Category Archives: Volume 10

NORTH EAST CONNECTIVITY SUMMIT

L TO R: Shri. VIJAY CHHIBBER - SECRETARY, MINISTRY OF ROAD TRANSPORT & HIGHWAYS GOI, H.E. GAUTAM MUKHOPADHAYA - INDIAN AMBASSADOR TO MYANMAR, Dr. MUKUL SANGMA - CHIEF MINISTER OF MEGHALAYA, MR. RANJIT BARTHAKUR - CHAIRMAN FICCI NE & Dr. A. DIDAR SINGH - SECRETARY GENERAL FICCI
L TO R: Shri. VIJAY CHHIBBER – SECRETARY, MINISTRY OF ROAD TRANSPORT & HIGHWAYS GOI, H.E. GAUTAM MUKHOPADHAYA – INDIAN AMBASSADOR TO MYANMAR, Dr. MUKUL SANGMA – CHIEF MINISTER OF MEGHALAYA,
MR. RANJIT BARTHAKUR – CHAIRMAN FICCI NE & Dr. A. DIDAR SINGH – SECRETARY GENERAL FICCI

North Eastern part of India has immense latent potential which can be harnessed to ensure equitable growth across the country. With 5339 kms of International borders and surrounded by some of the fastest growing economies of the world, the North East is located in a uniquely advantageous geographic position. However, to be able to leverage the unique advantages, and ensure inclusive growth, some key enablers like roads, railways, water ways, airports need to be strengthened. Development of connectivity infrastructure will have huge multiplier effects on the region’s growth besides paving the way for better economic and strategic integration of the region with rest of the country and also with neighbouring countries.

In order to identify and highlight the connectivity needs of the region, to catalyse the evolution of a comprehensive connectivity road map for the region, explore financing options and rope in private sector capabilities, FICCI organised a two day “North East Connectivity Summit” from 27th to 28th November 2014 in Guwahati.

The summit was the first ever platform focused on policy debate and facilitation of investments for connectivity infrastructure in the North East Frontier by focusing on important areas of infrastructure development like Roads, Railways, Inland Waterways, Airports and development of an integrated development corridor connecting mainland India with South East Asia.

MR. RANJIT BARTHAKUR, CHAIRMAN, FICCI NORTH EAST
MR. RANJIT BARTHAKUR, CHAIRMAN, FICCI NORTH EAST

BACKGROUND

The North East, with a total area of 2,62,179sq km occupies about 8 percent of India’s total geographical area and are populated by about 3.8 % of India’s population. The region is rich in natural resources, enjoys a demographic advantage with a large young population and is surrounded by over 5300 kms of international borders. Despite the advantages however, the region has lagged behind during the 65 years since independence, primarily because of a disconnect with its neighboring countries.

While it is connected by the narrow chickens neck corridor with mainland India the regions connectivity with neighboring countries, with whom it shares over 5300 kms of international borders, is almost non-existent. Intraregional connectivity is also far from adequate, although roads have seen substantial development in the past few years, slow pace of development of railways, air transport and Inland Water Transport has ensured that in large parts of the region inadequate connectivity is still a major impediment for development.

Massive investments need to be made to create new connectivity infrastructure and upgrade the existing ones. Government alone cannot fulfil these needs and therefore it is important to rope in the private sector – national and international companies and also multilateral agencies to help finance and execute large scale connectivity projects in the region.

KEY OBJECTIVES

To build consensus on the connectivity needs of the region.
To evolve a comprehensive connectivity development roadmap for the region Brain storm financing options for infrastructure development in the North East.

SHRI TARUN GOGOI, CHIEF MINISTER OF ASSAM, GOI
SHRI TARUN GOGOI, CHIEF MINISTER OF ASSAM, GOI

KEY AREAS

Roads: Intra-regional connectivity needs to be improved substantially and road connectivity with the neighbouring countries needs to be re-established. One of the key proposals in the roads sector is to develop a 4000 km ring road connecting all the north eastern states.

Railways:The region has about 2600 kms of railway lines, mostly in the states of Assam and Tripura. Five of the eight state capitals are yet to be connected by railway and international rail connectivity is non-existent. Some key Railway projects that need to be expedited / taken up are connecting all state Capitals, Indian part of the Trans Asian Railway, Border railway line along the India Myanmar Border, and restoring rail connectivity with Bangladesh.

Inland Waterways: The Brahmaputra and Barak River Systems which formed the backbone of connectivity during the pre-independence period could provide a very cost effective mode of transportation and help overcome the transportation bottleneck. It is proposed to develop 20 port townships along the length of these two rivers and fully develop intraregional connectivity.

DR. A. DIDAR SINGH SECRETARY GENERAL, FICCI
DR. A. DIDAR SINGH SECRETARY GENERAL, FICCI

Air Connectivity: In the early 1970s the North East had 17 functioning airports; today this number has come down to 10. Given the nature of the terrain, Air Connectivity can play a vital role in catalyzing development in far flung areas of the region.

