PwC Myanmar Weekly Business …...PwC | September 2017 Weekly Key Financial & Business News...

PwC MyanmarWeekly Business Intelligence

Issue 7629 September 2017

www.pwc.com/mm

PwC | September 2017

1. Weekly Key Financial & Business News

2


Weekly Key Financial & Business NewsHeadlines

Belt and Road greases the wheels of ASEAN

Expanding trade with India

Cocokyun, industrial zones in Yangon’s spotlight

3

Myanmar Kyat or US Dollar for Power Purchase Agreements: Will the Government Insist on Myanmar Kyat Tariffs?



Developer brushes off concerns about Myotha Industrial Park

MGS Group deepens push into property and hospitality

Ministry Imports 4,000 tons of LPG

Sino-ASEAN arbitration panel proposed to tackle Belt and Road disputes

4

Pan Pacific Bringing Modern, 5 Star Luxury to Downtown Yangon



Russia and Myanmar sign agreement on setting up Russian trade mission in Yangon

Development in Chin State Cleared for Take Off

French companies to discuss energy and hotel business with officials in Shan State

Two new taskforces to monitor and facilitate Dawei SEZ

5

Rohingyas, Belt and Road, Kaladan – the future of Rakhine’s economy

PwC | September 2017 6

Belt and Road greases the wheels of ASEAN

ASEAN countries, with their enormous demandfor infrastructure investments, should capitaliseon China’s Belt and Road Initiative (BRI),business leaders from the ASEAN region urged.But there is a necessity to align the BRI with theASEAN blueprint, and ASEAN needs to iron outthe problems derived from the tension betweenJapan’s involvement in ASEAN infrastructure andChina’s increasing presence.Jointly organised by Hong Kong’s governmentand the Hong Kong Trade Development Council(HKTDC), the Belt and Road Summit 2017 washeld on September 11 in the city..Vincent Lo, HKTDC chair, told The MyanmarTimes that ASEAN countries are “ready” and“keen” to work with Belt and Road, while thecity’s leader, Carrie Lam, stated that ASEANeconomies and the bloc’s geography make it acore part of Beijing’s grand scheme.Chaired by Bernard Chan, president of AsiaFinancial Holdings, the panel session“Partnerships with ASEAN: Growth throughInfrastructure” discussed the role of the privatesector and potential for infrastructure

development in ASEAN.There is a tremendous potential for infrastructureprojects in the bloc, according to the speakers.The countries need infrastructure to maintaineconomic growth. Private enterprises willinevitably play a bigger role in infrastructuredevelopment as governments are limited in theircapacity to borrow or take from tax revenues.Amid anaemic global economic growth, economicperformance in ASEAN remains tantalising, withenormous potential in its infrastructure sector.Not only will such developments bring immediateeconomic benefits such as boosting employmentand industrial demand, they will also grease thewheels of long-term developments inmanufacturing, cross-border trade and logistics.

Source: Myanmar Timeshttps://www.mmtimes.com/news/belt-and-road-greases-wheels-asean.html

NewspapersMyanmar Times

26 Sep 2017


Expanding trade with India

INDIA has formed a Myanmar chamber ofcommerce in Yangon to boost trade and forgecloser economic ties with the country. The movefollows Indian Prime Minister Narendra Modi’svisit here on September 5-7 and also comes afterIndia imposed import restrictions on Myanmar’spulses and beans last month.Currently, trade between the two countriesamounts to around US$2 billion.“Considering the proximity and size of both oureconomies, India’s trade with Myanmar is stillvery much lagging behind China, Japan, SouthKorea, Thailand and even Singapore.“We want to focus on helping Indian businessesinvest in Myanmar and vice versa.“Considering that both our countries are rich inresource and labour, the fact that trade is laggingis a big concern for India. That’s why we havestarted the IMCC, which is represented by largeIndian corporations, as well as small and mediumenterprises and entrepreneurs based in Myanmar,to promote more trade with Myanmar,” hecontinued.The companies include steel and energy

conglomerate TATA International, where MrSunil is country head, car maker Mahindra andMahindra, and tractor manufacturer EscortsGroup.“It is the right time to expand in Myanmar nowthat the new Investment Law and Companies Acthave come in. We are very bullish on this country.“The country’s image may be impacted [affected]if the situation in Rakhine continues over the longterm, but we are positive that this will beresolved,” Mr Sunil added.Expanding tradeMyanmar’s exports to India mainly comprise ofcrops and fish. Currently, more than 80 percentof its annual 1.2 million tonne pulse and beanproduce is exported to India, according to MrSunil’s estimates. Meanwhile, the country alsoimports pharmaceutical products, steel andmachinery from India.

