Project Description
This summary covers an equity investment and a loan guarantee by Korea Land and Housing Corporation (“LH”) of the Republic of Korea into KMIC Development Co., Ltd. (the “Project”). The investor has applied for MIGA guarantees of up to US$33 million in total for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and Breach of Contract. It has been proposed that MIGA will share the exposure risk by utilizing the MIGA Guarantee Facility (“MGF”) under IDA Private Sector Window (“PSW”).
The Project consists of development, financing, construction, and operation of Zone A, the first phase of the Korea-Myanmar Industrial Complex located in Nyaung Hnit Pin, 25km north from the Yangon International Airport. The Project will be developed by KMIC Development Co., Ltd., a joint venture of LH, Global Sae-A Co., Ltd and the Government of Myanmar.
The Project will provide industrial land with quality infrastructure, including reliable electricity and water supply, wastewater management, residential facilities and a vocational training center, which is currently short in the Yangon region whereas demand for production facilities is growing.
Environmental Categorization
The project is a category [B] under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
Development Impact
The Project is expected to support Myanmar’s economic growth and industrial advancement by providing industrial space with adequate infrastructure, the lack of which is one of challenges companies face to set up production facilities and expand business in the country. The Project has the potential to play a substantial role in attracting further private sector investments, create new jobs and generate tax revenue for the government. The Project will provide space for up to 200 companies and its economic impact may be amplified through indirect employment creation effects on vendor and partner companies.
