Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 263, April 06, Politics

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1 Issue 263, April 06, 2017 Thura NewsViews Politics NLD wins majority in by election, but struggles in ethnic regions The National League for Democracy (NLD) won almost 9 of the 19 available seats of the national and regional parliaments in by-elections held on April 1, but struggled notably in ethnic minority regions. The Shan Nationalities League for Democracy (SNLD), enjoyed considerable success winning 6 seats, while the Union Solidarity and Development Party (USDP) won 2, followed by the Arakan National Party (ANP) and All Nationals Democracy Party (ANDP) with 1 each. The NLD performed well in Kawhmu, Region, the former seat of State Counsellor Daw Aung San Suu Kyi, but its most high profile defeat was in Chaungzon, Mon State, following protests there last month by the Mon community after parliament voted to name a bridge there after independence hero Bogyoke Aung San. The seat was eventually won by the USDP, with 41.7 percent of the vote. The controversy over the bridge appears to have affected the NLD s chances, as the party comfortably won the seat there in In Ann Township, Rakhine State, ANP leader Dr Aye Maung returned to the Pyidaungsu Hluttaw, with a convincing victory in the Pyithu Hluttaw seat, despite the party never having won in Ann before. Turnout was low in most townships, with figures showing it to be as low as 15 percent in some constituencies. Need for dialogue in Kayin State Stronger political dialogue is required between the government and the Karen National Union (KNU) to prevent there being a return to conflict between Myanmar s armed forces and the most influential signatory it has to the Nationwide Ceasefire Agreement (NCA), according to reports. An article in Frontier quoted Mr Kim Jolliffe, the author of a new report on the KNU, as saying that without strong commitments by the government to consider the KNU s political demands a return to conflict was inevitable. The KNU, for decades one of the Tatmadaw s fiercest rivals, was the largest ethnic armed group to sign the NCA in October If business activity continues to increase without political change, then an eventual return to conflict really seems inevitable at some point, Jolliffe was quoted as saying. The KNU is currently in the final week of its five-yearly congress to elect its executive committee members. Thura Swiss Ltd. Economic Research Shwe Hinthar B /2 Miles Pyay Road 11 Qtr. Hlaing Tsp., Myanmar Phone +95 (0) Fax +95 (0) info@thuraswiss.com April Highlights The family of Myanmar s last king, Thibaw, has said they are planning to build a mausoleum for him at the Mandalay Palace. The number of tourists visiting Bagan increased 15 percent to 290,000 in 2016 compared to a year earlier, according to figures from the Ministry of Hotels and Tourism. The government has set aside K722 million to improve electricity in and Mandalay, said a local report.

2 Economy Myanmar-China crude oil pipeline to begin in May After several delays, a pipeline pumping crude oil from Myanmar s Rakhine coastline into China will be operational in May, according to reports. The local report quoted an official from the Southeast Asia Crude Oil Pipeline (SEAOP) as saying that the pipeline is ready for operation and that commencement is awaiting instructions from higher ups. A soft opening was launched for the project in early 2015, but the project has faced numerous delays due to negotiations between the Myanmar and China governments. The oil pipeline runs parallel with the natural gas pipeline which began operating in However, like many large-scale China-backed projects in Myanmar, the oil pipeline has been met with protests from local communities over the apparent lack of transparency regarding the project. Thai-Myanmar bridge planned at Myawaddy Thailand and Myanmar are planning to build a new friendship bridge connecting Myawaddy, Kayin State with Mae Sot, Tak province, which officials hope will be operational within two years. The comments were made by Thailand s Transport Minister Mr Arkhom Termpittayapaisith at the bridge s foundation laying ceremony on March 30, which was also attended by Myanmar s construction minister U Win Khaing. Arkhom said the new bridge would not only lessen traffic at the first Thai Myanmar Friendship Bridge, which is located nearby, but help boost trade between the two countries. Arkhom was also quoted as saying by the Bangkok Post that the two countries are discussing plans to build special economic zones close to their borders. ADB announces new country partnership strategy for Myanmar The Asian Development bank has announced that it has approved a new country partnership strategy (CPS) for Myanmar, aimed at helping them to support the government s aims to boost the economy and create jobs. The CPS is aimed at using the country s advantages, including its strategic location next to China and on the cusp of Southeast Asia, by improving connectivity to urban markets regionally and globally, the Manila based lender said in a release. ADB s operations will focus on areas that are of fundamental importance to the country s development, said Mr James Nugent, director general of ADB s Southeast Asia Department, highlighting improved transport, electricity and urban infrastructure, as well as a skilled workforce. These sectors will also transform the rural sector, boost productivity, create quality jobs, and ultimately, improve people s livelihood, he said. The CPS has been supported by the Myanmar government. U Kyaw Win, the minister for planning and finance, said the new CPS is fully aligned with the government s strategic policy and priorities. In the release, ADB also said it is planning to expand its lending and investments in Myanmar over the next few years. Myanmar in Figures GDP (PPP): $283.5bn (2015) GDP (official ex.rate): $66.98bn (2015) GDP growth rate: 8.3% (FY proj.) Population: 51.4mn people (2014) Inflation: 11.5% (2015) Foreign trade: $22bn (2015) FDI: $64bn (31/07/2016) International reserves: $9.4bn (Dec 2015) CBM rate Kyat/$ = 1358K/1$ (06/04/17) For advertising with Thura Swiss please contact us by info@thuraswiss.com or by phone +95 (0) Please note that our advertisement contracts are based on a subscription of a minimum of 4 weeks. 2

