Myanmar seeks $500M loan from Japan and South Korea to upgrade railway
Japanese loan to improve the Yangon-Taunggo section of the Yangon-Mandalay line. South Korean loan on the Gyotaung-Melzar and Mawhan-Kardu sections of the Mandalay-Myitkyina line
The government will seek US$502.72 million (K719.71 billion) in loans from Japan and South Korea for railway upgrades to facilitate the transportation of goods and people in the country, a senior official said on Wednesday.
U Thant Sin Maung, minister of Transport and Communications, told the Pyidaungsu Hluttaw (Assembly of the Union) the country will borrow $377.72 million from Japan and $125 million from South Korea.
He said the Japanese loan will be used to improve the Yangon-Taunggo section of the Yangon-Mandalay line, and the South Korean loan will partially fund improvements on the Gyotaung-Melzar and Mawhan-Kardu sections of the Mandalay-Myitkyina line, which is expected to cost a total $149 million.
U Maung Maung Win, deputy minister for Planning, Finance and Industry, said, “The Myanmar government will provide the remaining $24 million.”
The South Korean loan has an annual interest rate of 0.01pc, with a 15-year grace period and 25-year repayment period.
“We can reduce travel time to 8 hours from the current 14 hours,” U Thant Sin Maung told legislators.
He said the Japanese loan will have a 10-year grace period and 30-year repayment period at 0.01 percent interest.
Once the work is completed, the Yangon-Mandalay line is expected to earn much more revenue, he added. “Income from the Yangon-Mandalay section for fiscal 2018-19 was over K25 billion,” he said, and is expected to increase to K144 billion in 2023, K245 billion in 2024, and K723 billion in 2030. – Translated
Source: https://www.mmtimes.com/news/govt-seeks-500m-loan-japan-south-korea-uprgrade-railway.html
