Kick-starting Stage 1 of the NYDC Challenge
This week is an exciting week for NYDC. We officially embarked on the first stage of the NYDC Challenge with the signing of a framework agreement with a leading global infrastructure company whereby they will prepare and submit a detailed project proposal related to the building of key infrastructure for the new Yangon city. The company is Hong Kong-listed China Communications Construction Company Ltd., (CCCC).
To recap -- the NYDC Challenge is a model adopted and modified from the global model of Swiss Challenge; a model that lays the foundation for fair competition, efficiency and transparency. This framework agreement marks the first stage of the NYDC Challenge Model where a company that is qualified and competent to undertake the first phase of the development is selected to submit a set of Pre-Project Documents (PPD) which includes technical specifications, financial proposal and business model for NYDC’s review.
But let me be clear. This does not mean that CCCC has been awarded the contract for all the infrastructure works in Phase 1. Once CCCC submits the PPD and it is approved by NYDC, the PPD will be made public to allow any party to challenge the proposal with better terms if they feel they are qualified. However, it has to strictly follow the terms and conditions of the agreement as this allows us to compare apples with apples.
If there is a company who is able to challenge with a lower bid, CCCC will be allowed to match the offer or forego. If CCCC chooses to forego, the second party will be awarded with the contract and will have the obligation to reimburse all costs incurred in connection with the preparation and submission of the PPD. Those costs will be agreed between NYDC and CCCC prior to the initiation of the tender process.
Why China Communication Construction Company
Since the launch of NYDC last month, questions have risen on social media and news media on why is NYDC working with a Chinese company, and some fear that China’s national interest may take precedence over Myanmar.
Firstly, for a project of this scope and size, it is important to work with companies that have the expertise, experience and financial capabilities. We welcome CCCC's project proposal to lay the groundwork for the tender process as we believe the company has the required capability and sufficient experience of planning, designing, financing, constructing and developing regional developments similar to this project.
CCCC is the world’s largest highway and bridge design and construction company and is Asia’s largest international contractor. It has designed or constructed seven of the world’s 18 suspension bridges with a main span of more than 1,000 meters. It built the bridge that links Hong Kong and Macau which is considered among the longest fixed-links in the world, as well as the Beijing-Shanghai high speed railway which is the world’s longest high-speed constructed in a single phase. CCCC comes with depth of experience.
CCCC is a publicly traded company listed in Hong Kong, and is one of China’s largest state-owned enterprise. It’s shareholders include a multiple of international institutional investors. CCCC comes with financial clout.
Why would we not want to work with one of the largest and more experienced company in the global infrastructure industry space? We look forward to receiving their pre-project document and kick-start the next stage of the challenge.