IFC Provides Long-Term Financing of $15 Million For the Development of One of Myanmar’s First Bulk Terminal at Thilawa

International Finance Corporation (IFC), a member of the World Bank Group, is providing long-term financing of $ 15 million for the development of a Greenfield bulk terminal at Thilawa, one of the first bulk terminals for Myanmar, it announced on March 27.

IFC’s Long-term funding for the Thilawa River Port builds on its prior investments in Myanmar’s transport sector. The cost of this project is estimated at $65 million, which will be partly covered by Lluvia, a Myanmar’s leading agri-processing company and Japan’s leading integrated logistics company Kamigumi, both jointly set up the International Bulk Terminal (Thilawa) Company.

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“As one of the first providers of specialized bulk cargo handling, this project contributes to the diversitification of port services in Myanmar. It also supports the government’s ongoing plan to increase private sector participation in port, logistics and transportation services to drive economic growth,” said Vikram Kumar, IFC country manager for Myanmar.

“IFC’s long-term debt financing is a necessity for infrastructure projects,” said U Ko Ko Gyi, Managing Director of Lluvia.

Lluvia itself is a joint venture between Myanmar’s Capital Diamond Star Group, which holds an 85 percent stake, and Mitsubishi Corporation.

IFC is a sister organization of the World Bank and member of the World Bank Group which is the largest global development institution focused on the private sector in emerging markets.

With an effective capacity of more than one million metric tons, the bulk terminal will reduce transport and logistics costs, support trade and increase competitiveness of the country’s supply chains, creating new markets and jobs. The current lack of specialized and efficient bulk facilities forces producers and traders to containerize bulk commodities which involve high handling costs.

Credit: 7Daydaily
Translated by: iMyanmarHouse.com