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Construction ministry discusses announcement of preferred bidder for elevated expressways project in Yangon

Union Minister for Construction U Han Zaw presided over the 4th meeting of the leading committee on construction of elevated expressways and outer ring road in Yangon yesterday afternoon. The Zoom meeting was also participated by the committee members and Union Ministers U Thant Sin Maung, U Win Khaing, U Soe Win, its secretary Deputy Minister Dr Kyaw Lin, departmental heads and officials from Nay Pyi Taw, and Yangon Region Chief Minister U Phyo Min Thein and Regional Minister for Electricity, Industry, Transport and Communication Daw Nilar Kyaw from Yangon.

The phase (1) of elevated expressway project will have a total length of 27.5 kilometre at an estimated cost of US$800 million. The International Finance Corporation (IFC), the member of the World Bank, is working as the consultant group for the project. The IFC has evaluated the technical and financial proposals from the 10 companies which passed

The meeting discussed cooperation of relevant ministries in the project. The elevated expressway project will be implemented by the Ministry of Construction and the Yangon Region Government under the public-private partnership system. The phase (1) of the 27.5-km long project will include a 19-km long four-lane way in the eastern part of the city, 6-km long four-lane way from east to west and 2.5-km long two-lane way connecting to Yangon International Airport to reduce traffic congestion in the city.

Source: The Global New Light of Myanmar

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Construction of Bago-Kyaik Hto Expressway to commerce in 2022

Construction of an expressway connecting the city of Bago and Kyaik Hto Township in Mon State is expected to start in fiscal 2022-23. This comes after the Asia Development Bank (ADB) last week approved a US$483.8 million loan to build the 64-km expressway. Detailed design work is currently underway for the project. They will continue to work on compensation for the residents who live along the road area.

The project, which is expected to be complete in fiscal 2028-29, will include a 2.3- km bridge across the Sittaung River. The Japan International Cooperation Agency will finance the New Sittaung Bridge construction with a ¥27.8 billion loan. The project falls under the Greater Mekong Subregion (GMS) East West Economic Corridor (EWEC) from Bago to Kyaik Hto, The 4-lane asphalt concrete highway with 3.5 meter wide carriageway, 2.5-meter wide median and 2.5- meter wide median and 2.5-meter wide shoulder on each side will also provide easier access to the Thilawa Special Economic Zone near Yangon. The EWEC connects Thailand with Thilawa SEZ, and onwards to Pathein in Ayeyarwaddy.

The project will facilitate more efficient and safer movement of goods and people within Bagon Region, Mon State and Yangon Region by reducing travel time, shortening travel distance, minimizing transport costs and improving regional connectivity with Thailand and other GMS regions. The project will also help improve the ability of the Ministry of Construction to manage the country’s major toll highways and implement social and environmental safeguards. It will include a new community-based road safety program for villagers along the Bago- Kyaikto corridor.

Source: Myanmar Times

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Construction work resumes, under strict conditions

Many construction projects in the Yangon Region have resumed after being given the all clear from the government, but have been reminded to follow the Ministry of Health and Sports’ guidelines. Construction companies which do not abide by the ministry’s instructions will be shut down, according to an announcement by the Yangon Region Construction Inspection Committee. Companies will also need to report to the committee to verify that the construction work is being carried out in line with the ministry’s order. This includes providing photos, showing that the work does not contravene the government’s 18 rules.

10 percent of the construction companies needed to resume work urgently, and they have been able to resume this month with the government’s permission. They will allow more companies to resume when the sites have been inspected. Over 300 businesses have applied for permission to resume work, and most are still waiting on a response from the Region Government. According to the nature of construction work, some projects cannot be halted for any length of time and it is important that they be allowed to resume.

Some businesses owners also suggested that constructions sites are relatively safe environments, where there are low rates of transmission as workers live onsite in isolated dorms. Yangon construction sites were forced to close on September 28 after the government announced the city-wide stay-at-home order, leaving companies and staff little time to secure equipment and protect sites from damage caused by wind and rain. According to an announcement on October 10, works that meet regulation guidelines can resume with the region’s permission starting October 12.

Source: Myanmar Times

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Water supply project from Dotthawadi River to start in 2021

Mandalay Pyigyitagon Water Supply Development Project with the purification of Dotthawadi river, jointly implemented by the Netherlands and Mandalay City Development Committee (MCDC), will commence only in early 2021, said U Saw Han, a member of MCDC. It is hard to carry out the project during the coronavirus crisis. The officials are also still negotiating it. The precautionary restriction measures and crowd restriction caused the project to suspend, he added. This project was initiated with the assistance of JICA grant in 2018 and covered five wards in Pyigyitagon Township. The remaining 13 communities will get water supply from Dotthawadi river water purification scheme.

The project will begin only in early 2021 due to the COVID-19 impacts, he stated. The project can cover 70 per cent of Pyigyitagon Township, with the Dutch grant of 29.96 million Euro and 29.96 million Euro loan from the Netherlands banks — FMO and ING, with the total project cost of 59.92 million Euro. In this project, construction of water treatment plant, pumping station, water storage lake, service water pipelines, household water connections, development of district meter area zone to reduce the water loss, and installation of water meter in Pyigyitagon Township are included. Under the project development, residents in 70 per cent of the Pyigyitagon town area will receive good and clean water.

