‘Yangon’s Development Is Key’

[postlink] https://burmacampaignjapanteam.blogspot.com/2013/09/yangons-development-is-key.html [/postlink]

Akihito Sanjo is a senior representative of the Japan International Cooperation Agency (JICA) in Burma. 
(Photo: Steve Tickner / The Irrawaddy)

RANGOON — Earlier this year, the Japan International Cooperation Agency (JICA), the development aid arm of the Japanese government, presented a grand plan for how to develop the city of Rangoon, Burma’s biggest city and commercial hub. The plan describes infrastructure projects needed to make the city, also known as Yangon, a more comfortable and well-managed place to live by 2040, and was developed in cooperation with local government authorities. The Irrawaddy’s Naomi Gingold recently spoke with Akihito Sanjo, a senior representative of JICA and director of “The Strategic Urban Development Plan of Greater Yangon,” to find out more details about JICA’s master plan.
QuestionWhat is the Strategic Urban Development Plan of Greater Yangon, and how did the idea develop?
Answer: Right now, the population of Yangon is about 5 million to 6 million people. In 2030, it is expected to be on the scale of 10 million. There needs to be enough infrastructure here to support a population of that size. As the largest commercial center, Yangon’s development is key to the future development of Myanmar [Burma]. So JICA joined the Yangon Regional Government and the Yangon City Development Committee (YCDC) to figure out what could we do to help.
We made a strategy plan, setting the year 2040 as our target. Experts from various branches of urban development—traffic, water, sewage, the environment, waste—wrote step-by-step goals for how the city should develop along the way, in 2015, 2020, 2030, etc. We held public consultations with different members of civil society to get their opinions, and then around the beginning of this year, we submitted the master plan to the Myanmar government. The plan targets not only the existing commercial area of Yangon, but also future areas to be developed—areas that, because of the rivers, were neglected in the past, like Dala and Thilawa. We’ve discussed with the government the need to define the exact region in order to ensure controlled and effective development.
QWhy would Japan and JICA be interested in undertaking such a project?
A: From the 1970s and into the 1980s, Japan experienced rapid urbanization, as well as environmental deterioration. We thought our knowledge and experience would be an asset when designing and implementing a development plan for Myanmar. As for how Japan benefits, Japanese companies are interested in investing in upcoming infrastructure projects in Yangon. So, for example, Japan can provide grant aid to Yangon for the projects, and Yangon may choose to award the contracts to Japanese companies. The benefits go both ways.
QWhat are some of the biggest infrastructure problems you are grappling with here?
A: Only about 8 percent of Yangon residents have sewage collection and disposal services. Furthermore, sewage goes into the rivers untreated. In terms of waste management, in five years’ time the capacity at the garbage disposal sites for Yangon will be full. It’s a very, very urgent issue. From a sanitation perspective, the city’s current way of burying and disposing of garbage is not very good. We’ve suggested better methods, as well as proposed the creation of a new final disposal site and a more efficient way to collect garbage.
QTell me about the timeline for the plan.
A: Our master plan doesn’t have minute details on, for example, where we’re building a bridge. Instead we tried to think about: in 2040, what do we need? In 2030, what will we need? What kind of scale of city do we need?
There are quite a few things that the two governments are still negotiating, but there are two projects we’ve already committed to. Currently, to get to Dala, you have to cross by ferry because there is no bridge, and the ferry is very old and dangerous. We’re going to provide three new ferries. Also we are going to refurbish and renovate the water treatment facilities in the northern part of Yangon city. That Nyaung Napin water treatment facility currently provides 40 percent of the total water for Yangon city, so it’s a very, very important facility, but it has really aged. Of four pumping stations, two are out of order. Both projects will be completed in the latter half of next year.
QAs for transportation infrastructure, after the ferries to Dala, what’s next?
A: Getting rid of Yangon’s traffic jams is one of the greatest matters of concern in the country, not just for the Yangon city government, but the Myanmar government in Naypyidaw. JICA has put forth three ways of dealing with the traffic. The first is to increase the capacity of the roads, the second is to introduce a public transportation system, and the third one is to decrease the number of vehicles on the road. The third is, of course, unpopular with people in any country, so it’s a measure the government doesn’t want to take. They’re most interested in building a public transportation system, as well as increasing the capacity of roads.  Right now they’re building a lot of flyovers in order to do that.
JICA is trying to do the second option—build a practical public transportation system. For example, we want to introduce a Bus Rapid Transit (BRT) system. That’s the first and quickest step. The second is to build a light railway transit system (LRT), like a monorail or skytrain. But an LRT system requires a much larger investment, so it’s more of a mid-term solution.  Given Yangon’s population, an LRT system would be a natural fit, but the economics present an obstacle; local residents cannot afford to pay for the construction and running of such a skytrain project.
QWhen could we look forward to the BRT possibly being built here?
A: Two years ago when JICA said let’s join forces, the Myanmar government told us: If you can’t build the BRT within a year, then we won’t ask you to build it for us. We told them that we couldn’t do it that fast, so they decided to take matters into their own hands.
The Myanmar government has said they will introduce it within the year… They are currently planning to build it along Pyay Road [a main artery of the city], from downtown near the Sule Pagoda all the way up to the airport. If it goes well, they’ll add another line.
QWhat does JICA think is a reasonable expectation for when the BRT would actually be introduced?
A: If we introduce the BRT system to Yangon city, it would take about two years from the time we start. We need time for construction, time to set up the management operations, and we need special buses for it. Usually we carry out a pilot project to see whether the system would fit in the city—we have experience introducing a BRT system to Jakarta. But the Myanmar government decided to introduce the BRT without any pilot project.
QYou seem like you are not so happy about that.
A: The Japanese side always tries to do enough preparation so that there is no wasted investment, but there are certainly other ways of doing things. Currently, they’re making a lot of flyovers.  If you make a flyover, a BRT usually can’t get through, and so the flyovers become obstacles. We’ve been saying, how about we think more about the long term? We’re not really seeing eye to eye on this right now.
QHow much of the master plan to develop Yangon will be led by JICA, rather than the Myanmar government?
A: The master plan lays out many projects to implement. We want to choose and give priority to the projects that are the most urgent and have the most potential for effective resolution. But JICA can really only do a small amount of all the proposed projects, and the Myanmar government is also limited by funds. Without the cooperation of other countries, we won’t be able to make Yangon’s city development a reality. We’re currently talking with aid agencies to decide who will take the lead in each sector. For example, Japan is the leader in the transportation sector; in education, it’s the UK.
QLet’s talk about the Thilawa Special Economic Zone (SEZ). What’s JICA’s role?
A: The Myanmar government wanted to create a Special Economic Zone near Yangon; JICA, as well as Japanese corporations, decided to work together with them on it. Our role is to set up the necessary infrastructure for the SEZ: for example, the water infrastructure, roads, maintenance on the port, etc.
QWhat kind of Special Economic Zone will Thilawa be?
A: That is what JICA and the Myanmar government are currently discussing.  Do we make it focused on the food industry, the garment industry or more heavy industries? That hasn’t been decided yet. It also depends on what companies are interested in.
QIs there a timeline?
A: The Thilawa SEZ will start operating in 2018. We won’t start construction next month, but we want to start as soon as possible—hopefully by next year.
QWhat projects have already been agreed on?
A: The development of the port and the installation of the power supply station.
QIn order to create the Dawei SEZ, the government displaced a lot of people. The current residents of Thilawa are also going to have to be moved to make the SEZ a reality. What are the plans to make sure that’s done in a fair and equitable way?
A: As the Myanmar government has not always necessarily operated according to international standards, they don’t really know, for example, how to provide proper compensation. We are talking to the government about this and advising them to do everything according to international standards. Compensation records will be released to the public, the media will play a watchdog role, there will be public meetings with the residents, and in the end, the residents will be able to tell us themselves if think it was carried out properly.
QHas working with the Myanmar government been a difficult process?
A: Sometimes difficult, but sometimes exciting. It’s been challenging, but in a good way.

