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Market Updates

US, UK and Canada announce new sanctions

US sanctions target SAC members, the CBM governor, and Union Election Commission chair, among others

YRTA re-instituted as Yangon Private Transport Committee

It is likely the military administration is recasting the body to remove its association with the NLD

Myat Myittar Mon clarifies fuel importer status

Company denies rumours on social media that it is importing jet fuel

MoTC orders airlines submit Myanmar national passenger lists

KIA attacks seven tankers in Kutkai

Min Aung Hlaing inspects Myitnge wagon factory

Trade director shot in Muse

Denko fuel station attacked in North Okkalapa

Road paving on Merchant Road in Taungoo begins

U Shwe Lay inspects road, bridge projects in Ayeyarwady

Passport office on No.1 Industrial Road reopens

SKD car sales via digital banking increase

MoC extends import/export license relief measure

Military, BGF in talks over Yatai New City JV

Pyinmana-Taungtwingyi train services resume

Transport costs hiked due to truck diversions in Muse

This week’s company and project updates

This Week’s Tenders

Warehouse and Land for lease in Yangon and Tanintharyi Region

Supply of steel strand for MR

Supply of M.S rod for MR

Supply of dump truck for Magway Municipal

Company of the Week

Denko fuel station attacked in North

Okkalapa

Project of the Week

Road paving on Merchant Road in

Taungoo begins

Data

Weekly fuel prices

Trade statistics

Issue 224 | 20 May 2021

Other US, UK and Canada announce new sanctions The US, UK and Canada announced new sanctions against junta officials, their family members and military-linked companies on 17 May.

The US sanctions target the State Administrative Council (SAC) and 16 individuals.

They include four members of the SAC, seven military-appointed ministers, the governor of the Central Bank of Myanmar and the military-appointed chairman of the Union Election Commission.

The two sons of SAC member and Air Force Commander-in-Chief Maung Maung Kyaw and the daughter of SAC member and Transport and Communications Minister Admiral Tin Aung San were also targeted.

The sanctions freeze all their US assets and bar US citizens from financial dealings with them.

The new individuals added to the US’ sanction lists are as follows:

Mahn Nyein Maung – SAC member Thein Nyunt – SAC member Sai Lone Saing – SAC member Khin Maung Swe – SAC member Ko Ko Hlaing – Minister of International Cooperation Tun Aung Myint – Minister for Ethnic Affairs Tun Tun Naung – Minister of Border Affairs Pwint San – Minister of Commerce Win Shein – Minister for Planning, Finance, and Industry Thet Khaing Win – Minister of Health and Sports Khin Maung Yi – Minister of Natural Resources and Environmental Conservation. Than Nyein – Governor of the Central Bank of Burma; Thein Soe – Chairman of the military-appointed Union Election Commission Hein Htet – Son of SAC member General Maung Maung Kyaw Kaung Htet – Son of Maung Maung Kyaw Yin Min Thu – Daughter of SAC member and Transport and Communications Minister Admiral Tin

Aung San The US has previously targeted a number of senior junta officials, as well as the children of military commander-in-chief Min Aung Hlaing, Aung Pyae Sone and Khin Thiri Thet Mon, and the six companies they control.

It has also targeted a number of military-affiliated companies.

Canada announced sanctions against 11 SAC members, chief of police and military-appointed Deputy Minister of Home Affairs Than Hlaing and Union Election Commission Chairman Thein Soe, as well as the two children of Min Aung Hlaing.

Myanmar Transport Infrastructure Brief | 13 May – 20 May 2021 2


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Canada also announced sanctions against 10 military-affiliated companies:

Canada previously announced targeted sanctions against nine junta officials on 18 February.

The sanctions allow the government to essentially freeze the assets of those targeted by prohibiting persons in Canada and Canadians outside Canada from engaging in any activity related to any property of these individuals or providing financial or related services to them.



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Name Details Sector

Cancri (Gems and Jewellery) Company Limited (AKA Phu Sha Star)

MEHL subsidiary Natural resource extraction

Myanma Gems Enterprise (MGE)

SOE under the Ministry of Natural Resources and Environmental Conservation (MONREC)

Natural resource extraction

Myanma Pearl Enterprise (MPE) SOE under the Ministry of Natural Resources and Environmental Conservation (MONREC)


Myanma Timber Enterprise (MTE)

SOE under the Ministry of Natural Resources and Environmental Conservation (MONREC)


Seventh Sense Company Limited Owned by Khin Thiri Thet Mon, daughter of Min Aung Hlaing

Media

Everfit Company Limited Owned by Khin Thiri Thet Mon, daughter of Min Aung Hlaing

Sports, fitness & recreation

Sky One Construction Company Limited

Owned by Aung Pyae Sone, son of Min Aung Hlaing

Construction

The Yangon Gallery Owned by Aung Pyae Sone, son of Min Aung Hlaing

Hospitality, tourism & entertain-ment

The Yangon Restaurant Owned by Aung Pyae Sone, son of Min Aung Hlaing

Hospitality, tourism & entertain-ment

A & M Mahar Company Limited Owned by Aung Pyae Sone, son of Min Aung Hlaing

Medical supplies`

The UK announced sanctions against Myanmar Gems Enterprise (MGE).

The press release notes that Myanmar is one of the world’s largest producers of rubies and jade and that targeted sanctions, in the form of an asset freeze, against MGE is intended to cut off a key source of funding for the junta.

The UK previously announced sanctions against seven senior junta officials in response to the coup.

The US has previously announced sanctions against all companies listed above, as well as the Myanmar Ruby Enterprise and Myanmar Imperial Jade Co.

The US, EU and UK have all announced sanctions against military conglomerates Myanmar Economic Corporation (MEC) and Myanmar Economic Holding Limited (MEHL) since the coup.

Canada announced sanctions against the companies in December 2007.

For a list of the companies, entities, and individuals subject to targeted sanctions, as well as updates on company operations following the coup, view the Myanmar Transport Infrastructure Monitor’s Sanctions Impact Tracker, here. Other YRTA re-instituted as Yangon Private Transport Committee The Yangon Region Transport Authority (YRTA) was re-instituted as the Yangon Private Transport Committee (YPTC) on 23 April, YPTC Joint Secretary U Lain Kyint Mang announced in state-run Myanma Alinn.

