Myanmar, Japan-linked consortium reach agreement on new airport plan

[Aepsilons]

@alaungphaya and all Myanmar friends et al,


Myanmar, Japan-linked consortium reach agreement on new airport plan


The Myanmar government and a consortium that includes Japanese engineering firm JGC Corp. has reached a broad agreement over a plan to construct a new airport on the outskirts of the country’s largest city, Yangon.

With the deal, the consortium, which also includes Singapore’s Changi Airport Group, came a step closer Saturday to receiving a formal order for the airport construction project and its estimated $1.5 billion price tag.

In October 2014, Myanmar granted preferential negotiating rights for the project to the consortium.

The Myanmar government plans to build the new Hanthawaddy international airport, which can handle up to 12 million passengers a year, in the Bago region, north of Yangon.

It hopes that about half of the total costs will be covered by the official development assistance from the Japanese government.

The new airport is set to become operational in 2022, four years later than the original plan.

Transportation systems linking the new airport with Yangon must also be constructed, prompting the Japan International Cooperation Agency to survey the situation to gauge whether it can offer help in this area through fresh ODA funds.

The new airport is intended to accommodate a surge in foreign visitors to Myanmar — one of Southeast Asia’s biggest attractions for foreign investors — as it makes the transition to democracy after years of junta rule.

Yangon International Airport, the country’s busiest, has far surpassed its annual capacity.

http://www.japantimes.co.jp/news/20...each-agreement-new-airport-plan/#.Vq2qXlk2H5l

 

[alaungphaya]

I thought the contract for Hanthawaddy was won by the Koreans. Looks like it'll never get finished. But I'm not in favour of it TBH. Why build an airport 50 miles out from Yangon without building a train line to go with it? Seems like another white elephant project. Reminds me of Narita and how unpopular that is compared to Haneda. Except they cold have expanded the existing Mingaladon even more.

 

[Aepsilons]

I thought the contract for Hanthawaddy was won by the Koreans. Looks like it'll never get finished. But I'm not in favour of it TBH. Why build an airport 50 miles out from Yangon without building a train line to go with it? Seems like another white elephant project. Reminds me of Narita and how unpopular that is compared to Haneda. Except they cold have expanded the existing Mingaladon even more.

Well, i suppose the construction of this airport will necessitate the train line construction, wouldn't it. Glad to see that Japan took over where Korea was unable to materialize it. Id like to see further development of the coastal areas near the Gulf of Martaban; particularly the port areas of Thaton, Mawlamyie , Kwanhlar, Palaw. These will be crucial in the Dawei Project.

There's so much of Myanmar to develop. Such a large country with practically untapped potential.

 

[Nike]

Well, i suppose the construction of this airport will necessitate the train line construction, wouldn't it. Glad to see that Japan took over where Korea was unable to materialize it. Id like to see further development of the coastal areas near the Gulf of Martaban; particularly the port areas of Thaton, Mawlamyie , Kwanhlar, Palaw. These will be crucial in the Dawei Project.

There's so much of Myanmar to develop. Such a large country with practically untapped potential.

so much potential yes, so much hurdle to conduct business appropriately yes. Aside from security concern, Myanmar had politic unrest and red tape problems.

 

[alaungphaya]

Well, i suppose the construction of this airport will necessitate the train line construction, wouldn't it. Glad to see that Japan took over where Korea was unable to materialize it. Id like to see further development of the coastal areas near the Gulf of Martaban; particularly the port areas of Thaton, Mawlamyie , Kwanhlar, Palaw. These will be crucial in the Dawei Project.

There's so much of Myanmar to develop. Such a large country with practically untapped potential.

It's more of a headache to build the rail. There have been white elephants in the past. Mandalay airport, for example, has SE Asia's longest runway and that was built in 1999 to accommodate 15million passengers. Complete wast of money.

The big SEZ is Thilawa. Dawei is looking up in the air at the moment. Hope it goes through, though. Mawlamyine is fine. It is the rubber capital of the country.

so much potential yes, so much hurdle to conduct business appropriately yes. Aside from security concern, Myanmar had politic unrest and red tape problems.

Red tape is the biggest problem. Political stability? Maybe. Security? No.

 

[Aepsilons]

so much potential yes, so much hurdle to conduct business appropriately yes. Aside from security concern, Myanmar had politic unrest and red tape problems.

