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Govt housing project in the red before development commences

Myanmar real estate news While the Yangon Region government has injected K54billion into the development of the Mahar Yangon new city project, construction has yet to commence, according to a 2016-17 report prepared by the Yangon Region Office of the Auditor General. Meanwhile, the project has already chalked up K11.6 million in costs.

When it is complete, Mahar Yangon is expected to consist of several housing projects, including the Mayangone Villa housing project, Parami housing project, civil servant housing and a mixed-use project. It will also include a dry port industrial zone. Staff housing will be constructed to support the industrial projects.

It is the first company established by the government to oversee housing construction. However, it co-invested with Myanmar Construction Development Public Company as it has no experience in construction, said U Shein Win, director of the Metropolitan Development Public Co.

So far, land measurements have already been carried out for the civil servant housing in Dagon Seikkan township as well as for Mayangone Villa and the dry port industrial zone.

The regional government will fund the Mayangone Villa project, which is being developed over 11.9 acres of land and will include six buildings when complete. The project was transferred to Yangon by the Urban and Housing Development Department.

The Yangon Metropolitan Development Public Co was formed by the Yangon government to develop and oversee the project. The Yangon government has taken a 51 percent stake in the company, while Myanmar Construction and Development Public Company (MCD), a private firm, mopped up the remaining 49pc.

Auditor General Daw Khin Tha Hla warned though, that funds may be lost or wasted should unforeseen complications take place as a result of the transfer. As such, plans and a clear line of management should be drawn out to ensure the project is successful.

Ref: Myanmar Times News