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Press Release

April 23, 2014

Private Sector Investment Finance for the Thilawa Special Economic Zone (SEZ)
–First SEZ Development in Myanmar, Building Company Expansion Bases with Public-Private Partnerships–

Photo(First row from the left)
H.E. U Win Aung, Chairman of Myanmar Thilawa SEZ Holdings Public Limited.
H.E. U Set Aung, Chairman of Thilawa SEZ Management Committee and Deputy Minister of Central Bank of Myanmar
Mr. Yasushi Tanaka, Director General of Private Sector Partnership and Finance Department, JICA HQ
Mr. Wataru Yoshida, the representative from MMS Thilawa Development Co.Ltd
(Second row from the left)
Mr. Masahiko Tanaka, Chief Representative of JICA Myanmar Office
Mr. Ichiro Maruyama, Minister- Counselor of Embassy of Japan in Myanmar
Mr. Takashi Yanai, President and CEO of Myanmar Japan Thilawa Development Ltd.

On 23rd April 2014, the Japan International Cooperation Agency (JICA) signed a joint venture agreement with the MMS Thilawa Development Company (MMST), the Thilawa SEZ Management Committee (TSEZMC) and Myanmar Thilawa SEZ Holdings Public Limited (MTSH) for the Thilawa Special Economic Zone (Class A Area) Development Project. This is the first project to be conducted in Myanmar since the resumption of JICA private sector investment financing in October 2012.

Under this project, JICA will provide private sector investment financing to provide the funds needed for industrial complex development, sales and operation projects on approximately 400 hectares (a class A area) slated for initial development in the Thilawa special economic zone (SEZ), an area approximately 2,400 hectares in size that is located on the outskirts of Yangon (23 kilometers southeast of the city center), Myanmar.

A special purpose company, Myanmar Japan Thilawa Development, Ltd. was founded in October 2013 by MMST, TSEZMC and MTSH and will undertake the project, funded with JICA equity participation.

PhotoProject schematic

As a cooperative project by Japan and Myanmar to attract investment in Myanmar, the Thilawa SEZ development will respond to the interest and expectations of both countries. In December 2012, the governments of both countries signed a memorandum of cooperation and have carried out cooperation with involvement by the private and public sectors since the initial stages.

In addition to cooperating in financing with equity participation through private sector investment finance, JICA will participate in the project as an investor, and is expected to play a role in coordinating with the Government of Myanmar to ensure the class A area development and other aspects of the project proceed smoothly.

For the Thilawa SEZ development, the Government of Japan and JICA are using all types of ODA assistance, including technical cooperation, Japanese ODA loans and grant aid to build power, water, communication, road, port and other infrastructure in the surrounding area, as well as to assist in building a legal framework for the revised SEZ law and formulating detailed regulations. This series of efforts should remove hindrances to private investment in the Thilawa SEZ, which is expected to encourage active investment by companies.

An advanced industrial complex with a high-quality power supply and water system is the aim in the Thilawa SEZ, and development is moving forward toward starting the project in 2015. JICA will continue to provide proactive assistance for socioeconomic development in Myanmar, including stimulating the manufacturing industry and creating employment, major challenges for the country.

Company Outlines

Myanmar Japan Thilawa Development, Ltd. (MJTD)
A local enterprise founded to build, sell and operate industrial complexes in Thilawa, Myanmar. The shareholder composition is Japan (MMST, JICA): 49%, and Myanmar (TSEZMC, MTSH): 51%.

MMS Thilawa Development Co., Ltd. (MMST)
Founded by Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation, MMST is an investment company for MJTD, a local enterprise that builds, sells and operates industrial complexes in Thilawa, Myanmar.

Thilawa SEZ Management Committee (TSEZMC)
An agency for the Government of Myanmar established under Myanmar’s SEZ Law to handle management and other duties in the Thilawa SEZ. The company also has equity participation in MJTD, a local enterprise that builds, sells and operates industrial complexes in Thilawa, Myanmar.

Myanmar Thilawa SEZ Holdings Public Limited (MTSH)
Founded by nine private Myanmar companies, MTSH is an investment company for local enterprises and other entities that build, sell and operate industrial complexes in Thilawa, Myanmar.

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