The FINANCIAL — The Asian Development Bank (ADB) and the Government of Myanmar have agreed to partner up in promoting public-private partnerships (PPP) in the transport sector. ADB will provide strategic and transaction advisory services to support the Government of Myanmar’s bid to identify and develop transport projects through PPPs.
The advisory services agreement was signed today at a ceremony in Nay Pyi Taw by U Win Khant, Permanent Secretary at the Ministry of Transport and Communications (MOTC), and Winfried Wicklein, ADB’s Country Director for Myanmar. U Thant Sin Maung, Myanmar’s Union Minister of Transport and Communication and Ryuichi Kaga, Head of ADB’s Office of Public -Private Partnership, in its headquarters in Manila, witnessed the signing, according to ADB.
“The improvement of transport infrastructure is a top priority for the government, as this is critical to improve people’s access to markets as well as to basic services such as health and education,” said U Thant Sin Maung. “A number of our priority transport investments will deliver better results if undertaken in partnership with the private sector.”
“ADB has been playing a very active role in supporting Myanmar with policy advice on PPPs, and improving Myanmar’s transport infrastructure is critical to achieving inclusive growth in Myanmar,” said Mr. Kaga. “PPP is an important instrument to deliver infrastructure, and ADB is looking forward to assisting the government in developing priority transport projects that could be structured on a PPP basis to mobilize private capital flows.”
As MOTC’s mandated strategic and transaction advisor, ADB will help in screening and prioritizing projects, undertaking due diligence, and structuring work with a view to place these projects in the market for private sector investment.
Myanmar’s inadequate infrastructure hinders access to markets and social services and compromises the business environment. With only 40% of the road network paved, and 20 million people — half of the rural population — not having access to all-weather roads, weak inland waterways and river ports, high transport costs, and associated limited access to markets and services are among the main causes of poverty and regional inequality.