Mitsubishi Corp., Marubeni Corp. and Sumitomo Corp. announced on October 29th that they established a consortium, “Myanmar Japan Thilawa Development (MJTD)” for the first phase of Thilawa Special Economic Zone project in Myanmar. MMS Thilawa, an equal investment limited liability partnership of the three corporations invests 49% of the capital, while the government of Myanmar and local enterprises 51%. A 400-hectar industrial park will be developed with expectations of economic development and employment creation.

A signing ceremony was held on the same day at a hotel in Tokyo. Land development will be undertaken this year by a consortium of Penta-Ocean Construction Co Ltd. and local construction companies in Myanmar. The total investment of the work is 17 billion yen. Other infrastructure works such as roads, water works, sewage treatment, power grids will be implemented by Japanese Yen loan.

The SEZ is located in 23 kilometers south of Yangon, Myanmar’s largest city, covering 2400 hectares. 400 hectares of the total area will be initially developed by MJTD. Some 100 enterprises such as export processing firms, manufacturers, and food processing companies are to be invited in the zone. The government of Myanmar intends the SEZ to be in commercial operation in 2015.

The Japan International Cooperation Agency is conducting a feasibility study on development of remaining 2000 hectares. (2013/10/30)