Source: Myanmar Timeshttps://www.mmtimes.com/news/expanding-trade-india.html


27 Sep 2017

https://www.mmtimes.com/news/expanding-trade-india.html



Cocokyun, industrial zones in Yangon’s spotlight

THE development of Cocokyun township coveringthe islands in the northeastern Indian Ocean, aswell as the flight and maritime access between theislands and the mainland, are included in YangonRegion’s plan, according to Chief Minister U PhyoMin Thein. Yangon Region will implement athree-year project which will focus mainly on theimprovement of industrial zones via tacklingutilities and services, ranging from supply ofpower and water to waste management. Thepriorities will focus on establishing new industrialzones and strengthening existing ones.In order for businesses to develop in YangonRegion, a three-year project will be drawn up, heannounced.At the Union of Myanmar Federation ofChambers of Commerce and Industry (UMFCCI)’smain office in Yangon, a regular meeting takesplace on the monthly basis to facilitate thedevelopment of the country’s private sector. Themeeting is attended by a vice president, relatedministers, and businessmen.The 10th meeting among the business leadersunder the new government was held on

September 23. The development of small andmedium-sized enterprises (SME) has beenprioritised for the development of YangonRegion’s economy. In order to carry out thisobjective, the plan will include the expansion ofindustrial zones, the enhancement of establishedones, and the change in focus related to theagricultural sector policies.The chief minister identified several obstacles andchallenges, mainly in the infrastructure ecosystemas well as in transport and communications.Problems such as squatters may arise. Thereliable supply of power and water to theindustrial zones remains a challenge, so do theissues of waste water management and trashdisposal. A project encompassing all these aspectsis currently being drafted in the three years plan.

Source: Myanmar Timeshttps://www.mmtimes.com/news/cocokyun-industrial-zones-yangons-spotlight.html

27 Sep 2017

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https://www.mmtimes.com/news/cocokyun-industrial-zones-yangons-spotlight.html


NewspapersVDB Loi

Myanmar Kyat or US Dollar for Power Purchase Agreements: Will the Government Insist on Myanmar Kyat Tariffs?

One of the many challenges facing privateinvestors in public infrastructure in Myanmar is,increasingly, the currency issue. The MyanmarKyat (MMK) has been in a slow but steady declineagainst the US$ since 2014.Highlights• More pressure to accept MMK tariffs• Tariff entirely in MMK• Tariff in US$ but payable in MMK• Tariff in US$, payable in MMK with fixed

conversion rates• Some of the tariff is paid in MMK• Tariff in US$, only payable in US$• A complex structure• Where is this going?

The local currency was in supported by FDIinflux, but as this number was on the decreasein 2016, the negative trade balance was able toexert some pressure on the MMK, but it hassince stabilized around the 1,350 MMK/1 US$mark. The outlook for the MMK is accordingto a number experts not too bad at all, justunsure. There are few prognoses of the long

term prospects of the MMK versus the US$,and thus no long term hedging options. Longterm investors in infrastructure used for publicpurposes such as Independent Power Producers(IPPs) or investors in public transportationinfrastructure or water treatment or supplywould under the circumstances typically seek atariff (the price paid by the Government partnerin a Public Private Partnership or PPP) in aforeign currency, the same currency as theirfinancing.

Source: VDB Loihttp://www.vdb-loi.com/mlw/myanmar-kyat-or-us-dollar-for-power-purchase-agreements-will-the-government-insist-on-myanmar-kyat-tariffs/

27 Sep 2017

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http://www.vdb-loi.com/mlw/myanmar-kyat-or-us-dollar-for-power-purchase-agreements-will-the-government-insist-on-myanmar-kyat-tariffs/


NewspapersEleven Myanmar

MGS Group deepens push into property and hospitality

MYANMAR Golden Star Group of Companies(MGS Group), which is engaged in beverages,banking and microfinance, has expanded itsbusiness portfolio by prioritising hospitality andreal estate.Thein Tun, founder of MGS Group and chairmanof Tun Commercial Bank, said in a recentinterview that real estate is the company’s mostprofitable line of business, as it is now working onhousing projects and building hotels and servicedapartments.He refused to reveal investment ad revenuefigures but was proud to say that his firm wasamong the top taxpayers in Myanmar.“At this point, we will keep our eye on servicedapartments and hotels. We plan to build a US$18-million (Bt600 million) property in Yangon afteropening a 50-room hotel in Inle Lake,” he said.Both hotels would be completed in two years, andthe Yangon property would accommodate morethan 200 rooms, he said.On Thursday, the firm set foot in the hospitalitybusiness with the grand opening of Bagan Starhotel, a three-star property with 81 rooms.

“We chose Bagan because it is the most activetourism destination in Myanmar due to itshistorical and archaeological value. Bagan attractsa lot of tourists, and we are happy to take part inmaking it developed further,” he said.“Actually, we intended to open it during theprevious government term.“Unfortunately, it was one of the 25 hotels notallowed to open at that time, due to somerequirements. So we are extremely happy to see itoperational under the democratic government.”The hotel charges $70 for deluxe rooms and $120for suites, locals and foreigners alike. It has aworkforce of nearly 50 employees, 90 per cent ofwhom come from Bagan and nearby villages.Thein Tun hired Australian experts to train thestaff and manage the hotel. He expects 60 percent occupancy this year, which is forecast to riseover time as the firm is focusing on marketing.

