Category Archives: Volume 09

MAKE IN INDIA CAMPAIGN

Articles, Events, Volume 09, Volumes December 10, 2014 Administrator

PRIME MINISTER NARENDRA MODI LAUNCHES THE 'MAKE IN INDIA' PROJECT — PRIME MINISTER NARENDRA MODI LAUNCHES THE ‘MAKE IN INDIA’ PROJECT

The Make in India event was organized by the Indian Embassy in Tatmadaw hall in collaboration with FICCI during the India Trade and Investment Show. It presented a live webcast of the Make in India campaign launched by the Indian Prime Minister in Delhi to an audience of Officials, Businessmen and Exhibitors of India –Myanmar Trade and Investment Show, 2014.

The show was attended by H.E. Gautam Mukhopadhaya, Indian Ambassador to Myanmar, U MyintSwe – Yangon Regional Chief Minister, Dr. Pwint Hsan – Dy Minister for Commerce and U Win Aung – President, UMFCCI.
The Make in India initiative was launched with the idea of making India a global manufacturing hub, creating jobs and boosting economic growth. Mr Ranjit Barthakur in his introductory speech focused upon the North East India – Myanmar Industrial Corridor which would establish connectivity projects in Myanmar with India. He also emphasized the initiatives taken by the Government of India to enhance connectivity and development in North East India and the scope of cooperation in Health-Care facilities, Information Technology, Education Services between India and Myanmar.

H.E Gautam Mukhopadhaya gave an insight of the potential of Indian investment in Myanmar, with present participation being only about 1 % of the FDI in the country. He also mentioned that it is the right time for India investors to come to Myanmar as the Government of India has initiated projects such as Road Connectivity, Hydel Projects, SEZs, River Projects, etc focused on the development of connectivity with Myanmar which would enable Indian companies to put up labour – intensive projects, which would be encouraged by the Myanmar Government.

INDIA – MYANMAR TRADE AND INVESTMENT SHOW

Articles, Events, Volume 09, Volumes December 10, 2014 Administrator

RIBBON CUTTING WITH DIGNITARIES (FROM L-R) CHIEF MINISTER YANGON - H.E. U MYINT SWE, INDIAN AMBASSADOR TO MYANMAR – H.E. GAUTAM MUKHOPHADHAYA, ECONOMIC ADVISER TO PRESIDENT - PROFESSOR AUNG TUN THET, UNION MINISTER FOR INDUSTRIES - U MAUNG MYINT, CHAIRMAN OF FICCI NE COUNCIL - SHRI RANJIT BARTHAKUR. PRESIDENT UMFCCI - U WIN AUNG — RIBBON CUTTING WITH DIGNITARIES (FROM L-R) CHIEF MINISTER YANGON – H.E. U MYINT SWE, INDIAN AMBASSADOR TO MYANMAR – H.E. GAUTAM MUKHOPHADHAYA, ECONOMIC ADVISER TO PRESIDENT – PROFESSOR AUNG TUN THET, UNION MINISTER FOR INDUSTRIES – U MAUNG MYINT, CHAIRMAN OF FICCI NE COUNCIL – SHRI RANJIT BARTHAKUR. PRESIDENT UMFCCI – U WIN AUNG

Under the initiative of Federation of India Chambers of Commerce and Industry (FICCI), an India –Myanmar Trade and Investment Show was organized at Tatmadaw Exhibition Hall, Yangon, Myanmar between 24th and 27th September 2014. The event was held for Indian companies to exhibit their products to explore business and partnership opportunities in Myanmar. The India prospective is not only to invest in Myanmar for trade and industries but also to utilize the 1600 km long land border to connect China and South- East Asia by developing rail and road links to connect the entire South East Asian countries. FICCI and Ministries of Commerce and Industry, Shipping etc. are planning to work together to develop a strategy for investment in Industrial corridors along the Kaladan and Assam – Mandalay region and hubs at places like Tamuh – Kaley, Shwebo – Monwa – Mingyan – Mandalay – Pakokku near Mandalay, Magwaey, Kyaukphyu – Sittwe – Ponnugyan and Pathein areas.

India’s trade with Myanmar has doubled in the recent years and has crossed $2 billion. Of Myanmar’s total imports only 3 percent comes from India, which is negligible compared to its engagement with China, Thailand, Malaysia, Vietnam and other ASEAN countries. Therefore, there is a huge opportunity to gap the trade deficit with potential export items from India as has been identified by EXIM bank. The Trad and Commerce fair was therefore, held by identifying areas of interest such as Tourism, Hospitality, Information and Communication Technology, Agriculture and Agricultural Based Food Industries, Pharmaceuticals, Skill Development, Industrial Hubs And SEZs , Industries Based on Natural Resources, Power Generation and Automobile Factories etc.

