Singapore Windsor Holdings to construct 500 telecommunication towers for Ooredoo

Ooredoo Myanmar Ltd (Ooredoo) and Singapore Windsor Holdings Ltd (Windsor) have entered into a contract in relation to the construction and leasing of 500 telecommunication towers.  According to Singapore-listed Windsor, the agreement, which will become effective from July 2015, has an implied value, based on the cost of construction, of US$39 million over 18 months. Singapore Windsor Holdings will manage and lease the towers and associated power solutions to Ooredoo for a 15-year term, extendable for a further three terms of five years each. Pursuant to the agreement, Singapore Windsor Holdings will be required to give a total funding commitment of up to US$45 million to Ooredoo, which will be financed through a combination of bank loans, vendor financing and the private placement of company shares. (Source: http://www.mmtimes.com/index.php/business/technology/14357-newcomer-to-build-500-ooredoo-towers.html, 8 May 2015)

Mitsubishi commences soil testing in area of proposed coal-fired plant

The Mitsubishi Corporation (Mitsubishi) has announced that it will begin conducting soil tests as part of its proposed development of a clean-coal-fired power plant in the Ayeyarwady Region. Mitsubishi is cooperating with the Myanmar owned A1 Company Ltd to develop the project. Mitsubishi recently hosted a delegation of local residents, members of Parliament, politicians, journalists and civil society representatives on a tour of two coal-powered plants in Japan operated by the Electric Power Development Co., Ltd who are assisting Mitsubishi on the project. The Myanmar Government has entered into twelve agreements with local and foreign companies in relation to the development of coal-fired power plants throughout Myanmar. All projects are currently in the feasibility stage. (Source: http://www.thuraswiss.com/update/myanmar-news-database, 30 April 2015)

Statoil and ConocoPhillips negotiate deep-water PSC

Statoil ASA (Statoil) and ConocoPhillips Co. (ConocoPhillips) have announced that they will invest more than US$300 million to develop deep-water block AD-10. Pursuant to a draft Production Sharing Contract (PSC) to be entered into with Myanmar’s Ministry of Energy, the joint venture partners have committed to spending approximately US$323.65 million on exploration and initial production operations. The PSC includes a signature bonus of US$5 million and US$200,000 data fee. Statoil and ConocoPhillips received permission from the Myanmar Investment Commission in February for deep-water block AD-10, which has an area of 9,000 square kilometres (3,474 square miles) in water depths of around 2,000 metres (6,561 feet). Statoil and ConocoPhillips will hold a 50% stake in the block, which will be operated by Statoil. (Source: http://consult-myanmar.com/2015/05/05/conocophillips-and-statoil-sign-deal-for-deepwater-block/, 5 May 2015)

World Bank announces details of Myanmar Partnership Framework

The World Bank has announced that it will provide Myanmar with approximately US$1.6 billion worth of loans and grants as part of a new Country Partnership Framework (CPF). The CPF is the first full partnership framework between the World Bank and Myanmar in 30 years.  Technical assistance will also be provided via the International Development Association which focuses on improving basic infrastructure and services and supporting small businesses. The goal of the CPF is to reduce rural poverty, improve basic services, and stimulate private sector growth. According to the World Bank, the Myanmar partnership framework will stimulate job creation in Myanmar by building a dynamic private sector, with support to improve access to finance for small businesses, telecommunications and information technology, modern financial institutions, and the expansion of overseas trade for Myanmar businesses. The World Bank will also help the Government mobilise US$150 million in private investment by creating a business environment conducive to private sector investment. (Source: http://www.mmbiztoday.com/articles/infrastructure-services-smes-focus-world-bank-s-28-b-partnership-framework, 5 May 2015)

MELIÁ Hotels and Hoang Anh Gia Lai Group sign hotel management agreement

MELIÁ Hotels International Ltd (Meliá) has announced that it has entered into a hotel management agreement with Vietnam’s Hoang Anh Gia Lai Group (HAGL).  Pursuant to the agreement, Meliá will operate the 429-room five-star Meliá Yangon on behalf of HAGL.  The Meliá Yangon hotel will be located in the Hoang Anh Gia Lai Myanmar Centre (HAGL Centre) which has been developed by HAGL at a cost of approximately US$440 million. The 23-storey Meliá Yangon hotel will be part of phase one of the HAGL Centre which will also incorporate a 27-storey commercial centre and two office buildings. According to HAGL, the Meliá Yangon will include a convention centre, conference halls, entertainment and sport areas, and European, Asian and local restaurants. (Source: http://consult-myanmar.com/2015/05/06/melia-enters-myanmar-with-maiden-yangon-hotel/, 6 May 2015)

CFG Energy enters into a PSC in relation to Myanmar offshore block M15

CFG Energy Private Ltd (CFG) a wholly owned subsidiary of Canada’s Foresight Group Private Ltd has executed a Production Sharing Contract (PSC) with the Myanmar Oil and Gas Enterprise in relation to the exploration and development of offshore block M15 off the coast of Tanintharyi in southern Myanmar. CFG will cooperate with M15 Private Ltd, part of the Australian company Transcontinental Group (TRG), and local company Century Bright Gold Company Ltd, a subsidiary of the KMA Group (KMA). The consortium was awarded the contract for the block in March 2014. CFG holds an 80% interest in the block, with the remained owned by TRG and KMA. Block M15 covers an area of 13,500 square kilometers. (Source: http://consult-myanmar.com/2015/04/13/canadian-foresight-group-to-explore-tanintharyi-offshore-block/, 13 April 2015)

Dragages Singapore awarded Star City second-phase development contract

Dragages Singapore Pte Ltd (Dragages), a subsidiary of Bouygues S.A, has been awarded the contract to construct the next stage of the Star City complex located on the outskirts of Yangon. Dragages will partner with SPA Project Management Ltd on the project that is estimated to be worth approximately at US$116 million. The new phase of the project covers the design and construction of six residential buildings that will include 956 apartments. Dragages will oversee the construction of a two-story car park as well as a community space including a swimming pool and a leisure area. Dragages was previously awarded the contract to develop the first phase of the Star City project, which is now nearing completion. (Source: http://www.moi.gov.mm/moi:eng/?q=news/14/04/2015/id-2765, 13 April 2015)

First Myanmar Investment Ltd and Lippo Group invest US$13 million to develop the Pun Hlaing Hospital

First Myanmar Investment Ltd (FMI), a subsidiary of Serge Pun & Associates (Myanmar) Ltd (SPA) and Indonesian conglomerate the Lippo Group via its subsidiary PT Siloam International Hospitals Ltd (Siloam) have invested US$13 million to develop the Pun Hlaing Hospital outside Yangon. The 100-bed private hospital was initially jointly owned by SPA (65%) and FMI (35%).  FMI has increased its share to 60% with Siloam taking the minority 40% share.   The Lippo Group has invested US$10 million in the project. (Source: http://www.healthinvestorasia.com/(X(1)A(DWPb1Xe20AEkAAAANTdmYjRmNzItZDU5MS00ZThkLTk5MTAtZTRhMjMwYjA5OTkxUZeIgoh1VBey-dvT9IeTL4JvGmE1))/ShowArticle.aspx?ID=238, 23 April 2015)

This newsletter is for information purposes only. Its contents do not constitute legal advice and it should not be regarded as a substitute for detailed advice in individual cases.
Transmission of this information is not intended to create and receipt does not constitute a lawyer-client relationship between Charltons and the user or browser.
Charltons is not responsible for any third party content which can be accessed through the website.
If you do not wish to receive this newsletter please let us know by emailing us at unsubscribe@charltonslaw.com