Korea Land and Housing Corp. (LH) announced on Aug. 8 that it has signed a memorandum of understanding (MOU) on establishing a joint venture to build an industrial complex with the Urban and Housing Development Department (UHDD) of Myanmar’s Ministry of Construction (MOC) and Global Sae-A Co. in Nay Pyi Taw, the capital of Myanmar, on Aug. 7.
The Korea-Myanmar Industrial Complex (KMIC) is the first industrial complex project promoted by LH in the ASEAN region. It will be built on an area of 2249,000 square meters in Nyaung Hnit Pin, about 10 kilometers north of Yangon city. The project period will be divided into two stages from 2019 to 2024, and the total construction cost is 130 billion won (US$107.45 million).
LH and the Myanmar government will hold a 40 percent stake in the joint venture each and Global Sae-A will own the remaining 20 percent. The joint venture will execute the KMIC construction project. LH will manage the joint venture as its representative, while the Myanmar government will provide land for the complex. LH will also establish infrastructure outside of the industrial complex, such as electricity, service water and road, by making use of aid funds from the South Korean government.
The joint venture will place an order for the industrial complex design by the end of this year and start construction and attract investments next year.