Insight: With Japan's help, an ex-soldier leads Yangon from backwater to megacity

[postlink] https://burmacampaignjapanteam.blogspot.com/2013/09/insight-with-japan-help-ex-soldier.html [/postlink]


Toe Aung, deputy head of urban planning, poses for a photo at the Yangon City hall, with the lit Sule Pagoda seen behind him, in Yangon, September 5, 2013. 
REUTERS/Soe Zeya Tun



A man stretches early in the morning on the Banduhla bridge, in Yangon, September 6, 2013. 
REUTERS/Soe Zeya Tun



A man sells guavas at a jetty along the Yangon river in Yangon, September 6, 2013. 
REUTERS/Soe Zeya Tun



A general view of the city is seen in Yangon, September 6, 2013. 
REUTERS/Soe Zeya Tun



A general view of the city is seen, with an illuminated Sule Pagoda standing out from amongst the other buildings, in central Yangon September 6, 2013. 
REUTERS/Soe Zeya Tun



A general view of the city is seen in Yangon, September 6, 2013. 
REUTERS/Soe Zeya Tun



Passengers look out the windows of a bus as they travel around Yangon, July 3, 2013. 
REUTERS/Soe Zeya Tun



A line of vehicles drive through Shwegontai junction, one of the busiest junctions in the city, in Yangon, July 3, 2013. 
REUTERS/Soe Zeya Tun




Lines of cars are seen stuck in a traffic jam along Alanpya Pagoda road in Yangon, July 3, 2013. 
REUTERS/Soe Zeya Tun




A driver assistant (C) calls out to passengers at a bus stop in Yangon, July 4, 2013. 
REUTERS/Soe Zeya Tun



A man pushes his bicycle through flood waters in central Yangon, August 22, 2013. 
REUTERS/Soe Zeya Tun

