Auditor General urged the government to set appropriate plans for Hanthawady airport project as over K5 billion are spent for the project which started in 1994, according to a report submitted by Public Accounts Committee during a parliament session held on August 20.
The report stated the government needed to set appropriate plans and consider whether the project can bring benefit for the interest of people or not.
It said Ministry of Transportation and Communications clarified that a joint committee was found by the ministry and Japan’s Ministry of Land Infrastructure Transport (MLIT) to have a full official development assistant (ODA) loan from Japan to implement the airport project.
It added whether Myanmar is needed another international airport within fifty miles of Yangon or not based on the facts of the number of tourists’ arrival at Yangon International Airport. In addition Myanmar is not built two international airports in one city. Moreover the government is carrying out to improve tourism sector and it will be boomed under effective management.
The airport project was started in 1994 and although the ministry signed a bilateral agreement with Archom Co. Ltd. in 2001, the company cannot carry out the undertakings agreed in the contract. It was abolished in 2013 and tender selection process was started in 2012. YJC Co. Ltd., a joint venture of Yongnam, JGC Consortium and CAPE won the tender and changed its name to HIA Myanmar Co. Ltd. Although the ministry and the company discussed for five times from 2017 to January 201, some important agreements are not made. The framework agreement (FWA) was expired at the end of January this year, it said.
The government already spent K5.277 billion from union budget for the basic infrastructure of the airport project. The project is delayed as it is a project with high technology and the investment is big. It took a time to have a loan from the ODA and discussion with the HIA Myanmar Co. Ltd. also took time, it said.
The report said about K3.09 billion are spent to measure the airport area, to build fence and runway from 1993 to 2018. About K1.061 billion are spent to pay compensation and relocation cost from 2012 to 2018. The state invested K1.197 billion as a consultant fee to make an agreement with tender winner from 2015 to 2018.