The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, on October 26 issued guarantees to Korea Land & Housing Corporation of the Republic of Korea (LH) covering its equity investment of up to US$5.7 million in the Korea-Myanmar Industrial Complex Development Co., Ltd (KDC) for a period of up to 15 years.
MIGA is expected to further cover a loan guarantee issued by LH to a commercial lender. The MIGA guarantees provide protection to LH against the risks of currency inconvertibility and transfer restriction, war and civil disturbance and breach of contract.
MIGA’s guarantees will support the development, financing, construction, subleasing, and operation of the Korea-Myanmar Industrial Complex (KMIC) in Nyaung Hna Pin, northern Yangon.
“MIGA’s involvement in KMIC will further encourage investor confidence,” MIGA Executive Vice President Hiroshi Matano said.
When complete in 2022, the KMIC, which will comprise a US$110 million industrial park with modern infrastructure, is expected to draw more private sector investment and improve the manufacturing capacity of Myanmar. There will be space for up to 200 businesses in textiles and garments, food and beverage processing, logistics, construction materials and assembly to operate.
The land at the industrial site will be leased to KDC for 50 years. The project will be developed in two phases. Construction is expected to start on Zone A in early-2021 and take approximately two years. The second phase of the development, Zone B, will be implemented only if 75 percent of the sublease payments for Zone A have been received.
ref: Myanmar Times