Issue 128 | 19 June 2019

News Analysis Transport Tenders Companies Infrastructure Brief Data

Market Updates  Foreign developer appears to drop bid for elevated expressway The Ministry of Construction implies French developer Vinci Highways has withdrawn Its bid for the Elevated Expressway project amid more procurement delays

Company of the Week  drops out of airport upgrade project The DCA will reissue a tender for the Airport upgrade in an effort to find Eastern Airlines a new developer for the potential international gateway to the has launched the first direct flight service  Two new road projects highlighted in ASEAN master plan linking Yangon to The proposed -Tigyaing-Muse Expressway and Naypyitaw- Shanghai. Expressway have been deemed critical for increased ASEAN connectivity

 Chinese airline introduces first direct flight to Shanghai  MIC approvals include two logistics investments  Thilawa terminal receives investment insurance  Yangon power project to include new LNG terminal  Mandalay city officials to inaugurate new road  Local airline expands domestic fleet  Ministry receives insurance payout for destroyed steel shipment  parliament rejects proposed vessel purchase Project of the Week  Metro AG eyes expansion across Myanmar  New rural road opened near Myanmar-Thailand border Mandalay’s revamped  Submersible bridge to be developed with Japanese financial assistance 38th Street is now  Construction Industry Development Law to cover bridges officially open to the  MITT states plan for potential expansion public following years of  Chinese airline launches sixth flight service to Myanmar redevelopment.  World Bank optimistic on Myanmar’s economy, transport investment

This Week’s Tenders

 Supply of construction materials for bridge project in Meiktila Data  Supply of road construction materials for Myanma Railways

 Supply of machinery for Myanma Railways Weekly fuel prices  Road paving works at Shwepyithar Industrial Zone Trade statistics  Supply of trucks for Naypyitaw Development Committee  JV opportunity for bus terminal project in Sagaing  Supply of machinery and construction material for Bridge projects in Taninthayi

Calendar  Builder Myanmar 2019  Myanauto 2019  AMPA Myanmar 2019  Myanmar Marine Expo 2019

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 6 June – 13 June 2019 2

Road It is likely to cost an estimated $400m and will be Foreign developer appears to drop bid for developed under a build-operate-transfer (BOT) elevated expressway agreement.

French concessions and construction company Over 50 companies submitted expressions of Vinci Highways, a pre-qualified bidder for Phase I interest (EOI) for the project in June 2018. The of the Yangon Elevated Expressway, elected last Ministry of Construction eventually shortlisted 10 month to skip one-on-one pre-bid meetings with pre-qualified bidders in December 2018: the Ministry of Construction, according to Deputy Minister of Construction U Kyi Zaw Myint.  Vinci Highways  Team Korea Consortium Although Vinci had yet to make any public  GS Engineering & Construction, Posco announcement regarding the state of its bid, the Engineering & Construction, Lotte Ministry of Construction is signalling that the Engineering & Construction, Daewoo French construction giant is dropping out of the Engineering & Construction, Daelim bidding process for the project. Industrial, Korea Expressway, Korea Overseas Infrastructure & Urban “Although Vinci Highways was absent *for the+ Development one-on-one meetings, we will only approve their  China Communications Construction official withdrawal only after they decline to Company (CCCC) submit a request for proposal (RFP)”, U Kyi Zaw  JFEE/Marubeni Consortium Myint was quoted as saying in 7 Day Daily.  JFE Engineering, Marubeni  BSSIC Consortium U Kyi Zaw Myint added that one-on-one meetings  Bangkok Expressway and Metro Public with the nine other pre-qualified bidders will be Company, Ch. Kamchang Public carried out again in August before the ministry Company, Shwe Taung Infrastructure releases revised contract terms in September. A Investment, Shwe Taung Expressways, winner will be selected in October, according to Sumitomo Corporation, IHI the deputy minister. Corporation  CRIG-CDL Consortium Yangon Elevated Expressway  China Railway International Group, Capital Development The 47.5km four-lane elevated ring road will link  China Gezhouba (CGGC) / Great Genesis downtown Yangon, Yangon ports, Yangon Gems Consortium International Airport, Mingalardon Industrial Park  Great Genesis Gems, China Gezhouba and Yangon-Mandalay Expressway.  ITD-CSI Consortium  Italian-Thai Development, China It is likely to consist of three different elevated Shandong International Economic & sections: Technical Cooperation  Denso-CSCEC Consortium  25km to 27km East Wing  CSCEC (Myanmar)  6km East-West Wing  Power Construction Corporation of China  16.5km West Wing Air Phase I of the project is 27.5km long. It will be Golden Myanmar Airlines drops out of airport divided into the following sections: upgrade project

 19km East Local airline Golden Myanmar Airlines (GMA) has  6km East-West surrendered its right to upgrade and operate the  2km two-lane access road to Yangon after the company determined International Airport the project is not financially, an official from the Department of Civil Aviation (DCA) told Myanmar Transport Infrastructure Monitor.

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The tender for the regional airport upgrade will The proposed Mandalay-Tigyaing-Muse now be reissued, the official added. Expressway and Kyaukphyu-Naypyitaw Expressway are both included in the list, according to “We opted out of the upgrading works of the the ASEAN Post, and are deemed “especially Kawthaung Airport before April. We submitted our critical”. cancelation,” GMA CEO U Kyaw Nyein was quoted as saying in a Daily Eleven article covering the Myanmar Transport Infrastructure Monitor notes development. GMA is a part of local conglomerate that, while published information on the projects KMA Group. remain somewhat scarce, the Ministry of Construction has detailed the potential projects to The same Daily Eleven article covering the industry players and investors over the past year. development reported that one of the two other companies that were shortlisted for the project – which are believed to be Yangon Airport Group and GMR Greenland Asia Sun Consortium– will now be selected to carry out the project.

Myanmar Transport Infrastructure Monitor notes the DCA in August 2017 invited local and foreign companies to upgrade and operate three regional airports – Kawthaung, and Heho – through a BOT structure.

Kawthaung Airport upgrade

The Kawtahung Airport upgrade is expected to cost $36m to implement and will comprise the extension of the existing runway, the construction Photo source: Ministry of Construction of a new terminal building and upgrades to other facilities at the site. Mandalay-Tigyaing-Muse Expressway

Kawthaung is the southernmost point of Myanmar The proposed 408.3km expressway would open a and is one gateway to the Myeik archipelago, an new route to the Myanmar-China border town of area of outstanding natural beauty with huge Muse, most likely running along the border of tourism potential – the main draw for investors Kachin State and northern . looking at upgrading and operating the regional airport. China Harbour Engineering began a feasibility study on the route after a signing an agreement to However, the existing airport’s runway is only do so in March 2018, though the current status of 1,800m and is currently unable to accommodate the study is not known. international aircraft. The Ministry of Construction says the four-lane Road viaduct expressway would reduce travel time Two new road projects highlighted in ASEAN between Mandalay and Muse to about four and a master plan half hours.

The expressway would be one of a few vital The ASEAN Secretariat, the coordinating body of highway components of the Myanmar-China ASEAN, recently released a list of 19 priority Economic Corridor, which will begin in China’s infrastructure projects needed to support the southern province of Yunnan, stretch south to implementation of the Master Plan on ASEAN Mandalay and then branch off to Yangon and the Connectivity 2025 – and two of the projects listed proposed Kyaukphyu SEZ in western Rakhine State. are greenfield highway developments in Myanmar.

