SINGAPORE: A consortium comprising JGC Corporation, Yongnam Holdings Limited and Changi Airports International on Saturday (Jan 30) signed a Framework Agreement with Myanmar’s Department of Civil Aviation (DCA), reaching a milestone in the Hanthawaddy International Airport project.
According to a media release, the signing of the Framework Agreement marks an important step towards the eventual inking of the Hanthawaddy International Airport concession agreement. In October 2014, the consortium was officially named by Myanmar’s DCA as the successful tenderer for the design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership.
A spokesman for the consortium said the concession agreement for the estimated US$1.5 billion project is expected to be signed in the third quarter of 2016.
Located on a site of approximately 3,642 hectares, 80 kilometres northeast of Yangon near Bago, Hanthawaddy International Airport is expected to have an initial capacity of 12 million passengers per annum, making it the largest airport in Myanmar.
Once operational, the airport will become the main international gateway into Myanmar, particularly the Yangon metropolitan area. The Hanthawaddy International Airport project is planned for completion by 2022.
A portion of the project cost will be supported by the Official Development Assistance loan from the Japanese government, to which the Myanmar government plans to apply following the signing of the Framework Agreement.
Further discussions will be held between the consortium and Myanmar’s DCA upon the signing of the Framework Agreement. JGC Corporation, which is one of Japan's leading engineering contractors, holds the biggest interest of 55 per cent in the consortium. Yongnam and Changi Airports International hold 25 per cent and 20 per cent respectively.