The Ministry of Tourism’s Directorate of Hotels and Tourism signed a Build, Operate and Transfer (BOT) contract and land leasing agreement with Vietnam’s Hoang Anh Gia Lai Group (HAG) for a US$300 million mixed-use complex in Yangon, state media reported Thursday, December 20.
Officials from the Ministry of Tourism met with representatives from the HAG on Wednesday, December 19 at Amara Hotel in Nay Pyi Taw to sign for the construction of the multi-purpose Hoang Ang Gia Lai Myanmar Centre.
The BOT concession contract comes after the Ministry invited foreign companies to invest in Myanmar’s tourism sector.
The Hoang Anh Gia Lai Myanmar Centre, now in its first phase of construction, is being built on Kabar Aye Pagoda Road in Yangon’s Bahan township.
The centre is expected to include a five-star hotel with business and recreation facilities; retail space and restaurants; and offices and apartments for lease.
HAG has announced that all legal procedures to develop the 8-hectare plot have been completed, according to Vietnamese news agency Tuoi Tre.
“The realty market in Myanmar has become heated after the country opened to the world, and we are speeding to grab this chance,” Le Hung, CEO of HAG Land, told Tuoi Tre on Wednesday, December 19.
“We have finished clearing site on the leased land plot,” he confirmed.
The first phase of construction is slated for completion by 2015, while the second and final phase should be completed by 2017, according to the Directorate of Hotels and Tourism.