Procedures Relating to the Foreign Investment in Hotels and Commercial Building Projects
1. Official appointment letters to be sent to the head of Office of the Ministry of Hotels and Tourism for the appointment with the Minister. During the meeting, the Company profile shall be presented followed by discussions.
2. After visiting the interested area, the investor is to prepare the project proposal.
3. The proposal shall include the following salient points.
- Master Plan for the project with conceptual drawings. Types of building and future development plan shall be included.
- Type of Investment with estimated project cost, that is, stating the Investment is to be made in one phase of to be spilt into two phases and whether it is 100% or joint venture.
- Financial plan for the project shall be mentioned especially the share holder’s equity and bank loans.
- The lease period of the project is 30 years term based on build- operate-transfer (B.O.T) system. At the end of the leased period, all the assets are to be transferred to the Ministry. The investor shall have the option to enter into management contract of the project for further five year term, three times in succession.
- The period of the construction is one to two years for the phase one of the project. The whole project must be completed in three years.
- Front payment for the Land Use Premium depends upon the location, the area and the investment amount of the project. It shall be paid in two installments. The first installment which is 50% of the total must be settled on the date of singing the contract and the rest is to be paid on the date of ground breaking of the project.
- The investor has to pay the Land Lease Rental of the project from the date of its opening which has already been agreed upon by the contract. It is collected on the gross income of the project at certain ratio or the minimum guarantee payment whichever is higher. Payment should be settled quarterly.
- Project of environment awareness, project for return on investment, human resource development, positive impact on local community should be mentioned in the proposal.
4. After having discussed on the project proposal, Memorandum of Understanding shall be signed between the two parties in the initial stage.
5. The Ministry will report the said MOU to the Myanmar Investment Commission.
6. Then, the two parties will prepare for the draft agreement so as to propose legal advice from the Attorney General Office.
7. With the legal Advice, the draft agreement shall be submitted to the Myanmar Investment Commission.
8. The Myanmar Investment Commission will seek approval from the Higher Organization.
9. After the draft project proposal is approved, both parties can sign the contract.
10. During the construction period, the Ministry will assist the project to be completed in time such as import of materials from abroad, negotiation with local authorities, recruiting of labour, security of the project site, facilitation of travel for the experts etc.
MYANMAR INVESTMENT PROCEDURES