Construction of the Korea-Myanmar Industrial Complex (KMIC) will commence in December despite the COVID-19 pandemic, said Mr Kim Gun Woo, general manager of Korea Land and Housing Corporation’s representative office in Myanmar.
The project is estimated to generate US$4.7 billion worth of value from investments and generate more than half a million jobs in support of Myanmar’s development.
Launched during the visit of South Korean President Moon Jae-in to Myanmar last September, the KMIC is the first government-level project between the two countries.
The KMIC, which is being developed under a joint venture between Korea Land and Housing Corp, Global SAE-A Co Ltd and the Ministry of Construction, will be developed across 556 acres of land in Nyaung Na Pin village in Hlegu, Yangon.
Korea Land & Housing Corporation will hold a 40 percent stake in the project while Global SAE-A Co will hold a 20pc stake.
KMIC is valued at US$110million and received approval from the Myanmar Investment Commission in 2019. The detailed design of the project is being finalised and construction will start by the end of year, according to Mr Kim.
“There will be no delays despite COVID-19,” he said.
The tender to develop the project will be called in October and after which construction of the first phase of the KMIC will commence in December.
The first phase of the project will be implemented on 315 acres of land and involve facilities for food and beverage, cut-make-pack manufacturing and logistics and warehousing.
The second phase, which will take place across 240 acres of land, will be developed with the construction materials, electronics and computer parts manufacturing in mind.
The whole industrial zone will be complete in 2022, said Mr Lee Jung Wook, managing director of Korea Land & Housing Corporation.
The KMIC will include residential and commercial developments in addition to industry. The entire project will also be developed as a smart and eco-friendly industrial zone using Korean technology.
Meanwhile, the Ministry of Construction will develop an outer ring-road and provide electricity and water access at the industrial zone with a US$70 million loan from the South Korea Economic Development Cooperation Fund. It has already received US$62 million in funds.
During his visit to the project site on August 24, Yangon Region Chief Minister U Phyo Min Thein urged officials to make haste in building the outer ring-road.
Officials will start drawing more interest to the project among investors in Korea next month. Meanwhile, investors from Japan and China have also begun enquiring about leasing space at the KMIC industrial zone with the Yangon authorities.
Meanwhile, KMIC officials will cooperate with Korean government institutions to support businesses with consulting services and access to financing. They will also cooperate with the Myanmar government to operate a one-stop service center for investors as well.
The Koreans are also expediting construction of the Dala Bridge in Yangon, which is now being carried out around the clock to be complete within the targeted timeframe despite COVID-19, project manager Mr Jong Bo Choi said this week.
The bridge, also known as the Myanmar – Korea Friendship Bridge, is expected to cost US$168 million (K257 billion). Construction of the bridge, which will connect Dala township across the Yangon River to downtown Yangon, began in May 2019 and is slated to be complete in October 2022. – Translated