The consortium building Hanthawaddy International Airport in Bago Region has signed a framework agreement with the Department of Civil Aviation (DCA): a concession agreement will follow, with construction of Myanmar's new hub predicted to finish in 2022

The consortium building a major new international airport in Bago Region known as Hanthawaddy International Airport has inked a framework agreement with the Department of Civil Aviation (DCA), in a move that brings the companies closer to breaking ground.

A concession agreement – or deal that allows a firm to run a business under governmental authority – will come later, with construction predicted to finish in 2022, according to a press release published on January 30.

The airport will occupy about 9000 acres of land 80 kilometres (50 miles) outside of Yangon, and should initially be able to handle 12 million passengers a year, it said.

Despite Hanthawaddy International Airport’s distance from the city, the consortium predicts its project will serve as a hub that connects Myanmar’s commercial capital with the world. “Once operational, the airport will become the main international gateway into Myanmar, particularly the Yangon metropolitan area,” the release said.

Yangon already has an international airport, which is currently being expanded by Asia World Group.

The consortium companies also predicted the project will attract tourists and other travellers. The government wants 7.5 million people to visit the country by 2020, as previously reported by The Myanmar Times.

Meanwhile, Bago would benefit from the airport, the companies said.

“The development of the Hanthawaddy International Airport, coupled with the development of related public infrastructure, will increase commercial and industrial activities around the Bago region and beyond, raising the local residents’ standard of living through new job creation over time,” said the joint statement.

JGC Corporation, Yongnam Holdings and Changi Airports International form the consortium that won the tender to build and run Hanthawaddy International Airport in October 2014 after the original bid winner – a joint venture headed by South Korea’s Incheon International Airport Corporation – and the government fell out over the project proposal, as previously reported by The Myanmar Times.

Myanmar has been trying to build the Hanthawaddy airport for two decades, but delays have plagued the project, with state media blaming setbacks last year on the difficulty of getting financial assistance.

Financing for the project has come in part from the Japanese government through an Official Development Assistance loan.

JGC owns a controlling stake in the consortium with 55 percent. Changi Airports International holds 20pc while Yongnam has a one-quarter share.

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