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Naypyitaw-Kyaukphyu Expressway Air Chinese airline introduces first direct flight to A 256km expressway connecting Myanmar’s Shanghai capital to the China-backed Kyaukphyu SEZ project in western Rakhine State would also be a four-lane China Eastern Airlines officially begen operating a viaduct expressway. The estimated end-to-end thrice weekly direct flight service linking Yangon travel time would be around three hours, and Shanghai on 18 June, according to a social according to the Ministry of Construction. media post by Yangon Aerodrome, the operator of Yangon International Airport. It is the first direct If the SEZ project moves forward, a new flight between the two cities. international standard road connection linking Kyaukphyu to the national arterial The service will depart Shanghai at 22:15 each expressway – and ultimately China – will be Tuesday, Thursday and Saturday, and depart from necessary. Yangon at 2:35 each Wednesday and Friday. It appears the return leg will only operate twice per Similar to the Mandalay-TIgyaing-Muse week. Expressway, China Harbour Engineering began a feasibility study on the project last year. Again, the China Eastern Airlines will compete with Chinese status of the study is not known. low-cost carrier Spring Airlines on the route. Spring announced in May that it plans to introduce on Myanmar Transport Infrastructure Monitor notes a 1 July a four times weekly direct flight between new Ayeyarwaddy River crossing bridge would Yangon and Shanghai. need to be developed as a component of the project. Moreover, the Ministry of Construction Since the visa-on-arrival option was granted to previously stated the route could require a 16km Chinese tourists in October 2018, the number of tunnel underneath the Rakhine Mountains in Chinese travellers to Myanmar has increased by eastern Rakhine State. 100,000 compared to the same period over the previous year.

There are now over 10 Chinese airlines with direct routes to Myanmar, with connections from Yangon and Mandalay to cities such as Kunming, Hangzhou, Beijing, Guangzhou, Hong Kong, Shenzhen, Chengdu, Xi’an and now Shanghai.

The following is a list of Chinese airlines that currently or will soon provide direct flights to Myanmar:

 China Eastern Airlines  9 Air  Sichuan Airlines  Donghai Airlines  Ruili Airlines  China Express Airlines  Qingdao Airlines Photo source: Ministry of Construction  Zhejiang Loong Airlines

 Juneyao Airlines

 Air China

 Spring Airlines

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Logistics WMPTTL’s principal activity is to engage in the MIC approvals include two logistics investment, building and operation of a investments multi-purpose international terminal, integrated agricultural processing facilities and associated The latest round of Myanmar Investment utility buildings on its plots at the Thilawa Port Commission (MIC) approvals contains two logistics Area. investments from companies already operating in the Myanmar logistics space, according to a 18 The project will cost an estimated $70m. June MIC press conference. FLP Tharkayta The two investments are outlined below: FLP Tharkayta was registered in June 2018 and is a Wilmar Myanmar Logistics subsidiary of Japan’s Fukuda & Partners (F&P).

Construction and opera- The MIC approved investment is the group’s tion of storage tanks, second notable real estate project in Yangon. terminals, warehouses Investment and other storage facili- F&P Myanmar, a joint venture between F&P and ties for edible oils and Fukamatsugumi, is currently developing a related products residential complex on New University Avenue in . F&P holds a 90% stake in the Plots 20, 21 and 21-A at venture. Location the Thilawa Port Area Water Investment amount $10.1m Thilawa terminal receives investment Country Singapore insurance Size 6.2 acres Japanese state-owned insurance corporation FLP Tharkayta Nippon Export and Investment Insurance (NEXI) is set to provide overseas investment insurance for Development, leasing and manage- Investment the recently opened TMIT multi-purpose port ment of warehouse and office space terminal at the Thilawa Port Area near Thilawa SEZ, Location No. 53/62, Thaketa Industrial Zone according to a press release from NEXI. Investment $6.2m amount The 165,700 sqm terminal is owned by Myanma Port Authority (MPA) but operated by Thilawa Country Japan Multipurpose International Terminal (TMIT) through a build-operate-transfer (BOT) agreement. Wilmar Myanmar Logistics Construction at the terminal was completed in Wilmar Myanmar Logistics was established in June December 2018, and the terminal officially opened 2017 and seemingly operates as the trading arm of on 1 June. The terminal, located at Thilawa Port Wilmar Myanmar Port Terminal. Area plots 25 and 26, will have an initial handling capacity of around 220,000 TEU per annum. Wilmar Myanmar Port Terminals (Thilawa) Limited (WMPTTL) is an indirect wholly owned subsidiary Myanmar Transport Infrastructure Monitor notes of Singapore based Wilmar Shwe Investments. TMIT comprises four Japanese entities - Kamigumi, Sumitomo Corporation, Toyota Tsusho and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) – and local logistics giant Ever Flow River Group (EFR).

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Kamigumi holds a stake of 51% in TMIT, with The project originally received a notice to proceed Sumitomo, Toyota Tsusho and JOIN holding 12.6%, in January 2018. Under the new proposal, it will 11.9% and 10.5% stakes, respectively. Local consist of the following components: partner EFR holds the remaining stake in the venture.  A 388MW LNG power plant located in Ahlone township NEXI claims it will cover the financing portion for Sumitomo Corporation and Toyota Tsusho.  An LNG receiving facility in Dala township with two 25,000 cubic m storage tanks Myanmar Transport Infrastructure Monitor also notes that the Japanese government earlier this  A 24km gas pipeline between Dala and year approved JOIN to invest ¥200m ($1.8m) in the Seikgyi Kanaugto townships project.

Water  A 28km transmission line in Twantay and Yangon power project to include new LNG Hlaingtharyar townships terminal For more information on the gas-fired power plant A 388MW gas-fired power plant project in Ahlone project, please visit Myanmar Energy Monitor. is now likely to include an LNG terminal component in Dala township, according to TCCL TTCL Power Myanmar Company (TPMC) Myanmar Power Company (TMPC), the developer of the project. TPMC is a subsidiary of Thailand-based engineering procurement and construction firm, Toyo Thai The 388MW plant was to initially use a floating Public Company, which itself is a joint venture storage regasification unit (FSRU) situated on the company with Italian-Thai Development Public Yangon River, though the proposed plans were Company and Toyo Engineer Corporation of Japan. reportedly rejected by Myanma Port Authority (MPA). Road Mandalay city officials to inaugurate new “Instead of the FSRU, we will build an LNG terminal road in Dala township and a 24km-long underground gas pipeline,” TMPC general manager U Htet Aung A new road in Mandalay is to be opened to the Mon was quoted as saying in Frontier Magazine. public on 19 June as city officials strive to increase urban infrastructure capacity in southern No other details concerning the terminal were Mandalay, an area which continues to attract given, such as the exact location or handling and significant interest from local and foreign real storage capacity. estate developers interested in building mixed-use projects. The revised project details have emerged as TMPC publicly reiterates its goal to sign a PPA for the The new road will run east-west just north of 388MW gas-fired power plant by the end of the Mandalay University to link 78th Street and year. Adipadili Road, two arterial roads which run north-south from the Mandalay Moat to Due to delays and design revisions, the project is Chanmyathazi township. now expected to cost between $620 and $640m, nearly double the original estimate of $350m. The road is technically 38th street, though it will be named Aung San Suu Kyi Road, Mandalay mayor U The latest delays most likely make it impossible Ye Lwin was quoted as saying in 7 Day Daily. that the project will meet its original completion target of May 2020, with mid-2022 now a more The new road is paved with nylon asphalt and will realistic horizon. be 2,600ft long, 60ft wide.

