Quarterly Business Magazine

Korea to Provide Loans for Construction of Yangon-Dala Bridge

Posted :
Friday, January 23, 2015

Yangon – The Myanmar government has reached an agreement with the Korean government to obtain loans for the construction of the Dala Bridge, which will connect Yangon and Dala.

According to a Korean newspaper Daily Economy, the Korean government has agreed to provide a US$ 138 million loan to restart the currently halted Yangon-Dala Bridge project during Myanmar President’s visit to Korea.

Since the project is estimated to cost about US$ 168 million, the other US$ 30 million will be provided by a Korean foreign investment company Economic Development Cooperation Fund (EDCF).

The negotiation concerning the project will be finalized within this month, and the Myanmar government will submit the project to the Hluttaw in February. The project is expected to take 5 years, a top-level official at the Ministry of Construction said on January 22.

“If this project can recommence, both Korean construction companies and local workers will benefit from it. The designs for the bridge and the connecting roads will remain the same,” he said.

Daily, there are about 30,000 people crossing the Yangon River by boat, and the construction of the bridge to connect Yangon and Dala is urgently necessary, according to U Win Thein, Chief Officer at Inland Water Transport Department. “Although this project was discontinued previously for various reasons, it is necessary,” he said.

The Yangon-Dala Bridge will be 2.9 km (over a mile) long and connect with Botahtaung Pagoda Road, Sule Pagoda Road, and Pyay Road.

After the bridge is completed, it is expected to create economic, social, health and education opportunities for people on the other side of the river. “Dala is very close to Yangon, but it is lagging behind other towns in development. The roads here cannot even accommodate two cars,” said U Hla Wai, a Dala local.

Although the Yangon-Dala Bridge was initially planned to begin in 2013, insufficient funding from Korea and the skyrocketing land price in Dala halted the project in the middle of 2014.

 

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