A Chinese project that is supposed to be built in Myanmar has been shut down by the military because of the breach that was committed by the developer. The project was meant to be funded worth $500 million but it is not pushing through anymore because the understanding that has been agreed by the two sides was not followed by the developer. Aside from the high-rise project, hotel in Yangon is also growing in number.
The Myayeik Nyo project is supposed to be situated in over 13 acres in the city of Yangon. The land is under the ownership of the military and the project proposal indicated that there were 12 buildings planned to be constructed with the shortest height at 382 feet and the highest at 412 feet. The developer of the high-rise project is Zaykabar Company with U Khin Shwe as the chairman. The project was planned to be completed by 2020. It was hoped to be a landmark investment for the city which will have a serviced apartments as well as a space for a hotel building. China State Construction Engineering Corporation was the contractor of the said project.
According to an announcement made by the military, they have already sent notice to the developer in May of this year that the construction should not push through because of the project was already stopped.
A week prior to the announcement, the vice governor of the Hunan Province He Boaxiang made a visit to the construction site along with a delegation wherein the company changed the name of the project to Yangon New World Project. U Khin Shwe said that the investment is 40 percent from Zaykabar while the remaining will be covered by a company from China.
The developer was not able to follow the payment schedule they have arranged despite repeated warnings from the military. On top of the failure to pay, the developer conducted soil clearing when they are only allowed to tests the soil. The memorandum is also followed by hotel in Yangon thus they were able to construct projects in the city.