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The new batch of short-haul jets will most likely be used by Air KBZ to increase its market share in the domestic aviation market, one that is dominated by state-owned airline Myanmar National Airlines.

Air KBZ currently commands a 20% slice of the domestic aviation market, though Air KBZ chief operating officer U Kyaw Han claimed in March 2019 that the airline is determined to increase its market share to around 35%.

It remains unclear how the airline’s increased fleet size will affect existing or potential new routes. The airline’s domestic fleet will contain 10 ATR 72s once the final aircraft is delivered later this month.

Myanmar Transport Infrastructure At present, Air KBZ’s fleet of ATR 72s fly to 15 Monitor understands the road has been out of destinations across Myanmar: commission for years, as it borders a military compound. The city finally received permission in  Yangon 2017 to redevelop the road.  Nyaung-U ()  Mandalay  Heho  Myeik  Naypyitaw   Keng Tung   Kawthaung  Thandwe (Ngapali) Photo source: Mandalay City Development Committee 

Air Road Local airline expands domestic fleet Ministry receives insurance payout for destroyed steel shipment Local airline Air KBZ continues to add to its growing fleet as it is set to receive two new ATR 72-600 Local insurer IKBZ on 18 June paid a claim of aircraft before the end of June. Ks491m ($321,000) to the Ministry of Construction after the latter filed a claim for a steel shipment The newest ATR 72-600s will be the final batch of which was destroyed in March 2019, according to four ATR 72-600s ordered this year. multiple media reports.

The first two aircraft were delivered in May, while The 286 tonnes steel shipment was being shipped the third and fourth aircraft are scheduled to be to a bridge construction site in Paletwa, Chin State delivered on 22 and 29 June, respectively, when the vessel transporting the steel was according to Daily Eleven. reportedly attacked and set ablaze by the Arakan Army, an ethnic armed group operating in Rakhine State and Chin State.

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The steel was produced in Yangon by J&M Steel, a When completed, the bridge will improve road joint venture between the Ministry of Construction connectivity for an estimated 200 villages near and JFE Engineering. Paletwa.

The Ministry of Construction subsequently filed a At present, the bridge is almost 70% complete, claim with IKBZ, its marine cargo insurance according to officials from the Ministry of provider for the shipment, in April. Construction. Myanmar Transport Infrastructure Monitor notes the Ministry of Construction aims to Premiums reportedly totalled Ks3m ($1,900), with complete the bridge by February 2020. an additional Ks1m ($650) for the war-related coverages. Water Yangon Region parliament rejects proposed Ministry of Construction deputy minister U Kyaw vessel purchase Lynn was quoted by Kumudra earlier this week that none of the steel from the shipment is Yangon Region lawmakers have rejected a salvageable. proposal to purchase a Ks5bn ($3.3m) ocean ferry which would have been used to link Yangon to the remote , citing the islands’ lack of infrastructure and urban planning as reasons such a plan is not yet feasible.

MP U Yan Shin claims the Yangon government asked local company DBsea Enterprise Services to construct the 25m long ferry in Singapore, according to an article in The Irrawaddy.

The article added that round trip services between Yangon and the island would have been offered twice per month and that the regional government and DBsea would engage in a profit-sharing Paletwa Bridge operation for traditional ferry services in the

region outside of the Yangon-Coco Islands route. The Paletwa Bridge will span the Kaladan River and is a significant component of the Kaladan “The plan to buy a new ferry for *the+ Coco Islands Multi-Modal Transit Transport Project. is not realistic because the island still does not

have a proper jetty at which a ship needs to It is to be located on the Matupi-Paletwa Road in anchor, so the purchase plan should be Mindat District, western Chin State. The project postponed,” MP U Nay Phone Latt added on aims to increase road connectivity between Facebook. Rakhine State, Chin State and northeast .

“What the government should do is to draft a The bridge is being constructed at an estimated development plan for the island, with the ferry cost of Ks27bn ($17.6m). purchase being part of the plan,” the MP added.

The Paletwa Bridge project has been frequently The Coco Islands are located in the , delayed, predominantly due to an uptick in about 250 miles south of Yangon. Despite its instability in the area over the past year. location, the territory falls under the jurisdiction of

Yangon Region. Surveys and studies for the project were carried out in May 2017, and work on the project started There is only one ferry service in operation which in January 2018. links Yangon to the Coco Islands, though the

government has intermittently stated it plans to

expand air transport to the island.

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Only military planes currently fly to the island. The Road island historically served as a penal colony during New rural road opened near ’s military reign in the post-independence Myanmar-Thailand border era. The Department of Road Management under the Logistics Ministry of Construction on 15 June opened a new Metro AG eyes expansion across Myanmar concrete road connecting the Myanmar-Thailand border town of Myawady with Waw Lay, a smaller German wholesale giant Metro AG plans to expand border town situated about 50 miles south of its business operations to Mandalay, Naypyitaw, Myawady. and other notable cities across Myanmar within the next few months Metro Wholesale The road was developed by the Ministry of Myanmar CEO Jens Michel was quoted as saying Construction, according to a news release from the in Eleven Myanmar. Ministry of Information.

The CEO did not provide any specifics on the An opening ceremony was attended by Ministry of upcoming expansion but claimed the market Construction union minister U Han Zaw, Kayin response since the company’s launch of operations State chief minister Daw Nan Khin Htwe Myint, in March 2019 has been “absolutely phenomenal”. Kayin State Hluttaw speaker U Saw Chit Khin and other state officials. Jens Michel added that the company already has more than 300 hotels, restaurants and caterers as Running parallel to the Myanmar-Thailand border clients – must of which are local companies. and the Moei River, the 44-mile road was once a dirt road before the Ministry of Construction The company officially commenced operations in earmarked funds to begin upgrading the road in Myanmar in March 2019, after construction on a 2016. It is now paved and has a width of 18ft. 5,800 sqm warehouse at Thilawa SEZ finished earlier this year. Myanmar Transport Infrastructure Monitor notes Waw Lay is not an official Myanmar-Thailand Myanmar Transport Infrastructure Monitor notes border crossing, though the township relies on Metro Wholesale Myanmar is a joint venture goods from both Myanmar and Thailand via between Metro AG and Yoma Strategic Holdings. It Myawady. was established in early 2017, with Metro AG holding an 85% stake in the venture.

The venture aims to develop a one-stop distribution platform for hotels, restaurants, retailers and offices in Myanmar. It has partnered with KOSPA, a joint venture between Yoma Strategic Holdings and Japan’s Kokubu Group, for logistics solutions.

To date, the company has invested €10m (Ks17bn) in Myanmar, according to CEO Jens Michel.

In early 2019, Metro Wholesale Myanmar secured a $20m loan from the International Finance Corporation (IFC).

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Road Japan Infrastructure Partners (JIP) Submersible bridge to be developed with Japanese financial assistance JIP is a non-profit organisation from Japan, based in Tokyo. A submersible bridge is set to be developed in a flood-prone area north of Kalewa in Sagaing Its primary objective is to assist both the public Region following an agreement between the and private sectors in the area of infrastructure Ministry of Construction and Japan Infrastructure development. Partners (JIP). The organisation previously assisted the Ministry The two parties signed a memorandum of of Construction in 2016 with the development of understanding (MoU) on 28 May, according to an culverts throughout Magway Region and Bago article in Daily Eleven. The agreement will have JIP Region. donate a total amount of ¥70m ($646,000) for the construction of one bridge in Kayin State and three submersible bridges in Sagaing Region.

Although the agreement was signed just three weeks ago, feasibility studies for the submersible bridge near Kalewa have been conducted at the project site since late 2018.

