Both parties signed the agreement to design and implement a public-private partnership (PPP) transaction for the 20.5km four-lane, north-south elevated expressway toll road project.
Under the deal, IFC has been appointed as the exclusive lead advisor for the project. It will also undertake due diligence and structure an internationally competitive tender to choose a private sector developer with established experience.
The expressway project will offer better connectivity for goods and services between the Yangon Port and Thilawa Special Economic Zone in the south, as well as the Yangon International Airport, Yangon Industrial Park and the Yangon to Mandalay expressway in the North.
It is also expected to reduce costs associated with heavy traffic congestion along the city’s south-north routes.
MoC Minister’s Office General Planning deputy director U Kyi Zaw Myint said: “Large-scale investment in infrastructure, especially in key transport areas, is critical for Myanmar’s sustainable economic growth as it improves the country’s access to markets and social services.
“With IFC’s extensive experience in PPP transactions, if the project is successfully tendered and implemented, it could be used as a model for implementing the other segments of the planned inner and outer ring roads for Yangon.”
The expressway project is estimated to trigger nearly $350m to $400m of private investment in Yangon’s road infrastructure.
The tender of the project is expected to be awarded early next year, while the road will be built over a two to three year period.