Myanmar and Japanese governments have signed a memorandum of understanding and loan agreements to get an ODA loan of about US$1,100 million for implementing for development projects including Yangon urban development project.

The ceremony to sign the exchange of notes and loan agreements took place at the Ministry of Planning, Finance and Industry in Nay Pyi Taw on January 21. The four projects are named Yangon sewage system development project, Yangon urban development project, urban area power supply improvement project and regional infrastructure development project stage 3. ODA (official development assistance) loan is worth Yen 120.915 billion (about US$1,100 million). 

Interest rate is 0.01 percent and the loan period is 40 years—grace period and repayment period. 

The exchange of notes was signed by Deputy Minister for Planning, Finance and Industry Maung Maung Win on behalf of the Myanmar government and the head of the Japan International Cooperation Agency (Myanmar Office) on behalf of the Japanese government. 

The loan will be spent on developing sewage system and building a water treatment plant for public health improvement in Yangon, upgrading drainage system and solving traffic problems in Yangon and upgrading sub-power stations and power lines in Yangon and Mandalay regions and infrastructural development (roads, bridges, electricity and water supply) in other regions and states.