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In collaboration with China’s state-owned enterprise CITIC Group, Myanmar Agribusiness Public Corporation (MAPCO) is expected to start three business projects this year, said MAPCO Chair U Chit Khine during the company’s sixth anniversary celebration held at Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) building in Yangon on December 28.
“Negotiations for the businesses are currently underway between MAPCO and China’s CITIC Group conglomerate. CITIC Group has also agreed to provide US$17million as an initial guarantee for the projects,” said U Chit Khine.
MAPCO Managing Director U Ye Min Aung said an agreement in principal has been reached between the two companies to cooperate on three projects – an agribusiness services centre project, an engineering and contracting business and a rice industry project.
The rice project is expected to result in joint investments in Kyaiklat, Nay Pyi Taw, Myaungmya, and Kyauktaw in Rakhine State and a rice mill project in Twante Township.
The engineering and contracting project is expected to provide construction jobs to CP Group, one of the subsidiary company of CITIC Group, and other local companies.
“As these two projects involve MAPCO and CITIC Group, they are expected to be up and running by the middle of this year after obtaining approval from the Myanmar Investment Commission,” said U Ye Min Aung, managing director of MAPCO.
Meanwhile, the agribusiness services centre project will involve opening service centres in 33 townships across the country. The services centre project alone is estimated to cost about US$400million (K612.2 billion) and discussions about the financing and government approvals are being held, he said.
“The project will be a large one requiring significant investment so we are negotiating a loan from China at interest of two percent.
Obtaining such a loan will require the backing of the government and will take time to negotiate,” said U Ye’ Min Aung.
CITIC group is a large construction group in China and is already involved in developing the Kyaukphyu Special Economic Zone project in Rakhine State. Currently, MAPCO is also discussing establishing a canned fruit factory with Samroiyod Corporation Ltd of Thailand. Feasibility studies for the project are being carried out in Htikhi District, Tanintharyi Region.
MAPCO also has signed an initial agreement with Japan’s Fukuoka Seiyu Co to establish a bran oil factory in Kyaiklat and also made an initial agreement with Navadugra Enterprise Pvt Ltd of India for another bran oil factory establishment in Myaungmya.
MAPCO is a private company established in 2012 to be the largest agriculture-based company in Myanmar.
‘‘As the company has been focusing on investments since our founding, we have been less focused on profit. Trading and manufacturing will be prioritised this year to bring more profits for the shareholders,” said U Chit Khine.
The company has not paid yearly dividends to ordinary shareholders and has only distributed yearly dividends to preferred shareholders. |
