Publish Date : 08-Sep-2014
On September 5, the Japan International Cooperation Agency (JICA) signed ODA loan agreements with the Government of the Republic of the Union of Myanmar, in the capital of Nay Pyi Taw, to provide up to a total of 63.166 billion yen for four projects.
Since its start in March 2011, President Thein Sein’s administration has been committed to economic reform such as transforming the country’s exchange rate system from the fixed exchange rate system to a managed float system and promoting trade liberalization, and has made efforts toward democratization, strengthening of the rule of law and national reconciliation. In support of these efforts by the Government of Myanmar, Japan is providing ODA loans to Myanmar for the first time in 25 years in 2013.
With the lifting of economic sanctions and the impact of the rapid increase in trade and investment in recent years, the real economic growth rate has steadily remained above 6 percent. However, Myanmar’s basic economic infrastructure faces a number of challenges that hinder sustained economic growth and efforts to promote additional investment. In particular, while the railway connecting the major cities of Yangon and Mandalay is a vital transportation trunk line, it is deteriorating with age. Furthermore, with additional economic activity and urbanization anticipated in the Yangon region, there is an urgent need for essential water supply facilities and logistics infrastructure to support those changes.
In addition, with about 70 percent of the people of Myanmar living in rural areas, the improvement of livelihoods and alleviation of poverty for rural residents through agricultural development is an important priority to ensure stable growth of the whole country. In particular, the development of irrigation systems has fallen behind that of neighboring countries, and the inability to plant crops during the dry season has made it difficult to improve the livelihoods of rural residents.
Myanmar has a rail network which extends for about 6,000 kilometers, and within this network, the most important trunk line is the Yangon-Mandalay line, which connects Myanmar’s largest city of Yangon with the capital Nay Pyi Taw, as well as with the nation’s second largest city of Mandalay. However, with routes and equipment not being sufficiently updated, this network is aging, resulting in the alarming statistic of railway accidents occurring about 100 times each year. In addition to solving such safety issues, there is a need to shorten travel times and improve transportation capacity.
The Yangon-Mandalay Railway Improvement Project Phase I (I) will renovate and modernize the aged railway equipment and facilities on the Yangon-Mandalay line to provide safer, faster train service with enhanced transport capacity, which will contribute to the economic development of Myanmar.
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