Union Parliament rejected to have a €70 million loan from French Development Agency (AFD) proposed by Yangon Region Government to implement development projects in the region.

Sett Aung, Deputy Minister for Planning and Finance clarified about the remark made by Public Accounts Committee in concerned with the €70 million loan from the AFD on December 13 and the Union Parliament voted against borrowing from the AFD.

The Union Parliament Speaker announced that there were 497 votes against and 34 votes for the motion, with 6 abstentions. He said 36 votes are lost during the voting.

Deputy Minister requested to the parliament to approve the loan that the interest rate is low and it will be a good sign to show relation between Myanmar and international community. Each respective department will implement a feasibility study to estimate the profit of the project and the cost of a study to accomplish.

The parliament committee recommended the suspension of the €70 million loan on December 10.

Maung Maung Win, Deputy Minister for Commerce on behalf of the ministry, submitted a proposal to borrow €70 million from the AFD for development projects which include transportation, development of the Yangon River bank, and heritage conservation projects in Yangon on November 12.

Under the proposal, the French Development Agency would lend €70 million, the EU would provide assistance amounting to €9.5 million and the government was to provide the balance amounting to €5.2 million for taxation, land leasing and compensation.

The report of the parliament committee said the feasibility study was led by the AFD and in reality, Ministry of Transportation and Communications and Yangon City Development Committee should carry out the study. The AFD should only aid technical assistance for the study.