U Lain Kyint Mang said service levels would be improved through the change.

However, given that the YRTA was formed by the National League for Democracy government in 2016, it is likely the military administration is recasting the governing body to remove its association with the deposed government.

It was not reported whether there were any personnel changes, nor how the Civil Disobedience Movement was impacting YRTA operations. U Lain Kyint Mang (also known as Lian Cin Mang) served at the YRTA and Road Transport Administration Department under the NLD.

The YRTA had earlier replaced the former All-Lines Supervisory Committee, which was commonly known by its Myanmar-language acronym Ma Hta Tha.

YRTA oversaw transportation in Yangon. Its first major project was the launch of the Yangon Bus Service (YBS), which merged the city's bus transportation network.

Prior to the COVID-19 outbreak in 2020, eight companies under YBS operated more than 4,500 buses on 135 routes, carrying approximately 1.8 million commuters, according to the YRTA.

Of interest will be the YPTC’s financial condition. In late March 2020, the YRTA began exempting YBS buses from paying a management fee to mitigate the financial impact of plummeting passenger numbers amid the COVID-19 pandemic.

The fee amounts to Ks4,000 ($2.90) per bus. Usually, 4,500 buses operate daily in Yangon, suggesting the YRTA has seen a shortfall of Ks18m ($12,964) a day in revenue. It was not clarified how the authority has dealt with the loss of income.

Prior to the pandemic, the YRTA had been focussing on rolling out cashless payment systems on YBS buses and constructing bus depots.



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Other Myat Myittar Mon clarifies fuel importer status Myat Myittar Mon has issued a statement clarifying that the company does not import jet fuel.

The notice was published in state-owned Myanma Ahlin and Kyay Mone on 15 May.

It is apparently a response to rumors spread about the company on social media.

While the company has been aiming to enter the jet fuel market for some time now, to date it only imports fuel for vehicles.

Around 40 companies import fuel via the terminal at Thilawa owned by Myat Myittar Mon.

The notice also states that Myat Myittar Mon is not closely affiliated with any other companies and organisations.

Myat Myittar Mon asks that false accusations about the company importing jet fuel be removed from social media and threatened legal action against people spreading false information.

In October 2019, the company submitted a proposal for the sale of jet fuel in Myanmar to the Department of Civil Aviation (DCA) Deputy Director U Ye Htet Aung.

In the meeting to submit the proposal, Myat Myittar Mon claimed it would sell jet fuel at 20% below the market price.

Whilte at the time U Ye Htut Aung said the DCA welcomed the entry of more distribution companies in the market, Myat Myittar Mon’s proposal has apparently not yet been approved.

National Energy Puma Aviation Services, the JV between Puma Energy and the Petroleum Products Regulatory Department (formerly the Myanmar Petroleum Products Enterprise), is responsible for the import and distribution of most jet fuel in the country.

Immediately following the coup in February, Puma Energy suspended all of its operation in the country, including the operation of its fuel terminal at Thilawa.

Since then, the Myanma Petrochemical Enterprise has formed a team to take over the company’s operations, and there have been reports of Ministry of Energy and Electricity officials attempting to pressure Puma employees to return to work.

Social media users attacking Myat Myittar Mon are upset at the idea of the company assisting the junta in preventing a jet fuel shortage and going against the efforts of the Civil Disobedience Movement.

There are two other companies which have received approval to distribute jet fuel in Myanmar.

Golden Myanmar Airlines received Myanmar Investment Commission (MIC) approval in April 2020 to distribute jet fuel at seven airports in the country, including Mandalay International Airport.

Pioneer Aerodrome is the sister company of Yangon Aerodrome, the concession holder and operator of the Yangon Airport. The company has had permission to distribute jet fuel at the Naypyitaw International Airport since 2014.

About Myat Myittar Mon

Established in 2008, Myat Myittar Mon owns one of the largest fuel storage terminals in Myanmar located at Thilawa. The firm also operates petrol stations, and claims to have about 50 customers on the distribution side of the business.

The company is led by Dr Win Myint, who is also the secretary of the Myanmar Petroleum Trade Association, a non-profit established by the Union government to assist in regulating the country’s fuel sector following the decision to privatise fuel retail in 2010.



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Air MoTC orders airlines submit Myanmar national passenger lists The Ministry of Transport and Communications (MoTC) issued on 13 May a notice instructing airlines to submit passenger lists of Myanmar nationals travelling on outbound international relief and charter flights. Lists must be submitted 10 days before the flight is due to depart. The lists will be shared with the Ministry of Foreign Affairs and other departments. “Myanmar nationals are not required to contact the MoTC themselves but must book flights 11 days before departure,” an airline executive from Myanmar Airways International told Myanmar Transport Infrastructure Monitor on 17 May. No reason was provided for the notice issuance. The administration is likely increasing efforts to prevent Myanmar nationals that the junta is seeking to arrest from fleeing abroad, and also strengthen surveillance of Myanmar nationals abroad.

Other KIA attacks seven tankers in Kutkai The Kachin Independence Army (KIA) has attacked seven tanker trucks suspected of carrying jet fuel for the Myanmar military on the Kutkai-Hseni section of the Muse-Mandalay Highway in northern Shan State, according to various media outlets.

The military regime has not commented on the attacks, and various media outlets were unable to verify if there were any deaths or injuries.

It was also not verified if the tankers were indeed carrying jet fuel, or any supplies for the military.

KIA Information Officer Colonel Naw Bu was quoted in Myanmar Now as saying six trucks were attacked on 17 May and one on 18 May.

“People told us that the fuel is not for public use but for the military, so we opened fire,” said Naw Bu.

The KIA had reason to believe the tanker trucks were providing fuel for jets that would bomb Momauk, Naw Bu said according to Irrawaddy.

The extent of the damage inflicted by the attacks on the tankers was also not clarified.

