Army confiscates land plots including Mya Yeik Nyo Hotel from Zay Kabar Co.

Army confiscated land plots included in Yangon New World property project in Yangon region from Zay Kabar Company as the company failed to follow the agreements stated in the Memorandum of Agreement (MoA) signed between Quartermaster-General Office and the company, said Moe Min Win, Secretary of Office of Garrison Town Development Committee (Yangon) on October 3.

“The Quartermaster-General Office and Zay Kabar Company signed the MoA on January, 2014 to develop the property project. The company agreed to pay US$41.382 million as land leasing fee in five installments within a two-years time but they only paid two times. The rest of the leasing fee is still overdue. The company also announced to cooperation with China based Human Land Overseas Real Estate Development Co. Ltd. without seeking approval from the authorities. Furthermore, the company demolished two ancient heritage buildings and two historical buildings without approval before the MoA was signed. We informed the chairman of the company to cease their work on May 10 2018,” said the secretary.

He also claimed to have learnt of the issue, of locals being concerned about potential damage to Kokkine reservoir and nearby places due to the property project and Yangon City Development Committee (YCDC) prohibited it, from a story reported in June 11 issued Daily Eleven newspaper. He said he saw the report and also informed the YCDC to not allow it.

“We removed the empowerment for the entire project from the company. The build, operate and transfer agreement is no longer valid,” he said.

Although the company has to pay US$24.829 million before January 16 2016, they had failed to comply. The authorities have been sending notices of overdue payment to the company but had repeatedly failed to pay up. Sources also claimed that even now as the contract is voided, the company is continuing to use Mya Yeik Nyo Hotel and its hall for business purposes.

Moe Min Win said that authorities found out from the state-owned Mirror newspaper that Zay Kabar Company entered into cooperation with China State Construction Engineering Corporation to develop Yangon New World property project using US$500 million. The Garrison Town Development Committee made an objection to the company that the international cooperation was not in line with the agreements in the MoA signed with the Quartermaster-General Office in 2014 as well as the demolishing four buildings including two ancient heritage buildings without approval. The company announced the joint-venture with Chinese company in state owned newspapers without seeking any approval from respective authorities.

The company demolished four buildings out of 12 buildings located on 6.879 acres of land owned by the army. They are House C, House D, House E wings of the old Mayor’s Residence as well as a showroom building. YCDC informed commander No. 954 Works Company (Engineer) on August 1 that House D (Mya Yeik Nyo Hotel) and House C (Mya Yeik Nyo Royal Hotel) were recognized by the YCDC as ancient heritage buildings announced in June 1996.


To see the original article click link here

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.