1. On Friday, 28 December 2012, H.E. Mr. Mikio Numata, Ambassador of Japan to the Republic of the Union of Myanmar, and H.E. Dr. Khin San Yee, Deputy Minister for National Planning and Economic Development of the Republic of the Union of Myanmar, signed and exchanged notes on grant aid projects to Myanmar for “Project for Urgent Improvement of Communication Networks” and “Food Security Project for Underprivileged Farmers”, and H.E. Mr. Mikio Numata, Ambassador of Japan to the Republic of the Union of Myanmar and H.E. U Aung Than Oo, Deputy Minister for Electric Power of the Republic of the Union of Myanmar, signed and exchanged note on “Non-Project Grant Aid” in Nay Pyi Taw. The amount of those grants are upto 1,710 million yen, 230 million yen and 800 million yen respectively.

2. “Project for Urgent Improvement of Communication Networks” will develop the core network of Yangon, Nay Pyi Taw, and Mandalay and between those cities, in order to deal with the increasing volume of communication and development of communication sector, while the Government of Myanmar is working to create jobs and to improve the livelihoods of people through promoting private sector. In Myanmar, the penetration percentages for land-line phone, mobile phone, and internet, remains low level; however, this sector is expected to grow under the new government’s communication policies such aslower communication service charges.

3. “Food Security Project for Underprivileged Farmers” will provide grant aid to Agriculture Tractor Stations in Nay Pyi Taw, Ayeyawady, Bago (East) and Yangon, as well as 4 Wheel Tractors including attachments and Combine Harvester to the training center in Meiktila. By lending on farmers with agricultural equipment, this project aims to expand farmland and increase agricultural produce. At the same time, through provision of technical training for farmers, this project should contribute to human resource development and technology transfer for farmers, operators, and mechanics. Since more than 60% of Myanmar’s population depend on farming, and agriculture sector constitutes a quarter of GDP, agriculture is a very important sector for Myanmar. In this contest, this project should assists the Ministry of Agriculture and Irrigation’s policy of transforming farming into modern mechanized farming.

4. “Non-Project Grant Aid” will be used to improve Myanmar’s chronic electric shortage that has been one of the major obstacles to the people’s life and economic activity. In addition to the diesel generators that have been decided to provide earlier this year, Japan also provides additional 800million yen for purchasing fuels for diesel generator and thus improve the electric supply, which is vital for future economic development and improvement of people’s livelihoods.