The military has been using jet fighters to retake control of the strategic Alaw Bum base in Momauk Township, which was seized by the KIA in late March.

Holding Alaw Bum base allows the KIA to control the road between Myitkyina and Bhamo.

According to Irrawaddy, the military has been relying on jet fuel imports from China that are transported on the Muse-Mandalay Highway.

National Energy Puma Aviation Services, the JV between Puma Energy and the Petroleum Products Regulatory Department (formerly the Myanmar Petroleum Products Enterprise), is responsible for the import and distribution of most jet fuel in the country.



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However, immediately following the coup in February, Puma Energy suspended all of its operation in the country, including the operation of its fuel terminal at Thilawa. This has disrupted jet fuel supplies for the military.

Fighting has escalated around Kutkai Township in recent weeks between the military and various ethnic armed organisations.

Fighting broke out between Northern Alliance members and the military on a Muse-Mandalay Highway section in Kutkai Township on 4 May. The clashes resulted in 500 residents fleeing their homes.

The alliance members involved were the KIA, Ta'ang National Liberation Army and Myanmar National Democratic Alliance Army.

On 29 April, the KIA launched an artillery attack on Bhamo Airport at around 2:00. The airport is used by Myanmar military helicopters.

Later on 3 May, the KIA shot down a military helicopter as it was conducting air strikes in Momauk at around 10:20.

Since the attack, the military has reportedly been using air bases in Lashio, Mandalay and Meiktila in Mandalay Region to attack Momauk.

Earlier on 27 April, explosives were detonated at the Yay Kyaw rail and road bridges in Hopin Township.

The railway bridge was completely destroyed, while the highway bridge was damaged but still usable.

Rail Min Aung Hlaing inspects Myitnge wagon factory The military’s Commander-in-Chief and State Administration Council Chair Min Aung Hlaing inspected the Myanma Railways (MR) wagon and carriage factory construction at Myitnge dry port in Amarapura of Mandalay Region on 18 May.

He was accompanied by the military administration’s Minister for Transport and Communications Tin Aung San, MR Managing Director U Ba Myint and MR General Manager U Tin Maung Than.

During his inspection, Min Aung Hlaing called for all trains in Myanmar to run at a minimum speed of 100km, although made no mention on how the administration plans to attract investment to achieve this.

He further promoted the local manufacturing of locomotives, carriages and electric trains.

Myitnge carriage and wagon factory was established in 1905 and began manufacturing carriages in 1947. As of 2018, the new passenger carriage factory has been producing bogie carriages.

The factory, which is partly being refurbished and reconstructed, also carries out repairs and servicing of locomotives, carriages and wagons.

A number of high level visits have been carried out by military administration officials at the factory in recent weeks.

Investment and Foreign Economic Relations Minister U Aung Naing Oo visited the factory on 15 May, and also inspected the Myitnge dry port expansion project carried out by KM Terminal and Logistics.

The minister was briefed on the phase 2 expansion of the port and the current status of phase 1 operations by Mother Logistics Director U Win Naing Nyunt. No further details on the project were provided.



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Later the same day, the investment minister attended a meeting with the chairman of the Mandalay Region Administration Council in which he briefed investors on the current political situation. GNLM did not report on which investors attended the meeting or what the minister said.

Minister for Transport and Communication Minister Tin Aung San separately visited the dry port on 2 May to inspect the carriage and wagon factory reconstruction. No details were provided on project progress or the project scope.

About Myitnge dry port

The dry port is an inland port constructed on a 75-acre site owned by Myanma Railways near Myitnge train station. It was built between Myitnge train station and Myitnge river in Amarapura Township, to the south of Mandalay city.

It opened in January 2019 and was designed to offer one stop services, which include customs and inspection, banking and insurance services.

The project area is composed of two parts: compound A (32 acres) and compound B (43 acres).

Compound A was developed by Resources Group Logistics and KM Terminal & Logistics.

KM Terminal & Logistics is 70% owned by Singapore’s Kerry Logistics Network and 30% by local company Mother Logistics.

Compound B was developed by KLN (Singapore), another subsidiary of Kerry Logistics. China Communications Constructions was a consultant for the project for Resource Group Logistics.

The project is thought to have cost about $40m.

Trade Trade director shot in Muse U Min Aung Aye, a director at the Department of Trade at Muse 105-mile trade zone, was shot by an unidentified man on 11 May, according to the Democratic Voice of Burma.

According to DVB, U Min Aung Aye was returning to Muse from the trade zone when a gunman stopped his car at about 17:00 and shot him four times.

He sustained injuries to his stomach and right arm, and was reportedly admitted to Kutkai hospital with non-threatening injuries. The director’s driver was not injured.

The motive behind the attack was not clarified and it is unclear if U Min Aung Aye was targeted specifically for his role as working under the military administration.

Trade at Muse has been disrupted severely in recent months due to a rise in COVID-19 transmission, resulting in closures of border points with China.



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Other Denko fuel station attacked in North Okkalapa An explosion occurred at a Denko fuel station located on Kay Thi Mar road in Yangon Region’s North Okkalapa Township on 15 May, according to Eleven News.

Three people were injured, including two staff members and one customer, according to Eleven News. The customer was hospitalised following the explosion and succumbed to his injuries later in the day. Articles published in state media reported that seven people were injured in the explosion.

The cause of the explosion is unknown, though it is thought that it was intentional.

On 23 March, a Denko fuel station in Mandalay’s Patheingyi Township was attacked by a group of more than 10 people. They reportedly destroyed two fuel dispensers and a glass panel on a cashier’s counter.

U Chit Khine, the owner of Denko, wrote on his Facebook page that about nine Molotov cocktails had been thrown during the incident, but that staff at the petrol station were able to extinguish them.

U Chit Khine blamed the incident on a misunderstanding stemming from rumours spread on social media.

These rumours accused U Chit Khine of purchasing US currency to help fund the military.

U Chit Khine is the head of Eden Group of Companies, a diversified conglomerate that had close ties to the former junta prior to 2010.