YANGON | Tue Sep 10, 2013 5:21pm EDT
(Reuters) - Every evening, long after Yangon's office workers have squeezed onto packed buses for grueling commutes to the suburbs, a single room remains lit up on the top floor of City Hall.
Inside sits Toe Aung, a former army major who almost by accident bears one of the biggest responsibilities in reform-era Myanmar: planning Yangon's unstoppable transformation from a regional backwater into Southeast Asia's next megacity.
As deputy head of urban planning, a department which didn't exist until he set it up in 2011, Toe Aung's task is unenviable. With its power shortages, floods, traffic jams, pollution and slums, Yangon is a moldering testament to nearly half a century of economic stagnation under military dictatorship.
Its population of about 5 million is expected to double by 2040, reflecting the rapid urbanization of a largely rural country. The prospect of jobs is luring thousands of underemployed villagers into a city ill-prepared to receive them.
"So many problems," muses Toe Aung, whose soft-spoken English has a U.S. accent picked up as a child in Washington, where his father was a military attache at the Myanmar embassy. "Which should be prioritized?"
Some answers lie - at least on paper - in the Yangon Master Plan, a 852-page study drafted with funds and expertise from the Japan International Cooperation Agency (JICA), which oversees Japan's aid to developing countries.
The plan will be finalized in December amid fears the city's soaring land prices are scaring off foreign investors. There are also concerns that City Hall's close cooperation with JICA will give Japanese companies an unfair advantage in bidding for infrastructure projects.
Yangon lost its status as Myanmar's capital in 2005, after the former military junta carved a new seat of government from a parched wilderness some 380 km (236 miles) to the north and called it Naypyitaw ("abode of kings").
But the old capital remains Myanmar's commercial, industrial and financial center, with Yangon Region accounting for about 22 percent of GDP in 2010-11, according to the master plan.
Yangon has the country's main ports, making it the most obvious location for export-oriented manufacturing. It is also the main tourist gateway, with visitor arrivals surging since a quasi-civilian government took office in 2011.
In short, Myanmar's reform-era economy depends upon the fortunes of its biggest city. JICA puts the cost of 103 "priority projects" in Yangon at $5.4 billion, with experts predicting the city's long-term transformation will cost tens of billions more.
SLEEPY NO MORE
As with all great cities, Yangon's dysfunction is part of its charm. But not if you live there.
The power shortages mean back-up generators clog its crumbling pavements. The rear windows of many dilapidated tenements look out upon alleys carpeted with rat-infested garbage. This clogs up drainage pipes and worsens the flooding during the monsoon season.
Downtown Yangon has a decrepit sewer system built when Myanmar, then better known as Burma, was a British colony. Elsewhere, septic tanks are emptied into open drains. Less than half the city has access to piped water.
Then there's the traffic. During decades of military-imposed isolation, Yangon boasted fresh air and sleepy roads. Not anymore. The easing of government restrictions on car imports in 2011 led to a surge of vehicles on Yangon's narrow and rutted streets. The city center is often gridlocked and thick with exhaust fumes.
Without a comprehensive land use and development plan, Yangon risks becoming "yet another poorly managed and unattractive Asian megacity", the Harvard Ash Center, which advises the Myanmar government, said in a report last year.
The JICA-led master plan proposes scores of projects, including a million-house building program, the regeneration of Yangon's waterfront and a new central business district just south of the existing airport.
The Yangon City Development Committee (YCDC), as City Hall is officially known, is already inviting foreign and local companies to tender for land leases in the new 14.8-hectare CBD.
Japan expects to benefit from these projects. Earlier this year it wrote off 176.1 billion yen ($1.78 billion) in debt and extended billions of yen more in aid, much of it earmarked for the Thilawa port and industrial zone being developed by Japanese companies to Yangon's southeast.
As well as the master plan, JICA is also conducting four studies to support Thilawa's development. Its staff occupy the office next to Toe Aung's.
Unlike its Western counterparts, Japan's aid agency often pursues a "two-pronged approach" to assistance, said Andrew Gulbrandson, an American urban planner who has given the master plan's authors critical feedback.
"First, they want to help. Second, they want to identify opportunities for investment," said Gulbrandson.
Case in point: a February seminar organized by City Hall and JICA to improve Yangon's water supply, sewerage and drainage. It was an all-Japanese affair attended by big constructioncompanies such as Kubota Corporation and senior Tokyo officials.
