Soe Min Htaik + Sithu
Deputy Minister Maung Maung Win of the Ministry of Planning and Finance submitted a proposal to borrow US$61.816 million from Republic of Korea to Pyidaungsu Hluttaw (Union Parliament) in Nay Pyi Taw on August 30.
The loan is from Economic Development Cooperation Fund (EDCF). It will be taken out from EXIM Bank of Korea. It will be spent on establishing infrastructures in the implementation of Korea-Myanmar Industrial Complex (KMIC) in Hlegu, Yangon Region.
The deputy minister presented a report to the parliament, clarifying the EDCF loan from the EXIM Bank of Korea will be spent on carrying out the projects of the Ministry of Construction instructed by the president.
According to the terms and conditions of the EDCF of the EXIM Bank of Korea, the suspension period of the loan will be 15 years. The loan repayment period will be 25 years. The loan term will be 40 years with 0.01 percent of interest rate, said Deputy Minister Maung Maung Win.
The deputy minister explained that the loan is for Korea-Myanmar Industrial Complex project on 550 acres of Nyaungnapin training school land in Hlegu Township, Yangon Region. That is jointly conducted by the governments of the two countries. The project includes construction of water supply pipelines, electrical power line and upgrading of a 9.45 km 4 lane road. Basic infrastructure construction works will be conducted from 2018 to 2021 under a tender system in accordance with international practice.
According to the calculation of the grant element of the loan, it is a cost-effective one. The feasibility study report said KMIC project hopes to create about 200 factories of Korean investment and 50,000 to 100,000 job opportunities. More export goods can be manufactured. The government can fetch about US$10 million revenues per year from industrial enterprises, said Deputy Minister Maung Maung Win.
The Ministry of Construction will be responsible for implementing the project. Until June 30 in 2018, the total foreign loans of the Ministry of Construction are US$1403.171 million. The ministry has foreign debts of about US$142.224 million to repay, said Deputy Minister Maung Maung Win.
Translated and Edited by Win Htut