Union Parliament has approved the seeking of a loan of US$483.8 million from Asian Development Bank to implement the Bagon-Kyaikhto Expressway project despite criticism for overcosting as the construction of a one-mile road section is due to cost over Ks20 billion. 

The ADB loan proposal sent by the President was approved by the parliament after discussion of union level organizations. 

Approval came after voting in which 336 of 552 parliamentary representatives voted for the proposal. Some MPs and military MPs opposed it. 

“This expressway is only 62 kilometers long. Roughly calculating, the construction of a one-mile long road section will cost about Ks22 billion. The deputy minister explained it. The 59-kilometer Maubin-Pyapon Road was constructed at a cost of US$80 million. US$30 million (38%) was refunded to the State. The 70-kilometer Eindu-Kawkareik Road was built at a cost of US$120 million and US$50 million (42%) was given back to ADB. I want to say that even if we calculate Ks3 or 4 billion for one mile, the value almost halves. Now that the cost is over US$20 billion, how did they calculate? If it is real costing, is this expressway essential? Isn’t there any other way to reduce cost,” said Lower House MP Yin Min Hlaing from Gangaw Township Constituency. 

Deputy Construction Minister Kyaw Lin explained that costing is all inclusive as the project also includes 351 small bridges and culverts. 

“Coordination had to be sought with ADB for loans after costing the project in line with international standards. When international competitive bidding came, rivalry among international companies led to about 40 percent cost reduction in a project. This can be found in projects implemented with ADB loans,” the deputy minister said. 

In his discussion, Military MP Colonel Sein Win said although the budget needs could be met with foreign loans, it is important to be free from corruption and wastage in spending those loans.