3 Companies and Investments Statoil and ConocoPhillips to explore offshore oil and gas Statoil, from Norway, and the United States ConocoPhillips are planning to invest more than US$ 300 million to explore and produce oil and gas offshore in Myanmar, an official has been quoted as saying. An article in the local media said that the two firms had signed a Production Sharing Contract (PSC) for deep water block AD-10, which is located off the Rakhine Coast, on April 30, citing an unnamed official from the Ministry of Electricity and Energy. The investment will also include a $ 5 million signature bonus and $ 200,000 as a data fee, the article said. A PSC must be signed before exploration and production can begin, and the firms will now conduct an environmental impact assessment and a social impact assessment, the article said. Each company will hold a 50 percent stake in the venture. Junction City Shopping Mall opens in Phase One of Junction City, a large-scale real estate project in downtown, has been completed and opened its doors to the public for the first time. Developed by local company Shwe Taung Group, upon completion the entire project will include 260,000 square metres of space, and include retail space as well as two 23-storey office spaces and luxury hospitality ventures. Last week saw the opening of the Junction City Shopping Centre, which is set over five floors and has more than 240 shopping outlets, as well as a food court and cinema. The office towers are being developed in collaboration with Singapore s Keppel Land Limited, while a 348-room Pan Pacific Hotel and Resorts is expected to open on the site in the fourth quarter of New Hope to open chicken farm in Bago New Hope Singapore, which is part of China s top animal feeding company New Hope Liuhe Co Ltd, is planning to make a US$10 million investment in Myanmar s poultry sector. The local company, Myanmar New Hope Agrotechnique Co Ltd, will begin construction on a breeder farm in Bago Region, said a report in Dealstreet Asia. The report said that Myanmar New Hope has been present in the Myanmar market for five years, producing animal feed and other products. The phase one project of the poultry sector is focused on the southern part of Myanmar and the phase two will be an extension to Mandalay and cover the northern part of Myanmar, said Gou Huayin, executive director of Myanmar New Hope Agrotechnique Co Ltd. 3

4 Events Name Details Organizer/Ministries Contact Information Myanmar International Machine Tool and Automation Exhibition Myanmar Hospitality and Tourism Conference Emerging Asia FinTech & Agent Banking Summit Venue: Tatmadaw Exhibition Hall, Date:11-14 May 2017 Venue: Park Royal Hotel, Date: 15 May 2017 Venue: tbc, Date: May 2017 ASEAN Ports and Shipping Venue: Sule Shangri-La Hotel, Date: July 2017 Myanmar Banking & Finance Conference Myanmar Green Energy Summit 2017 Builders Myanmar 2017 Compack Myanmar 2017 Propak Myanmar Satellite Forum and Exhibition 2017 Venue:, Myanmar Date: July 2017 Venue:, Myanmar Date: August 2017 Venue: Tatmadaw Hall, Date: August 2017 Venue: Tatmadaw Hall, Date: September 2017 Venue: Myanmar Event Park, Date: September 2017 Venue: Novotel Max, Date: 29 November 2017 Yorkers Trade & Marketing Service Co., Ltd Sphere Conferences Magenta Global Transport Events, Myanmar Port Authority Sphere Conferences Confexhub Fireworks Trade Media Ptd Ltd Enterprising Fairs (India), Myanmar Industries Association UBM Myanmar UBM Asia +95 (0) (0) (0)

5 Tenders Ministry of Agriculture, Livestock and Irrigation: EOI With financing from International Development Association (IDA) towards the cost of the National Community Driven Development Project (NCDDP), the Department of Rural Development (DRD) under the Ministry of Agriculture, Livestock and Irrigation has invited eligible suppliers to express their interest in supplying the following items: Reference No. Description Quantity G 81 Grievance pamphlets 96,000 Manual booklet for locals 52,000 Grievance Letter/ Envelope 182,000 Expression of Interest must be submitted in written form to the address below and clearly indicate the reference number above. Eligible suppliers having expressed interest will receive an Invitation to Quote (ITQ). Sealed Quotations will be submitted to the address below at the latest at Tuesday 25 April 2017 at 10:00 am Myanmar time for G81, after which no Quotations will be accepted. For detailed information please contact: U Kyaw Swa Aung, Director, Procurement and Logistic Section under the number +95 (0) or +95 (0) , unioncddprocurement@gmail.com. More information to be found on the website: Ministry of Agriculture, Livestock and Irrigation: Open Tender The Department of Rural Development under the Ministry of Agriculture, Livestock and Irrigation invites interested contractors for the construction of bituminous roads (total length around 60 km) and bridges along the roads in Taunggyi District Shan State. The detailed information are as follows: No. Township Road Name Length (km) 1. Taunggyi Kan Laung Zale Hopone Lwe Ont Hti Bwar Nyaung Shwe Nyaung Shwe Kanu Yet Sauk Pin Phit Wapyar Kalaw Baw Ning Thayetpu- Kum Par Ni Su Pan Ni Kalaw Kum Par Ni Paw Toke 5.67 Interested companies may obtain further information and may inspect the complete bidding documents and may purchase a set of the documents upon payment of a non-refundable fee of MMK 50,000 at the Purchaser s address Office No. 14, Nay Pyi Taw, phone +95 (0) on or before 26 May A pre-bid conference will be held in the Meeting Room of the DRD on 28 April 2017 at 10:00 am. Each bidder is invited to attend the conference with a maximum of two representatives. Bids must be delivered to the above address on or before 26 May