SINGAPORE - A consortium comprising JGC Corporation, Yongnam Holdings and Changi Airports International has sealed a framework deal with Myanmar's Department of Civil Aviation (DCA) to build and manage a new international airport in Yangon, Myanmar.
The signing of the agreement marks an important step towards the eventual inking of the Hanthawaddy International Airport concession agreement, the companies said in a joint statement.
JGC, one of Japan's leading engineering contractors, is the majority partner in the consortium, with a 55 per cent interest. Mainboard-listed steel fabricator Yongnam and Changi Airports International, a unit of Changi Airport Group, hold 25 per cent and 20 per cent, respectively.
In October 2014, Myanmar's DCA officially named the consortium as the successful tenderer for the design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership.
Located on a 3,642ha site, 80km north-east of Yangon, the Hanthawaddy airport is expected to have an initial capacity of 12 million passengers a year, making it the largest airport in Myanmar.
Once operational, the airport will become the main international gateway into Myanmar, particularly the Yangon metropolitan area - the heart of commerce to a large emerging economy of more than 50 million people.
Given its capacity, the new airport will bring about a boost in global air connectivity for Myanmar, bolstering the flow of business and leisure travellers as the country witnesses growth in trade and tourism industries, the statement said.
The project is planned for completion by 2022.
A portion of the project cost will be supported by a loan from the Japanese government, to which the Myanmar government plans to apply following the signing of the framework agreement.