MIC: No plan to reduce initial lease premium for Dagon City project

Ministries are still holding discussions on where to relocate the terminated Dagon City project, but there is no plan to reduce the initial lease premium for the land, said Aung Naing Oo, the secretary of the Myanmar Investment Commission and director-general of the Directorate of Investments and Company Administration, yesterday.

Shwe Taung Development Co Ltd, Adventure Myanmar Tours and Incentives Co Ltd, Thuka Yadana Co Ltd and Marga Landmark Development Co Ltd won tenders for the development of projects that were initially meant to be implemented on land owned by the Defence Ministry at the former National Defence College and No 1 Motor Transport Battalion.

On July 17, the Union government terminated the Dagon City project after Yangon residents signed a petition to end the project, raising the concerns that the construction might harm the Shwedagon Pagoda. The government also promised to protect the investors, saying it would hold further negotiations with them.

A 17-acre plot owned by the Ministry of Science and Technology, an 11-acre land owned by the Ministry of Commerce and a three-acre plot owned by the Ministry of Rail Transportation have been proposed as new locations for the project, Aung Naing Oo added.

Aung Naing Oo said: “We still intend to allocate the proposed lands to the companies. Currently, the ministries are in discussions over the land replacement scheme. It has been submitted to the government. But we have no plan to reduce the initial lease premium for the land.”

Ministries have proposed to allocate the rail transportation ministry’s three-acre plot located on Merchant Street to Shwe Taung Development Co; the commerce ministry’s 11-acre plot at the corner of Min Ye Kyaw Swa Road and Khayaypin Road to Adventure Myanmar Tours and Incentives Co and Thukha Yadana Co; and the science and technology ministry’s 17-acre plot to Marga Landmark Development Co.

The MIC will not reduce the US$2 million initial lease premium per acre despite the change in the project’s location, Aung Naing Oo said.

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