Photo source: Ministry of Construction

Other Construction Industry Development Law to cover bridges

The Ministry of Construction is drafting the Construction Industry Development Law, Department of Building Deputy Director Daw Pa Pa Htwe announced at the Myanmar-Japan seminar At present, an additional feasibility study is being on the development of the Myanmar Industrial completed to determine water flow at the site Standards held on 12 June and attended during the rainy season. by Myanmar Transport Infrastructure Monitor.

While the definition of a submersible bridge can The law mainly aims to reinforce the Myanmar vary, submersible bridges in Myanmar are typically National Building Code (MNBC), and will cover the low-lying, “all weather” bridges which can sustain entire construction industry, including buildings conditions such as flash floods. Japanese financial and bridges. assistance has previously been used to develop such bridges in areas such as Bago Region. To date, a draft has been finalised and submitted to the Union Attorney General’s Office and the This particular submersible bridge will span the Ministry of Planning and Finance. Now the Kone Gyi Creek, north of Kalewa. Roughly 20,000 Department of Building is awaiting approval on its people in the area will be able to utilise the bridge submission. once it is complete, according to the Ministry of Construction. Following approval, the draft law will be reported to Parliament and to the President’s Office.

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The new law will mainly cover the following areas: Water MITT states plan for potential expansion  Standards for construction projects ranging from high-rises to small buildings The largest multi-purpose port in Myanmar,  Regulations for the engineers involved in Myanmar International Terminals Thilawa (MITT), building construction has publicly signaled it may begin its investment  Rules to manage not only construction but into Phase II of the terminal’s expansion also demolition and renovation processes plan – though only if there is enough demand,  The creation of central and regional according to an article in 7 Day Daily. committees to manage construction processes, with specific responsibilities The current capacity of MITT is around 1m TEU per annum after it in late 2018 finished construction Myanmar National Building Code (MNBC) on Phase I of the expansion.

The MNBC includes specifications for designing Myanmar Transport Infrastructure structures to be resilient to natural disasters, such Monitor understands Phase II of the expansion as flooding, storms and earthquakes. It also could add 400,000 TEUs to the terminal’s yearly addresses health and safety issues on construction capacity. sites. The code standardises planning, design and construction practices. MITT is a multi-purpose port terminal spanning plots 5-9 at the Thilawa Port area, roughly 25km In addition, the code covers fire safety and from downtown Yangon. Hong Kong’s Hutchison environmental sustainability. Port Holdings developed the terminal in 1998 and currently operates it. It comprises seven chapters: Air  Part 1: Planning, environment, Chinese airline launches sixth flight service to administration and legislation Myanmar  Part 2: Architecture and urban design  Part 3: Structural design  Part 4: Soils and foundations Sichuan Airlines continues to expand its direct  Part 5: Building services flight services between Myanmar and China after  Part 6: Building materials the Chinese airline launched a new  Part 7: Constructional practices and safety Mandalay-Hangzhou direct flight on 13 June.

The Ministry of Construction prepared the MNBC The direct service will be operated once per week in cooperation with the Norwegian government, using an Airbus A320, according to an article in the Myanmar Engineering Society and UN Habitat. TTR Weekly.

The first draft was released in 2012 and the Flights will depart Hangzhou on Thursdays at 20:45 ministry later printed an updated version of the and depart Mandalay on Friday mornings at 1:55. code in 2016. The flight time between the two cities is about four hours.

Technical working committees are currently TTR Weekly adds the route will mainly target reviewing and modifying the draft. The code is also Chinese tour groups. being translated to Myanmar language before it is incorporated into the law. Sichuan Airlines will compete with Zhejiang Loong

Airlines on the route. Zhejiang Loong Airlines

currently operates three Mandalay-Hangzhou

flights per week.

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Sichuan Airlines is bullish on Myanmar, having When asked why Myanmar has not taken on more established six different direct flight services debt to fund infrastructure products, the MP between Myanmar and China over the past 14 claimed that the government intends to keep its months. debt to GDP ratio at around 30% to 35% and instead pursue PPPs for almost all major At present, the airline also operates a Mandalay- infrastructure projects. Kunming flight, a Mandalay-Xi’an flight, a Yangon- Xi’an flight, a Yangon-Hangzhou flight and a Broader findings Yangon-Chengdu flight. The World Bank estimates that Myanmar’s overall Other real GDP is expected to grow at 6.5% for the 2018- World Bank optimistic on Myanmar’s 2019 fiscal year and 6.7% for the 2020-2021 fiscal economy, transport investment year.

Investments in transport infrastructure is expected to be a contributor to short-term and mid-term economic growth as Myanmar’s economy looks to rebound from a shaky 2018, according to the latest edition of World Bank’s Myanmar Economic Monitor published on 18 June.

World Bank estimates for Myanmar's economic growth. The report, released every six months, says Source: MEM June 2019 Myanmar’s short-term economic outlook remains positive based on renewed reform momentum and An uptick in industrial production and construction implementation of mega investment projects, such output were highlighted as tailwinds for the as transport infrastructure projects related to the economy, while recent reforms driving Belt Road Initiative (BRI) and the China-Myanmar liberalisation in wholesale and retail, insurance and Economic Corridor. banking were also pointed out as key drivers of

growth. The World Bank also expects increased spending on transport projects throughout the remainder of The World Bank believes headwinds for the his fiscal year to cause growth in construction economy are driven largely by external factors, output relative to the 2017-2018 fiscal year. such as slow global and regional growth, increased

trade tensions and increases in commodities which Member of Parliament Daw Thet Thet Khine, who could add to inflationary pressure. participated in a panel discussion at a launch event for the report, briefly touched on the subject of Additionally, the risk of Myanmar being removed transport Infrastructure when asked about from the European Union’s Generalized System of public-private-partnerships (PPP) and Myanmar’s Preferences could also have a significant negative debt levels. impact on the economy moving forward, according

to the World Bank. Commenting on the recent release of multiple project banks, Daw Thet Thet Khine stated that “only proven feasible projects should be included in the project banks,” and expressed that some of the projects listed in the national and Yangon Region project banks do not meet these criteria.

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Company and Project Profiles The Myanmar Transport Infrastructure Monitor database now includes over 350 companies, as well as 150 transport infrastructure projects across Myanmar.

The database is continually updated with new information.

The following are links to the Company and Project profiles that Myanmar Transport Infrastructure Monitor has updated this week:

Company Updates Air KBZ CK Hutchison Holdings Kyongdong Engineering Company Myanmar Steel Association Myanmar Iron and Steel Association (MISA) Myanmar National Airlines Wilmar Myanmar Port Terminals Universal Tractor

Project Updates Airport construction, Falam (Surbung airport) Airport upgrade, Kawthaung Bridge construction, Gote Htiek Bus Terminal Upgrade, Chan Mya Shwe Pyi (Mandalay) Elevated expressway, Yangon Port Terminal, Thilawa (MITT) Road upgrade, Bridge to Thilawa SEZ

Please note that access to our Company and Project profiles are restricted to Premium Subscribers only.

For information on Premium Subscriptions, please contact:

Jordan Zele [email protected]

Tin May Linn [email protected]

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 14

NEW TENDERS Overview Supply of construction materials for bridge project in Meiktila

Deadline 12 July 2019

Contact 09-5415814, 09-781300409

Description

The Bridge Department under the Ministry of Construction invites interested local parties to bid on the right to supply bridge construction materials and leasing bored pile for the Thaetaw-Yoe Sone Bridge construction project in Wundwin township, Meiktila District, Mandalay Region.

