Abe unveils major aid, loan package
NAY PYI TAW: Japan yesterday announced a development aid and loan package for Myanmar worth hundreds of millions of dollars as it boosts trade ties with the fast-changing nation seen as a key regional emerging market.
Prime Minister Shinzo Abe, who has pledged ‘‘all possible assistance’’ to kickstart Myanmar’s long-neglected economy, agreed the plans in talks with reformist President Thein Sein in the capital Nay Pyi Taw, reports said.
‘‘In laying a new foundation for taking the relationship between Japan and Myanmar to a higher level and establishing a lasting, friendly and cooperative relationship, Japan and Myanmar will work together,’’ a statement said, before outlining areas of cooperation.
Mr Abe’s visit, the first to Myanmar by a Japanese premier since 1977, heralds a further improvement in already warm relations between the two countries, as political reforms and the removal of most Western sanctions spur investment in the former pariah state.
As part of the new deals, the Japanese premier pledged up to ¥51 billion (15.1 billion baht) in new loans to Myanmar. This covers infrastructure development, including road, electricity and water supplies; power station maintenance; and development of the Thilawa special economic zone near Yangon.
Japan also confirmed it would waive ¥176.1 billion of Myanmar’s debts, contingent on further reforms.
‘‘In support of the development of Myanmar and having implemented its arrears clearance operation with Myanmar, the Government of Japan decided to provide new yen loans as well as grant assistance,’’ the statement said.
Japan also announced an aid package worth up to ¥2.4 billion for water management in Yangon and a scholarship programme for overseeing the country’s social and economic development.
Mr Abe visited the Thilawa project on Saturday as part of efforts to promote Japanese firms and his country’s infrastructure-building expertise.
A memorandum of understanding was also signed for the project between nine Myanmar companies and three from Japan, the New Light of Myanmar newspaper reported.