The International Finance Corporation (IFC), the World Bank Group’s private financing arm, is set to give a boost to Myanmar’s abysmal transportation sector by providing $40 million of financing to Myanmar Industrial Port (MIP). 

MIP is one of two major container ports in Myanmar and a key trade gateway that handles more than 300,000 twenty-foot equivalent units (TEUs) annually or 40 percent of the country’s container traffic.

The $40-million in mezzanine financing is the first phase of a $200 million financing package which is expected to include $160 million in long-term senior loans to be provided by IFC and other foreign lenders.

IFC said the financing package will help the company increase capacity and efficiency at its container terminal in central Yangon, the commercial capital of Myanmar. 

With IFC’s long-term funding, the company will be able to complete the first phase of its expansion plans which, together with the efficiency improvements, will increase the terminal’s annual handling capacity to 500,000 TEUs or more.

“Thanks to IFC’s investment, we will be able to further modernise our port operations and respond to the increasing demands of international shipping lines and local traders,” said Captain U Ko Ko Htoo, MIP’s Chairman.

“We are also keen on IFC’s advice on bringing our environmental, social and governance practices into line with international standards.”

Myanmar’s container volumes are estimated to have increased by 90 percent over the last three years due to rapid growth in imports and exports following the government’s implementation of political and economic reforms.

“IFC’s financing for MIP comes at a critical time in Myanmar’s development when transport infrastructure is urgently needed to realize the country’s growth potential,” said Hyun-Chan Cho, IFC’s Head of Infrastructure and Natural Resources for Asia.

“The MIP loans will also help to catalyse investment by other private developers and financiers in Myanmar’s infrastructure sector for which long-term US dollar funding has not been readily available.”

Source: http://www.mmbiztoday.com/articles/ifc-fund-40-million-industrial-port-development

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