Source: Eleven Myanmarhttp://www.elevenmyanmar.com/business/11753

27 Sep 2017

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http://www.elevenmyanmar.com/business/11753



Developer brushes off concerns about MyothaIndustrial Park

DEVELOPER Mandalay Myotha IndustrialDevelopment has brushed off human rightsconcerns and accusations in relation to theMyotha Industrial Park in Mandalay, while theInternational Federation for Human Rightsargued that the process for the establishment ofthe park underscores the failure by the developerto conduct proper human rights due diligence.Tensions and confrontations between policeofficers and farmers have begun to simmer down,regarding the cultivation on land confiscatedthree years ago for the Mandalay MyothaIndustrial Park project, according to a local abbot.“Why we are now calm and composed on thisissue is because we’ve assumed that the newgovernment would solve this by negotiatingbetween the company and the farmers.“If the farmers clamour on this issue, the acts ofthe farmers will be excessive while thegovernment and the company are calm withoutconducting anything,” said U Vilatha, an abbot,from Ma-au Yoo monastery in Thanbo village.According to the development and povertyalleviation plan in Ngazun township, Mandalay

Region, a project – between the Mandalay Regiongovernment and Mandalay Myotha IndustrialDevelopment Public Co – has begun itsimplementation process back in 2013.When the project began, protests andconfrontations led by farmers took place due toland compensation problems. The company thenblocked cultivation of land for whichcompensation had not been given and crops werelevelled by bulldozers. There are farmers whohave been sued and sentenced to prison duringthese confrontations. However, the situationshave calmed down, although compensation issueshave not been resolved yet.

Source: Myanmar Timeshttps://www.mmtimes.com/news/developer-brushes-concerns-about-myotha-industrial-park.html

28 Sep 2017

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NewspapersMyanmar Business Today Ministry Imports 4,000 tons of LPG

The Union government will import 4,000 tons ofLiquid Petroleum Gas (LPG) to better diversifythe power sources in Yangon households, U HtayAung, Deputy Permanent Secretary of Ministry ofElectric Power and Energy, said.In an effort to reduce Yangon consumers’ relianceon electricity, the ministry is dispersing LPG to150,000 households starting in December, UHtay Aung said at a ministry press conference inNaypyidaw.Parami Energy Service Co., Ltd was awarded thetender for distribution and import of 4,000 tonsof LPG with annual payments of K6.45 billion.This represents a first-step in the ministry's 2020LPG vision to diversify power sources away fromelectricity. By 2020, the ministry hopes to supply1,500,000 households with LPG, at approxi-mately 25 kilogram per household, and at K1,000per kilogram.There are three state-owned LPG stations andmore than 100 private LPG stations in Myanmar.There are three local LPG producing plants atMinbu, Kyunchaung, and Thapayarkan inMagway Region.

Though there are small operations importing LPGoverland, for an operation of this magnitude,Parami Energy plans to import the LPG via mari-time trade from an unspecified buyer.The ministry is urgently seeking to reduce YangonRegion’s hefty electricity bill by the end of 2017.Approximately 10 million households nationwidecurrently have access to electricity, which is 38.5percent of the total population, designatingMyanmar the lowest rate of electrification in ASE-AN, and one of the lowest in Asia.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/ministry-imports-4000-tons-lpg

28 Sep 2017

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Sino-ASEAN arbitration panel proposed to tackle Belt and Road disputes

THE head of Brunei’s arbitration associationcalled for a panel of ASEAN and Chinesearbitrators to be established in order to create adispute-resolution system which covers privatecompanies involved in projects related to the Beltand Road Initiative (BRI). Contract disputes areinevitably a risk in large-scale infrastructureprojects between jurisdictions which are atdifferent stages of development and legalmaturity.Dr Colin Ong, president of ArbitrationAssociation Brunei Darussalam (AABD), madethe comments during a panel session aboutinfrastructure dispute resolution in a Belt andRoad Summit.Belt and Road Summit 2017 was jointly organisedby the Hong Kong government and the HongKong Trade Development Council (HKTDC), onSeptember 11. A lot of focus was on ASEAN. Inone of the sessions, a panel of arbitrators andlegal professionals discussed the future of cross-border infrastructure investments related to theBRI.In Thilawa Special Economic Zone (which is not a

BRI project), for example, some investors haveused Singapore as the dispute resolutionplatform, because of the lack of confidence in thelegal system in Myanmar. With an upsurge ininvestments and development of large-scaleinfrastructure brought about by the Belt and RoadInitiative (BRI), the HKTDC expected thatinfrastructure disputes will increase significantlyin the coming years. When the legal system in thehost country is not sufficiently advanced to copewith all the aspects of the projects and contracts,especially projects involving cross-bordercollaboration, there are risks.

