Nine companies in running to challenge China Communications for $800m New Yangon project
29 November 2020
Nine potential bidders have come forward to challenge China Communications Construction Company (CCCC) for the right to develop the first phase of the New Yangon City in Myanmar.
Sixteen companies from nine countries responded to the Ministry of Investment and Foreign Economic Relations’ request for expressions of interest. Of these, nine have paid a fee to see documents related to investing in the project.
The nine are:
Three local firms: Southern Metal Industry, Dragon Power Company and the Myanmar National Brotherhood Consortium
BES Engineering Corporation of Taiwan
Nylect Technology, also of Singapore
State-owned Indian contractor NTPC
From France: Suez Group, EDF and Bouygues subsidiary BYMA Myanmar.
The nine contenders have until the end of January to submit their proposals.
The first phase of the scheme, which has a value of about $800m, will now comprise a 3-sq-km industrial zone, a bridge over the Yangon River to connect New Yangon with the old, a 9-sq-km residential area and the resettlement zones.
The project was originally priced at $1.5bn, and was to have been built by CCCC, but was scaled back and opened up to other companies after criticism of the bidding process.
The Myanmar Times notes that the involvement of BYMA Myanmar has raised concerns over conflict of interest given that it is partially owned by Yoma Strategic Holdings, a Singapore-listed company controlled by U Serge Pun, who is also the chief executive of New Yangon Development Company, the agency managing the project.
The paper reports Pun as saying that Yoma Strategic is not involved in the management of BYMA Myanmar, which is a joint venture between Dragages Singapore, a subsidiary of Bouygues Construction and SPA Project Management, a subsidiary of Singapore’s Yoma Strategic.
He said: “The tendering process for Package 1 adheres to the Swiss Challenge process and is headed by a global third-party consultant, Roland Berger, and they are guided by the Swiss Challenge Tender Committee.”
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