Myanmar will receive an $824 million soft loan from Japan for five infrastructure development projects, including the upgrade of the Yangon- Mandalay railway and the Yangon Regional Water Supply Project.
Deputy Minister for Planning and Finance U Maung Maung Win signed the MoU with the Japanese ambassador to Myanmar, Tateshi Higuchi.
The loan will be repaid over 40 years at an interest rate of 0.01 percent.
The Yangon-Mandalay railway upgrade will receive $219 million. The $2.2 billion project will see the upgrade of the 632 kilometre stretch of track to eventually accommodate trains traveling speeds of up to 100 kilometres an hour.
By the time the project is completed in 2025, travel times between the two cities will be halved from 16 hours to eight hours.
The Yangon Water Supply Improvement project will receive $219 million from the loan will see enhanced water supply, expanded water treatment facilities, improved distribution and reduced usage of underground water.
The project will see upgrades to the Kukkowa and Langonpyin water river pumping systems which will provide an extra 100 million gallons of fresh water to Yangon when they’re completed in 2025.
The Regional Development Project for Poverty Reduction will receive $210 million, the Cities’ Electricity Distribution System Development project $43 million, and the Agricultural Sector and Rural Development project $133 million.
Source: Myanmar Business Today