Bids should include the delivery of materials to the construction site. Payment will be made in . Tender documents can be obtained beginning from 13 Jun at the Deputy Director’s office (Urban), Bridge Special Team 4, Mandalay. Bids will be due on 12 July, 16:00. Bids will be opened on 15 July, 9:00.

Overview Supply of road construction materials for Myanma Railways

Deadline 4 July 2019

Contact 01-294352, or 01-291994

Description

Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to supply following materials:

Tender number Item name Quantity

(1”x1 ½”) size aggregate, including 195/MAMA/CE the delivery of material to Belin 820 subs station

One sub = 100 cubic feet.

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 17 June, during office hours at the Supporting Department of Myanma Railway located between 51st Street and Merchant Street in Botahtaung township, Yangon.

Bids will be due by 4 July, 14:30.

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NEW TENDERS Overview Supply of machinery for Myanma Railways

Deadline 17 July 2019

Contact 01-294352, 01-291994

Description

Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to supply following materials: Tender number Item name Quantity

196/MMA/CME(YUG) Machineries 38items

197/MAMA/CME Electrical power items 19items

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 17 June, during office hours at the Supporting Department of Myanma Railways located between 51st Street and Merchant Street in Botahtaung township, Yangon.

Overview Road paving works at Shwe Pyi Thar Industrial Zone

Deadline 8 July 2019

Contact 01-618157, 01-618585

Description

The Road Implementing Committee of Shwe Pyi Thar Industrial Zone invites interested parties to bid on the right to pave a concrete road on at the Shwe Pyi Thar Industrial Zone.

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 17 June at the Road Implementing Committee, Shwe Pyi Thar Industrial Zone (2-4).

Bids will be due by 8 July, 16:00. Interested parties are requested to submit company profiles or contractor profiles with price quotations along with the tender documents.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 16

NEW TENDERS Overview Supply of trucks for Naypyitaw Development Committee

Deadline 12 July 2019

Contact 067-3432081, 067-3432083

Description

Naypyitaw City Development Department (NPTCD) invites interested parties to bid on the right to supply the following foreign made trucks:

 Three garbage trucks (2-tons)  Two garbage trucks (4-tons)  One dump truck (4-tons)

Tender documents can be obtained beginning from 24 June at the Department of Motor, Transport and Workshop, Naypyitaw City Development Committee.

Bid will be due by 12 July .

Overview JV opportunity for bus terminal project in Sagaing

Deadline 17 July 2019

Contact 071-23152, 071-22248, 071-22886, 075-59015

Description

Kyun Hla Township Municipal Committee in Sagaing Region invites interested parties for a second time to bid on the right to invest in constructing a bus terminal project on 2 acres of land at Pyinma Myaing market.

Tender documents can be obtained beginning from 17 June at the Regional Municipal Committee, Monywa, Sagaing Region.

Bids will be due by 17 July, 16:00.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 17

NEW TENDERS Overview Supply of machinery and construction material for bridge projects in Tanintharyi

Deadline 3 July 2019

Contact 09-422461815, or 09-250067187

Description

Construction group (4) from the Department of Bridge under the Ministry of Construction invites interested parties to bid on the right to supply construction materials for the following four bridge projects in Tanintharyi Region.

 Thamote-Lut Lut Bridge (Dawei-Myeik road section)  Tanintharyi Bridge (Myeik-Tanintharyi-Bokepyin-Kawthaung road section)  Pu Lon Tone Tone bridge (Kawthaung-Pu Lon Tone Tone islands road section)  Tanintharyi Bridge (Min Than-Maung Hlaw) (located on Min Than-Maung Hlaw road section)

Bids should include the delivery of materials to construction sites.

Payment will be made in Myanmar kyat.

Items to be purchased:

 Ready mixed concrete  M.S Rod  J/Wood,  5Ply Wood (8’x4’)  Welding road (5kg)  Anti corrosion paint (M.S Plate, reinforcing steel bar, concrete)  Bentonite (Grade-A)  2.3mm thick sheet  10mm thick M.S Plate (5’x20’)  Carbide tipped drilling bit  Admixture (Type-G)  Admixture (Type-F)  Binding wire  Wire nail, H.S.D

Items to be hired:

 Z-craft  Coastal landing craft (750ton)  Kobelco crane (BM-500)  Drilling rig  50-60ton Crawler Crane

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 18

NEW TENDERS (Continued from previous page) Tender documents can be obtained beginning from 20 June to 3 July at following addresses:

 Bayintnaung Bridge (2), Yangon Region  Pu Lon Tone Tone bridge, Kawthaung town, Tanintharyi Region

Bids will be due by 3 July, 16:00.

Bids will be opened on 4 July, 9:30 at the bridge construction project office of Pu Lon Tone Tone bridge, Kawthaung town, Tanintharyi Region.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 19

OPEN TENDERS Overview Supply of construction materials for MCDC

Deadline 28 June 2019

Contact 02-4060252, 02-36171

Description

Mandalay City Development Committee (MCDC) invites interested parties to bid on the right to supply construction materials such as ready mixed concrete, cement silos and all sizes of steels for committee's construction projects.

Tender documents can be obtained beginning from 7 June at the Construction and Market Department, MCDC.

Bids will be due by 28 June. The price of tender documents is Ks10,000.

Overview Supply of power cable and provision of construction projects for DCA

Deadline 12 July 2019

Contact 01-533009, or 01-533030-ext:521

Description

The Department of Civil Aviation under the Ministry of Transport and Communications invites interested parties to bid on the right to supply following materials and lease following projects.

No Item/Project Quantity

1 Purchasing and installation of airfield lighting at Falam airport runaway 1lot

Construction of underground main cable duct line at side of Falam airport runaway

 Pipe and pipe line works 2  Earth and sand filling work 1 lot  Counterpoise  Installing earth rod  Manhole and handhole construction DVOR/DME (Doppler VHF Omni-directional Radio Range/Distance 3 1 set Measuring Equipment) 4 AWOS (Automatic Weather Observation System) 1 set Payment will be made in Myanmar kyat. Tender documents can be obtained beginning from 14-27 June, during office hours at the Department of Civil Aviation, Mingalardon township, Yangon Region.

Bids will be due by 12 July, 15:00.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 20

OPEN TENDERS Overview Provision of bus terminal construction in Kyaukse

Deadline 20 June 2019

Contact 09-2150809, or 066-2050251

Description

Kyaukse Township Development Committee in Mandalay Region invites interested parties to bid on the right to develop a bus terminal construction project in Mandalay Region.

The bus terminal will be developed on 20.6 arces of land at Phaung village located 29 miles from Mandalay. Bus stops, shops and car gates will be included in the terminal.

Tender documents can be obtained beginning from 20 May at Kyaukse Township Development Committee, Mandalay Region. The price of tender documents is Ks50,000. Bids will be due by 20 June.

The bid opening date will be announced later.

Overview Provision of construction projects for Myanma Railways

Deadline 20 June 2019

Contact 01-294352, or 01-291994

Description Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to develop the following projects.

Tender No Location Activity number 1 Yangon Central Fencing work: (6000')9"th: (Brick wall, RC 192/MAMA/CE Station column)

Between Hnin Pale- Don Wun, 13 items for production of 57'-3" PC girder (24 2 193/MAMA/CE Mawlamyine township nos)

3 194/MAMA/CE Insein new overpass construction 17items for production of 84'-10" girder (5 nos)

Tender documents can be obtained beginning from 7 June, during office hours at the Supporting Department of Myanma Railway located between 51st Street and Merchant Street in Botahtaung township, Yangon.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 21

OPEN TENDERS Overview Supply of bridge and road construction materials in Ayeyarwady

Deadline 24 June 2019

Contact 042-21099

Description

The Road Department under the Ministry of Construction in Ayeyarwady Region invites interested parties to bid on the right to supply construction materials for the regional road and bridge construction projects.