Following the March attack, U Chit Khine wrote on Facebook that Denko had to buy foreign currency to cover the cost of contracts for importing fuel to ensure adequate supplies for customers.

Trade financing and settlement is all typically done in dollars and amid the shutdown of the banking system, there have been recent reports that fuel suppliers are no longer accepting Myanmar letters of credit, requiring importers to pay in full upfront for fuel cargoes, using telegraphic transfers from local banks to foreign ones.

Denko has also signed 6-month or 1-year contracts with international companies to import fuels for its 108 petrol stations.

However, rumours have also circulated on social media accusing Denko of buying fuel for the military, Frontier Magazine reported previously, noting that these rumours were more prevalent than rumours about foreign currency purchases.

There have also been calls to boycott Denko petrol stations.

The rumours about Denko are part of a rise in opposition to people and organisations viewed as having ties to the military. Road Road paving on Merchant Road in Taungoo begins Nylon asphalt paving on Merchant Road began on 11 May in Taungoo Township, Bago Region, according to state-run Myanma Alin.

Paving work of 8cm thickness is to be carried out on 500m of the road.

Ks90.6m ($58,167) has been allocated for the project from the FY2020/21 Bago Region administration budget.

Work is being overseen by the Taungoo Township Municipal Committee.

Not details were provided on the entity carrying out the paving work or the expected completion date.



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Road U Shwe Lay inspects road, bridge projects in Ayeyarwady The military administration’s Union Minister for Construction U Shwe Lay inspected the completion of Thandwe-Gwa-Ngathainggyoung concrete road upgrade work on 9 May.

The project is being implemented by construction teams under the Department of Highways of Ayeyarwady Region.

During his tour of Ayeyarwady, he also inspected:

Concrete paving work on the Yanmyoaung-Yonetone-Asugyi-Shwenantha road

Completion of the 60m Singu concrete

bridge in Yekyi Township, which is being financed by the Ayeyarwady Region budget

Maintenance work on the Bo Myat Tun

Bridge Maintenance work on the Yangon-Pathein

Highway Upgrade of the Hlinethaya concrete road On 10 May, U Shwe Lay inspected maintenance work on the Yangon-Naypyidaw-Mandalay Expressway and bridge constructions along the route.

The Ministry of Construction has been carrying out upgrade work, concrete and asphalt concrete paving, and guardrail and signage instalation.

Despite opening in 2010, the 587km Yangon-Mandalay Expressway does not meet international design, construction or safety standards. Accidents are common and freight trucks are banned from using the expressway due to these safety concerns.

In February 2019, the Union Parliament approved a $57m ADB loan to upgrade the first 64km of the Yangon-Mandalay expressway as a pilot project, while the MoC was assigned to carry out maintenance and enhance safety features across the entire expressway.

A feasibility study on the upgrade of the entire expressway backed by the Korean International Cooperation Agency and Ministry of Construction was concluded in November 2020, which was carried out by South Korea-based Yooshin Engineering and Kyongdong Consultants.

Prior to the coup, a loan was expected to be sought from the Asian Development Bank to help finance the upgrade of the entire expressway. These plans have now been put on hold, after the ADB announced it had suspended funds for Myanmar projects in March.

The military administration has yet to announce a plan on seeking finance for the expressway upgrade.

Premium subscribers can access the project profile here. Other Passport office on No.1 Industrial Road reopens The Passport Office of Myanmar on No.1 Industrial Road, Yankin Township, reopened on 13 May, according to Daily Eleven.

Daily Eleven reported “thousands” had arrived at the office and some had queued since 05:00.

However, the office had to close at 10:00 due to internet connection difficulties, and customers also reportedly faced issues depositing payments for services at Myanmar Commercial Bank (MCB).

Daily Eleven reported the office had been closed previously due to COVID-19, and did not mention how the coup or Civil Disobedience Movement had impacted operations.

It is not clear what proportion of staff have returned to work or at what capacity the office is operating at.



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Other SKD car sales via digital banking increase The number of sales via digital banking for cars manufactured using the semi-knocked down method has increased, Yangon Region Automobile Manufacturer and Distributors Association President U Min Min Maung told BETV Business on 18 May.

However, the number of transactions had declined significantly when compared to before the coup. U Min Min Maung did not provide any figures on how many transactions have been carried out recently. The number is likely very low.

He further noted transactions for imported cars had plummeted, given the sharp decline of the kyat against the US dollar and difficulties in processing transactions with foreign banks.

The banking system continues to face severe disruptions. Banks have limited the amount of cash that can be withdrawn, while token systems are in place in most branches that limit the number of people who can withdraw per day.

The current Central Bank withdrawal limit is Ks2m per week for personal accounts, Ks20m per week for corporate accounts, and Ks500,000 from ATMs per day.

Digital banking largely remains functional, although penetration rates are low.

Myanmar's foreign exchange hit a record low of Ks1,660 on the dollar on 10 May, according to state media. Despite efforts by the junta, the currency has lost 20% of its value since the coup on 1 February.

Source: Nikkei Asia from “buy” rates at local money exchanges in Yangon

In addition to the difficulties in processing payments, the Myanmar automobile market is facing a number of challenges and transaction numbers are likely to remain low for months to come.

Given the unrest and military violence in urban areas, cars are vulnerable to being damaged, putting off potential buyers from making purchases at present.

Moreover, due to the deteriorating economic outlook and worries that large sections of the population will see their incomes reduced in the coming year, would-be buyers are also choosing to withold spending on goods such as cars and save their money. Trade MoC extends import/export license relief measure The Trade Department under the Ministry of Commerce has extended a relief measure on licensing for 37 export and 62 import items to 7 June, according to MoC notice (5/2021) issued on 4 May.

Under the measure, which was first introduced on 6 April to mitigate the economic impact of the COVID-19 pandemic, traders are not required to seek liscences for the 99 items.

Export items include onion, garlic, rice, broken rice, raw sugar, refined sugar, natural rubber and cotton.

Import items include flour, soybean seed, palm oil, cement, gasoline, diesel, pharmaceuticals, fertilizer and lubricant.

