World Bank loans US$40m to Myanmar Industrial Port
2016-04-22 18:02

World Bank loans US$40m to Myanmar Industrial Port

Myanmar Industrial Port (MIP) is set to receive a US$40m loan from the International Finance Corporation (IFC), part of the World Bank Group.

The loan takes the form of mezzanine financing, meaning the IFC can convert the loan into ownership of MIP if it is not paid back in time and in full.

The terminal, which handles around 40% of the country’s container traffic, will receive a further US$160m in long-term senior loans from the IFC and other foreign lenders.

The financing will allow the terminal to expand its capacity to 500,000 teu. It currently handles around 300,000 teu a year.

“Thanks to IFC’s investment, we will be able to further modernise our port operations and respond to the increasing demands of international shipping lines and local traders,” said U Ko Ko Htoo, MIP’s Chairman. “We are also keen on IFC’s advice on bringing our environmental, social and governance practices into line with international standards.”

Myanmar’s container volumes are estimated to have increased by 90% over the last three years due to rapid growth in imports and exports following the government’s implementation of political and economic reforms.

“IFC’s financing for MIP comes at a critical time in Myanmar’s development, when transport infrastructure is urgently needed to realize the country’s growth potential,” said Hyun-Chan Cho, IFC’s head of infrastructure and natural resources for Asia. “The MIP loans will also help to catalyse investment by other private developers and financiers in Myanmar’s infrastructure sector for which long-term US dollar funding has not been readily available.”


Source: Container Management

Source: Container Management