While it is 100 percent sure the Kawthoung Airport will be upgraded, it is remains unclear whether private sector takes part in the project. The Ministry of Transport and Communications (MOTC) was asked to draw an estimate of the project costs for the government. Earlier the figure that was proposed for investition from private sector was USD36 million. 65 percent of this amount was supposed to be invested by Golden Myanmar Airlines, the winner of the tender. Singapore’s KMA Resources was supposed to invest 33 percent and China’s Beijing ZH Airport and Tanintharyi Capital were expected to add 1 percent each.
After Golden Myanmar Airlines' withdrawal from the project the airline has not been refunded the premium paid for the tender as an explanation for withdrawal is still being expected. Currently, no new tenders have been called for the project.
The upgrade of Kawthoung airport will be carried out in several phases. The first phase involves setting up customs, immigration and quarantine facilities. The second phase foresees adding other facilities to raise the airport's status to international.
The KBZ Group won a similar tender for Heho airport with the estimated investment of USD40 million. The USD20 million upgrade of Mawlamyine airport will be undertaken by Hinthar Group and Bangkok Aviation Services Enterprise.
Kawthoung Airport, Myanmar, Waiting for Investment for Upgrade
News in Asia
Myanmar's Kawthoung airport, one of 3 airports chosen for upgrade to promote tourism and boost regional development, may need governmental investment as private sector is reluctant to lend a helping hand after Golden Myanmar Airlines, a domestic airline based out of Yangon, pulled out of the project.