Korea Myanmar Industrial Complex (MIGA-14341)

Countries
  • Myanmar
Geographic location where the impacts of the investment may be experienced.
Specific Location
Nyaung Hnit Pin
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 15, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Korea Land and Housing Corporation
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 33.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ MIGA website

Updated in EWS Dec 17, 2019

Disclosed by Bank Dec 12, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank document, this summary covers an equity investment and a loan guarantee by Korea Land and Housing Corporation ("LH") of the Republic of Korea into KMIC Development Co., Ltd. (the "Project"). The investor has applied for MIGA guarantees of up to US$33 million in total for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and Breach of Contract. It has been proposed that MIGA will share the exposure risk by utilizing the MIGA Guarantee Facility ("MGF") under IDA Private Sector Window ("PSW").

The Project consists of development, financing, construction, and operation of Zone A, the first phase of the Korea-Myanmar Industrial Complex located in Nyaung Hnit Pin, 25km north from the Yangon International Airport. 

The Project will provide industrial land with quality infrastructure, including reliable electricity and water supply, wastewater management, residential facilities and a vocational training center, which is currently short in the Yangon region whereas demand for production facilities is growing. The Project is expected to support Myanmar's economic growth and industrial advancement by providing industrial space with adequate infrastructure, the lack of which is one of challenges companies face to set up production facilities and expand business in the country. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The investor has applied for MIGA guarantees of up to US$33 million in total for a period of up to 15 years against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance and Breach of Contract. It has been proposed that MIGA will share the exposure risk by utilizing the MIGA Guarantee Facility (“MGF”) under IDA Private Sector Window (“PSW”).

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Project will be developed byKMIC Development Co., Ltd., a joint venture of LH, Global Sae-A Co., Ltd and the Government of Myanmar.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Global Sae-A Co., Ltd Parent Company -
- - - - KMIC Development., Ltd. Client -
- - - - Korea Land & Housing Corp Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*There is no further information being disclosed at this stage of the project*

ACCOUNTABILITY MECHANISM OF MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

How it works

How it works