All this gives Japanese companies an edge when bidding for Yangon projects, said Sungmin Ko, assistant commercial attache at the Korea Trade-Investment Promotion Agency (KOTRA) in Yangon. "Even though it's open bidding, Japanese companies have more time, more information, more specs," he said.
Many Myanmar officials privately express a preference for Japanese firms, but this doesn't mean their bids will be successful, said Akihito Sanjo, a senior JICA representative in Yangon.
In August, for example, the Myanmar government awarded a billion-dollar project to build a new international airport for Yangon to South Korea's Incheon Airport, beating a consortium led by Japan's New Kansai International Airport.
"The result was very unfortunate for us," said Sanjo.
SOCIAL UNREST
Yangon's biggest problem is one the former junta had trouble even acknowledging, never mind tackling: widespread urban poverty. At least 40 percent of its residents are "poor or extremely poor", said the United Nations housing agency UN-HABITAT.
Yangon owes its grid-like central layout and monumental government buildings to the British, who ran the city for nearly a century until Myanmar won its independence in 1948.
But it owes many of its slums to the junta, who in the 1980s and 1990s moved thousands of people from the city center to suburban wastelands, where they live in flimsy, flood-prone settlements with little or no access to basic services.
A fast-growing population is also heaping pressure on already overburdened health and educational systems. Many families can't afford to send their children even to government schools, where supplies and various fees can cost up to 50,000 kyat ($50) a month - a huge sum when the average Myanmar salary is only a few dollars a day.
Failure to help this poor, ill-educated underclass in a city where luxury cars and other conspicuous displays of wealth are increasingly common could lead to social unrest. Most democracy uprisings in Yangon against the former junta were sparked by the economic woes of the people.
All this adds urgency to Toe Aung's work. It is often 10 p.m. before he leaves City Hall, a spire-bedecked monolith with cavernous, ill-lit rooms and desks piled high with Dickensian-looking ledgers. Computers are hard to spot.
Now 46, he spent 18 years in the Myanmar military, serving as a staff officer for a junta hardliner called Brigadier General Aung Thein Linn, whom the junta appointed mayor of Yangon in 2003. Toe Aung followed.
City Hall had no dedicated urban planning unit until Toe Aung set it up in September 2011, just six months after another reform-minded ex-soldier, Thein Sein, became Myanmar's president.
"My dream is to make Yangon a model of urban development," he said.
That might seem far-fetched, but stagnation and neglect has bequeathed Yangon some advantages over its Asian rivals. Its historic buildings, though in disrepair, have not been bulldozed, nor its green spaces devoured by greedy developers.
But time is running out. Much of the area slated for new development is unproductive agricultural land, but speculation is driving up its price, said Toe Aung. "We can't control land prices in our city," he said.
One such proposal being considered is a bridge to link the downtown with Dalat, a largely rural area on the opposite bank of the Yangon River. This has prompted land prices in Dalat to shoot up, said locals.
NO MOTORBIKES HERE
As gridlocked Asian capitals such as Jakarta and Dhaka show, megacities don't function properly without mass rapid transit systems. At least 80 percent of Yangon commuters rely on the antiquated buses which honk and jostle in the streets below Toe Aung's office. They are overcrowded even outside peak hours.
Motorcycles, common elsewhere in Asia, are not an option. They were banned by the former junta, because - so one story goes - a paranoid general felt vulnerable to bike-riding assassins. Reintroducing them to Yangon's clogged and chaotic streets would be "impossible", said Toe Aung.
Fortunately, Yangon already has a circle and suburban lines plied by infrequent, slow-moving and ramshackle trains that connect the center to suburbs and industrial estates. Japanese experts working at Myanmar Railways are already researching how to upgrade the circular line, although no contract has yet been awarded for the actual work, said JICA's Sanjo.
Japan is "definitely interested in that project", he added.
Yangon lacks two other things - the first being money.
The YCDC's 2012-13 budget is just 55 billion kyat ($56 million). Chicago, a city with half the population, passed a $6.5 billion budget last year.
The second is a charismatic mayor in the mold of New York City's Michael Bloomberg or Jakarta's popular governor Joko Widodo. But don't ask an old soldier like Toe Aung to comment on this. In 2011, his ex-boss was replaced as mayor by Hla Myint - another former brigadier general.

