No disruptions to Korea-backed industrial park in Yangon

Work on the Korea-Myanmar Industrial Complex (KMIC) will continue despite the political unrest in the country. KMIC Managing Director Lee Jung Wook said on February 4 that the project might encounter delays but the impact of the ongoing situation has been minimal. “Construction works on the KMIC are still in the early stages, there is no huge impact on the project so far,” he said.

The managing director said there were plans to fly in foreign experts to carry out ground construction works but this may be pushed back in light of the current situation. All flights to and from Myanmar have been suspended following the Tatmadaw’s (military) forced transfer of power.

The armed forces detained several senior figures from the ruling party including Myanmar President U Win Myint and State Counsellor Daw Aung San Suu Kyi on February 1 in response to alleged poll fraud by the Union Election Commission. They have since declared a year-long state of emergency with Commander-in-Chief of the Defence Services Min Aung Hlaing now in power.

The KMIC is the first government to government project between South Korea and Myanmar. The joint venture was signed in 2017 between the country’s Ministry of Construction and Korea’s Land and Housing Corporation. The Koreans will oversee the five-year construction of the US$110 million industrial complex, built across 555 acres of land north of Yangon, near Nyaung Na Pin Village in Hlegu.

Myanmar holds a 40 percent stake in the project with the remaining 60 pc split between Korea’s Land and Housing Corporation (40 pc) and Global SAE-A Co Ltd (20 pc). Another Yangon industrial park project led by the Thais has already been put on hold in view of the current circumstances. On February 2, company officials told the media that the $274 million Yangon Amata Smart and Eco City Project had been suspended indefinitely due to Myanmar’s current forced “transfer of power”.

Before the Tatmadaw took power, the government had been counting on these industrial parks to draw investors into Myanmar. A third industrial park is now also being developed in Hlegu township by Singapore’s Sembcorp Industries. Translated

Source: Myanmar Times