Product Code: SSMM06_20200101
Myanmar's construction sector growth will remain robust over the long term, and we are forecasting an annual average of 8.9% through to 2028, as the government looks to address the significant infrastructure deficit shortfall.
Forecast And Latest Updates:
- At Fitch Solutions, we maintain our forecast for Myanmar's construction sector growth to be robust over the coming quarters, coming in at 13.8% in 2019. This marks a slight pick-up from our estimate of 13.3% in 2018 as the government will continue to address the significant infrastructure deficit in the country.
- Ground has been broken for the Dala Bridge project in Myanmar in December 2018, according to reports by Myanmar Times. Also known as the Myanmar-Korea Friendship Bridge, it will connect Yangon city and Dala township. The 1.87km bridge will feature a four-lane roadway. The cable-stayed bridge is expected to cost KRW257bn (USD168mn) and is funded by a USD137.8mn loan from the South Korea Economic Development Cooperation Fund. The government of Myanmar will provide USD30.3mn. The project will make it easier to travel between Yangon and Dala, Twante and Kawhmu townships. The bridge, which has already been delayed by six years, is expected to be ready in 2021.
- The government of Myanmar has reached a final agreement with China CITIC Bank for an expanded seaport at Kyaukpyu in Rakhine State on the Bay of Bengal, according to reports in November 2018. The final agreement, which is a scaled-down version of the original one, involves the construction of a USD1.3bn terminal with two deep water berths. The original agreement entailed the construction of a USD10bn port and free zone complex, with China contributing 85% of financing. Myanmar's decision to cut down the project was owing to concerns over excessive foreign debt. Under the finalised agreement, China will fund 70% of the port's construction and the remaining will be paid by Myanmar. The port will be built in phases so that the economic feasibility of each step can be evaluated. The new port will provide an Indian Ocean terminus for a road and rail link across Myanmar to the Chinese border, which will enable China-bound cargo from the west to bypass the Strait of Malacca.
Table of Contents
- Key View
- Industry Forecast
- Construction And Infrastructure Forecast Scenario
- Transport Infrastructure
- Energy & Utilities Infrastructure
- Residential/Non-Residential Building
- Industry Risk/Reward Index
- Myanmar Infrastructure Risk/Reward Index
- Asia Infrastructure RRI: Persistent Risks Despite Strongest Rewards Profile
- Competitive Landscape
- Company Profile
- Infrastructure Methodology