The new government of Myanmar has launched new economic policies and accelerated efforts to further extend reforms and create growth in the country.
To achieve long-term growth and development, Myanmar requires large-scale infrastructure investment in power generation, transportation, special economic zones, and resource development, as well as other supporting infrastructure. The government of Myanmar acknowledges the country’s vast infrastructure needs and has made PPP a part of the national development strategy. Myanmar’s many ministries and states are now pursuing PPPs in multiple sectors, including energy, aviation, roads, water and waste.
The Project Appraisal and Progress Reporting Department (PARED) of the Ministry of National Planning and Economic Development (MNPED) is a focal point of the privatization program, including the promotion of PPP. The MNPED is responsible for the formulation of national development plans and the enhancement of the economic development of the state. In addition, the Myanmar Investment Commission (MIC) is a government-appointed body that appraises and approves investment related proposals in accordance with the Foreign Investment Law.
Currently there is no law governing PPP, but the Foreign Investment Law and the Myanmar Citizen Investment Law, introduced an “open tender” system for public procurement, opened the financial sector to foreign banks, and drafted a new Special Economic Zone Law that will help investors overcome infrastructure bottlenecks. However, one of the main challenges remains the lack of experience in structuring and implementing PPPs
as well as attracting sufficient private investment.
The government of Myanmar is currently formulating a PPP Policy document that outlines where the use of PPPs is appropriate and promotes a consistent and effective approach to the identification, development, procurement and management of PPPs. The Policy document will also clarify the current roles and responsibilities of institutions and bodies in the government at each stage of infrastructure projects.
The immediate priorities in infrastructure are expected to be in urban transportation systems, upgrading national airports and construction of new airports and water utilities. In 2014, the government awarded two concessions for the operation, rehabilitation and maintenance of airport facilities at the Mandalay international airport and the Hanthawaddy international airport.
The Global Competitiveness Index (GCI) is published in the Global Competitiveness Report and assesses the competitiveness landscape of 140 economies. The GCI Infrastructure Score is a component of the overall index and covers transport, electricity and telephony infrastructure.
Political and social transformations in Myanmar have made possible reform of the country’s telecommunications sector. Liberalization has allowed a country with the lowest rates of telecom penetration to leapfrog into the digital age. In February 2012, it cost $300 to buy a mobile SIM card anywhere in Myanmar—that is, if such a rare find made itself available. But just over two years later, in September 2014, you could easily purchase one for $1.50—and have your choice from among three operators.
The Republic of the Union of Myanmar (Myanmar) is one of the largest and poorest countries in the South East Asian region. The country recently emerged out of 60 years of conflict with run-down infrastructure from years of civil unrest. The government has embarked on a long-term transition from an authoritarian military system to democratic governance; from a centrally directed economy to market oriented reforms; and from years of strife to peace. Since the Information, Communication and Technology (ICT) sector— and telecommunications operators specializing in mobile telephony—tend to be the first to arrive in post-conflict settings, it is important that government reforms and regulatory approaches facilitate these investments and begin...