The regional government can run projects including excavation work of Ngamoeyeik creep, which is suspended by the regional parliament, with the state funds said Yangon Mayor Maung Maung Soe in a union parliament session held at Nay Pyi Taw on December 3.

“There are two parts to implement the excavation work of Ngamoeyeik creep. One part is implemented by Directorate of Water Resources and Improvement of River Systems under the Ministry of Transportation and Communications. The other part is by us. I don’t want to make comment on their part as I am not expert in those matters. We will build the market and other infrastructures. However, we have to submit a proposal for a loan to Ministry of Planning and Finance in related with the project. We can do the project with foreign loan or state fund. There is a distinctive word difference that I always highlight. Loan and grant are not the same. Grant is a sum of money that is given by the government or an organization to be used for a particular purpose. The EU want to give us a loan as the project has potential. They offered us and we didn’t ask from them. They don’t give the loan every time we asked them,” said the mayor.

Union Parliament Speaker said on November 26 that the parliament is suspended the projects in Yangon region, including the excavation work of Ngamoeyeik creep, which are developed using a €70 million loan from French Development Agency (AFD), to need time to review the projects.

Maung Maung Win, Deputy Minister for Planning and Finance of Yangon region submitted a proposal to the Union Parliament on November 12 to take a €70 million loan from the AFD to develop an urban development project near Ngamoeyeik creep and to excavate the Ngamoeyeik creep.

The projects will be implemented not only with the AFD loan but also with a €9.5 million grant from European Union (EU) and state fund of €5.2 million for taxes, land compensation and relocation costs.

The project has two parts: to develop Ngamoeyeik creep and to implement an urban project near the creep. The developments of Ngamoeyeik creep are to make excavation, to preserve the bank of the creep, to build a corridor road along the creep and to install navigation, security, signal and GPS systems, according to Ministry of Planning and Finance.

According to the terms and conditions of the AFD’s loan, the loan will be a repayment terms of 20 years preceded by a 10 year grace period. The interest rate will be 6 month Euribor-40 bps. The interest rate may change as it will be calculated with the rate in the time when the loan is provided.