Economic Integration and Development Nodes: It is proposed that 50 economic integration and development nodes be set up across the region in tandem with development of transportation corridors.

 

 

GAS EXPORTS UP MORE THAN 20 PERCENT

Exports of natural gas have surpassed US$2.1 billion in the first half of the fiscal year, up more than $440 million over the same period last year, according to figures from the Ministry of Commerce. Most gas, about $1.5 billion, was exported by sea, while about $609 million worth of natural gas was exported by pipelines.

Natural gas exports are likely to rise as more offshore and onshore exploration blocks have been awarded to foreign and domestic companies, though much of this could be used within Myanmar, which is facing a severe electricity shortage.

Natural gas remains the top export item with other resources, such as teak, agricultural and fisheries products that follow.

HYDROPOWER DEVELOPMENT FLOWS ON TO WESTERN FIRMS

The Ministry of Electric Power (MOEP)recently stated that Western companies in Europe and North America are likely to build the next set of hydropower dams in Myanmar. Chinese and Thai firms have been dominating the hydropower sector of Myanmar in the past and the government now looks towards Western firms’ reliable construction quality and international standards for new dams. However, the government also signed agreements with three Chinese firms and a Thai company to build four hydropower projects on Thanlwin River.

All projects are required to undergo a complete environmental and social impact assessment survey before initiation. Myanmar is also keen to address a chronic electricity supply problem partly through hydropower.

MYANMAR TO DEVELOP ITS SOLAR ENERGY SECTOR

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Green Earth Power (Thailand) has signed a memorandum of agreement with the Myanmar Ministry of Electric Power (MOEP) to formalise the development of a 220-megawatt solar power plant. The signing ceremony, held in Nay Pyi Taw, marked an important milestone for the Myanmar power sector, which looks to become a major player in the development of renewable energy, and large-scale solar projects.

Solar power is a solution to Myanmar’s immediate and long term power needs, being quick to build and no reliance on the supply of fossil fuels or subject to (their) price fluctuations.

GEP signed the memorandum of understanding for the project in May last year, and only after presenting its findings under a feasibility study and environmental impact assessment, along with extensive technical discussions with MOEP, was the MoU formalised as a firm commitment by both parties to develop the project.

The Minbu project is on a single 344-hectare (2,150 rai) site 200 kilometres west of Nay Pyi Taw. The solar power plant is to be built in four phases over 30 months with a total investment of US$350 million (Bt11.3 billion).

The solar power plant will be connected to the new 230- kilovolt transmission line that is being constructed by the MOEP, which will be the off-taker under a 30-year power purchase agreement.

The Minbu project is said to be one of the largest solar photovoltaic power plants and will create an estimated 700 jobs during its construction.

 

US, JAPAN, DENMARK PROMOTE LABOR RIGHTS IN MYANMAR

The U.S. is teaming with Japan and Denmark to try to improve labour conditions in Myanmar, where poor conditions for workers have long been a concern. The White House says the three countries will launch an initiative with the International Labour Organization aimed at reforming Myanmar’s labour laws over a number of years. The goal is to get business, labour groups and government institutions cooperating.

MPS URGE MALAYSIA TO PROTECT BURMESE NATIONALS

The Burmese parliament’s upper house has finished compiling a report on the targeted attacks and killings of Burmese migrant workers in Malaysia, and said it is planning to send the report to the Malaysian parliament. The report, which urges the Malaysian government to curb the violence and protect Burmese nationals, was presented to MPs in Myanmar’s upper house. During a parliamentary session in September, MP Khin Maung Latt from Arakan State put forward a question to the upper house seeking to know what action Myanmar’s parliament should take to address violence against Burmese nationals in Malaysia.

In response, the upper house decided to look into the issue. After the resulting report was presented to parliament, upper house speaker Khin Aung Myint told MPs that it will be translated into English and sent to Malaysia’s parliamentary speaker.

Khin Aung Myint also said that if Malaysia doesn’t respond, Burma’s parliament will raise the issue again during ASEAN’s Inter-Parliamentary Assembly.

$50MN LOAN FROM SINGAPORE AND VIETNAM

THE SMALL AND MEDIUM INDUSTRIAL DEVELOPMENT BANK, MYANMAR
THE SMALL AND MEDIUM INDUSTRIAL DEVELOPMENT BANK, MYANMAR

Myanmar’s Ministry of Industry signed an agreement to borrow US$20 million from a Singaporean private bank and $30 million from a Vietnamese state-owned bank so that it can increase government loans to small and medium enterprises (SMEs) a ministry official said.

Aye Aye Win, deputy director-general of the Small and Medium Enterprises Development Center, said a total of $50 million in capital had been secured by the ministry and would be loaned out through its Small and Medium Industrial Development Bank (SMIDB) next year.

“We signed a MoU in October. We’ll borrow 20 million US dollar from Singapore and the rest from Vietnam,” he said.Aye Aye Win said the funds would be borrowed from the overseas bank at a 4 percent interest rate, adding that loans will be made available to Burmese businesses at “between 6 percent and 8.5 percent, but we are considering the possibility of setting the interest rate at 6 percent.”

