YACL applies for Kawthaung Airport upgrade tenders

YACL applies for Kawthaung Airport upgrade tenders
Published 21 December 2019
Shun Le Win

 

YANGON-Yangon Aerodrome Company Limited (YACL), company green-lighted to work on the Yangon International Airport, already tendered for upgrading services on Kawthaung Airport.

In order to upgrade, the Kawthaung Airport through a public-private partnership (PPP) system, the Request for Proposal had been tendered for the upgrading of three domestic airports to the local and foreign developers, according to the Department of Civil Aviation.

‘We are going to carry out upgrades on the Kawthaung Airport. If there is no private investment, it must be carried out with the assistance from the state budget. However, some private companies are keen on upgrading the Kawthaung Airport. So, we’ve called for tender. The YACL , which was also granted to upgrade the Yangon International Airport, already tendered for upgrading tasks on Kawthaung Airport,” said a high-ranking officer from the Department of Civil Aviation.

The YACL took over Yangon International Airport’s operation and management in October 2015 under a PPP tender from Myanmar’s Department of Civil Aviation and the Ministry of Transport and Communications.

The agreement is for 30 years of operation, with an option to renew for a further 20 years. Based on the estimated six million arrivals in 2018 and the significant investments to date, Yangon is currently operating well below its sustained capacity.

It is the second time of tender offering to upgrade the  Kawthaung Airport as the first tender winning Golden Myanmar Airlines Public Company backed off from the project.

Plans were underway to upgrade three domestic airports: Heho Airport in Shan State, Kawthaung Airport in Taninthayi Region and Mawlamyaing Airport in Mon State to the international standard by joining hands with the private companies.

It is expected that the upgrade for Heho airport will cost US$ 40 million, with US$ 20 million and US$ 36 million respectively for Mawlamyaing and Kawthaung Airports.