A framework agreement for allocating Official Development Aid (ODA) loans has been signed. The signing is a key step to completing the development of the Hanathawaddy International Airport Project.
“After holding 10 meetings between Department of Civil Aviation and JGC-Yongnam-Changi Airport International Consortium, both sides reached the framework agreement for the ODA loans,” said U Nyan Tun Aung, Union Minister for Transport and Rail Transportation, in his address at the signing ceremony held in Yangon yesterday.
“Meanwhile, we are carrying feasibility studies for drawing ODA loans from the Private Sector Investment Fund of the Japanese International Cooperation Agency,” he added.
The framework agreement between Department of Civil Aviation (DCA) and the newly formed HIA Myanmar Company Ltd, was signed by U Min Lwin, Director-General of DCA, and Mr Yasumasa Isetani, Managing Director of HIA Myanmar Co Ltd. Also present were the union minister, Japanese Ambassador to Myanmar Mr Tateshi Higuchi and Singaporean Ambassador to Myanmar Mr Robert Chua.
Hanthawady International Airport project is estimated to be operational as of 2022, four years later than its target, due to the process of garnering an Official Development Assistance loan from investors, according to the Department of Civil Aviation.
The ODA loan from the Japanese government will help fund the project.
Currently, Yangon International Airport – which has a capacity to handle 2.7 million travelers per year – will bear the burden of a growing number of foreign travelers until Hanthawady International Airport’s construction.
The number of tourist arrivals has increased year by year, reaching 4.4 million in 2014, increased from 1.06 million in 2012, 2.04 million in 2013. Myanmar expects to see the number grow to over 6 million by 2017.
Hanthawaddy International Airport will be the largest of three commercial airports in the Yangon Region, it will accommodate the growing number of foreigner travelers to Myanmar.
Located in the Bago region about 48 miles north east of Yangon, roughly a 90min to Yangon, the international airport is projected to handle up to 12 million passengers a year. The site of the future airport is going to be built on 9,000 acres of land which once house a Japanese army airport during World War II.