As we had reported back in July, a Korean-Myanmar Industrial Complex (KMIC) is set to be established in Hlegu Township in Yangon Region.
Late last month, the Multilateral Investment Guarantee Agency (MIGA), member of the World Bank Group, said in a statement that it “had issued guarantees to Korea Land & Housing Corporation (LH) covering its equity investment of up to USD 5.7 million to the Korea-Myanmar Industrial Complex Development Co., Ltd (KDC) for a period of up to 15 years.”
The MIGA guarantees provide protection to LH against the risks of Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance and Breach of Contract, while supporting the development, financing, construction, subleasing, and operation of the Korea-Myanmar Industrial Complex site.
“The development of KMIC will create jobs, strengthen the supply chain, and improve Myanmar’s industrial competitiveness,” MIGA Executive Vice President Hiroshi Matano said.
Aiming to be operational in 2022, the majority of the area will be designed to meet the specific needs of different industries, such as textiles and garment manufacturing, food and beverage processing, parts and electronics manufacturing and assembly, and logistics.
The land at the industrial site is owned by the government and will be leased to KDC for 50 years. The construction work is expected to start early-2021.
KDC is a joint venture company owned by LH (40%), Government of Myanmar’s Department of Urban and Housing Development of the Ministry of Construction (40%), and Global Sae-A Company Limited (20%).
