Yongnam

Yongnam: is part of a consortium that has received an invitation from the Department of Civil Aviation (DCA) in Myanmar to enter into negotiation on the design, construction, operation and maintenance of Hanthawaddy International Airport and its facilities on the basis of a public-private partnership agreement for a 30-year concession period. The airport, in Bago, near Yangon, is estimated to cost between US$1.1-1.5b, and would be capable of handling 12m passengers per year. The Yongnam-led consortium was initially named as back-up tenderer for the Hanthawaddy International Airport last year, when the contract was awarded to a South Korean consortium led by Incheon International Airport Corporation. Reuters had reported an anonymous tip off that discussions between the South Koreans and Myanmar Gov’t had since broken down. Per street rumours, the South Koreans did not put a downpayment for the project for reasons ranging from poor legal framework to poor returns on additional unanticipated costs. If indeed these rumours were why the South Koreans backed out, Yongnam might suffer the winner’s curse if they were to go ahead. The Yongnam-led consortium was also named a back-up tenderer for Yangon International Airport. Yongnam cautions that the invitation may or may not conclude successfully.