ASEAN ECONOMIC MEETING OPENS IN MYANMAR

Articles, Events, Volume 09, Volumes December 10, 2014 Administrator

46TH ASEAN ECONOMIC MINISTERS MEETING HELD IN NAYPYITAW, MYANMAR

The 46th ASEAN Economic Ministers’ Meeting kicked off on August 25 in the capital Nay Pyi Taw of Myanmar, which is ASEAN rotating chair this year. Addressing the opening ceremony, Myanmar President U Thein Sein called on the member states to exert collective efforts for the regional economic integration through creating free flows of goods, services, investment, skilled labour and capital as envisaged in the ASEAN Economic Community (AEC) blueprint.

Myanmar is giving priority to small and medium-sized enterprises (SME) development, he said, adding that his country will continue to step up the implementation of the capacity building programmes for the four ASEAN member states – Cambodia, Laos, Myanmar and Vietnam.

Regarding ASEAN’s links with its partners, U Thein Sein applauded negotiations for the establishment of an ASEAN-Hong Kong Free Trade Area (FTA) as well as those on the Regional Comprehensive Economic Partnership (RCEP) so as to deepen and broaden the economic relations between ASEAN and its existing FTA partners in the future.

The four day meeting discussed the issues related to the AEC and review of the operation of sectoral working groups and the implementation of FTA agreements between ASEAN and its dialogue partners. The ministers also discussed a road map to their economic cooperation, focusing on the ASEAN’s service liberalisation, talks on the RCEP and the elimination of non-tariff barriers once the ASEAN Community comes into effect in 2015. Issues concerning service and investment liberalisation with Japan, as well as the upgrading of ASEAN’s existing free-trade pacts with China and the Republic of Korea were finalised at the meeting. ASEAN plans to sign four agreements on the liberalisation of services and amend FTAs with Australia and New Zealand. It will ink a FTA with India and a document on the acceptance of accounting professionals among its members.

WHITE ELEPHANTS: REVERED SYMBOLS OF POWER AND GOOD FORTUNE

Articles, Environment, Volume 09, Volumes December 10, 2014 Administrator

Kings and leaders in the predominantly Buddhist nation have traditionally treasured white elephants, whose rare appearances in the country are believed to herald good fortune, including power and political change. To the faithful, the existence of white elephants is a positive sign from above; others speculate it is the product of rampant deforestation. Uppatasanti Pagoda,“the Abode of Kings” in Naypyidaw, guarded by a high steel fence and an assault rifle-wielding police officer, is home to four perfectly pink adult pachyderms who munch on sugar cane and bamboo, pacing as far as the chains tethered to their right forelegs allow them, while a fifth, still a calf, frolics in a pen under its chained mother’s gaze. For centuries, Southeast Asian monarchs have coveted white elephants as embodiments of a divinely sanctified rule. “The white elephants represent peace and wealth,” elderly Buddhist monk U Ottama says in Yangon. “(They) are a sign of the good future awaiting our country.”

According to Dr. David Steinberg, professor of Asian Studies at Georgetown University, “governments have used them as portents of good things and they are regarded as signs of political legitimacy.” These animals’ lofty status originates in the ancient texts of Indic religions. Indra, lord of Hinduism’s diverse pantheon, rides a mighty multi-tusked white elephant in the 9th century BCE Mahabharata.

In the 1st century CE Buddhacharita, the Buddha’s mother dreams of a white elephant entering her womb on the eve of her son’s conception. In the 4th century BCE Jatakas, the Buddha appears as a supernatural white elephant in two of his past lives.

In the West, the term “white elephant” denotes a burdensome possession whose cost of maintenance exceeds its value. With their pinkish skin, white hairs and pale eyes, white elephants are likely albinos or leucistic, meaning they exhibit a uniform reduction of all pigmentation, rather than a complete absence of it. Incredibly rare, Southeast Asian kings seldom possessed more than one or two of the animals at a time. Some monarchs even waged wars to acquire them. Today, the Thai royal family possesses 10 white elephants — more than any in the kingdom’s history.

With Laos’ last white elephant dying in the ramshackle Ban Keun Zoo in 2010, Burma is now the only place where one can see these sacred animals. To the faithful, the existence of so many white elephants is a positive sign from above; others speculate it is a the product of rampant deforestation
in the region. Since TheinSein came to power, two more white elephants have been found and one was born in captivity. Grand ceremonies marked each of these animals’ arrival to the capital, with officials declaring that they are “a good omen when the state is endeavoring to build a peaceful,modern and developed nation” and that their discovery has led to an “improvement in the country’s foreign relations.”

SOLAR ENERGY DEVELOPMENT IN MANDALAY

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

SOLAR POWER PANELS BEING FITTED IN MYANMAR

US-based ACO Investment Group has entered into an agreement with the Ministry of Electric Power for the construction of two 150-megawatt solar power plants in Mandalay Division. The project, which reports say, is likely to see the plants located in Myingyan and Meiktila districts, is valued at $480 million, according to a release from the Office of the U.S. Trade Representative. The plants are expected to account for 10 percent to 12 percent of Myanmar’s power generation when completed in 2016, the release said.

