August 19, 2016

Three ministries submit proposal for US$200 million loan from World Bank

Union Minister for Planning and Finance U Kyaw Win.
Union Minister for Planning and Finance U Kyaw Win.

THE Pyidaungsu Hluttaw yesterday heard union ministers explaining why a US$200 million loan should be taken from the World Bank to be spent on emergency recovery projects dedicated to rehabilitating damaged infrastructure, public and private property caused by the passage of the Cyclone Komen in July last year.
Construction Union Minister U Win Khaing said that his ministry would use $105m on the reconstruction of disaster-resistant transport infrastructure in disaster-hit areas in several states and regions.
Union Minister for Agriculture, Livestock and Irrigation Dr Aung Thu asked for $70m to be spent on renovation work to rural transport infrastructure and the purchase of machinery.
Planning and Finance Union Minister U Kyaw Win said that his ministry would need $15 million for its project management in emergency and recovery.
The World Bank’s terms and conditions for the $200m interest-free loan include a six-year concessional period with 32-year repayment plus an annual service charge of 0.75%.
The country is US$9.164b in debt, which the planning and finance union minister said is an amount regarded as moderate in terms of its level of debt resistance. The Cyclone Komen brought unusual rainfall last July, with two thirds of the country affected by unprecedented flooding and hundreds of thousands of people being left homeless.
The parliament passed a proposal for Myanmar’s entry into the Bay of Bengal Initiative on Multi Sectoral Technical and Economic Cooperation (BIMSTEC) Convention.
On 17 May, the parliament will debate the World Bank’s loan and the nomination of U Kyaw Tint Swe as union minister for the State Counsellor’s office.


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