YANGON (Reuters) - Investment Commission recently reformed Myanmar this month start scrutinizing about $ 2.3 billion in foreign investment projects proposals that have been held up since April, a senior official said on Friday.
Aung San Suu Kyi, the National League for Democracy (NLD) came to power in elections last November, and the United States eased sanctions on Myanmar in May buoying hopes for a small temporary increase in foreign investment in the country that has suffered decades of economic hardship under the military regime.
But since the new government took over in April, no proposed investments have been signed by Myanmar Commission Inversiones (CMI), an powerful body that decides which projects get the green light as expected word about its structure reworked Office of the President. Kyaw Htin president announced the new composition of the group, only on Tuesday.
Aung Naing Oo, who was re-appointed as secretary of the commission, said that 102 projects have been submitted since April and approval is expected. Approximately half of these proposals are foreign investment projects, whose total value is around $ 2.3 billion.
The delay, he said, occurred because the NLD wanted to choose the right people for the commission people, but the long wait also raised concerns among the business community, fueling speculation about how the NLD, composed of many activists and former political prisoners, would handle the investment.
"There were some concerns from the business community. There were some rumors in the business community that says that there would be no MIC at all," Aung Naing Oo told Reuters.
"In addition, some investors who had already submitted their proposals in MIC were also concerned about delays in the MIC because, for them, time is money. The delay means they have to spend more money."
Aung Naing Oo said the first meeting of the renewed organ, 11 strong led by Minister of Planning and Finance was likely to take place in late June.
Aung Naing Oo said it would take about eight weeks to work through the proposals, but that the MIC was still waiting on a list of sectors to prioritize investment from the NLD.
The approval of the WCC does not guarantee investments always progress smoothly, however.
In May, lawmakers decided to scrap a hospital $ 70 million private customers in Yangon backed by the group IHH Healthcare Berhad Malaysia (KL: Ihhh), which began construction in January. MPs criticized the bidding process for the plot of 4.3 acres of a lack of transparency.
On Wednesday, lawmakers ended a proposed extension of a port terminal in the Yangon River citing environmental concerns.
Both projects had been approved by the MIC.
These decisions violate the laws of investment and risked undermining investor confidence in the commission, Aung Naing Oo said.
"According to the law, the government guarantees no completion of projects approved by the MIC," said Aung Naing Oo.
"As a responsible investment promotion official, it is not so good for the image of the country ... If we really want to promote investment, we must also consider the protection (investor)."