Hari Achuthan, managing director of ACO, said that the company has secured investment of about US$ 150 million in the deal and the project is expected to provide 400 construction jobs and 100 permanent jobs. US Trade Representative Michael Froman said that the project marks one of the most significant investments from a US company in Myanmar, which have reached more than US$ 600 million since sanctions were lifted.

Myanmar will expand its sources of clean energy through an agreement with ACO Investment Group, focusing on Asian emerging markets, as the country begins to put a policy structure in place to encourage renewable energy. ACO’s project is the first-ever solar energy development in the Mandalay region. It will help Myanmar provide stable energy because the country depends heavily on hydropower, which decreases in output during the dry season, the release said.

PTTEP SIGN MYANMAR OIL DEAL

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

PTTEP SA, a subsidiary of the Thai energy company PTTEP, has signed a Production Sharing Contract (PSC) with the Myanmar Oil and Gas Enterprise (MOGE) for the exploration and production of an onshore block in central Myanmar. PTTEP was granted the block as part of the 2013 Myanmar Onshore Blocks Second Bidding Round, and the company has said that it will invest a minimum of US$ 72 million in the project.

HIGH INTEREST IN LPG JOINT-VENTURE

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

Some 22 domestic and foreign companies have shown interest in forming a joint venture for Nyaungdone Liquefied Petroleum Gas plant, according to the Ministry of Energy. The plant, to locate near Yoegyi village, Nyaungdone Township, Ayeyarwady Region, is expected to produce 30 tons of LPG per day. Foreign companies interested in the project include Mitsui, JGC, and Sojitz from Japan; PTT from Thailand; NK from South Korea; PUMA Energy (Singapore); Langfan CNPC Huaya Petrochemical Engineering, Shanghai Sino-Myanmar Investment Management, GDZR, China Huanqui Contracting and Engineering from China; and other companies from the US, Spain, UAE and Indonesia. Myanmar companies in the race are SeinKaung Gem Trading and Parami Energy Services.The ministry’s Myanmar Petrochemical Enterprise operates three LPG plants in Minbu, KyauChaung and Nyaungdone.

LESS COAL IN ENERGY STRATEGY: ANALYSTS ADVICE MYANMAR

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

The Government of Myanmar has been advised to avoid coal to solve its energy shortage and opt for mid- and small-scale hydropower plants that could be built in ways that did not destroy the environment. “Myanmar needs more electricity, but the energy needs to come from clean sources,” Parami Energy Group CEO PyaeWaTun said.

An official from International Finance Corporation said power generation plants should not damage the environment and that local communities must be engaged. The problems associated with coal-fired power plants include heavy reliance on importation of coal from Indonesia and Australia. Moreover, international development banks that provide funding to develop infrastructure for energy production also refuse to fund coal-fired plants, analysts said.

POTENTIAL FOR GREEN ENERGY BUT BARRIERS REMAIN

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

Energy experts from around the world travelled to Myanmar for the Green Energy Summit to discuss the potential presented by renewable green energies. Dr Abdul Aziz SA Kadir, chairman of Confexhub Group, who organised the summit, said that since the central electricity grid will not reach remote areas for at least ten years, green energy is the most suitable solution to providing energy to those living in Myanmar’s rural areas. He added that green energy could also help cut carbon emissions and reduce poverty among people in Myanmar. A stable policy environment must be developed by Myanmar, as constant adjustments to renewable energy policies would not encourage investments.

HYDROPOWER: CLEAN ENERGY PROPOSAL FOR MYANMAR

Articles, Power and Energy, Volume 09, Volumes December 10, 2014 Administrator

Only about 30 percent of Myanmar’s population has reliable access to electricity, with about 70 percent of this being produced by hydropower, considered the cheapest and least- polluting source.

The Government of Myanmar thus plans to build 32 hydropower projects as joint ventures with foreign companies, most of which are Chinese firms, according to a report from the Ministry of Electric Power.

The government has already signed joint venture agreements with foreign companies to build four hydropower projects and memorandum of understanding for another 19, the ministry said, adding that nine other projects were on the table. The joint venture agreements will allow the companies to build and operate power plant for up to 40 years before transferring them to the Union government.

At Myanmar Global Investment Forum, Vikran Kumar, International Finance Corp (IFC)’s resident representative for Myanmar, said “Hydropower sector is more suitable for Myanmar. Organisations such as IFC and the World Bank don’t want to provide technical and financial assistance when power generation methods are not based on clean energy.”

Myanmar has focused on generating electricity through gas- fired power plants, amounting to 20 percent of the total; however a gas-fired power plant needs a natural gas depot, which takes 3-5 years for construction and the investment of over Ks 1 billion.