square meters.
The project will include open space to help ease traffic congestion, as well as a children’s library. A food and water storage system will also be created for disasters and other emergencies. Kajima expects to generate a profit commensurate with the outlays.
Kajima’s project will likely be the largest undertaken by Japanese entities alone.
Source: Myanmar Business Today