Two foreign joint business proposals in airline and oil refinery have been withdrawn despite the Myanmar Investment Commission's approval, due to obstacles from related ministries

Two foreign joint business proposals – an airline and an oil refinery – have been withdrawn despite approval from the Myanmar Investment Commission, the MIC has reported.

A proposed 78-billion kyat joint investment by Japan and Myanmar companies for a new airline was withdrawn after the Ministry of Tansportation and Telecommunications refused to issue a permit despite MIC approval.

The second proposed investment was an oil finery in Dawei, a joint project of  Chinese owned Guandong Zhenrong Energy (GDZR) and three Myanmar enterprises – the military-linked Myanmar Economic Holdings Ltd, state- owned Myanma Petrochemical Enterprise (MPE) and Yangon Engineering Group controlled by Htoo Group.

They also withdrew although the MIC had allowed the project, said MIC secretary Aung Naing Oo.

The GDZR signed an agreement to take a 70 per cent stake in the oil refinery project consortium, according to the MIC. All Nippon Airways (ANA) last year founded Asian Blue airline in join agreement with Golden Sky World, a subsidiary of Shwe Thanlwin Group. The MIC gave its blessing in 2016. But the new airline lacked an air operation certificate (AOC), which would take a year to obtain.

“Although the company applied for it, the ministry said they cannot grant it,” said Director Mya Sandar of the Directorate of Investment and Companies Administration (DICA). “So the Japanese cannot wait as they have to wait for over a year. At last they withdrew the project. The investment is worth US$78 million (106.1 billion kyat).” 

(Eleven Media Group: http://elevenmyanmar.com/business/12711 )

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