YANGON- With the aim to reduce the traffic jams and to create more job opportunities, Yangon Government Committee discussed about implementation of Elevated Expressway Project with International Finance Corporation (IFC).
The project is expected to start next year, according to Union Minister of State Counsellor’s Office Kyaw Tint Swe.
Yangon Elevated Expressway is expected to provide easy access to Yangon downtown, Yangon International Airport, Yangon Port, Thilawa Special Economic Zone, Mindalardon Industrial Zone and Yangon-Mandalay highways. In order for the goals to be met, the Ministry of Construction has prepared a Request For Qualification (RFQ) and Preliminary Information Memorandum (PIM).
“As implementation of the elevated expressway project, we can solve the issue of traffic jams and also will be creating many employment opportunities at the same time,” said Kyaw Tint Swe.
The Ministry of Construction and IFC on January 11th signed an advisory services agreement to build an elevated expressway connecting Yangon Port, Thilawa Special Economic Zone, Yangon International Airport, Yangon Industrial Zone and Yangon-Mandalay expressway.
The 27 kilometer long elevated expressway will cost US$400 million with maintenance costs to be paid for by collecting taxes.
According to the agreement, the IFC will be entitled be the leading advisory corporation for construction of 4 lane elevated expressway project which will be connecting from southern to northern part of Yangon.
The IFC said it would implement a tender selection process to choose an experienced and high-profile construction company with good management, diversified operations and high-quality maintenance capability.
IFC also said the project will help develop the economy.
“The big investment in basic infrastructure, especially in the transportation sector, is very important to develop the economy in the long term. That’s because it can promote a link between the economy and services in the social sector,” said Kyi Zaw Myint, Deputy Director General (Planning) of the Ministry of Construction.
If the project is successfully implemented, it will set a standard for Yangon’s inbound and outbound road projects.
The government expects that investment in the transportation sector will require expenditures of $48 billion by 2030. For construction of Yangon elevated expressway project, between $ 350 million and $ 400 million will be used from private sector.
A public-private partnership-PPP with the private sector taking on most development costs, will reduce the burden for the government. The 2-3 year project is slated to launch in early next year.
“The IFC will create an international market standard to attract high-profile investors to implement the project,” said Vikram Kumar, residential representative of IFC (Myanmar).
“It will create a good precedent to attract projects under PPP across the country as it is an elevated expressway project developed under the PPP. It will also promote competition and production in addition to boosting connection between people and business enterprises and commercial business,” said Kumar.
Although Construction Ministry signed with IFC in early of this year, it is undergoing stage for only invitation of interested persons for the first phase of project such as Design, Engineering, Finance, Construction, running process and maintenance sectors.