Yes, there are unique characteristics for Myanmar, and this is common for many underdeveloped countries. Myanmar is a highly unusual but promising prospect for businesses and investors—an underdeveloped economy with many advantages, in the heart of the world’s fastest-growing region. Home to 60 million inhabitants (46 million of working age), this Asian nation has abundant natural resources and is close to a market of half a billion people. And the country’s early stage of economic development gives it a “greenfield” advantage: an opportunity to build a “fit for purpose” economy to suit the modern world.

Managed well, Myanmar could conceivably quadruple the size of its economy, from $45 billion in 2010 to more than $200 billion in 2030—creating upward of ten million nonagricultural jobs in the process. Myanmar’s moment: Unique opportunities, major challenges, a new report from the McKinsey Global Institute, discusses the challenges of meeting this ambitious goal and points to several areas that could help unlock high growth.

The report finds that if current demographic and labor-productivity trends continue, Myanmar could grow by less than 4 percent a year. But it has the potential to grow by 8 percent a year if it accelerates the rate of annual labor-productivity growth, to 7 percent, from 2.7 percent

Let's apply some SWOT-analytic review on Myanmar's performance , shall we?

What Can Myanmar's Government do -- to facilitate development and reel in direct investment from abroad, ergo, from Japan and others.

1. Harnessing digital technology. Myanmar is beginning its economic-development journey in the digital age, when mobile and Internet technology are increasingly affordable. Harnessing these tools to the fullest could help the country leapfrog to a more advanced stage of development, but that would call for an aggressive telecommunications-infrastructure plan.

2. Supporting a structural shift toward manufacturing. While other emerging economies have experienced a structural shift away from agriculture toward manufacturing, Myanmar’s reliance on agriculture has increased. Today, the country’s manufacturing sector is small in absolute terms—less than half the size of Vietnam’s—but it has the potential to be Myanmar’s largest by 2030.

3. Preparing for urbanization. The vast majority of Myanmar’s citizens live in rural areas, but this is likely to change rapidly. The share of the population in large cities could double, from just 13 percent today to around 25 percent in 2030—an additional ten million people, or two cities the size of Yangon. Myanmar would benefit from preparing for this change through investment, planning, and a shift to local governance.

4. Connecting to the world. Myanmar must consider the best way of reconnecting to the global economy through investment, trade, and flows of people. The nation potentially needs more than $170 billion of foreign capital to meet its overall investment requirement of $650 billion and should develop a targeted strategy to attract it. Trade volumes are not only low but also undiversified, and Myanmar could expand its trade opportunities and increase population flows to encourage knowledge transfers, the building of skills, and expanded tourism.

To implement that agenda, Myanmar’s government is likely to require more capacity and may consider setting up a delivery unit dedicated to solving problems and driving the implementation of change. The nation’s businesses could consider their opportunities in different markets, quickly reach international quality standards, and explore foreign partnerships. International companies must move fast, be prepared to commit to Myanmar for the long term, and consider partnerships with local firms.

 

[Nike]

It's more of a headache to build the rail. There have been white elephants in the past. Mandalay airport, for example, has SE Asia's longest runway and that was built in 1999 to accommodate 15million passengers. Complete wast of money.

The big SEZ is Thilawa. Dawei is looking up in the air at the moment. Hope it goes through, though. Mawlamyine is fine. It is the rubber capital of the country.



Red tape is the biggest problem. Political stability? Maybe. Security? No.

you still had ongoing large scale insurrection and war against rebellion in the North, why would not called it security concern?

 

[Aepsilons]

I believe Japan , a historically pro-developmentalist nation , has a role to play in the paradigm of Myanmar Development and Economic Rise. Long shall we see this.

 

[alaungphaya]

you still had ongoing large scale insurrection and war against rebellion in the North, why would not called it security concern?

Because they don't effect the economy or the country in any meaningful way. Much like how you still have separatists groups in Papua and other d or Islamic State running around your capital, it doesn't really affect anything.

I believe Japan , a historically pro-developmentalist nation , has a role to play in the paradigm of Myanmar Development and Economic Rise. Long shall we see this.

As long as Japan is in its 25 year+ deflation cycle, your banks and JICA will keep pouring money into SE Asia to get returns on investment. And long may it continue.

 

[Aepsilons]

It's more of a headache to build the rail. There have been white elephants in the past. Mandalay airport, for example, has SE Asia's longest runway and that was built in 1999 to accommodate 15million passengers. Complete wast of money.