Previously, license fees were charged as below:

Imported item value (incl cost, insurance, freight)

License fee

Ks5m Ks30,000

Ks5m to Ks10m Ks50,000



Ks150m+ Ks90,000



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Advance income tax collection on exports resumed

In early May, it was reported that the military administration had resumed the advance collection of income taxes on exports.

The Ministry of Commerce had earlier waived payments of the 2% tax each month since April 2020 to ease the impact of COVID-19 on business.

However, the military council resumed collecting the tax on 1 May, which is likely part of its efforts to raise revenue.

A trader in Muse said that although the tax is levied on traders, they cover the expense by paying lower prices to farmers, who suffer the impact of the tax.

Trade at the Muse border, however, has been effectively halted since early April after COVID-19 cases were detected in the area, while border trade at other trade points on the China and Thai borders have been intermittently disrupted in recent weeks as COVID-19 control measures have been put in place. Other Military, BGF in talks over Yatai New City JV The military and Karen Border Guard Force (BGF) have been in talks about resuming the controversial Yatai New City project as a joint venture, a BGF member told Frontier Myanmar.

Work on the project - valued by some at $15bn - in Kayin State was halted last year after the National League for Democracy government launched an investigation into the project, which has attracted controversy for its links to illegal gambling and violation of local laws.

It is often referred to as the Shwe Kokko project after the name of a village on the development site.

‘Before the coup, the military didn’t allow us to continue the Shwe Kokko project,” the BGF member told Frontier Myanmar, “but now we’ve heard that they will allow us to resume it as a joint venture with the Tatmadaw. They will also stop the investigation launched by the NLD government.’

“We’re not privy to discussions about profit sharing and what agreement the BGF has made with the military exactly, but I know for a fact that most businesses resumed in April because I was on security at some of the sites.”

The military has given the BGF’s business ventures the green light in return for the BGF’s support for the military’s operations, Frontier Myanmar reported, with its casinos and illegal trade gates on the Thai border also reopening.

Prior to the coup, the military had been pressuring the BGF to give up its business interests, leading to three senior BGF officials, including the group’s nominal leader Saw Chit Thu, resigning from the military, and rank and file members threatening to quit en masse. The BGF had also been exploring its options with other armed groups, heightening the possibility of renewed fighting in Kayin State.

However, following the coup, the military has instead engaged in fighting with the Karen National Liberation Army, the armed wing of the Karen National Union, and has received support from the BGF during its crackdowns on demonstrators.

Border Guard Forces are generally ethnic armed groups that have allied with the Myanmar military and are ostensibly under its command. The BGF was formerly known as the Democratic Karen Buddhist Army before it signed a treaty with the Tatmadaw in 2010.

About Yatai New City

The Yatai New City developer is Myanmar Yatai – a joint venture between the BGF and Yatai International.

Yatai International Holdings Group is a Hong Kong-registered conglomerate that claims to be based out of Bangkok.

MIC data shows the BGF will hold a 20% stake in Myanmar Yatai, while Yatai will own the remainder.

The Kayin BGF told Frontier Myanmar in July 2020 that an ex-BGF colonel, Saw Min Min Oo, is a director of Myanmar Yatai.



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In July 2018, the Myanmar Investment Commission (MIC) approved an investment of $22.5m for the first phase of the project, which originally had an estimated completion date of 2021. The approval covered 25.5 acres of a 62-acre site.

The total size and scope of the project has been a source of controversy and confusion since it was announced.

Frontier Myanmar has previously reported that a planning proposal provided by the BGF says the project will span 180,000 acres and comprise a tech hub, airport, luxury housing, casinos, retail developments, supermarkets, industrial zone, freight depots, 1,200-key hotel and an entertainment complex. The article added the estimated cost for the entire project is to be $15bn, with a target completion date of 2027.

A promotional video released by Yatai International Holding Group in 2020 put the project size at 30,000 acres.

Yatai also said that the first phase of the project, covering 214 acres, was underway with $500m already invested as of 2020.

According to Yatai’s promotional materials, there would be five zones—a technology district, an entertainment and tourism district, a culture district, a business and commerce district, and an ecological and agriculture district.

The nature of Chinese involvement in the project has also been a point of contention.

In a March 2020 report titled “Gambling Away Our Lands”, the Karen Peace Support Network claimed the project was a front for online gambling run by Chinese syndicates relocating from Cambodia. It also stated that despite the NLD government’s move to suspend the project, locals had reported that full-scale construction was continuing and that thousands of Chinese workers remained on site.

A July 2020 report from the US Congress-funded United States Institute of Peace (USIP) similarly charged that Shwe Kokko, along with two other projects in Karen State, Huanya and Saixigang, was backed by a “complex transnational networks of Chinese investors, forced out of Cambodia for illegal gambling activities”.

The USIP and other observers have also alleged that the project is tied to China Belt and Road Initiative and Yatai has previously touted it as a “flagship project” of the BRI.

However, the Chinese Embassy in Yangon issued an official statement in August last year supporting the NLD’s investigation and stating the project was “a third-country investment” and “has nothing to do” with the BRI.

The chairman of Yatai International She Zhijiang - who goes by various names and is also behind a similar mega project in Cambodia -- is also reportedly wanted in China on gambling charges.

The project, also known as New Yatai City

Rail Pyinmana-Taungtwingyi train services resume Myanma Railways resumed on 15 May train services between Pyinmana-Taungdwingyi, according to the Ministry of Transport and Communications.

Services are scheduled as below:

Train Departure Arrival

Pyinmana-Taungdwingyi

6:00 10:15

Taungdwingyi-Pyinmana No.

12:00 16:15



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Earlier on 6 May, MR resumed mail and cargo train services between Yangon-Mandalay, and on 8 May resumed mail and cargo train services between Yangon-Bago.

The schedules are as below:

Trade Transport costs hiked due to truck diversions in Muse Trucks are still being diverted to the Kyin San Kyawt gate due to continued border closures at the Mang Wein gate in the Muse 105 mile trade zone, increasing delivery costs by Ks400,000 ($240) per truck, Muse Rice Wholesale Center Vice Chair U Min Thein told BETV Business. Behind the rising costs are increased waiting times, and higher prices for labour for loading and unloading cargo. It is unclear if the increased costs include COVID-19 test fees.

