Hanthawaddy airport agreement expired: consortium

By THOMAS KEAN | FRONTIER

YANGON — The government’s plans for a US$1.5 billion airport at Bago have hit another hurdle, with a member of the consortium picked to build the project revealing that a key agreement has expired.

Singapore-listed Yongnam Holdings said in an announcement that the framework agreement signed between the Department of Civil Aviation and the consortium had expired and not yet been renewed “as certain issues remain unresolved”.

The agreements concerns the “design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership”, the announcement said.

The framework agreement was signed on January 30, 2016. It is unclear when it expired. At the time officials aid the signing of the framework agreement had cleared the way for the government to apply for a soft loan from Japan to cover part of the project’s cost.

Support more independent journalism like this. Sign up to be a Frontier member.

The delay is just the latest to hit the project, which had an initial planned completion date of 2016. However, the Japan-Singapore bid was selected in October 2014 after negotiations collapsed with the South Korean consortium that won the initial tender the previous August.

The Hanthawaddy airport site covers about 9,000 acres near Bago, around 80 kilometres northeast of downtown Yangon.

The consortium also includes Japan’s JGC Corporation, which holds a 55 percent stake, and Changi Airports International of Singapore, which has a 20 percent share.

Read more about Hanthawaddy International Airport in our February 2017 feature.

Share on facebook
Share on twitter
Share on email

More stories

Latest Issue

Stories in this issue
Myanmar enters 2021 with more friends than foes
The early delivery of vaccines is one of the many boons of the country’s geopolitics, but to really take advantage, Myanmar must bury the legacy of its isolationist past.
Will the Kayin BGF go quietly?
The Kayin State Border Guard Force has come under intense pressure from the Tatmadaw over its extensive, controversial business interests and there’s concern the ultimatum could trigger fresh hostilities in one of the country’s most war-torn areas.

Stay on top of Myanmar current affairs with our Daily Briefing and Media Monitor newsletters

Our fortnightly magazine is available in print, digital, or a combination beginning at $80 a year

Sign up for our Frontier Fridays newsletter. It’s a free weekly round-up featuring the most important events shaping Myanmar