According to the Japanese Foreign Ministry, $ 268 million (27.78 billion yen) of the loans will be used for a project to build a bridge over a road in the East-West Economic Corridor, a road that crosses Myanmar. , Thailand, Laos and Vietnam. . The project involves a bridge over the road linking Bago and Kyaikhto, northeast of Yangon, a measure that will improve the efficiency of the logistics sector.
As the volume of trade with Thailand, Myanmar’s largest trading partner, is expected to continue to increase, it is essential to develop the East-West Economic Corridor to increase the efficiency of the logistics sector, the Ministry noted.
The maximum loan amount to finance small and medium enterprises in Myanmar is $ 144 million (15 billion yen), which will allow them to have sufficient funds to stabilize their business and expand their business.
The repayment period will be 40 years, with a grace period of 10 years. The loans will help weaken the economic impact of the pandemic on the development of Myanmar’s industrial and commercial sectors, and create and maintain jobs, according to the ministry.
Myanmar’s Special Economic Zones (SEZs) received foreign investment worth $ 362.28 million in 2018-2019, a report noted. 106 companies from 18 countries and four local companies invested $ 1.84 billion in the zones through 2019. Japan led the list of foreign investors in 2018 with more than 36% of total investment.
James harris, an infrastructure expert at Pinsent Masons, the firm behind Out-Law, said: “Myanmar needs this kind of support. of “catching up” over the past eight years or so. The need for investment in the national transport sector is considerable. “
“Government agencies in Japan have been at the forefront of this file for some time, alongside other multilateral development organizations, NGOs and national donor agencies such as the World Bank / IFC, Asian Development Bank, AFD and DIFID. It is encouraging to see that this continues, ”he said.