Published on Thursday, 29 August 2013 18:08
World Bank Group will lend a total of US$261.5 million to Myanmar for infrastructural projects, according to the President Thein Sein.
Myanmar cleared its decades-old debts to World Bank with the help of a bridge loan from Japan Bank for International Cooperation in January.
The government's political and economic reforms have also paved a way for the country to re-engage with foreign creditors, and to receive new loans from the World Bank.
The World Bank has already lent US$ 520 million to Myanmar this year - $440 million to repay the Japan Bank for International Cooperation, and US$80 million for community development projects.
A further US$261.5 million loan will be provided at zero interest by the World Bank for Myanmar's telecommunication, electricity, education and financial projects, according to President Thein Sein's message to parliament on August 26.
About US$140 million will go to the Ministry of Power for a gas-fired and waste-to-energy power plant project in Thaton Township. US$31.5 million will go to the Ministry of Communications and Information Technology for the national telecommunication development projects.
Education ministry will be given US$60 million for school development projects, scholarships and management trainings for senior officers. Ministry of Finance is to receive US$30 million to reform public finance management systems.
The 40-year loan will need to be partially repaid starting in 10 years. No interest is charged but a service fee 0.75 percent on the loan needs to be paid each year, said the President.
Myanmar parliament has also approved the loan from World Bank in accordance with the Union Budget Law.
