Yangon’s new city to start bidding process

The government body in charge of developing the new Yangon city project announced that it will commence the bidding process in mid-February.

Yangon’s regional government launched an ambitious new city project via a government-owned New Yangon Development Co (NYDC) last March. The scheme covers an area twice the size of Singapore with a target of US$1.5 billion (K2.83 trillion) investment for the first phase. Subsequently, the authorities – NYDC – signed an agreement with Chinese state-owned China Communications Construction Company (CCCC) in May 2018 to prepare a detailed infrastructure proposal. NYDC was criticised for doing so without calling a tender. The body said this was to “avoid wasting time” and would undertake a “Swiss challenge” (aka NYDC challenge) instead.

CCCC, a China state-owned company headquartered in Beijing and listed in Hong Kong, was sanctioned by the World Bank under its fraud and corruption policy from January 2009 until January 2017.

The first round of the public procurement is expected to focus on initial construction work for the area’s infrastructure, according to Serge Pun, CEO of the body.

Once the pre-project documents (PPD) is finalised in mid-February, NYDC will disclose the documents to the public and call a tender. If a company is able to challenge CCCC with a lower bid to build the infrastructure, it will be selected instead but will need to pay CCCC for the costs incurred.

“Signing with CCCC doesn’t mean any transfer of building ownership to them. Anyone who can submit a better proposal than CCCC’s can compete. But all must abide by original terms and conditions and restrictions in the initial agreement. It is like comparing two apples to know which is better,” Mr Pun said. The costs have been agreed by NYDC and CCCC before the tender and they will be described in PPD.

Construction work includes a six-lane bridge on Hlaing river spamming from Kyeemyindaing township, Strand Road to the new city, a two-lane bridge parallel to the current Pan Hlaing Bridge, 26km long main roads, infrastructure of five resettled communities, infrastructure covering 10 sq km of industrial areas, a water treatment plant and wastewater treatment plant, water intake facility and water distribution pipelines, as well as power distribution and transmission facilities.

NYDC said more details of the projects and terms and conditions of the tender will be released soon.


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