Bid includes the delivery of materials to construction sites. Payment will be made in Myanmar kyat.

The announcement of tender information will be post from 18 June on the notice board of deputy director’s office (urban) in Pathein, the Department of Road Management, Pathein District, No. 2 territory, Shwezigon Pagoda Road, Pathein city, Ayeyarwady Region.

Bid will be due on 24 June, 15:00.

Bid will be opened on 25 June, 10:00.

Overview Supply of road and bridge construction materials in Ayeyarwady

Deadline 4 July 2019

Contact 045-40425, 09-250232671

Description

The Road Department under the Ministry of Construction invites interested parties to bid on the right to supply steel sheet pile and other construction materials for road and bridge construction projects.

Bids should include the delivery of materials to construction site.

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 25 June at the Deputy Director’s office (Urban), Road Department, Ward-11, 5-Street, Pyapon township.

Bids will be due by 4 July, 16:00. Bids will be opened by 5 July, 10:00.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 22

OPEN TENDERS Overview Supply of bitumen for MCDC

Deadline 27 June 2019

Contact 02-4036171- extension 157

Description

Mandalay City Development Committee invites interested parties to bid on the right to supply pre-heated bulk bitumen (60/70).

Tender documents can be obtained beginning from 30 May at the Road and Bridge Department of Mandalay City Development Committee. The price of tender documents is Ks15,000.

Bids will be due by 27 June, 12:00.

Overview Fuel supply for IWT

Deadline 26 June 2019

Contact 01-250251, 01-384252

Description

Inland Water Transport under the Ministry of Transport and Communications invites interested parties to bid on the right to supply fuel to following locations:

Tender number Fuel type Department Quantity CS/CUR (18-19) (YGN) Yangon base 81500 CS/CUR (18-19) (Labutta-Yapawgyi/Labutta bridge/ 18500 (Delta) Diesel Shwe Laung/ Wakema CS/CUR (18-19) Mandalay base 50000 (MDY)

Tender documents can be obtained beginning from 3 June.

Bids will be due by 26 June, 10:00.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 23

OPEN TENDERS Overview EOI for FS of Wang Pong Port Improvement Project

Deadline 28 June 2019

Description

Design and Estimate for Jetty and SAR (Search and Rescue Center) and Primary study for EIA

Project: Feasibility study for Myanmar Wang Pong Port Improvement Project

Contract title: Design and Estimate for Jetty and SAR Center (Search and Rescue Center) and Primary study for Environmental Impact Assessment (EIA)

The project is located in the Wan Pong village with some 15 miles (24km) from Tachileik, eastern Shan State of Myanmar. Wang Pong port is hub for Myanmar’s activities on Mekong-Lancang River Commercial Navigation.

Feasibility study for Myanmar Wang Pong Port Improvement Project is a$500,500 project supported by the 1st Batch of Mekong-Lancang Special Funds (2017) and implemented by the Directorate of Water Resources and Improvement of River Systems (DWIR), under the Ministry of Transport and Communications (MOTC).

The objective of the project is to investigate the existing situation and capacity of Wang Pong port, to prepare design and cost estimates of jetty for 500 DWT vessels and SAR center including primary study on Environmental Impact Assessment (EIA), to evaluate the cost and benefit ratio, to enhance commercial navigation in the Mekong region as an integral part of “Mekong River navigation Master Plan” (2015-2025).

The project consists of four main components including:

1. Investigation work (bathymetric survey and geotechnical investigation), 2. Design and estimate for jetty 3. Design and estimate for SAR center 4. Primary study for environmental impact assessment plus an operational component to demonstrate the project in management and allow for rapid reallocation of funds in case of emergency.

Bathymetry survey of the Mekong river near Wang Pong port area has already been carried out.

To implement the said project, the Project Management Unit (PMU) of DWIR now invites eligible consultant firms/institutions to express their interests (EOIs) in providing the services.

The feasibility study includes as following:

 analysis of existing port conditions  cargo volume and ship type  design and estimation of port  general layout  navigation channel

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 24

OPEN TENDERS (continued from previous page)

 anchorage and navigation aid facilities  cargo handling facilities  marine structure, land formation  communications  environmental protection, energy conservation  equipment room  training grounds, parking lots  civil construction and matching utilities water supply  electricity and drainage  safety, labor hygiene and fire protection  the identification of the project type to consider Environmental Management Plan (EMP)  Initial Environmental Examination (IEE), or EIA  exploring and suggesting the required model test and study for the ESIA  preparing an using the format of study report in accordance with the identified project category

The general criteria which will be taken into consideration in the selection process include:

1. Proven track records of five years experiences in the filed of Inland River Port, River training activities and SAR center 2. Having experiences in at least three projects of river works, waterway design, inland port design or jetty works and SAR center in the Republic of the Union of Myanmar or East Asia or South East Asia. 3. Registered company 4. And for primary study for ESIA, the EIA firm must register at Environmental Conservation Department (ECD), under the Ministry of Natural Resources and Environmental Conservation (MONREC), Myanmar. 5. Consultant may associate with other firms in the forms of a joint venture of a sub-consultancy to enhance their qualifications.

Consultants are encouraged to associate with local EIA firms.

For more information, please contact: (http://www.ecd.gov.mm/?q-consultant-licensing)

The Consultants shall clearly state the role of each member in the association (Lead, JV partner, or Sub- consultant) in their expression of interest.

The best qualified consultant firm/ institution will be invited to submit Technical and Financial proposals.

Further information and a copy of the terms of reference (TOR) can be obtained upon request.

EOI must be delivered in a written form to the address below (in person, or by mail, or by email) by 20 June, 16:00, Myanmar local time.

Attn; Aung Myo Khaing (Director) Directorate of Water Resources and Improvement of River systems (DWIR), Ministry of Transport and Communications, No. (400), Lower Pazuntaung Road, Pazuntaung township, Yangon.

Contact: +959 5150213, +95 1 201857, +95 67 3411428: Email: [email protected] With a copy toL aungmyokhaing.77@gmailcom, [email protected]: [email protected]

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 25

OPEN TENDERS Overview Road construction projects for Ministry of Construction

Deadline 25 June 2019

Description

The Rural Road Development Department under the Ministry of Construction invites interested parties to bid on the following projects:

Road name Project amount Project Sai Naing Kwit-Myin Thae- Kunseik Street NCB C2-Wo1 Constructing tar road and 10.1 Km -2-01 (single lot) Chainage box culverts 0+000 to 10+115 metre

Sai Naing Kwit-Myin Thae-

Kunseik Street NCB C2-Wo1 Constructing tar road and 10.3 Km -2-02 (single lot) Chainage box culverts

10+140 to 20+424 metre

Kant Balu-Htangone-

Karboe Street NCB C2-Wo1 Constructing tar road, RC 12.5 Km -2-03 (single lot) Chainage bridge and box culverts

00+000 to 12+450 metre

Kant Balu-Htangone-

Karboe Street NCB C2-Wo1 Constructing tar road, RC 7.3 Km -2-04 (single lot) Chainage bridge and box culverts

12+450 to 19+765 metre

Tender documents can be obtained beginning from 25 May at the Rural Road Development Department, Ministry of Construction.