The government has been drafting a new SME Bill that was brought before Parliament earlier this year, but scant details have been made available about the bill. An estimated 88 percent of all businesses in Myanmar are small and medium sized enterprises.

The Japan International Cooperation Agency (JICA) is reportedly also cooperating with the government to help scale up government loans to SMEs in Myanmar. JICA plans to provide funds to this end through the Finance Ministry, but few details have been released about the plan.

OBAMA AND SUU KYI DEMAND REFORMS IN BURMESE CONSTITUTION

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President Barack Obama gave a blunt assessment of the need for further reform in Myanmar’s move toward democracy, weighing into sensitive controversies over the treatment of religious minorities and a prohibition keeping opposition leader Aung San Suu Kyi from running for president.

Suu Kyi, released four years ago from more than two decades of confinement, is now a member of Myanmar’s Parliament but is unable to run in next year’s presidential election because of a constitutional rule barring anyone with strong allegiances to a foreign national from standing for the presidency. Suu Kyi’s sons are British, as was her late husband. “I don’t understand a provision that would bar somebody from running for president because of who their children are,” Obama said, with Suu Kyi by his side. “That doesn’t make much sense to me.”

Obama and Suu Kyi took questions from reporters from the back patio of the house where she spent much of her time under house arrest. The two were warm and affectionate in their interactions, sharing a long embrace after their opening statements and joking with each other throughout their remarks.

Obama has been pressing Myanmar’s leaders to amend the Constitution, but has been careful to not directly endorse his fellow Nobel Peace Prize laureate as the country’s next president. He also raised an issue that has led to criticism for the opposition icon — her reluctance to address the abuse of minority Rohingya Muslims who are deeply disdained by most people in Myanmar.

“Discrimination against the Rohingya or any other religious minority I think does not express the kind of country that Myanmar over the long term wants to be,” Obama said. “Ultimately that is destabilizing to a democracy.”

PRESIDENT BARACK OBAMA MEETS WITH BURMESE OPPOSITION LEADER AUNG SAN SUU KYI
PRESIDENT BARACK OBAMA MEETS WITH BURMESE OPPOSITION LEADER AUNG SAN SUU KYI

Obama also toured the Secretariat Building, where Suu Kyi’s father, independence hero Gen. Aung San, was assassinated by political rivals in 1947.

Obama had broadly embraced Myanmar’s move away from a half-century of military rule, suspending U.S. sanctions and rewarding the country with high-level visits from American officials. But Myanmar has stalled in fulfilling its promises of political and economic reforms, and in some cases has lost ground.

“We shouldn’t deny that Burma today is not the same as Burma five years ago,” Obama said. “But the process is still incomplete.” “We shouldn’t deny that Burma today is not the same as Burma five years ago,” Obama said. “But the process isPage-29-Image-38 still incomplete.”

Both Obama and Suu Kyi warned against complacency in the move toward democracy. Suu Kyi described the process as going through “a bumpy patch.”

Suu Kyi opened the press conference by addressing reports of tension between the U.S. and those working for democratic reforms in Myanmar. “We may view things differently from time to time but that will in no way affect our relationship,” she said.

Suu Kyi said it’s flattering to have a constitutional provision written with her in mind but it’s not how the law should be written. The 69-year-old said she and her supporters are working to change it and welcome Obama’s support.

MYANMAR & KAZAKHSTAN AGREE TO DEVELOP TOURISM CLUSTER

BOOMING TOURISM SECTOR OF MYANMAR
BOOMING TOURISM SECTOR OF MYANMAR

The Kazakh delegation headed by the Ambassador of the Republic of Kazakhstan has visited Myanmar.

During the visit to the capital city of Myanmar, Naypyidaw, Marat Yessenbayev met with the Minister of Foreign Affairs of Myanmar Maung Lwin Vunna. The diplomats discussed the state and prospects of the Kazakhstan – Myanmar cooperation and exchanged views on regional and international issues of mutual interest.

Kazakh Ambassador informed the Foreign Minister of Myanmar on the current socio-economic development of Kazakhstan and its prospects in the light of the main provisions of the President’s Address to the nation “Nurly Zhol – Path to the future”.

Myanmar is currently developing very rapidly. The country is rich in mineral resources including oil and gas. Myanmar Foreign Minister Maung Lwin Vunna noted great potential for further development of Kazakhstan – Myanmar relations in the fields of energy, investment and tourism.

The two sides also discussed cooperation within international and regional organizations, and expressed their intention to provide mutual support in the United Nations, the Conference on Interaction and Confidence-Building Measures in Asia, the Association of South-East Asia Forum “Asia-Europe” and the Asia Cooperation Dialogue.

In addition, Ambassador of Kazakhstan met with the Chairman of the Federation of Tourism Myanmar Jan Win. The meeting took place in Yangon, the former capital of Myanmar. The parties expressed their intention to sign a memorandum of cooperation in the field of tourism.