Roundup: New projected special economic zone in west Myanmar to benefit economic growth

A consortium of six foreign group companies, led by China's CITIC, has won tender for the implementation of two projects of the country's newly planned special economic zone (SEZ) in Kyaukphyu, western Rakhine state.

The transnational consortium involving five Chinese and one Thai firms are to construct and operate an industrial park and a deep sea port, two of the three components of the project of the Kyaukphyu SEZ.

Myanmar's Kyaukphyu SEZ Bidding Evaluation and Awarding Committee (BEAC) announced the successful bidders for the two components of the SEZ projects on 1,737 hectares of land Wednesday night following the approval by the government cabinet and parliament days before.

The CITIC Consortium also comprises Thailand Charoen Pokphand Group Company Limited (CP Group), China Harbor Engineering Company Ltd.(CHEC), China Merchants Holdings (International) Co. LTD (CMHI), TEDA Investment Holding (TEDA) and Yunnan Construction Engineering Group(YNJG).

The winners were selected from among 10 bidders. However, tender for the development of a high-class housing project, the third component of the SEZ, was rejected as bids for the project did not meet the requirement, said the BEAC statement.

The CITIC Consortium will form project joint ventures together with Myanmar local enterprises for the construction and operation of the two projects which will be implemented under the framework of the "Myanmar Special Economic Zone Law" promulgated by the Myanmar Government in 2014.

Consulted by Singapore JURONG and PwC, CITIC Consortium participated in the bidding and submitted the proposals.

The planned industries, to be brought into the Industrial Park which will be built in three phases starting February 2016, include textiles and garments, construction materials processing industries, food processing industries, and marine supply and services industries etc. which are labor-intensive industries, and also include technology and capital-intensive industries.

The Deep Sea Port project consists of the MADE Island Terminal and YANBYE Island Terminal, with a total of 10 berths. In addition, it also includes the road and bridge connecting the Industrial Park and the Deep Sea Port. The Deep Sea Port Project will be constructed in 4 phases, with a total construction duration of 20 years.

After the completion of the project, the expected annual capacity of the Deep Sea Port will be 7.8 million tons of bulk cargo and 4.9 million TEU containers. With the increased container throughput, the Deep Sea Port may update to the complete container terminals, with the annual capacity of 7 million TEU containers.

Parliamentarians have voiced support for the SEZ project, saying that it will be very beneficial for the economic growth of the country, particularly that of Rakhine state, while CITIC consortium said the SEZ development would improve local people's employment and livelihood and more than 100,000 new jobs will be created for local people every year.

By the year of 2025, 90 percent of the project managers' positions would be undertaken by Myanmar local people. Once in full operation, the two projects will bring approximately 10 billion U.S. dollars in annual GDP growth for Myanmar.

According to the plan, during the whole concession period, the Myanmar government will accumulatively receive 15 billion dollars of tax revenue from the two projects. When the concession period is expired, both projects will be handed over to the Myanmar government.

CITIC consortium has pledged to build a "green, environment-friendly, beautiful" industrial park and deep sea port with consistent environmental evaluation to be made during the operation period, while attaching importance to corporate social responsibility and public welfare. Endit