Source: Myanmar Timeshttps://www.mmtimes.com/news/sino-asean-arbitration-panel-proposed-tackle-belt-and-road-disputes.html

28 Sep 2017

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NewspapersMyanmar Business Today Pan Pacific Bringing Modern, 5 Star Luxury to

Downtown Yangon

Pan Pacific Hotels Group has announced the No-vember opening of their project in luxury hotels.Pan Pacific Yangon will be the first truly inter-national luxury five-star hotel in Myanmar, stra-tegically located near the Bogyoke Aung SanMarket, Sule Pagoda and Shwedagon Pagoda.The 25-storey Pan Pacific Yangon sits withinJunction City, an integrated commercial andlifestyle development with a decent variety ofMyanmar dining and shopping options locatedalong Shwedagon Pagoda Road.Pan Pacific Yangon’s double-height sky lobby onthe sixth floor offers views of the iconic Shwed-agon Pagoda while the Pacific Club on the topfloor of the hotel will boast spectacular city vistas.“As one of the largest hotel companies in the city,we are committed to Myanmar as a strategicgrowth market as we expand our footprint in AsiaPacific. We look forward to contributing further toMyanmar’s flourishing tourism and travel indus-try,” said Lothar Nessmann, Chief ExecutiveOfficer of Pan Pacific Hotels Group, said.In addition to 336 beautifully furnished guestrooms and suites, some of which offer panoramic

river views, guests can indulge in an extensiverange of refreshing facilities such as a swimmingpool, St Gregory spa and fitness center, as well asnumerous dining outlets including all-day diningrestaurant Saan, Hai Tien Lo Cantoneserestaurant, The Teak Bar, Pacific Club Lounge andPacific Marketplace. A spacious ballroom and aselection of meeting rooms will provide idealvenues for meetings and events.Pan Pacific Hotels Group is a wholly-owned hotelsubsidiary of Singapore-listed UOL GroupLimited, one of Asia’s most established hotel andproperty companies with a portfolio of investmentand development properties. Based in Singapore,Pan Pacific Hotels Group owns and manages 40hotels, resorts and serviced suites with some12,000 rooms including those under developmentin Asia, Oceania, North America and Europe.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/pan-pacific-bringing-modern-5-star-luxury-downtown-yangon

28 Sep 2017

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https://www.mmbiztoday.com/articles/pan-pacific-bringing-modern-5-star-luxury-downtown-yangon


NewspapersMyanmar Business Today Development in Chin State Cleared for Take Off

Construction of an airport in Falam Township,Chin State began in August under the oversight ofthe Ministry of Construction.The ministry budgeted K25 billion for this pivotalairport in the northwestern reaches of mountain-ous Chin State, just near the border with India.The five-year construction plan is the first of fiveairports the Chin State government plans to buildin the the country's second most impoverishedregion. Other destinations are Hakha, Htantlan,Lielinpi, Tiddim and Paletwa Townships, U OoHan, Chief Engineer of Ministry of Construction,told Myanmar Business Today.The runway will be more than 6,000 feet in lengthand facilitate small to medium sized aircraft.“This airport will be first ever in Chin State. Whencompleted, it will be able to support the landing of50,000 pound aircrafts such as the ATR 72. Be-cause of Chin State’s small tax base, the Uniongovernment is contributing the majority of fundsfor this project,” U Oo Han said.The project includes a runway, neighboringbuildings, control towels, and a parking lot, U OoHan added.

Currently, travel to Chin State is limited to landtransport on roads that have been continuouslydeteriorating for decades and often collapse dueto weather, landslides, and heavy vehicle traffic.Chin State has some of the highest traffic fatalitiesin Myanmar.While there are significant hopes for tourism tokick off in Chin State because of its unspoilednature and beautiful mountainous terrain,hospitality experts express doubt because of thestate’s utter lack of infrastructure, hotels, and thepresence of nearby regional conflict.In a more optimistic stride, the Ministry of Hotelsand Tourism announced plans to open auniversity of tourism with assistance from theOsaka Chamber of Commerce and Industry andJapan International Cooperation Agency.There are 69 airports across the nation, 43 ofwhich permit the landing of aircraft. Theremaining 26 are, for one reason or another,unusable.Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/development-chin-state-cleared-take

28 Sep 2017

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NewspapersConsult Myanmar

Russia and Myanmar sign agreement on setting up Russian trade mission in Yangon

MOSCOW, September 27. /TASS/. Russia andMyanmar have signed an agreement on setting upRussia’s trade mission in Yangon, EconomicDevelopment Minister Maksim Oreshkin saidfollowing the second meeting of theintergovernmental commission on Wednesday.The mission will facilitate the expansion of tradeand economic ties, as well as help organizeinternational exhibitions on the territory of bothcountries.“In August, the first batch of Kamaz trucks wassupplied to Myanmar. The discussion is alsounderway regarding cooperation in agricultureand food production,” Oreshkin added.According to the data provided by the Ministry,bilateral trade between the two countries reached$138.9 mln in seven months of 2017, a 61.2%increase year-on-year. Meanwhile, Russia’sexports amounted to $116.3 mln (up 50.6%),while imports equaled $22.6 mln (up 152.6%). In2016, the trade turnover between Russia andMyanmar doubled to $258 mln.

