Wider World by CS

New city plan eyed in Mandalay

Published on Thursday, 23 August 2012 10:09

NESAC members posed for photo on Tuesday after a meeting in Nay Pyi Taw.
CB chairman U Khin Maung Aye (circled) is seen standing next to President U Thein Sein.

A local banker is planning to construct a new city on over 20,000 acre of land in Mandalay Region.

Chairman U Khin Maung Aye of Co-operative Bank (CB) has established the New City Development Public Company Limited to implement the project although it is still awaiting government approval.

Photo shows a scale-model of the new city project in Mandalay Region

"A pubic company will be first established to implement the new city project. A total of 3,000 people enquired to purchase nearly Ks 200 billion of shares. We are now inviting the potential shareholders in Yangon for this project. We will sell out the shares only when our project is officially permitted,” U Khin Maung Aye said.

He is one of the 15 members of the National Economic and Social Advisory Council under the President’s Office, as well as chairman of Kaytumadi Group. Kaytumadi's businesses include hotels, banking, gas stations, heavy machinery service for dams and pipelines, and trading. His father-in-law, also named U Khin Maung Aye,  is president of the government-appointed Press Core Council.

The new city project will cover 22,000 acres of land, and is located within five and a half miles from the Mandalay International Airport, according to the company.

The project area covers farmlands and the chairman stated that it may not proceed if locals do not approve.

The project requires that the Mandalay regional government invites tenders. It  will also need permission from the Myanmar Investment Commission.  The  construction site was  initially near Thaungthaman Lake but locals objected to the plan. Thus, it was shifted to the existing location near Tada-U Airport between Innwa ancient city and Ayeyawady River.

Locals have said more than half of the farmlands in Tada-U township have already been acquired by real estate investors.

Many urbanization projects have been planned in Myanmar but only a few powerful businessmen manage to obtain potential areas to do business. Those who want to live in these areas would need to buy the land at higher prices.

Some previous city projects were unable to develop good infrastructure and provide water and  power supply.

A businessman said projects like this should be implemented through joint ventures with foreign or local investors to be able to compensate reasonably for the loss of farmlands.

Farmland prices near the project area have skyrocketed between Ks 3.5 million and Ks 30 million per acre, and most of the land buyers are investors from powerful neighbouring countries.