Trade in fruits, rice, chillies, beans and other dry commodities that usually goes through Mang Wein gate is being diverted through Kyin San Kyawt gate.

On 29 March, a Myanmar national was found to be COVID-19 positive in Kyauk Wine market in Kyaigaung. The next day, China restricted trade at the Mang Wein checkpoint.

Subsequently, Ruili of Yunnan Province, China, which borders Muse in Shan State, went into a one-week lockdown on 31 March after nine COVID-19 cases were found, three of which are asymptomatic Myanmar nationals.

The Jiegao Bridge, the main bridge connecting Muse and Ruili, was closed. Around 1,000 trucks typically use the bridge a day.

China previously implemented a driver-change policy, where Myanmar drivers would hand over their trucks to Chinese drivers at the border for the goods to be delivered. However, this policy is not currently in place.

Consequently, exports of rice and broken rice, pulses, fisheries products, onions and chillies among other products to China through Mang Wein checkpoint have been halted.

Exports are allowed through Wan Ding and Kyin San Kyawt however inspections have been tightened.

Traders and cargo handlers also must undergo COVID-19 testing, which they must pay for themselves. Results, and thus cargo, are only released the day after the test is taken, increasing handling times.

A curfew is also in place between 20:00-09:00.

Myanmar’s testing capacity crashed after the 1 February coup, and the virus is evidently spreading through the country.

Trade through Muse in Shan State accounts for 83% of Myanmar’s land border trade with China and almost half of Myanmar’s total land border trade.

Myanmar mainly exports rice, sugar, pulses, sesame seeds, corn, dried tea leaves, fishery products, minerals, and animal products to China while it imports agricultural machinery, electrical appliances, iron and steel-related materials, raw industrial goods, and consumer goods.

Train Departure Arrival

Yangon-Mandalay mail train (No.1) up

8:00 6:45

Mandalay-Yangon mail train (No.2) down

7:00 5:15

Yangon-Bago train (No.13) up

15:35 18:30

Bago-Yangon train (No.14)

6:00 9:15



14

Company and Project Profiles The Myanmar Transport Infrastructure Monitor database now includes over 350 companies, as well as 150 transport infrastructure projects across Myanmar. The database is continually updated with new information. The following are links to the Company and Project profiles that Myanmar Transport Infrastructure Monitor has updated this week: Company Updates Denko Trading New Star Light Group Myat Myittar Mon Ministry of Commerce Ministry of Transport and Communications Yangon Region Transport Authority (YRTA) Project Updates Bridge, Thanlwin (Mawlamyine) Fuel Terminal, Denko (Shwe Lin Ban) Oil Terminal, Myat Myittar Mon Port Terminal, Green Asia Rail workshop, Myitnge Terminal, Elite Petrochemical Terminal Data Updates Sanctions tracker (entities) Sanctions tracker (individuals) Please note that access to our Company and Project profiles are restricted to Premium Subscribers only. For information on Premium Subscriptions, please contact: Jordan Zele [email protected] Htike Htike [email protected]

Myanmar Transport Infrastructure Brief | 13 May – 20 May 2021


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https://transport.frontiermyanmar.com/companies/services/fuel/denko-trading

https://transport.frontiermyanmar.com/companies/construction-engineering-and-equipment/engineering-and-construction/new-star-light-group

https://transport.frontiermyanmar.com/companies/services/fuel/myat-myittar-mon

https://transport.frontiermyanmar.com/companies/government-bodies/ministries-and-agencies/ministry-commerce

https://transport.frontiermyanmar.com/companies/government-bodies/ministries-and-agencies/ministry-transport-and-communications

https://transport.frontiermyanmar.com/companies/government-bodies/ministries-and-agencies/yangon-region-transport-authority-yrta

https://transport.frontiermyanmar.com/projects/bridge-thanlwin-mawlamyine

https://transport.frontiermyanmar.com/projects/fuel-terminal-denko-shwe-lin-ban

https://transport.frontiermyanmar.com/projects/oil-terminal-myat-myittar-mon

https://transport.frontiermyanmar.com/projects/oil-terminal-myat-myittar-mon

https://transport.frontiermyanmar.com/projects/rail-workshop-myitnge

https://transport.frontiermyanmar.com/projects/terminal-elite-petrochemical-terminal

https://transport.frontiermyanmar.com/node/95830/view

%5dhttps:/transport.frontiermyanmar.com/node/95718/view

mailto:[email protected]


NEW TENDERS



Overview Warehouse and Land for lease in Yangon and Tanintharyi Region Deadline 16 June 2021 Contact 01-250432, 059-21056, 059-21204, 09-254402463 Description Department of Consumer Affairs under Ministry of Commerce invites interested parties to bid on the right to lease following warehouse and land in Yangon and Tanintharyi Region.

Tender documents can be obtained beginning from 18 May to 16 June during office hours at Department of Consumer Affairs, Regional Chief Officer Office, Planning Department (Division), located at No. 228/240, 2nd floor, the corner of Strand Road and Shwe Bon Thar Road, Yangon Region and Regional Chief Officer Office, Dawei Town. Bids will be due on 16 June, 16:00 PM. Bids will open on 17 June, 13:00 PM at Ministry of Commerce, Office No. 3, Naypyidaw. Bids should be submitted at Office No. 52, Naypyidaw.

(a) Three-year Lease

One 3-unit warehouse, warehouse No. (53,54,55), (100’ x 150’ x 15’) (zinc, zinc, concrete) in Naga Compound, Mayangone Township, Yangon

(b) Five-year Lease

Land (length – 185’ x width – 44’), land area – (0.196) acres in 4th street, Nauk Lal Ward, Myeik Township, Tanintharyi Region

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Overview Supply of steel strand for MR Deadline 17 June 2021 Contact 01-294352, or 291994 Description Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to supply following items:

Bids will be due on 17 June, 14:30.

