Narrative
Full Description
Project narrative
On May 12, 2017, during the ‘One Belt, One Road’ International Cooperation Summit Forum, China Eximbank and Yangon Aerodrome Company Limited (YACL or 仰光机场有限公司) — a project company and subsidiary of Asia World Company Limited — signed a $170 million secured buyer’s credit loan agreement for the Yangon International Airport Reconstruction and Expansion Project. It was originally envisaged that the loan proceeds would be used to finance 85% of the total project costs ($200 million). However, the face value of the loan was eventually upsized to $225 million. The borrowing terms of the loan are unknown. However, it is known that Sinosure provided buyer’s credit insurance in 2018. The purpose of the project, which is being implemented as a Public-Private Partnership (PPP), is to reconstruct and expand the Yangon International Airport (ရန်ကုန်အပြည်ပြည်ဆိုင်ရာလေဆိပ်). The airport is located in Mingaladon, 15 kilometers (9.3 mi) north of central Yangon. Its exact locational coordinates are 16.907222, 96.133056. China Harbour Engineering Company Ltd (CHEC) is the EPC contractor responsible for implementation of the project.
Staff comments
1. The Chinese project title is 仰光国际机场改扩建项目. 2. The China Eximbank loan that supported this project is not included in the Overseas Development Finance Dataset that Boston University’s Global Development Policy Center published in December 2020. 3. Since January 2015, Yangon Aerodrome Company Limited (YACL) has held a concession from the Government of Myanmar’s Department of Civil Aviation (DCA) to develop, construct and operate terminal and other facilities at Yangon International Airport (YIA). 4. Asia World Company Limited is a private Burmese conglomerate. 5. Evidence of the loan's upsizing to $225 million can be found here: https://www.dropbox.com/s/3bse31a1zr7y15j/%E4%B8%BB%E8%A6%81%E9%A1%B9%E7%9B%AE%20_%20Legal%20Tax%20%26%20Investment%20Expertise.pdf?dl=0