Yangon, Myanmar, 31 March 2018 – H.E. U Phyo Min Thein, Chief Minister of Yangon Regional Government, today announced the launch of New Yangon Development Company Ltd. (“NYDC”). The objective of NYDC is to create economic growth, homes and jobs via the development of land to the west of Yangon River. This development will be known as the New Yangon City and upon its ultimate completion will cover an area twice the size of Singapore.
NYDC was incorporated under the Special Company Act and is wholly-owned by the Yangon Regional Government. Infrastructure works related to the first phase of the development are expected to amount to a sum in excess of US$1.5 billion. This will include the construction of five village townships, two bridges, 26 km of artery roads, 10 square kilometres of industrial estate, power plant, transmission and distributions facilities as well as fresh water supply and wastewater treatment plants.
H.E. U Phyo Min Thein, Chief Minister of Yangon Regional Government said, “Building a strong industrial base will create jobs that will have trickle-down benefits for other sectors and over time benefit families and the country. The New Yangon City is expected to create two million jobs, support local businesses and attract international companies. The project will also see the development of world-class sustainable and reliable infrastructure and include integrated, affordable living for all segments of the community.”
Yangon is currently the economic nerve centre of the country, accounting for 19.3 trillion kyats or 26% of the national GDP, and the city’s population is estimated to reach ten million in the next ten years. To cater for these growing population, key issues such as employment, housing and infrastructure including clean water distribution and reliable electricity will need to be addressed.
The New Yangon City is envisioned to be a safe, smart and clean city that will serve as an example of efficiency, integrity and accountability. The development for New Yangon City will be primarily based on a Public-Private Partnership model. The private sector will play a major role with equity investments.
NYDC will be governed by a Board of Directors, consisting of government ministers and independent directors of international stature to ensure that good governance and best practices are applied in accordance with international standards.
Mr. Serge Pun @ U Theim Wai, Vice Chairman and CEO of NYDC said, “The social and economic benefits from the jobs created will be manifold. Therefore, we look forward to working closely with the government on issues and policies related to land management, labour, education, government administration procedures and all related regulations. We also look forward to working hand in hand with private sector investors and partners.”
Mr Pun has also pledged that, during his tenure as CEO, he will not support any bids for any NYDC related public works projects by the group of companies under his control. Mr. Pun said, “This is to address the issue of any potential conflict of interests, which is so central to good governance and universal good practices.”
In the spirit of fair competition, efficiency and transparency, NYDC will also adopt the global model of Swiss Challenge, adopted to local conditions and renamed as the “NYDC Challenge”. This move was welcomed by Mr. George Yeo, Independent Director of NYDC, and Former Singapore Minister of Foreign Affairs, who said that transparency is most important to earn the trust of all stakeholders.
Mr. Yeo also added, “With the New Yangon City starting on a blank slate, the governing body can experiment with new forms of municipal governance which are conducive to economic growth while ensuring that the new city is a livable city with good social amenities and a healthy environment. From this, we can develop good models which can be adapted for old Yangon and other parts of Myanmar.”
Daw Nilar Kyaw, Minister of Electricity, Industry, Transport and Communication and Chairperson of NYDC concluded by pledging her support and said “I am honored to be chosen as the Chairperson of NYDC, as this means that I will be able to make a difference in my country. I will effectively coordinate with everyone involved, and we will achieve all the goals and objectives to make this project a success.”
