- Region: Asia
- Equity Participations
January 16, 2015
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on January 15 a shareholders' agreement with the Ministry of National Planning and Economic Development (MNPED) of the Government of Myanmar to establish the Project Promoting Vehicle (PPV).
The PPV aims to support from the early stage the projects that are expected to be commercially viable such as urban development projects in the entire area of Myanmar, including the Greater Yangon area, with a view to resolving problems, including land price hikes caused by the inefficient use of domestic land and traffic congestions. It is expected to be established as a jointly invested company by JBIC and MNPED. The establishment of PPV is in line with the Project List*1made public at the Japan-Myanmar Summit Meeting held in May 2013. JBIC signed a Memorandum of Understanding (MOU) with MNPED about the establishment of PPV in December 2013.*2
Japanese companies have high expectations for Myanmar'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 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 projects as well as in other sectors without solely turning to official assistance. Materializing 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.
As Japan's policy-based financial institution, JBIC will take forward steps in supporting for formulation of projects from the early stage in Myanmar through parent companies and thereby contribute 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) from early stage for the infrastructure development in the sector such as power, industrial zone and urban development, implemented by public and/or private entities.
- *2 See Press Release on December 13, 2013.