The same could have been said about Krungthep (Bangkok) a decade ago with then Prime Minister Thaksin Shri-Shinawatra who had visaged and planned for the construction of HSR lines to connect Thailand in a north-south and east-west process. He had dreamed and voiced it with then-Ambassador of Japan to Thailand , Excellency Tokinoya Atsushi. Fast forward to 2016 and we see that Bangkok has chosen Japan and China to help construct HSR lines. Mind you, this has happened despite the dichotomy of political and structural ideation between Red Shirt and Yellow Shirt supporters in Thailand.

Lastly, some 40 years ago, state analysts would have deigned to label Thailand , Indonesia, and Philippines as a threat to investor's ROI. Despite these threats, Japan , still, poured billions into these fledgling democracies and post-colonial states. And see how our wait and vision has been rewarded.

I believe Japan, as a historical partner of ASEAN, has a role to play, again, in ASEAN. This time in the new member states of Myanmar, Laos and Cambodia.

Perhaps, soon, Timore Leste.

 

[Nike]

Because they don't effect the economy or the country in any meaningful way. Much like how you still have separatists groups in Papua and other d or Islamic State running around your capital, it doesn't really affect anything.



As long as Japan is in its 25 year+ deflation cycle, your banks and JICA will keep pouring money into SE Asia to get returns on investment. And long may it continue.

we don't have that kind level of separatist to taken over your provincial capital city and undermine economic progress in large swath of area.

 

[Aepsilons]

you still had ongoing large scale insurrection and war against rebellion in the North, why would not called it security concern?

Sister,

We can see the insurrection in Myanmar's outerlands as a casus for further development. In the end, the problem lies in the issue of maldevelopment of national growth , due in part to lack of sovereign wealth. Many of the Shan, Chin, Wa insurrectionists are unemployed , maligned minorities, who have resorted to extremist ideology due to national government's lack of economic clout to reign them in.

If we were to aid Myanmar in their national harmonization mandate -- one will see that insurrectionism will decrease in tandem with national economic growth , which translates into tens of millions of non-agrarian jobs in Myanmar.

The same , i suppose, in how we have seen how Indonesia's national development paradigm (a result of foreign investment and cooperation in domestic industry development) have seen insurrection groups faded into history as former supporters saw the potential in being active members of the state, mind you economic and educational incentives.

Usually in cases of rebellions in madeveloped nation states -- these are secondary to lack of industry and jobs. Myanmar's infrastructure development boom --- shall be the catalyst of defeating insurrectionism through an organic nation-state rehabilitative process.

 

[alaungphaya]

we don't have that kind level of separatist to taken over your provincial capital city and undermine economic progress in large swath of area.

What provincial capital?

 

[Nike]

Sister,

We can see the insurrection in Myanmar's outerlands as a casus for further development. In the end, the problem lies in the issue of maldevelopment of national growth , due in part to lack of sovereign wealth. Many of the Shan, Chin, Wa insurrectionists are unemployed , maligned minorities, who have resorted to extremist ideology due to national government's lack of economic clout to reign them in.

If we were to aid Myanmar in their national harmonization mandate -- one will see that insurrectionism will decrease in tandem with national economic growth , which translates into tends of millions of non-agrarian jobs in Myanmar.

The same , i suppose, in how we have seen how Indonesia's national development paradigm (a result of foreign investment and cooperation in domestic industry development) have seen insurrection groups faded into history as former supporters saw the potential in being active members of the state, mind you economic and educational incentives.

Usually in cases of rebellions in madeveloped nation states -- these are secondary to lack of industry and jobs. Myanmar's infrastructure development boom --- shall be the catalyst of defeating insurrectionism through a nation-state rehabilitative process.

Actually, Myanmar in the past is one of the most economically developed among British Raj provinces and had the best infrastructure and educational institutions in the region (that's why one can explain why the first Asian to become UN Secretary of General is a Myanmar citizen). But after independence, they had several issue regarding discrimination against minority and political unrest because some issues. And unfortunately those issues still pervasive and lingering in Myanmar politics and society until today at large.

 

[alaungphaya]

I will say one more thing. The finance sector is a massive drag factor, too. US sanctions don't help and the strict capital control laws are a hindrance. For example, foreign companies with licences can only directly repatriate 1/3 of their profits and have to find creative ways to move their money out. On top of that they have to partner with a local company though that requirement is getting relaxed. It's a real headache for these companies to come in and invest. What's encouraging though is that FDI jumped from $1B to $8B in 5 years and even before a true civilian government has come in. But yeah, the banking sector is still very primitive and accounting too as so many businesses want to keep their activities under the table.