Source: Consult Myanmarhttps://consult-myanmar.com/2017/09/28/russia-and-myanmar-sign-agreement-on-setting-up-russian-trade-mission-in-yangon/

28 Sep 2017

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NewspapersMizzima

French companies to discuss energy and hotel business with officials in Shan State

On the 28th and 29th of September, H.E. Mr.Olivier Richard, Ambassador of France toMyanmar, will lead a delegation of 8 Frenchcompanies to Taunggyi to promote trade andcommercial relations between France and theShan State, particularly in the Energy and Hotelsectors, according to a statement. Along withsenior executives of AccorHotels, Artelia,Bioderma, Camusat, EDF, ENGIE, Razel-Bec,Tractebel, the delegation will includerepresentatives of the French DevelopmentAgency (AFD), the France-Myanmar Chamber ofCommerce and Industry (CCIFM), and theEconomic Section of the French Embassy.Over these two days, the Delegation is scheduledto meet with Shan State government highofficials, H.E. Dr. Linn Htut, Chief Minister of theShan State, H.E. U Swe Thein, State Minister ofElectricity, Energy and Industry, H.E. U SoeNyunt Lwin, State Minister for Planning andEconomy, as well as representatives of theTaunggyi office of the Directorate of Investment &Company Administration and of the SouthernShan State Chamber of Commerce. The Chairman

of KBZ Group U Aung Ko Win will receive theAmbassador and Delegation to strengthen the tiesbetween local and French companies and lay thefoundations for future successful cooperation.This Trade Mission purports to promote strategicpartnership in the energy sector for thedevelopment of Hydropower and Solar PVprojects to bring additional power generationcapacity to the Shan State and the whole ofMyanmar. Razel-Bec is already executing theunderground works of the Upper Yeywa Project.EDF is looking to conclude a PPP with theMinistry of Energy and Electric Power for theShweli 3 Hydropower project. As for ENGIE, ithas already carried out a prefeasibility study ofthe hydropower potential of both the Nam PawnChaung and Nam Thabet rivers. The consultingand engineering firms Artelia and Tractebel arealso part of the Delegation, bringing expertise inenergy, water and infrastructure.Source: Mizzimahttp://www.mizzima.com/business-domestic/frenchcompanies-discuss-energy-and-hotel-business-officials-shan-state

28 Sep 2017

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Two new taskforces to monitor and facilitate DaweiSEZ

TWO taskforces have been formed to reviewDawei SEZ’s development: one will focus onproblems encountered with the developer for theinitial phase, the other on upgrading an existingtwo-lane road connecting Htee Khee to anASEAN-standard highway.The initial meeting between the two taskforces –held in Nay Pyi Taw from September 20 to 21 –aimed at assigning which department andpersonnel should be involved in which taskforce,said U Myint San, vice chair of Dawei SEZManagement Committee on September 26.The 8th Joint Coordinating Committee (JCC)meeting, which had its first occurrence under theNLD-led government, was held in Thailand onJune 29-30. It decided to seek parliamentaryapproval before asking Thailand for a soft loan tofund the two-lane project and forming the twotaskforces, within September.Commerce minister U Than Myint and ArkhomTermpittayapaisith, Thailand’s transportminister, are co-chairing the JCC.For the two-lane project taskforce, high-rankingengineers from the highway department, under

the Ministry of Construction, and members of themanagement committee from both governmentsides will be involved. The taskforce will assessthe actual cost for the two-lane project fromOctober 5-7 in order to accept the 4.5 billion Bhatloan from Thailand, offered in May 2015.“The taskforce will calculate the exact cost ofupgrading the road as it can fall behind or exceed4.5 billion bhat. We have to make sure of theactual cost before submitting the proposal toparliament,” U Myint San said.Several issues with developers added toimpediments in the initial phase. Italian-ThaiDevelopment (ITD) received a contract tocomplete nine projects within eight years –starting from 2010 – for the initial phase whichconcerns 27 square kilometres within the SEZ.