The Netherlands and Myanmar signed the grant agreement for Pyigyitagon Water Supply Development Project on 9 June 2020 in the ways of the virtual signing event. Mr Huub Buise, Deputy Ambassador, Mr Astrid Raaphorst, Director of NL Process and Legal Affair, the Netherlands Enterprise Agency (RVO), Daw Si Si Pyone, Director General, Treasury Department under the Ministry of Planning, Finance and Industry and Dr Ye Lwin, Mayor of the Mandalay City signed the grant agreement, according to the Netherlands Embassy to Myanmar.

Source: The Global New Light of Myanmar

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Yangon calls for EOI submissions for New Yangon industrial park

The Yangon City Development Committee (YCDC) under the Yangon Region Government has invited expressions of interest (EOI) for the development of an industrial park in New Yangon City, according to the Swiss Challenge Tender Committee on October 15. This follows an unsolicited proposal to develop the industrial park by State-owned China Communications Construction Company (CCCC). The New Yangon City Development had come under fire for signing an agreement with CCCC without calling a tender. The developer said it would carry out a Swiss challenge instead, allowing firms to challenge CCCC’s bid.

A Swiss challenge requires the government to publish the bid and invite third parties to match or counter-propose a better deal. The Swiss Challenge Tender Committee will call a tender to select a competing developer for the project, which includes development of a water treatment plant, wastewater treatment plant, power plant, and commercial and residential land area within the industrial park. It also involve construction of the Yangon River Bridge, municipal roads and municipal infrastructure for the resettlement areas. Interested competitors are required to submit an EOI by October 22. Qualified entities that have been shortlisted will be provided with information about the Request for Proposal (RFP) by the Tender Committee no later than seven working days after the deadline for EOI submission.

The RFP will contain further details on the scope of work, documents to be submitted by applicants and a timeframe for the Swiss challenge tender process. On October 14, the Public-Private Partnership (PPP) Center under the Ministry of Planning, Finance and Industry issued order involving the tender process for unsolicited project proposals without government invitation. Under the new order, unsolicited project proposals worth more than K2 billion will be processed under the procedures listed under order. If the unsolicited project proposal is accepted and beneficial for the State, the government has three options – to proceed with a Swiss challenge, standard tender process or direct negotiation for implementation.

Source: Myanmar Times

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Construction work to resume in Yangon with new rules

Construction work in Yangon, which has been halted since the third week of September, will be allowed to resume if it follows new rules, said the Yangon Region Construction Inspection Committee. “Construction projects in Yangon Region will have to report to the committee and after inspection, they will be allowed to resume if they are in compliance with the rules,” said committee Associate Secretary U Myo Myint.

The construction sites must follow 18 rules and Version 3.0 or 4.0 of Virus Prevention Instructions issued by the Ministry of Health and Sports. If the companies want inspections or have any trouble, they can contact the committee. Construction work necessary for infrastructure development is still a priority during COVID-19 and should be allowed if it complies with healthcare regulations said State Counsellor Daw Aung San Suu Kyi on October 9.

“While controlling the disease, we have to avoid an economic impact. Considerations include allowing factories to reopen. If construction work follows health rules, it can develop infrastructure in the long run and create jobs,” she said. Ten percent of construction work will be allowed after inspection by the Yangon government, the National COVID-19 Committee said on October 4. An October 10 announcement said work that meets regulations can resume with the region’s permission starting October 12.

Source: Myanmar Times

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YCDC digital construction permit platform receives over 1,000 applications

YANGON City Development Committee (YCDC) has received over 1,000 applications through Yangon Building Permit System (YBPS) during five months since its establishment. The YBPS provides Building Completion Certificate, building permit, a notice of inspection approval, minor building work approval, technical, administrative information and other managerial procedures.The system is designed to boost private investments in the city. It is initiated by International Finance Corporation (IFC), a member of World Bank Group, with the aims to reduce some procedures and paperwork in seeking construction permits, and cut frequent meetings and unnecessary disputes between the staff and applicants.

The registered engineers, architects and landowners can apply for the permit through online platform anytime and anywhere. This is a great reform amid the COVID-19 crisis. It has made us more technologically advanced and helped us become more conscious about environmental sustainability by adopting a paperless process, she continued.Additionally, the initiative, with support from the Foreign, Commonwealth and Development Office of the UK, the Australian Department of Foreign Affairs and Trade (DGAT) has helped modernize the system and provide new software and training for staff. It is a one stop source for those developers to obtain a construction permit.

Myanmar construction sector accounts for five per cent of the labour force (about 1 million workers), it has among the highest earning potential for people.Streamlining the construction permit process is helping to improve transparency, cut red tape and speed up processing for permits which will ultimately improve the overall investment climate in Yangon. This is part of IFC’s larger effort to support the development of the private sector and spur the job creation.