Bids will be due by 25 June, 10:00.

The date of the tender clarification event is 11 June, 10:00.

The date of the technical information event is 18 June, 10:00.

Tender forms can be accessed by emailing [email protected] or [email protected].

For more information, please contact: Deputy Chief Director (Project) Daw Tin Moe Myint, 067-24821.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 26

OPEN TENDERS Overview Bridge and road construction materials supply for DUHD

Deadline 22 June 2019

Contact 043-2024536, 09-421710498

Description

The Department of Urban and Housing Development (DUHD) under the Ministry of Construction in Sittwe District invites interested local parties to bid on the right to supply road and bridge construction materials, including the delivery of materials to the construction site.

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 1-10 June at the Road Department, Director’s office (Urban), Meeting hall, Sittwe, Rakhine State

Bids will be due by 22 June, 8:00.

Bids will be opened on 22 June, 10:00.

Overview Supply of road and bridge construction materials in Lashio, Shan

Deadline 23 June 2019

Contact 082-2204149, 09-452341934

Description

The Urban Development Department, Shan State (North) invites interested parties to bid on the right to supply diesel and construction materials for road and bridge projects.

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 23 May at the District Assistant Chief Director’s office (Urban), Rural Road Development Department, Lashio, Shan State.

Bids will be due by 23 June, 15:00.

Bids will be opened on 24 June, 10:00.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 27

NEW TENDERS Overview Supply of fuel for MPA

Deadline 25 June 2019

Contact 01-8610230, 01-8610232.

Description

Myanma Port Authority (MPA) under the Ministry of Transport and Communications invites interested parties to bid on the right to supply diesel (H.S.D), premium diesel (P.H.S.D) and Octane-92.

Payment will be made in Myanmar kyat. Tender documents can be obtained beginning from 24 June, during office hours at the store department, new Canal Road (Western side of Botahtaung Pagoda, Toll Gate) in Botathaung township, Yangon.

Bids will be due by 25 June at 14:00.

Overview Supply of UHF/VHF for MR

Deadline 27 June 2019

Contact 01-294352, 01-291994

Description

Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to supply the following materials:

Tender number Activity UHF/VHF (Handheld) (20Nos), R 32 with FXO 190/MAMA/S&T FXS sub-card (20-Nos)

Payment will be made in Myanmar kyat.

Tender documents can be obtained beginning from 27 May, at Myanma Railways located between 51st Street and Merchant Street in Botahtaung township, Yangon.

Bids will be due on 27 June.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 28

OPEN TENDERS Overview Procurement of rehabilitation work for rural road in Sagaing

Deadline 25 June 2019

Description

The Department of Rural Road Development under the Ministry of Construction invites parties to bid on the right to carry out road rehabilitation works on the Saign Naign Gwe-Myin The-Kunseik Road.

Contract title: Saign Naign Gwe-Myin The-Kunseik Road rehabilitation works

 Sagaing Region under Watt Tat township (20.424km)  Reference No. : NCB C2-W01-2-01 (single lot) chainage 0+000 to 10+115m  NCB C2-W01-2-02 (single lot) chainage 10+140 to 20+424m

Contract Title: Kant Balu-Htan Gone-Kabo Road rehabilitation works

 Sagaing Region under Kant Balu township  Reference No. : NCB C2-W01-2-03 (single lot) chainage 0+000 to 12+450m  NCB C2-W01-2-04 (single lot) chainage 12+450 to 19+765m

The Republic of the Union of Myanmar has received financing from the International Development Association (IDA) toward the cost of the Flooding and Landslide Emergency Recovery Project (FLERP).

The Department of Rural Road Development (DRRD) under the Ministry of Construction, in its role as implementing agency of component 2 of the FLERP, intends to apply part of the proceeds toward payments under the contract(s) for the procurement of road works.

The Department of Rural Road Development (DRRD) now invites sealed bids from eligible bidders for the following road works in the Sagaing Region:

C2-W01-2-01: Road rehabilitation work: Road length (10,115m) on the Saign Naing-Myin The- Kunseik road under Watt Lat township (chainage 0+000 to 10+115m).

C2-W01-2-02: Road rehabilitation work: Road length (10,284m) on the Saign Naing-Myin The- Kunseik road under Watt Lat township (chainage 10+140 to 20+42m).

C2-W01-2-03: Road rehabilitation work: Road length (12,450m) on the Kant Balu- Htan Gone- Kabo road under Kant Balu township (chainage 0+000 to 12+450m).

C2-W01-2-04: Road rehabilitation work: Road length (7,315m) on the Kant Balu- Htan Gone- Kabo road under Kant Balu township (chainage 12+450 to 19+765m).

Continued on next page

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 29

OPEN TENDER (continued from previous page) Bids will be evaluated bid by bid, taking into account discounts offered, if any, for combined bids.

The contract(s) will be awarded to the bidder or bidders offering the lowest evaluated cost to the employer for each individual or combined bids, subject to the selected bidder(s) meeting the required qualification criteria for each lot or a combination of bids as the case may be.

Bidding will be conducted through the national competitive bidding procedures as specified in “the World Bank’s Guidelines for Procurement of Goods, Works and Non-Consulting Services under IBRD Loans and IDA Credits & Grants by World Bank Borrowers dated January 2011 and revised in July 2014” (the procurement guidelines), and is open to all eligible bidders as defined in the procurement guidelines.

In addition, please refer to paragraphs 1.6 and 1.7 setting forth the World Bank’s policy on conflict of interest.

Interested eligible bidders may obtain further information from the Department of Rural Road Development (DRRD), Ms. Tin Moe Myint, DRRD Deputy Director General, ([email protected] and/or [email protected]) and inspect the bidding documents during office hours Monday to Friday from 10:00 to 16:00 at the address given below.

A complete set of electronic bidding documents in English Language may be obtained free of charge by interested eligible bidders by simple e-mail request to the address below.

No printed bidding documents will be made available or sent by DRRD. Interested Bidders that obtai the bidding documents will be invited to attend:

 Pre-bid conference including an Information Session on the Bidding Documents and Templates on Tuesday 11 June, 10:00  Technical information session on the new technologies to be used for the realization of the work on Tuesday 18 June, 10:00

Bids will be due by 25 June, 10:00. Electronic bidding will not be permitted.

Bids need to be submitted at the address below. Late bids will be rejected.

Bids will be publicly opened in the presence of the bidders’ designated representatives and anyone who choose to attend at the address below on 25 June immediately after the bid submission.

All bids must be accompanied by a bid security or a cash deposit with a reputable bank in Myanmar, licensed by and under the supervision of the Central Bank of Myanmar for this activity.

Address: Department of Rural Road Development (DRRD) Daw Tin Moe Myint, Deputy Director General Yanaung (2) Quarter , North of (200) Bedded Hospital, Pyinmana, Naypyitaw, Republic Union of the Republic of Myanmar

For detailed information, please contact:

Ms. Tin Moe Myint +95(0) 24821 (office telephone ) +95(0) 24762 (office fax) e-mail: [email protected] and/or [email protected]

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 30

OPEN TENDERS Overview Yangon Mandalay Railway Improvement Project Phase II

Deadline 26 June 2019

Description

The Government of the Republic of the Union of Myanmar has received a loan from the Japan International Cooperation Agency (JICA) towards the cost of the Yangon Mandalay Railway Improvement Project Phase II. Non-refundable Invitation for Description: Rolling Stock Document Fee Bid

Design, manufacture, supply, installation, delivery, testing and commissioning of Rolling Stock (design build): 1. Type of Train: Diesel Electric Multiple Units (DEMUs). IFB No: IFB- Total number of cars: 180 cars (6 cars/train x 30 train-sets) USD 1,000 MR/BD/2105 2.

which shall be delivered to the Insein DRC Depot/ Mahlwagon Shed or New Ywathagyi depot and workshop

2. Bidding will be conducted through procedures in accordance with the applicable Guidelines for Procurement under Japanese ODA loans, and is open to all bidders from eligible source countries, as defined in the Loan Agreement.