Source: Myanmar Timeshttps://www.mmtimes.com/news/two-new-taskforces-monitor-and-facilitate-dawei-sez.html

29 Sep 2017

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Rohingyas, Belt and Road, Kaladan – the future of Rakhine’s economy

THE economy in the resource-rich Rakhine Stateis throttled by the crisis as well as theaccompanying international backlash, dashingany hope of massive foreign investment in thenear future. In the meantime, local communitiesin Kyaukphyu have demanded the stake ratio ofthe proposed Kyaukphyu port to be restructuredso as to allow a higher ratio for Myanmar. Nay PyiTaw is negotiating with the stakeholders onadjusting the ownership percentage between thetwo consortiums.Despite the fact that Rakhine is not in Myanmar’sheartland geographically, the state is crucial forthe country’s economy. In addition to therenowned Ngapali beach, Rakhine State holdsenormous economic potential because the statehas oil, natural gas fields and maritime resourcesfrom the Bay of Bengal.However, Rakhine remains the second poorestregion or state in the country. Community andeconomic development are lagging behind,despite the prospect of several megainfrastructure projects, namely the Kyaukphyuproject and the Kaladan multi-modal transit

transport project. Following the recent attacks inAugust, the government’s information ministryhas failed to effectively convey accurateinformation to the international community.Misinformation persisted until State CounsellorDaw Aung San Suu Kyi attempted to clarify thesituation in a speech on September 19.Nonetheless, international pressure has escalated.This enormous pressure poses a challenge to theregion’s economy, according to U Oo Than Naing,MP from Yethetaung township in Rakhine State.

Source: Myanmar Timeshttps://www.mmtimes.com/news/rohingyas-belt-and-road-kaladan-future-rakhines-economy.html

29 Sep 2017

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2. Weekly Investment News

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Weekly Key Investment NewsHeadlines

Myanmar: IFC mulls $3.85m for Mandalay river port project

DSA Summit Exclusive: Singapore’s Vulpes to raise 2nd Myanmar fund of $25m

METRO Sets Up Shop in Myanmar

22

Ooredoo Myanmar launches mobile wallet M-Pitesan in partnership with CB bank

Amata Hotel May get 2nd tranche for 5m IFC funding in Oct, eyes listing


NewspapersDeal Street Asia

Myanmar: IFC mulls $3.85m for Mandalay river port project

The International Finance Corporation (IFC), theprivate lending arm of the World Bank Group, hasproposed to invest $ 3.85 million for the phaseone of the Semeikhon river port project inMandalay Region, according to the disclosure onSeptember 22. The port and harbor operationsproject, located at the east bank if Ayeyarwadyriver, will be funded by IFC InfraVentures, a $150million Global Infrastructure ProjectDevelopment Fund, set up to address constraintsto private investments in infrastructure projects.The port project is a co-development withMandalay Myotha Industrial Development PublicCo Ltd (MMID), a Mandalay-based developer ofmixed-used industrial zones including logisticdevelopment, residential development and roadand transportation.The funding through IFC InfraVentures offersearly stage risk capital and experienced projectdevelopment support while the funding isconvertible to equity. The project saw a jointventure signatory between MMID and IFC lastmonth and is the first inland water port that aimsto support Mandalay’s economic growth and

facilitate trade in the region.The announcement stated that the Semeikhonriver port project will house one floating berth,and barges and 50 tonne cranes to handle200,000 tonne general cargo, containers and rollon-roll of cargo.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/ifc-infraventures-proposes-3-85m-inland-river-port-development-mandalay-82911/

26 Sep 2017

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DSA Summit Exclusive: Singapore’s Vulpes to raise 2nd Myanmar fund of $25m

Singapore-based investment firm VulpesInvestment Management Pte Ltd is planning toraise a $25-million Myanmar-focused fund toinvest in tech and non-tech companies in thefrontier market. The fund raising process for thesecond fund – Vulpes Innovative MyanmarInvestment Company (VIMIC) focused solely onMyanmar – is expected to start next month.The fund will continue to focus on “early stageventures and also be investing in growingcompanies in Myanmar that aren’t in the earlystage tech space,” said Field Pickering, director ofVIMIC Limited. Vulpes was formerly known asArtradis Fund Management co-founded in 2001by Stephen Diggle and was once Singapore’sbiggest hedge fund with assets of about $4.5billion. In 2011, Artradis changed its name toVulpes and, since then, it has been investing inemerging markets. One of their funds is named asVulpes Russia opportunities fund.While their first Myanmar-focused fund’s ticketsize for the investee companies was up to$250,000 for each, their second fund is aiming ata ticket size between $1 million and $5 million in

each company. “If we can effectively deploy thatcapital in those sizes in good companies, ourability to raise more money for Myanmar will begreatly enhanced,” said Pickering, during aninteraction with DEALSTREETASIA on thesidelines of the Asia PE-VC Summit 2017.Vulpes is among a few Myanmar-focused fundslooking to expand their presence in the country.The fund will be looking into companies in sectorssuch as agriculture, logistics, telecom and otherearly stage tech companies that are operating inMyanmar but incorporated in Singapore, saidPickering.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/exclusive-singapore-based-vulpes-raise-second-myanmar-focused-fund-25m-invest-early-stage-growth-capital-83060/

