The Myanmar government and a consortium that includes Japanese plant builder JGC Corp. reached a broad agreement Saturday over a plan to construct a new airport on the outskirts of Yangon.
The consortium, which also includes Singapore’s Changi Airport Group, thus came a step closer to receiving a formal order for the airport construction project, estimated to cost about US$1.5 billion.
In Oct 2014, Myanmar granted preferential negotiation rights for the project to the consortium.
The Myanmar government plans to build the new Hanthawaddy international airport, with a capacity to handle up to 12 million passengers a year, in the Bago region, north of the country’s largest city Yangon.
It hopes that about half of the total cost will be covered by the Japanese government’s official development assistance.
The new airport is set to become operational in 2022, four years later than the initial plan.
Transportation systems linking the new airport with Yangon also need to be prepared, prompting the Japan International Cooperation Agency to survey the situation to see whether it can offer help in this area through ODA funds.
The new airport is intended to accommodate increases in foreign visitors to Myanmar, one of Southeast Asia’s biggest attractions to foreign investors as it goes through democratisation.
Yangon International Airport, the country’s busiest airport, has far surpassed its annual capacity.
(Source: Kyodo News)