(a) The Eligible Nationality of the Contractor(s) shall be Japan in case of the prime Contractor.

(b) In case where the prime Contractor is a joint venture, such joint venture will be eligible provided that the nationality of the lead partner is Japan, that the nationality of the other partners is Japan and/or the Republic of the Union of Myanmar and that the total share of work of Japanese partners in the joint venture is more than fifty percent (50%) of the contract amount.

3. Myanma Railways, Ministry of Transport and Communications now invites sealed Bids from eligible Bidders for the design, execution and completion of the Rolling Stock Procurement Works as described above (“the Works”). International competitive bidding will be conducted in accordance with JICA’s Single-Stage Bidding Procedure.

4. A complete set of the bidding documents can be obtained and inspected by interested bidders upon submission of a written application to the address below during office hours from 9:30 a.m. to 16:30 on Monday to Friday (except public holidays).

Managing Director, Myanma Railways, the Ministry of Transport and Communications Naypyitaw railway station compound, Pobba Thiri township, Naypyitaw, Myanmar Telephone: +95-67 -77024, Facsimile number: +95-67-77164 Email address: [email protected], [email protected] (not for submission but for clarification)

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THIS WEEK’S NEW DATA

Japan exports to Myanmar Jan Feb March April May June July Aug Sep Oct Nov Dec 2019 34 56 54 53 2018 57 83 69 74 68 47 45 36 46 66 54 50 2017 67 83 72 66 64 74 79 69 86 64 65 94 2016 62 89 99 96 69 70 67 57 88 82 106 98 Japan imports from Myanmar Jan Feb March April May June July Aug Sep Oct Nov Dec 2019 101 115 125 109 2018 90 102 109 97 72 76 96 122 137 168 107 88 2017 77 92 99 78 61 67 84 100 108 114 95 79 2016 72 86 89 74 44 58 59 89 106 84 69 61 Thailand exports to Myanmar Jan Feb March April May June July August Sep Oct Nov Dec 2019 367 352 2018 353 374 438 375 440 428 382 396 352 366 360 348 2017 357 399 432 314 372 334 323 344 369 333 364 365 2016 351 347 380 335 379 340 333 327 326 320 350 387 Thailand imports from Myanmar Jan Feb March April May June July August Sep Oct Nov Dec 2019 226 234 2018 241 226 208 256 229 252 237 253 267 291 271 278 2017 43 202 168 172 190 218 214 261 252 265 249 241 2016 231 207 185 206 182 210 199 166 190 197 199 181 U.S. exports to Myanmar Jan Feb March April May June July August Sep Oct Nov Dec 2019 23 31 23 2018 19 19 28 25 23 23 19 17 24 17 23 26 2017 18 18 50 15 11 14 13 10 11 17 16 17 2016 15 53 8 11 8 8 12 12 13 16 17 21 U.S. imports from Myanmar Jan Feb March April May June July August Sep Oct Nov Dec 2019 46 59 63 2018 33 32 28 38 39 29 52 48 45 52 64 34 2017 25 24 28 25 30 20 31 40 36 42 35 29 2016 15 18 15 19 19 16 20 31 24 25 25 18

All data is in US$ millions

This data is obtained from the following sources: Japan’s Ministry of Finance Bank of Thailand United States Census Bureau

Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 32

THIS WEEK’S NEW DATA

Japan imports from Myanmar Japan exports to Myanmar 180

120 160

100 140 80 120 100 60 80 40 60

20 40

0 20

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2019 2018 2017 2016 2019 2018 2017 2016

Thailand exports to Myanmar Thailand imports from Myanmar 500 350 450

400 300

350 250 300 200 250 150 200

150 100

100 50 50 0 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

2019 2018 2017 2016 2019 2018 2017 2016

US exports to Myanmar US imports from Myanmar 60 70

60 50

50 40 40 30 30

20 20

10 10

0 0 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar April May June July Aug Sep Oct Nov Dec

2019 2018 2017 2016 2019 2018 2017 2016

All data is in US$ millions

Myanmar Transport Infrastructure Brief | 6 June – 13 June 2019 33

THIS WEEK’S NEW DATA

W/E retail fuel prices, April to June 2019

Week Diesel Octane 95 Octane 92

W/E 9 April Ks1005 Ks980 Ks905

W/E 23 April Ks1030 Ks1005 Ks940

W/E 29 April Ks1040 Ks1020 Ks1025

W/E 7 May Ks1035 Ks1030 Ks965

W/E 14May Ks1025 Ks1030 Ks965

W/E 21May Ks1025 Ks1030 Ks970

W/E 28 May Ks1035 Ks1045 Ks970

W/E 4 June Ks995 Ks1010 Ks930

W/E 18 June Ks930 Ks945 Ks860

1200

1000

800

600

400

200

0 23-Apr 30-Apr 7-May 14-May 21-May 28-May 4-Jun 11-Jun 18-Jun

Diesel Octane 95 Octane 92

Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre

Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 34

CALENDAR

Builder Myanmar 2019 Date: 1-3 August 2019 Venue: Novotel, Yangon Max Convention Centre , Yangon, Myanmar http://www.buildmyanmar.com/

Builder Myanmar 2019

Builders Myanmar 2019 featuring: Construction Myanmar 2019 and Building Materials Myanmar 2019 is set to be Myanmar's most complete Building & Construction event in Myanmar that brings together an international congregation of building and construction companies, contractors, property developers, architects and also its supporting industries gathered in Yangon to showcase the latest developments in the building and construction industry.

Myanauto 2019 Date: 6-8 September 2019 Venue: Tatmadaw Hall, Yangon, Myanmar https://www.myanauto.com/

Myanauto 2019 Myanauto is an international auto parts, accessories, services, & repair equipment show, which will provide the ideal marketing venue for auto, auto parts, accessories and service, and repair equipment manufacturers and suppliers to meet face-to-face with key buyers and business owners.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 35

CALENDAR

AMPA Myanmar 2019 Date: 26-29 September 2019 Venue: Yangon Convention Center, Yangon, Myanmar https://www.auto-myanmar.com/

AMPA Myanmar 2019 This event will showcase tools such as hex key wrenches, gear pullers, wheel master wrenches, folding hex keys and automobiles parts.

Myanmar Marine Expo 2019 Date: 6-7 November 2019 Venue: Novotel Max, Yangon, Myanmar http://marine-myanmar.com/

Myanmar Marine Expo 2019 Myanmar Marine Expo (MYANMEX) 2019 is a event that brings an international congregation of companies together in Myanmar. It is slated to be Myanmar's most comprehensive international business platform encompassing all aspects of safe guarding, ship building, ship repairs, shipping, maritime engineering, offshore engineering & technology, ports & logistics and more. The event is an exceptional meeting point for the global maritime community in Myanmar, aregion where the industry remains buoyant and strong growth is set to occur. Myanmar Marine Expo 2019 (MYANMEX 2019) will bring together leading industry players.

transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 13 June – 19 June 2019 36

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