No Tender number Item name

1 167/MAMA/CE 3.6mm Ø x 3ply HT steel strand (1500) tones

NEW TENDERS

NEW TENDERS



Overview Supply of dump truck for Magway Municipal Deadline 14 June 2021 Contact 063-2026253, 063-2026398 or 063-23164 Description Myanma Railways under the Ministry of Transport and Communications invites interested parties to bid on the right to supply following items:

Tender documents can be obtained beginning from 17 May at Support Department, Myanma Railway, between Merchant Road and 51st Street, Botahtaung Township. Bids will be due on 17 June, 14:30.

No Tender number Item name

1 167/MAMA/CE M.5 Rods 3.6mm Ø (1500-tons)

2 168/MAMA/CE M.5 Rods 6.5 mm Ø (1500-tons)

3 169/MAMA/CE Grooved rubber pad (160,000) Nos

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Overview Supply of dump truck for Magway Municipal Deadline 14 June 2021 Contact 063-2026253, 063-2026398 or 063-23164 Description Magway Municipal invites interested parties to bid on the right to supply following machineries for FY2020/21.

Payment will be made with Myanmar Kyat. Tender documents can be obtained beginning from 14 May at the office of Magway Municipal. Bid will be due on 14 June at the office of Magway Municipal located in Pyidawtha Street, Magway Town.

Item name Quantity

Dump truck (5-8 ton) 25 trucks

Water Bowser (5000L) 2 bowsers

NEW TENDERS

OPEN TENDERS



Overview Supply of honing machine for MR Deadline 2 June 2021 Contact 01-294152, 01-291585 or 01-291994 Description Myanma Railways under the Ministry of Transport and Communications invites interested local parties to

bid on the right to supply following materials:

Payment will be made with Myanmar kyat.

Bid document can be obtained beginning from 3 May at Supply Department, Myanma Railway office

located at the corner of Merchant Road and 51 Street, Botahtaung Township, Yangon. Bid will be due on 2

June, 14:30.

No Tender number Item/Activity names

1 164/MAMA/CE Insect and pest control on Yangon-Mandalay Railway

2 165/MAMA/CE Supply of hoinng Machine 1 set

3 166/MAMA/CE Supply of bail Bearing (38) sets

4 12(T)27(YUG) Supply of locomotive spare parts (76items)

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Overview Supply of petroleum products to MPA (June 2021) Deadline 10 June 2021 Contact 01-8610230, 01-8610232 Description The Myanma Port Authority under the Ministry of Transport and Communications invites interested par-ties to bid on the right to supply high speed diesel, premium high speed diesel and Octane-92 for June 2021, in Myanmar kyats. Bid documents can be obtained starting from 7 May to 8 June during office hours at Myanmar Port Authority Office, Main Store Department, Strand Road (concrete road), near Tollgate, Botahtaung Township. Bids must be submitted not later than 10 June, 13:00.

OPEN TENDERS

OPEN TENDERS



Overview Supply of asphalt for Shan State Municipality Deadline 20 May 2021 Contact 081-2123915 Description Shan State Municipality invites interested parties to bid on the right to supply asphalt for FY2020/21. Asphalt type (80/100): 714.811tonnes Asphalt type (60/70): 180tonnes Water mixed asphalt: 13.7tonnes Payment will be made with Myanmar kyat. Bid document can be obtained beginning from 26 April at Shan State Municipal office, Taunggyi City. Bid will be due on 27 May.

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Overview Myo Kwin Bridge toll collection Deadline 27 May 2021 Description Ayeyarwady Region Administration Council (ARAC) invites interested local parties to bid on the right to carry out bridge toll collection from 1 June 2021 to 31 May 2024. Bid proposals can be obtained beginning from 21 to 27 May at Manager (Transportation) Region no. (9), Hinthada. The bid documents price is set at Ks10,000. Bid will be due on 27 May, 10:00. Bid will open at Manager (Transportation) Region no. (9) office, Hintha-da.

OPEN TENDERS

OPEN TENDERS



Overview Supply of iron rods for Taungoo District Deadline 24 May 2021 Contact 054-23725, or 054-23659 Description The Department of Highway in Taungoo District under the Ministry of Construction invites interested

parties to bid on the right to supply diesel and iron rods.

Bid documents can be obtained beginning from 10 May at DoH’s office in Taungoo District.

Bid will be due on 21 May, 16:30.

Bid will be opened on 24 May, 10:00.

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Overview Supply of construction materials for road/bridge projects in Dakkina District Deadline 23 May 2021 Contact 09-792050866 Description The Department of Rural Road Development under the Ministry of Construction (MoC) invites interested parties to bid on the right to supply construction materials in Dakkina District in Naypyitaw. Payment will be made with Myanmar kyat. Bid documents can be obtained beginning from 24 April at Assistant Director (Civil)’s office, DRRD in Dakkina District, Naypyitaw. Bid will be due on 23 May.

OPEN TENDERS

NEW TENDERS



Overview Supply of bolts, nuts and M.S Rods for MR Deadline 21 May 2021 Contact 01-294152, 01-291585 or 01-291994 Description Myanma Railways under the Ministry of Transport and Communications invites interested local parties to bid on the right to supply the following materials:

Payment will be made in Myanmar kyat. Bid document can be obtained beginning from 22 April at Supply Department, Myanma Railway office lo-cated at the corner of Merchant Road and 51 Street, Botahtaung Township, Yangon Region. Bid will be due on 21 May, 14:30.

