Myanmar privatization move gets momentum

YANGON, Feb. 5 (Xinhua) -- Myanmar's privatization move has been getting momentum with the Privatization Commission announcing auctioning of 110 more state enterprises this year under its privatization plan laid down 15 years ago.

The sale includes factories, warehouses and cinemas owned by 11 ministries and government departments.

These state enterprises to be sold out are scattered mainly in Yangon, Mandalay, Ayeyawaddy and Bago divisions and Rakhine state.

Closing date for the auction is set for Feb. 26 this year.

In a bid to turn the state-owned enterprises into more effective ones under its market-oriented economic policy, Myanmar introduced the privatization plan in 1995 which has been implemented through auctioning and leasing or establishing joint ventures with local and foreign investors.

The privatization plan also covers those enterprises nationalized in the 1960s.

The Myanmar authorities declared early this month privatization of some port terminals' handling business, offering at least three port terminals in Yangon for private enterprises to tender.

In addition, the Myanmar government planned to privatize all the state-run gas stations in the country by March 31.

Meanwhile, the Fuel Importers and Distributors Association has been formed to take over fuel trade formerly run by the state.

The move will pave way for free trade of petrol and diesel, putting an end to a system of buying fuel with ration book under restricted quota.

Moreover, the Myanmar government has awarded contracts to seven private companies to upgrade a highway connecting the two biggest cities of Yangon and Mandalay.

The 707-kilometer highway will be built under a build, operate and transfer (BOT) system by the seven companies.

Source :http://news.xinhuanet.com/english2010/business/2010-02/05/c_13164814.htm

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