Sep 1, 2013

Myanmar plans to borrow US$2.3bn from China

Myanmar is planning to borrow a total of US$2.3 billion from China to finance 22 infrastructural projects, including those of telecommunication, electricity and construction, according to the government’s investment projection for national projects in 2013-14.

Other areas that Chinese loans are to be used include agriculture, finance and industry. A total of US$646 million is to be spent in those projects during the fiscal year 2013-14.

The national projects for financial sector include a micro-credit project to provide loans for small and medium enterprises, and establishing a SME bank. Telecom project will distribute mobile SIM cards in rural areas across Myanmar.

Five power-line projects and a natural gas power plant are to be funded with the loans from China. Yangon-Mandalay new highway, public housings and other construction projects, including those of 16 new bridges, will also be financed by the same loan.

Also for the two large-scale low-cost housings - Yadana and Ayeyarwun projects - in suburban Yangon, the loans from Chinese EXIM bank will be used to cover their electrical expenditures, according to the Ministry of Construction.

Source: Eleven Weekly Media