Non-paper - 3 May 2018 - New Yangon City Development project

Overview

A long- stalled Yangon new city development project will be carried out in collaboration with the World Bank, International Monetary Fund (IMF), International Finance Cooperation (IFC) and foreign loans. The project is estimated to take up 30,000 acres of land to the west of the Yangon River. Itaims to provide two million jobs, to help cater to Yangon’s growing population, and alleviate key issues, such as employment and housing.

On 31 March 2018, the Yangon regional government launched the New Yangon Development Company Limited (NYDC) to be incorporatedunder the Special Companies Act and 100 percent owned by the regional government. The NYDC has invited local and foreign entrepreneurs as third parties to invest in the new city project. The development of the new city will be primarily based on a Public-Private Partnership (PPP) model, with businesses contributing in equity investments. According to U Thein Wai, Vice Chairman and CEO of NYDC, equity investors take on full risks for their investment. If investment succeeds, equity investors enjoy higher return. Similar logic applies to a failed investment, and then equity investors may not recover their capital.  The Yangon region government has contributedKs 10 billion into NYDC’s fund to start implementing the project.

For further information, please click: Non-paper - 3 May 2018 -  New Yangon City Development project

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