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Myanmar Law and Companies Updates

Nestlé announces plan to invest US$50 million in Myanmar over the next six years

Swiss food conglomerate Nestle SA (Nestlé) has announced that it intends to invest approximately US$50 million in Myanmar over the next six years. President Thein Sein met with Nestlé representatives during an official visit to Swit- zerland on 8 September 2014. The President’s office stated that the investment is subject to Myanmar Investment Com- mission’s approval. Nestlé’s brands are already well-estab- lished in Myanmar. Nestlé produces a wide range of goods including coffee, dairy products, drinking water and other beverages. (Source: Myanmar Times online, 10 September 2014.)

Young Investment Group and Pacific Hunt Energy being granted drilling per- mits

The Ministry of Energy has announced that Myanmar’s Young Investment Group Company Ltd and Australia’s Pa- cific Hunt Energy Ltd have been granted permits to drill for oil at block PSC C-1 in the Chindwin Basin and PSC H in the Pegu Yoma and Sittoung Basin. The joint venture partners are required to produce environmental and social impact re- ports before exploration activities can commence. (Source: elevenmyanmar.com, 7 September 2014)

Ho Hup Construction announces details of Yagon residential project

Malaysia’s Ho Hup Construction Company Berhad (Ho Hup) has announced details of a new residential develop- ment project in Yangon. The project has an estimated value of US$200 million. Ho Hup’s subsidiary, Ho Hup (Myan- mar) E&C Company Ltd (Ho Hup Myanmar), has entered into a joint venture agreement with Myanmar’s Zaykabar Company Ltd. Pursuant to the joint venture agreement Ho Hup Myanmar will have a sole and exclusive right to devel- op 191 villas and bungalows in Mingalardon Garden City. The project will be undertaken in three phases with the first phase expected to be completed within two years. Construc- tion will commence once all relevant permits have been re- ceived. (Source: einnews.com, 8 September 2014)

Taiwan’s Electrical and Electronic Manu- factuers’ Association to develop industri- al park in southern Ayeyarwady region

Taiwan’s Electrical and Electronic Manufacturers’ Associa- tion (TEEMA) will spend approximately US$468 million de- veloping an industrial park in Myanmar’s southern Ayeyar- wady region. TEEMA has signed a letter of intent with its local counterpart to procure 1,400 hectares of land from the Government. (Source: Myanmar Business Today, 8 Septem- ber 2014)

Parami Energy, Petroleum Exploration Ltd and Siren Exploration and Produc- tion enter into Myanmar partnership

Myanmar’s Parami Energy Group, Pakistan’s Petroleum Exploration (Pvt) Ltd and UK based Siren Exploration and Production Ltd have entered into a production sharing con- tract in relation to onshore oil blocks PSC-O and PSC-J. The joint venture partners must complete environmental and social impact assessments before exploration activities can be commenced. Parami will hold a 30% share in the project with each of the foreign partners taking 35%.

Virtue Land signs a coal plant MOU with- the Ministry of Electric Power

Asia World Group subsidiary Virtue Land Company Ltd has entered into a memorandum of understanding with the Ministry of Electric Power in relation to the construction of a 300MW coal plant on Build-Operate-Transfer basis. The plant will have a maximum output capacity of 370MW. Since 2012 the Government has approved the development of nine new coal power plants.

German Development Cooperation now with offices in Yangon

German Development Cooperation officially launched in Myanmar by opening two of their representative offices on 25th September. The Office Opening took place in the same year in which Myanmar and Germany celebrate 60 years of diplomatic ties. Dr. Christine Heimburger, KfW Director East Asia and Pacific, underlined the importance of the new  KFW Country Office Yangon for the cooperation with the ministries in Myanmar ”the representation will help us to get closer to those we serve and to increase the efficiency of our activities”. German Development Cooperation on behalf of the German Government will contribute to Sustainable Economic Development and Rural Development in Myan- mar. In implementing projects of German Development Co- operation, both GIZ and KfW, will cooperate closely.

Myanmar Petroleum Products Enteprise- announces aviation-fuel tender shortlist

The Myanmar Petroleum Products Enterprise (MPPE) has named four shortlisted candidates in the running to win a Government contract to supply fuel to 11 domestic airlines operating in Myanmar’s largest airports. The four shortlist- ed companies have been chosen from an original long-list of 23 local and international companies who first submit- ted letters of interest in May 2014. The shortlisted compa- nies are Puma Energy Ltd, Singapore Petroleum Co. Ltd, Petroleum Thailand Exploration and Production Ltd, and Bangkok Aviation Fuel Services PC Ltd. The winner, to be announced by the end of September 2014, will enter into a joint venture arrangement with MPPE.

Ministry of Electric Power announces plans to develop three new gas-fired electricity stations

The Ministry of Electric Power (MOEP) has announced that it plans to develop gas-fired electricity stations in Kyauk- Phyu in Rakhine State, Thaton in Mon State and Thilawa near Yangon in an effort to resolve the country’s power sup- ply shortage. The Government-owned Myanmar Electric Power Enterprise Ltd is currently evaluating bids from five companies in relation to the development of the station in Rakhine State. The winner is expected to be announced by the end of December 2014. The stations will be supplied with natural gas from the China-Myanmar Gas Pipeline. The MOEP is also planning to build a 50MW gas-fired station in the vicinity of the Thilawa Special Economic Zone (Thilawa SEZ). The development near the Thilawa SEZ will receive loan-funding from Japan.