No Tender number Item/Activity names

1 160/MAMA/CE

3/4”Øx 7” long check bolt and nuts (10,000) Nos

(Foreign) 3/4”Øx 8” long check bolt and nuts (10,000) Nos

(Foreign) 3/4”Øx 10” long check bolt and nuts (10,000) Nos

(Foreign) 75/75 lb check block (5,000) Nos (Myanmar)

2 161/MAMA/CE

M.S Rod 6.5mm Ø(Foreign) (1 ton) M.S Rod 12mm Ø(Foreign) (8 ton) M.S Angle 2 ½”x 2 ½”x 3/8” thick (11770) Rft

(Foreign)

3 162/MAMA/CE Production of (9⁰-12⁰) check rail concrete sleepers (3,744sleepers) at Pakkoku Concrete Sleepers Factory

4 163/MAMA/CE Production of (13⁰-17⁰) check rail concrete sleepers (6,708 sleepers) at Hsipaw Concrete Sleepers Factory

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OPEN TENDERS



Overview EOI for yarn production and machinery upgrades in Myittha Township Deadline 31 May 2021 Contact 95-67-408185, 95-67-408156, 95-67-408338, [email protected] Description The Ministry of Planning, Finance and Industry is inviting EoI proposals from interested local and international companies for yarn production and upgrading of spinning machinery for a public-private partnership. No. (7) Textile factory (Myittha) is located near Lan Khwa Village, beyond milepost (387/10) in Myittha Township, Kyaukse District, Mandalay Division. Interested companies can obtain the EoI form during office hours at Planning Development, No. 3 Heavy Industrial Enterprise, Ministry of Planning, Finance and Industry, Office No.37, Naypyidaw and Textile Mill Branch, No. (1), Thukhawadi Street, (6) Quarter, Yankin Township, Yangon: Available date for EoI Form - 31 March to 28 May Deadline for submission of EoI - 31 May, 16:00

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Overview EOI for yarn production and machinery upgrades in Pyabwe Township Deadline 31 May 2021 Contact 95-67-408185, 95-67-408156, 95-67-408338, [email protected] Description The Ministry of Planning, Finance and Industry is inviting EoI proposals from interested local and international companies for yarn production and upgrading of spinning machineries for a public-private partnership. No. (8) Textile factory (Pyawbwe) is located near by Pyi Tha Ya Quarter, (9) Street, infront of Mya Kyaing Taung Pagoda, about 500.8 km (313 miles) from Yangon, Pyawbwe Township, Yamethin District, Mandalay Division. Interested companies can get the EoI form during office hours at Planning Development, No. 3 Heavy Industrial Enterprise, MoPFI, Office No.37, Naypyidaw and Textile Mill Branch, No. (1), Thukhawadi Street, (6) Quarter, Yankin Township, Yangon: Available date for EoI Form: 31 March to 28 May. Deadline for submission of EoI: 31 May, 16:00

OPEN TENDERS


THIS WEEK’S NEW DATA

Japan exports to Myanmar

Jan Feb March April May June July Aug Sep Oct Nov Dec

2021 47 32 28

2020 54 63 54 56 42 35 34 61 53 42 61 48

2019 34 56 54 53 49 42 50 50 59 74 55 73

2018 57 83 69 74 68 47 45 36 46 66 54 50

2017 67 83 72 66 64 74 79 69 86 64 65 94

2016 62 89 99 96 69 70 67 57 88 82 106 98

Japan imports from Myanmar


2021 82 97 94

2020 126 136 142 129 52 68 101 131 153 136 64 70

2019 101 115 125 109 82 78 120 137 160 168 108 91

2018 90 102 109 97 72 76 96 122 137 168 107 88

2017 77 92 99 78 61 67 84 100 108 114 95 79

2016 72 86 89 74 44 58 59 89 106 84 69 61

Thailand exports to Myanmar

Jan Feb March April May June July August Sep Oct Nov Dec

2021 371 278

2020 371 395 418 213 270 274 308 325 297 234 339 334

2019 367 352 422 334 410 350 323 317 343 385 375 382

2018 353 374 438 375 440 428 382 396 352 366 360 348

2017 357 399 432 314 372 334 323 344 369 333 364 365

2016 351 347 380 335 379 340 333 327 326 320 350 387

Thailand imports from Myanmar


2021 183 257

2020 201 274 282 276 238 221 239 217 216 210 191 209

2019 226 234 282 277 282 311 310 282 233 271 282 253

2018 241 226 208 256 229 252 237 253 267 291 271 278

2017 43 202 168 172 190 218 214 261 252 265 249 241

2016 231 207 185 206 182 210 199 166 190 197 199 181

U.S. exports to Myanmar


2021 47 14

2020 39 36 32 38 24 20 19 21 26 28 23 29

2019 23 31 23 27 21 23 22 21 33 30 41 45

2018 19 19 28 25 23 23 19 17 24 17 23 26

2017 18 18 50 15 11 14 13 10 11 17 16 17

2016 15 53 8 11 8 8 12 12 13 16 17 21

U.S. imports from Myanmar


2021 92 97

2020 98 87 82 82 76 54 84 99 111 110 81 59

2019 46 59 63 50 63 51 70 78 82 107 72 77

2018 33 32 28 38 39 29 52 48 45 52 64 34

2017 25 24 28 25 30 20 31 40 36 42 35 29

2016 15 18 15 19 19 16 20 31 24 25 25 18

23 23



South Korea exports to Myanmar


2021 51 25 15

2020 42 65 66 47 36 49 46 49 54 38 61 53

2019 42 36 39 52 61 42 51 46 46 93 53 66

2018 46 41 50 47 50 42 43 38 35 46 48 43

South Korea imports from Myanmar


2021 32 37 40

2020 36 45 45 33 21 29 43 50 55 46 29 27

2019 41 46 43 38 26 39 63 60 75 80 38 34

2018 37 34 43 29 30 32 42 54 66 76 47 39

All data is in US$ millions This data is obtained from the following sources: Japan’s Ministry of Finance Bank of Thailand United States Census Bureau South Korea Custom Services

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W/E retail fuel prices, February to April 2021

Week Diesel Octane 95 Octane 92

W/E 9 February 735 810 735

W/E 16 February 790 865 760

W/E 23 February 820 885 790

W/E 3 March 840 910 820

W/E 8 March 845 915 825

W/E 15 March 860 935 830

W/E 22 March 870 935 840

W/E 30 March 860 935 830

W/E 5 April 880 955 860


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Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

The Myanmar Transport Infrastructure Brief and the Myanmar Transport Infrastructure Monitor are produced by FMR Research & Advisory Ltd.

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