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Myanmar Transport Infrastructure Brief | 6 June – 13 June 2019 2 Issue 128 | 19 June 2019 News Analysis Myanmar 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appears to drop bid for elevated expressway The Ministry of Construction implies French developer Vinci Highways has withdrawn Its bid for the Yangon Elevated Expressway project amid more procurement delays Company of the Week Golden Myanmar Airlines drops out of airport upgrade project The DCA will reissue a tender for the Kawthaung Airport upgrade in an effort to find China Eastern Airlines a new developer for the potential international gateway to the Mergui Archipelago has launched the first direct flight service Two new road projects highlighted in ASEAN master plan linking Yangon to The proposed Mandalay-Tigyaing-Muse Expressway and Naypyitaw-Kyaukphyu 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 Yangon Region 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 Kawthaung Airport 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. transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 6 June – 13 June 2019 3 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, Mawlamyine 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 Shan State. 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. transport.frontiermyanmar.com Myanmar Transport Infrastructure Brief | 6 June – 13 June 2019 4 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
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