(Additional reporting by Jared Ferrie in Yangon. Editing by Dean Yates)

ロイター

Myanmar’s 2015 Stock Exchange Deadline at Risk: Southeast Asia

[postlink] https://burmacampaignjapanteam.blogspot.com/2013/09/myanmars-2015-stock-exchange-deadline.html [/postlink]

A woman leaves the Myanmar Securities Exchange Centre (MSEC), a joint venture between state-owned Myanma Economic Bank and Daiwa Institute of Research Ltd., a unit of Japan’s second-largest brokerage, in Yangon on May 3, 2012.
 Photographer: Soe Than Win/AFP/GettyImages

Myanmar is running behind schedule for starting a stock exchange by 2015 after delays in getting the legal framework in place, said an executive at Japan Exchange Group Inc. (8697), which is assisting on the project.
“We’re pressed for time,” Koichiro Miyahara, senior executive officer at Japan Exchange, said in an interview in Tokyo on Aug. 27. He said the late approval of a capital markets bill has delayed the project, and it’s up to the Myanmar government as to how fast it can set up related organizations such as a securities regulator.
Japan Exchange’s predecessor Tokyo Stock Exchange Group Inc. and Daiwa Securities Group Inc. (8601) were chosen last year to help Myanmar set up a stock exchange as the Southeast Asian nation opens itself from decades of isolation and military rule. Companies from Coca-Cola Co. to Unilever Plc. are investing in the country of 64 million people after the U.S. eased economic sanctions last year.
“Like any other modern economy, Myanmar needs a capital market to allow companies to raise funds,” said Moe Thuzar, a Singapore-based research fellow at the Institute of Southeast Asian Studies. “It is more important to ensure that appropriate regulatory and operational infrastructure is in place” rather than meet an arbitrary deadline, she said.

Passed Law

Myanmar President Thein Sein signed the Securities Exchange Law on July 31. The legislation sets rules that include the establishment and operation of a securities regulator to oversee trading activity.
Miyahara, who is in charge of Japan Exchange’s contribution to the project, said he had expected the bill to be passed at the start of 2013 and the delay will shorten the time for developing the bourse by about a year. His company will make “every effort” to complete the work on time, he said.
Regulations still need to be developed under the law to outline how the exchange will function, Maung Maung, director general at the Central Bank of Myanmar, said in a phone interview yesterday. The government will begin working on infrastructure such as buildings and software for the bourse next year and it will begin operating in 2015, Deputy Finance Minister Maung Maung Thein said at a briefing on Aug. 23.
Japan Exchange and Daiwa’s research unit, both based in Tokyo, have completed a report on the framework for the exchange, including plans for its functions and system infrastructure, Miyahara, 56, said. They will submit the document to the Myanmar government this month, he added.