Source: The Global New Light of Myanmar

Construction sector in Myanmar worried over work-from-home order

Construction companies are worried over the impact of a national work-from-home (WFH) order as a result of COVID-19 on their businesses. The Central Committee for Prevention, Control and Treatment of COVID-19 on September 7 issued an announcement that only half of the civil workforce should report physically for work, while the other half should work from their homes or residences.

The 50 percent WFH scheme for employees was adopted in April and May during the first outbreak of COVID-19, but was discarded in June when the number of cases dwindled. The scheme has now been reinstated with cases on the rise. Although WFH arrangements can be adopted in sectors that do not require their employees to come to the office, it is much harder for the construction sector to reduce the number of workers on-site. Others are trying their best to comply with latest instructions to avoid further consequences.

Basins, hand sanitizers and masks have been placed at construction sites and dining areas and arrangements have been made for construction workers to work six feet apart from one another. The construction sector is providing the most job opportunities for workers now and they are trying their best to keep their business running. The construction sector is only starting to recover after most work came to halt between March and May. During that period, some small private constructors went out of business due to cash flow problems.

Source: Myanmar Times

Ministry of Construction complete 100 bridges in Myanmar this year

State and regional governments in Myanmar have expected expended around K477 billion building bridges in fiscal 2019-20, according to the Ministry of Construction. A total of 43 bridges spanning over 180 ft and 57 bridges under 180 ft amounting to 100 bridges in total have been completed in fiscal 2019-20. The new infrastructure has helped to enhance connectivity and trade for under-developed communities.

The completed bridges include Kantarwadi Bridge in Kayah State, Naunglon Bridge in Kayin State, Paletwa Bridge, Lalmyo Bridge, Daungvar Bridge in China State, Thamote Lut Bridge, Palone Tone Tone Bridge, Tanintharyi Bridge in Tanintharyi Bridge, Sittaung Bridge (Myo Soe), Shwe Kyin Bridge in Bago Region, Mon Chaung Bridge, Sal Yoe Bridge,Man Chaung Bridge in Magwe Region, Kin Chaung Bridge in Rakhine State and Labutta Bridge (Pin Lal Lay) in Ayeyarwady Region. These were constructed with loans from Austria. The No.3 Bago Bridge, Myanmar- Korea Friendship (Dala) Bridge, Gyine ( Kawkareik) Bridge, Gyine (Zathapyin) Bridge, Attayan Bridge are still being constructed with official development assistance.

There are also plans to bridge new Kunlon Bridge with international aid. They used technology for quality control so the bridge load and lifespan has increase substantially and will also reduce maintenance costs in the long ter. Instead of using steel trusses, the bridge designs were changed to steel arches which represents an advance in bridge engineering. In the case of damage by natural disasters, special bridge teams in each state and region have collected funds for Bailey bridges in advance.

Source: Myanmar Times

Development of the Korean industrial project to begin in December

Construction of the Korea-Myanmar Industrial Complex (KMIC) will commence in December despite the COVID-19 pandemic. The project is estimated to generate US$4.7 billion worth of value from investments and generate more than half a million jobs in support of Myanmar’s development. Launched during the visit of South Korean President Moon Jae-In to Myanmar last September, the KMIC is the first government-level project between the two countries.

The KMIC, which is being developed under a joint venture between Korea Land and Housing Corp, Global SAE-A Co Ltd and the Ministry of Construction, will developed across 556 acres of land in Nyaung Na Pin village in Hlegu, Yangon. Korea Land & Housing Corporation will hold a 40 percent stake in the project while Global SAE-A Co will hold a 20 pc stake. KMIC is valued at US$110 million and received approval from the Myanmar Investment Commission in 2019. The detailed design of the project is being finalized and construction will start by the end of year. The tender to develop the project will be called in October and after which construction of the first phase of the KMIC will commence in December. The first phase of the project will be implemented on 315 acres of land and involve facilities for food and beverage, cut-make-pack manufacturing and logistics and warehousing. The second phase, which will take place across 240 acres of land, will developed with the construction materials, electronics and computer parts manufacturing in mind. The whole industrial zone will be complete in 2022. The KMIC will include residential and commercial developments in addition to industry. The entire project will also be developed as a smart and eco-friendly industrial zone using Korean technology.

The Ministry of Construction will develop an outer ring-road and provide electricity and water access at the industrial zone with a US$70 million loan from the South Korea Economic Development Cooperation Fund. It has already received US$62 million in funds. Officials will start drawing more interest to the project among investors in Korea next month. Meanwhile, KMIC officials will cooperate with Korea government institutions to support businesses with consulting services and access to financing. The Koreans are also expending construction of the Dala Bridge in Yangon, which is now being carried out around the clock to be complete within the targeted timeframe despite COVID-19. The bridge, also know as the Myanmar- Korea Friendship Bridge, is expected to cost US $168 million. Construction of the bridge, which will connect Dala township across the Yangon River to downtown Yangon, began in May 2019 and is slateed to be complete in October 2022.

Source: Myanmar Times