Photo:Crd
Mizzima
The Myanmar Military Council’s Financial Analysis Committee say they are trying to get a soft loan from the Chinese government for the construction of the Muse-Mandalay railroad project.
The Military Council reportedly urged the committee to compile a detailed project report with the grant given by the Chinese government.
The Ministry of Transport and Telecommunication which is the main player in this project has started to resume the implementation of this project worth US$ 8.9 billion since mid-2022.
This mega project will have 124 bridges, 60 tunnels, 11 substations and transmission lines for power supply.
The railroad will pass through 11 cities and towns along the route between Muse and Mandalay.
This Muse-Mandalay railroad will be the main artery of China-Myanmar border trade and it will be a part of China-Myanmar Economic Corridor (CMEC) and also the initial step of the Kunming-Kyaukphyu railroad.
The project will consider compensation to be given for land and buildings acquisition along the route with standard operating procedures and project financial estimates for building transmission and distribution lines along the railroad.
The call for the loan comes as the country lies in the doldrums financially. According to the data released by the International Monetary Fund (IMF), Myanmar ranked sixth in the most indebted countries in ASEAN Region in 2023.
Myanmar’s foreign debt in 2023 is 57.5% of the country’s GDP, the data shows.
In the first ten years of its Belt and Road Initiative (BRI) mega project, China gave a large amount of loans to low-income and middle-income countries for building bridges, ports, railroads and highways.
Over 65 countries are said to be involved in this BRI project. Many critics have warned developing countries about the danger of falling into a debt trap with these heavy investments.