28 Sep 2017

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NewspapersMyanmar Business Today METRO Sets Up Shop in Myanmar

METRO Wholesale Myanmar, the local subsidiaryof METRO Cash & Carry, a leading internationalwholesale and food specialists, has broken groundon the construction of its warehouse in theThilawa Special Economic Zone.“The event marks the beginning of establishingMETRO Cash & Carry’s footprint in Myanmar toprovide high-quality and safe products along withprofessional service solutions. We believe thatMETRO Cash & Carry’s market entry will supportMyanmar’s tourism industry’s growth. We aim tomake a difference for our customers in terms offood safety and sustainability. In order to achievethese objectives, METRO Cash & Carry will intro-duce global best practices in supply chainmanagement in its operations in Myanmar,” Ms.Tiparayat Kaewsringarm, Deputy CEO of METROWholesale Myanmar, said.The ceremony was performed in traditional My-anmar fashion, with monks chanting auspiciousverses and giving blessings. The construction onthe 28,368 square meter plot is expected to becompleted by end of 2018.The warehouse will be equipped with modern

warehousing and storage facilities as well as logis-tic systems, operated according to internationalstandards.The facility will include refrigerated rooms ensur-ing cooling temperatures required to maintain thefreshness and good quality. Further, processingand cleaning laboratories for fresh meat, fish,fruits and vegetables are value added services;plus storage space and offices.METRO Cash & Carry’s joint-venture is regardedas a timely catalyst in bridging internationaldistribution infrastructure and expertise withlocal producers.METRO Wholesale Myanmar is also committed tosupporting the development of local humanresources, and is placing a priority on therecruiting staff from the local community. Withthe warehouse operation, the company isexpected to create approximately 300 jobs, withan additional 1,000 indirect jobs.

Source: Myanmar Business Todayhttps://www.mmbiztoday.com/articles/metro-sets-shop-myanmar

28 Sep 2017

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Ooredoo Myanmar launches mobile wallet M-Pitesanin partnership with CB bank

Qatar-based telecom operator Ooredoo’sMyanmar entity has launched its mobile wallet,M-Pitesan, which will offer nation-wide moneytransfer and bill payments services in the first twoyears. M-Pitesan hopes to get about 10,000agents by the end of 2017 and reach a customerbase of 100,000 at the same time. Mobile userscan deposit, withdraw and make money transfersthrough Ooredoo’s 2,400 M-Pitesan agents inYangon, Nay Pyi Taw, Mandalay, Bago andTaunggyi. “Ooredoo is a strong supporter offinancial inclusion for all, and, in Myanmar, M-Pitesan will help us achieve our goal of bringingcitizens closer to this better future,” said VikramSinha, acting CEO of Ooredoo Myanmar. OoredooMyanmar has partnered with CB bank for themobile wallet rollout. Users of Co-Operative Bank(CB Bank) can transfer money back and forthfrom their M-Pitesan account while they are alsoready to work with all other local banks. “We offerbanks a branch network that they can collectmoney, make cash withdraws easily rather than(banks) putting up more branches or moreATMs,” said Jacques Voogt, chief M-Commerce

officer for Ooredoo Myanmar. Ooredoo has alsopartnered with Red Dot which has an agentnetwork of about 16,000 across Myanmar.Ooredoo has also partnered with Red Dot whichhas an agent network of about 16,000 acrossMyanmar.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/ooredoo-myanmar-launches-mobile-wallet-m-pitesan-partnership-cb-bank-83195/


29 Sep 2017



After receiving the first tranche of $8.5 millionfinancing from the International FinanceCorporation (IFC), the private lending arm of theWorld Bank Group, United International GroupLtd, the owner and operator of Amata Hotels inMyanmar, is expecting the second installment of$5 million by October. To raise funds for futuredevelopments, the company is also consideringthe possibility of a listing either on a local orforeign exchange within the next one or two years.“We are considering whether to go for an Over-The-Counter market or an exchange market. Weare studying the local exchange as well asoverseas like the Singapore Exchange,” said WinAung, CEO of United International Group, alsoknown as Amata Hotel Group. As per its currentproject timeline, the hospitality firm is expectedto launch two new hotel properties within theyear, armed with the IFC financing. IFC hadproposed a $13.5-million convertible loan inOctober 2016 for financing two hotel projects: onein Bagan and another in Nyaung Shwe township,Inle Region. IFC extended the first tranche of thedebt in early 2017. “With IFC having already

studied our current status and the progress beingahead of schedule, the second disbursement is tobe received in October,” said Aung. The $29-million project is inclusive of the land cost. Thecompany will raise the balance amount throughinternal financing, said Aung.

