More Japanese firms conduct infrastructure development in Myanmar More Japanese firms conduct infrastructure development in Myanmar

More Japanese firms conduct infrastructure development in Myanmar

More Japanese firms conduct infrastructure development in Myanmar

Japanese firms are increasingly conducting infrastructure development business in Myanmar, which has become a hot spot for the infrastructure export drive being promoted by the government and private sector, The Japan News reported.

With Myanmar’s growing need to upgrade infrastructure like its electricity network to match its rapid economic growth, opportunities swell for infrastructure development businesses.

Announced on Tuesday, Hitachi Industrial Equipment Systems Co., a subsidiary of Hitachi, Ltd., will enter a joint venture with a Myanmar company, Soe Electric & Machinery Co., Ltd., handling power and distribution transformers, a vital component in developing electricity networks, in the country.

In June, Mitsubishi Electric Corp. also formed a technological tie-up with Asia General Transformer Co., Ltd. (AGT), a local electric transformer producer.

Major trading house Mitsui & Co. has acquired a 44% stake in the acquisition with the electric power plant operator, Myanmar Power Pte. Ltd. (MPPL), under the approval of its parent company, Maxpower Group Pte. Ltd. (MGPL). MPPL operates a gas-fired power plant (Thaketa Power Plant) with a 50-megawatt generation capacity in the Thaketa district in Yangon.

Last year, Marubeni Corp. and Myanmar’s Ministry of Electric Power (MOEP) agreed to conduct a feasibility study for a coal-fired power generation project utilising environmentally friendly and highly efficient technology in Myanmar. The project includes constructing a coal-fired power plant (1,800– 2,000MW) using state-of-the-art technology in Myeik township, located in Tanintharyi region in the southern part of Myanmar.

Mitsubishi Corp., with JALUX Inc. (JALUX) and SPA Project Management Ltd. (SPA), has been running Mandalay International Airport, located in the Mandalay Region of Myanmar since April.

During the Mekong-Japan Summit Meeting in Tokyo on Saturday, Japan’s Prime Minister Shinzo Abe held talks with Myanmar President Thein Sein regarding the former’s offer to assist Myanmar in infrastructure development.

Myanmar’s gross domestic product grew 7.7 percent in 2014, the highest among the emerging Southeast Asian countries. More and more foreign companies have started businesses in the country that is expected to continue posting high economic growth, earning it the nickname “Asia’s last frontier.”

Economic sanctions imposed under military junta rule had resulted in underdeveloped infrastructure there, however, particularly in terms of railway and road networks as well as the power grid. The measures have strained foreign enterprises in the country, prompting the Myanmar government to call for overseas investment for the development of its infrastructure.

According to the article, Japanese companies are aiming to secure more contracts by promoting their advantages in terms of technology, quality and maintenance as Japanese firms have advantages in developing electric power infrastructure.
Source: Myanmar Business News

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