Shigeto Inami, managing director of Myanmar Securities Exchange Centre, said about eight companies may be listed when the exchange opens. Photographer: Junko Kimura/Bloomberg

Investor Interest

The Securities Exchange Law doesn’t say whether foreigners will be allowed to trade on the bourse.
Jim Rogers, chairman of Rogers Holdings in Singapore, and Mark Mobius, executive chairman of Templeton Emerging Markets Group, are among investors who see opportunities in the country over time.
“It’ll take time for Myanmar, but Myanmar definitely is going to get more and more investment,” mainly in infrastructure, Mobius, who manages $53 billion, said in an interview on July 29. He has indirectly invested in the nation through companies listed in Singapore and Thailand.
About eight companies may be listed when the exchange opens, according to Shigeto Inami, managing director of Myanmar Securities Exchange Centre, a joint venture between state-owned Myanma Economic Bank and Daiwa Institute of Research Ltd., a unit of Japan’s second-largest brokerage. Two stocks are currently traded over the counter at the center, making them candidates to list on the new bourse, Inami said.

Cambodia, Laos

Those companies are Myanmar Citizens Bank Ltd. and Forest Products Joint Venture Corp. Soe Thein, an executive director at the center, declined to comment on the performance of the two stocks in the over-the-counter market or whether the semi-government institutions are candidates for listing.
Other frontier Southeast Asian economies have opened stock exchanges in recent years, with mixed results. Trading on the Cambodia Securities Exchange began last year and it currently has one company listed, according to its website. The two-stock Laos Composite Index (LSXC)has risen 30 percent since its bourse started trading in January 2011. It slipped 0.1 percent at 9:41 a.m. in Vientiane.
“If you look at Cambodia and Laos, the stock exchanges haven’t been a great success,” said Thura Soe Paing, managing director of All Myanmar Investment Partners, a Yangon-based investment and business advisory company. “What I hope an establishment of a stock exchange will drive forward is the development and installation of business standards.”
Japan Exchange, which itself listed in Tokyo in January following the merger of Tokyo Stock Exchange and Osaka Securities Exchange Co., expects the Myanmar project will enable it to export its expertise elsewhere, Miyauchi said.

Toshiba, KDDI

“We’d like to maximize our experience and know-how to work with countries that are thinking about setting up stock exchanges,” said Miyahara.
Other Japanese companies are working on the Myanmar project. Toshiba Corp. (6502) andKDDI Corp. (9433) won an order from Daiwa Research to supply a data center for the exchange, Tokyo-based Toshiba said on July 3.
President Thein Sein has allowed more political freedom and loosened economic controls since coming to power two years ago. Assuming his government maintains momentum on policy reform, the economy will expand 6.5 percent in the year ending March 2014 and 6.7 percent in the following fiscal year, the Asian Development Bank forecast in April.

Phone Network

One area where Thein Sein has already moved to modernize the economy is in telecommunications. In June, Norway’s Telenor ASA (TEL) and Ooredoo QSC of Qatar won licenses to expand the country’s telecommunications network, beating nine other bidders. The government went ahead with the award even after parliamentarians tried to delay the decision.
A stock exchange with a strong securities regulator would help to improve corporate governance in a country that remains plagued by corruption. Myanmar is ranked 172 out of 176 nations in Transparency International’s 2012 corruption index.
“I hope Myanmar corporates know that it is a painful process to list and what will be required of them with regards to reporting, transparency and accountability,” said Thura Soe Paing of All Myanmar Investment. “It will be worth it in the long run.”
To contact the reporters on this story: Takako Taniguchi in Tokyo atttaniguchi4@bloomberg.net; Kyaw Thu in Bangkok at kthu1@bloomberg.net
To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net
By Takako Taniguchi & Kyaw Thu - Sep 4, 2013 12:05 PM GMT+0900
 
Support : Website | Template | Mas Template
Copyright © 2012. Burma Campaign Japan - All Rights Reserved
Template Created by Creating Website Published by Template
Proudly powered by Blogger