- Region: Asia
December 13, 2013
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a Memorandum of Understanding (MOU) with the Ministry of National Planning and Economic Development of the Government of Myanmar for proceeding discussions toward establishing Vehicle to promote potential projects in Myanmar (the "Project Promoting Vehicle "; "PPV").
This PPV is expected to be established with the objective of supporting commercially viable projects from their early stages, such as the urban development project in the Greater Yangon area by focusing on resolving such problems as rising land prices attributable to inefficient domestic land use and traffic congestion. The establishment of this PPV is in line with the Project List*1 made public at the Japan-Myanmar Summit Meeting held in May 2013.
Recent efforts by the Government of Myanmar toward democratization, economic reforms, release of political prisoners and reconciliation with ethnic minorities have led the western countries phased relaxation or elimination of economic sanctions. In light of these moves, Japanese companies have high expectations for the country's growth potential. Yet investments in Myanmar are posing a number of challenges, including undeveloped legal frameworks in addition to inadequate infrastructure.
The establishment of this PPV will meet the intention of the Government of Myanmar to use private sector resources and vitality to the maximum extent in urban and infrastructure development as well as in other sectors without solely turning to official assistance. Materializing this PPV will enable facilitation of private projects and support for the acquisition of permits, among others, and thus serve to promote investments in Myanmar by Japanese and other private sector companies. JBIC will advance discussions on establishing this PPV and support for formulation of projects in the country from their early stages, thereby contributing to further deepening and development of economic relations between Myanmar and Japan.
- *1 This document was prepared by a public-private partnership task force on Myanmar, which consists of the Government of Japan and relevant institutions and associations. In this Project List, JBIC is expected to build up an appropriate financial mechanism (including the establishment of promotion vehicle) for the infrastructure development in the sector such as power, industrial zone and urban development, implemented by public and/or private entities.