Source: Deal Street Asiahttps://www.dealstreetasia.com/stories/amata-hotel-group-looks-make-second-trench-5-m-october-eyes-listing-82701/

29 Sep 2017

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Amata Hotel May get 2nd tranche for 5m IFC funding in Oct, eyes listing


3. Weekly New Tenders

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Tenders (Myanmar Government)List

Note: tenders information are collected from http://www.mmtimes.com/, https://tender.yangon.gove.mm, http://consult-myanmar.com/, and http://www.myanmar-opportunities.org/mm/tenders http://www.buildersguide.com.mm/en/ .

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EOI for cooperation in Asbestos Cement Sheet Plant (Hmawbi)

http://www.mmtimes.com/

https://tender.yangon.gove.mm/

http://consult-myanmar.com/

http://www.myanmar-opportunities.org/mm/tenders

http://www.buildersguide.com.mm/en/


Tenders (Multilateral organizations) List

Note: tenders information are collected from https://wbgeconsult2.worldbank.org, www.devex.com, www.adb.org, https://www.ungm.org

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Support for Strengthening Public Debt Management (CS-DRMS Implementation Expert)Closing Date: 1 October 2017 (Individual)

Greater Mekong Sub region Health Security Project- ICS4 Communicable Diseases Control Expert (Re-Advertisement), Closing Date: 13 October 2017 (Individual)

Financial Inclusion Insights analytics, Closing Date: 16 October 2017 (Individual)

https://wbgeconsult2.worldbank.org/

http://www.devex.com/

http://www.adb.org/

https://www.ungm.org/


4. MIC Permitted Projects

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MIC Permitted Projects (Meeting 13, 2017)

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No. Name of Company Type of Investment Form of Investment

1Myanmar Conch Cement (Myanmar) Co., Ltd(China)

Manufacturing and Marketing of Limestoneand Cement

Joint Venture

2 BASF Myanmar Manufacturing Co., Ltd (Singapore)Manufacturing and Sales of ConstructionChemicals Wholly Foreign Owned

3The Yangtze River International Investment GroupCo., Ltd

Construction, Leasing and Management ofCommercial and Residential Buildings Joint Venture

4 Air Products (Myanmar) Co., Ltd Refining, Distribution and Sale of Oxygen, Nitrogen, Carbon Dioxide, Argon

Joint Venture

5 City Man Co., LtdPrivate Healthcare Services

Myanmar CitizenInvestment

6Yadanar Su Co., Ltd

Production and Distribution of LiquefiedPetroleum Gas

Myanmar CitizenInvestment


5. Upcoming Events

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Upcoming Events (October 2017) List

Date Location Name of Event Sector Price Focus Points

12-14 Oct 2017 YangonBuilding & Construction Myanmar

Construction Free

The event showcases product from Building and Construction industry as well as to help the professionals to discuss about the new opportunities and trends associated with the industry.

12-14 Oct 2017 Yangon Mining Myanmar Mining Free

This event showcases product from Minerals, Metals & Ores industry. This event showcases product from Minerals, Metals & Ores industry. like will provide companies with opportunities to see first-hand the potential in Myanmar's Mining sector.

12-14 Oct 2017 YangonElectric, Power & Renewable Energy

Power Free

Showcases product from Electronics & Electrical Goods, Power & Renewable Energy industries etc. in the Electronics & Electrical Goods, Power & Renewable Energy industries.

18-19 Oct 2017 Yangon Oil & Gas Myanmar Oil & Gas Free

Opportunities and difficulties facing in Myanmar Oil & Gas Industry as it embarks on its exciting new phase of growth.

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Upcoming Events (November 2017) List

Date Location Name of Event Sector Price Focus Points

09-11 Nov 2017 Yangon Myanenergy Energy Free

Show exhibits a wide range of latest technology aided products and equipment related to the power industry. The leading industrialists will be present in this show to exhibit the respective range of modernized and productive range.

23-25 Nov 2017 Yangon Myanwater Water Free

Will provide a platform to the technical and professional experts related to waste management industry. Attendees will get a scope to improve and enhance their knowledge by attending this international trade show

29 Nov 2017 YangonMyanmar Satellite Forum & Exhibition

Technology $750

An opportunity for the global and regional satellite industry to meet with invited guests from Myanmar in broadcasting, B2B, government and homeland security. The Forum is part of the CommuniCast Myanmar event.

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© 2017 PricewaterhouseCoopers Myanmar Co Ltd. All rights reserved. In this

document, “PwC” refers to PricewaterhouseCoopers Myanmar Co Ltd, which is

part of the network of member firms of PricewaterhouseCoopers International

Limited, each of which is a separate and independent legal entity.

www.pwc.com/mm

PwC Myanmar Business Intelligence Publication

For further information please contact:

Jovi SeetSenior Executive [email protected]

Brandon [email protected]

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PwC Myanmar Weekly Business …...PwC | September 2017 Weekly Key Financial & Business News...

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