Myanmar To Build New Airport

Myanmar’s Department of Civil Aviation says it will choose either the South Korean Incheon Airport Consortium, or the Singapore-based Yongnam, CAPE, JGC Consortium to build the new Hanthawady International Airport.

According to aviation sources, other international tenders such as Japan-based TAI SAE Corporation and Franch VINCI Airport failed to revise their financing plans a condition for the final selection round.

The department’s director general, Tin Naing Tun, said Incheon Airport and Yongnam submitted renewed financial proposals.

“We are now reviewing their financial proposals. One of them will be choosen to build the new Hanthawady International Airport.”

After initial negotiations with the Incheon consortium failed in March, the DCA said the project could not be completed by 2016 as earlier anticipated. It reviewed tender conditions and called on short-listed companies to present revised financial proposals. It could result in the airport opening as late as 2020.

Myanmar has three international airports; Yangon, Mandalay and Nay Pyi Taw. Yangon International Airport is regarded as the country’s main gateway, but is fast reaching its capacity ceiling.

The proposed new airport is located on a 9,000-acre (3,642-hectare) site about 48 miles (77 km) northeast of Yangon in Bago. Preliminary work on the Hanthawaddy airport began in March 1994 when land was cleared, but work stopped in early 2003 without any construction firm being appointed.

Hanthawaddy will be able to handle 10 million passengers a year once completed, but could grow to triple that size over  20 years.

With the new airport nowhere in sight, Yangon International Airport, will need to expand capacity from 2.7 million passengers a year to 3.5 million in 2015, and 6 million a year by 2019.

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Domestic Terminal of Yangon International Airport to be upgrade

Myanmar has approved the plan to upgrade the domestic terminal at Yangon International Airport, to boost capacity from 2.7 million passengers to 6 million a year.

According to the Department for Civil Aviation, the government’s economic committee, chaired by President Thein Sein, recently approved the upgrade of Yangon International Airport. The economic committee has representatives from 15 ministries. Department for Civil Aviation general director, Tin Naing Tun, said the department has received the economic committee’s approval for the upgrade. 

According to the upgrade plan, the domestic terminal will be demolished and replaced by a new terminal in 18 months. Meanwhile, the airport’s VIP hall will be used as a domestic terminal during the construction period. The international terminal will remain unchanged. Pioneer Aerodrome Services, a subsidiary of Myanmar’s conglomerate Asia World, was selected for the upgrade. 

Yangon International Airport is the main international gateway, although Mandalay has seen a big increase in airline traffic. International arrivals increased from 1.6 million tourists in 2009 to 3.08 million tourists in 2012, according Yangon airport data. The international terminal opened in May 2007 and handles 1.4 million passengers, while the domestic terminal handled 1.3 million passengers last year. To help ease the congestion at this airport, Myanmar is also planning to build a new international airport in Hantharwady, which is expected to start operations in 2017. The Hantharwady International Airport will be located at Bago is 80 km from Yangon.

This will provide an easier access for tourists to travel within Myanmar and avoid the overloading situation in the high travel season.

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Myanmar to upgrade domestic airports

Department of Civil Aviation says it will issue a tender in the last quarter of this year to invite local and foreign companies to invest in 39 underdeveloped domestic airports.

The Irrawaddy oneline newspaper first reported on the proposed tenders,  in November, last year, saying the DCA had called on companies to register their interest and proposals to rebuild and improve 30 of Myanmar’s 69 domestic airports.

The process, which was completed last January, was not a formal bidding process, but served to inform the government agency of the interest and plans of potential airport developers.

DCA general director Tin Naing Tun, was quoted as saying that many companies had registered their interest, but they were mostly local companies.

“Some companies are proposing that they can upgrade all domestic airports… but they should only indicate the specific airports that they will actually upgrade,” he said.

DCA confirmed, Wednesday, it will now issue a formal tender inviting companies to bid for contracts to develop the 39 airports some time “after the rainy season,” in October.

“We will hold more discussions and allow companies to make bids on the tender later this year,” he said.

Earlier, the DCA hoped to attract international corporations as partners to fast track improvements and give the country a top quality network of airports.

At that level, the response has not been promising. Very few international companies will make a commitment to take on an entire network when only a few airports are considered profitable.

According to the department, the government currently spends about US$12 million annually to maintain 69 domestic airports.

The government hopes the plan to outsource airports will help develop the country’s aviation industry and airport capacity. Air safety has become a particular concern after a number of accidents occurred at local airports in 2012 and 2013.

The country’s aviation industry is expected to grow rapidly in the coming years, as estimates suggest foreign tourist arrivals will rise dramatically from 4.2 million in 2013 to 30 million in 2030. (Tourism master plan forecasts).

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