Korea Myanmar Industrial Complex
On October 25, 2020, MIGA issued a guarantee of US$5.7 million to Korea Land & Housing Corporation of the Republic of Korea (LH) covering its equity investment to the Korea-Myanmar Industrial Complex Development Co., Ltd (KDC) for a period of up to 15 years. MIGA is expected to further cover a loan guarantee issued by LH to a commercial lender. The MIGA guarantees provide protection to LH against the risks of Currency Inconvertibility and Transfer Restriction, War and Civil Disturbance and Breach of Contract. MIGA will share the exposure risk by utilizing the MIGA Guarantee Facility under IDA Private Sector Window.
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 KDC, 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, and residential facilities, which is currently short in the Yangon region whereas demand for production facilities is growing.
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.
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. Construction is expected to start on Zone A in early-2021, will take approximately 2 years, and entail land clearance, site preparation and design and construction of common infrastructure. The second phase of the development, Zone B, will be implemented if 75 percent of the sublease payments for Zone A have been received.