1. On 18 January 2017 in Nay Pyi Taw, H.E. Mr. Tateshi HIGUCHI, Ambassador of Japan to the Republic of the Union of Myanmar and H.E. U Maung Maung Win, Deputy Minister for Planning and Finance, signed Exchange of Notes for five ODA Loan Projects, which amount to approx. 93.97 billion Yen ( approx. US$ 824 million).

2. Outline of the Projects

(1) Regional Development Project for Poverty Reduction Phase II (Japanese Yen 23,979 million, approx. US$ 210 million)

This project aims to build, renovate and install basic infrastructure (roads/bridges, electric power, water supply), which contributes to social economic development of rural areas in Myanmar, following Regional Development Project for Poverty Reduction (PhaseⅠ). This project will improve the lives of the people residing in rural areas, contributing to the development and poverty reduction in rural areas.

(2) Yangon-Mandalay Railway Improvement Project Phase I (II) (Japanese Yen 25,000 million, approx. US$ 219 million)

This project aims to repair and modernize deteriorated facilities and equipment between Yangon and Taungu and procure new rolling stocks. This project will ensure the safe and high speed train operation and increase the transport capacity, contributing to the economic development in Myanmar.

(3) Greater Yangon Water Supply Improvement Project (Phase II)(I) (Japanese Yen 25,000 million, approx. US$ 219 million)

This project aims to construct and renovate water purification plants and water supply distribution networks issuing from Kokkowa River in Yangon City. This plan will improve the water supply service in Yangon city, contributing to improving of the living environment of the local residents.

(4) Power Distribution System Improvement Project in Major Cities (Japanese Yen 4,856 milliom, approx. US$ 43 million)

This plan aims to rehabilitate and upgrade the electric distribution network equipment in the major cities of rural areas in Myanmar. This plan will improve the electricity supply in the major cities of rural areas in Myanmar, contributing to the economic development and the improvement of the living standard of people.

(5) Agriculture and Rural Development Two Step Loan Project (Japanese Yen 15,135 million, approx. US$ 133 million)

This plan aims to provide Myanmar farmers with two-step loan through medium and long term funding to the Myanmar Agricultural Development Bank and to support capacity building of the bank. This plan will facilitate financial intermediation related to agricultural and rural development finance in Myanmar and improve farmers’ productivity, contributing to balanced development between urban and rural areas and modernization of agriculture and agricultural financial sectors.

3. Conditions

All five projects are supplied with the conditions of (1) 0.01% interest rate per annum, (2) forty years of repayment period (including ten years of grace period) and (3) untied procurement.