Japan’s ODA to grant $537 million loan to Myanmar

Photo: AFP

Japan will grant a new official development assistance (ODA) to Myanmar for its new three projects amounting to 51 billion yens or about US$537 million, Xinhua news reported.

It was Japanese Ambassador Numata who informed Myanmar Minister of National Planning and Economic Development Dr. Kan Zaw about the decision of Japan to grant the new ODA.

The three projects which will be covered by this ODA are phase-1 regional development for poverty alleviation, urgent rehabilitation and infrastructural development in Thilawa Special Economic Zone (SEZ).

Part of the condition in terms of payment is that interest rate will be charged at 0.01% every year, 40 years of repayment period which include 30 years grace period.

Notably, one of Japan's potential investment projects is the Thilawa SEZ in Yangon's Kyaukthan Township.

According to Thilawa SEZ Management Committee the project will be developed by Myanmar and Japan and that includes labour intensive industry, high-tech industry, manufacturing industry, textile and factories. Myanmar will be holding 51% stake.

As of the end of 2012, the investment of Japan to Myanmar has reached US$259.86 million since it opened to various investments in year 1988. Japan also ranks 12th in Myanmar's foreign investment line-up.

Original source: http://www.betweenonline.com/2013/03/29/japans-oda-to-grant-537-million-loan-to-myanmar/