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CITIC-led consortium wins bid for implementing SEZ in Myanmar

(Xinhua) Updated: 2015-12-31 10:39

NAY PYI TAW - Myanmar authorities announced Wednesday that a consortium of six foreign group companies, led by China's CITIC, has won the bid for implementing two projects of the country's newly planned special economic zone (SEZ) in Kyaukphyu, western Rakhine state.

The transnational consortium involves five Chinese and one Thai firms.

The announcement for construction and operation of industrial park and deep sea port projects of the Kyaukphyu SEZ was made by Myanmar's Kyaukphyu SEZ Bidding Evaluation and Awarding Committee (BEAC) following the approval by the government cabinet and parliament.

The CITIC Consortium also comprises Thailand Charoen Pokphand Group Company Limited (CP Group), China Harbor Engineering Company Ltd (CHEC), China Merchants Holdings (International) Co LTD (CMHI), TEDA Investment Holding (TEDA) and Yunnan Construction Engineering Group (YNJG).

The CITIC Consortium formed the project joint ventures together with Myanmar local enterprises for the construction and operation of the two projects which will be implemented under the framework of the "Myanmar Special Economic Zone Law" promulgated by Myanmar government in 2014.

Consulted by Singapore JURONG and PwC, CITIC Consortium participated in the bidding and submitted the proposals.

The Industrial Park project, which covers an area about 1,000 hectares, is to be built in three phases with commencement of construction in February 2016.

The Industrial Park will include technology and capital-intensive industries and labor-intensive industries such as textiles and garments, construction materials processing industries, food processing industries, and marine supply as well as services industries.

The Deep Sea Port project consists of the MADE Island Terminal and YANBYE Island Terminal, totally with 10 berths. In addition, it also includes the road and bridge connecting the Industrial Park and Deep Sea Port. The Deep Sea Port Project will be constructed in four phases within 20 years.

After the completion of the project, the expected annual capacity of the Deep Sea Port will be 7.8 million tons of bulk cargo and 4.9 million TEU containers. With the increased container throughput, the Deep Sea Port may update to the complete container terminals, with the annual capacity of 7 million TEU containers.

The development of Kyaukphyu Industrial Park and Deep Sea Port projects will promote the economy and society development of Myanmar and improve the local people's employment and livelihood, said CITIC Consortium, adding that more than 100,000 new jobs will be created for local people every year.

By the year of 2025, 90 percent of the project managers' positions would be undertaken by local people. Once in full operation, the two projects will bring approximately $10 billion in annual GDP growth for Myanmar.

According to the plan, during the whole concession period, Myanmar government will accumulatively receive $15 billion of tax revenue from the two projects. When the concession period is expired, both projects will be handed over to the Myanmar government.

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