CPG Consultants, the key adviser for inviting international developers to the Kyaukphyu Special Economic Zone (KP-SEZ) in Myanmar, has announced the evaluation criteria and tender process for the zone at a road show recently.
The KP-SEZ Road Show was hosted by a consortium of Singapore-based companies, led by CPG Consultants, all tasked with developing the master plan for Myanmar’s newest special economic zone, which is a partnership with Bid Evaluation and Awarding Committee (BEAC) of KP-SEZ.
KP-SEZ is in Rakhine state and strategically located to connect the dynamic economies of ASEAN, India and China. KP-SEZ is home to Myanmar’s only natural deep-sea port and host to abundant natural resources in oil and gas and plentiful marine resources.
The development area of the first phase of the KP-SEZ is 19.51 square kilometres with 10 sq km expected to be developed for industrial use and 5 sq km for residential, which is expected to accommodate 40,000 housing units as well as schools, hospitals and shopping areas.
KP-SEZ has three development components that include the deep-sea port, an industrial park and integrated residence.
The committee is expected to host companies in construction materials, textile manufacturing, food processing, oil and gas and tourism industries.
The speakers at the road show emphasised the government’s commitment to developing the KP-SEZ in a transparent manner that takes into account the needs of local populations and environmental impact.
According to CPG Consultants, the planning thus far has included stakeholders at all levels, including local residents who have shared their concerns for the project.
Also noted with enthusiasm at the road show is the government’s commitment to developing supporting infrastructure, such as energy, telecommunications, water and road upgrades, and connecting the SEZ to the national highway.
KP-SEZ will provide the same investor incentives as Thilawa and Dawei SEZs, as per the 2012 Special Economic Zone law. This includes generous tax incentives and exemption from customs duties for approved businesses needing to import construction materials, machinery and equipment, vehicles and other items.
On July 14, the government will issue a call for three expressions of interest (EOI) for the development of the deep-sea port, industrial park and integrated residential area. Upon receiving a payment of $1,000 (K1,000,000), an applicant will be issued the EOI application, which must be submitted by August 11. Short listed candidates will be notified by September 9.
Short-listed candidates will be asked to submit a request for proposal (RFP) on September 15, which is due by November 10. The award of the tender is expected to be announced in early 2015.
For the deep sea port, companies will be evaluated based on their experience in the design, development, finance and operation of at least one port terminal (60 percent) and their finances from the previous three fiscal years (40 percent).
In case of theindustrial park, companies will be evaluated based on the completion of projects within the past seven years (50 percent), the past three fiscal years (40 percent), and awards and certifications (10 percent).
For the residential area, companies will be evaluated based on the completion of projects within the past seven years, with emphasis on large projects (50 percent), financial strength represented in the organizations past three fiscal years (40 percent) and any awards and certifications (10 percent).