(AP3F006-PM001) Project performance support relating to the restructuring of the first four existing toll road concessions
COUNTRY:
Myanmar
TA AMOUNT:
$1,538,008
TYPE OF ASSISTANCE:
Project Monitoring
PROJECT STATUS:
Active
Beneficiaries
Ministry of Construction (MOC), Department of Highways (DOH)
Background

MOC has delegated a large share of its road network to the private sector for maintenance and rehabilitation under a BOT modality. These concessions are for brownfield road projects, with a contractual term of 40 years, extendable to 55 years.

There are currently 63 toll roads in Myanmar, which are managed by 28 private companies and cover a length of 5,545 km.

The existing concessions agreements are very basic and do not adequately define key performance indicators. The recently concluded ADB technical assistance (TA-87881), states that all private operators are under-performing, with the exception of one or two. The majority of operators have either ceased to maintain and upgrade the assets, or have defaulted (or nearing default) on their commercial and financial obligations. Many of the existing private operators have expressed their willingness to restructure their existing contracts.

MOC seeks assistance from AP3F regarding the restructuring of some of these existing road concessions.

Key Activities
  • Develop adequate and appropriate template documentation that will support the restructuring of BOT projects

  • Develop tendering documents for PPP projects

  • Restructure four (4) concessions, including Yangon-Pathein, with a view to improving service delivery and asset quality

  • Strengthen capacity of PPP unit within MOC to manage PPP road projects

  • Develop and maintain a database of all BOT concessions managed by MOC

Expected Outcomes
  • Model concession agreements and sample tendering documents provided through AP3F assistance by 2020

  • At least one BOT concession restructuring to reach commercial close by 2017

  • Concession database ready for use by 2017

  • Standardized project selection criteria and contract performance monitoring developed by 2017