Myanmar seeks Chinese funding and design assistance for Muse-Mandalay Railway Project

20/03/2024 14:06

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Hsu/ Munich (NP News) - Mar 20

The State Administration Council (SAC) reports that attempts are underway to secure funding from China for the design of the new Muse-Mandalay railway project.

China Railway Eryuan Engine­ering Group Company (CREEC) has reportedly submitted a final report to the SAC including a financial model and feasibility study, for the Muse-Mandalay railway project.

Minister for Transport and Communications U Aung Myaing chairs the committee organized by the SAC, tasked with conducting financial evaluations for the proposed Financial Model.

A financial committee establi­shed by the SAC is reviewing the expenses outlined in the report submitted by the Chinese company for the Muse-Mandalay railway project.

In addition to the financial evaluation, the committee is exploring options to secure a low-interest loan for project implementation and seeking Chinese grant assistance to facilitate the detailed design phase of the new Muse-Mandalay railway project.

The committee is reportedly evaluating the estimated cost of supplying electricity through the Muse-Mandalay railway.

An official stated to The NP News, "Upon the completion of the Muse-Lashio-Mandalay railway, the export and import of goods and commodities can be done with reasonable expense. Trade by rail will significantly reduce costs, which is beneficial for both individuals and business owners."

In addition, the Government-to-Government Coordination Framework has been drafting for the smoother implementation of the project.

The new Muse-Mandalay Railway Construction project reportedly includes the construction of 124 bridges, 60 tunnels, and 11 power stations.

The new Muse-Mandalay Railway Construction project will span over 400 kilometers and is estimated to cost over 8 billion USD.

A Memorandum of Under­standing (MoU) for a feasibility study on the Muse-Mandalay railway project was signed in October 2018 between Myanmar's Ministry of Transport and Communications and China Railway Eryuan Engineering Group Co. Ltd (CREEC).

Upon completion, the Muse-Mandalay railway will connect Mandalay to the commercial hub of central Myanmar via Muse on the Sino-Myanmar border and become part of the China-Myanmar Economic Corridor.