Korea Myanmar Industrial Complex (MIGA-14341)

Countries
  • Myanmar
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
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 15, 2020
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Korea Land and Housing Corporation
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 33.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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

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
  • Multilateral Investment Guarantee Agency (MIGA)

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

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

Contact Information

*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/