UPDATE 1-Singapore consortium back in running for Myanmar airport

Tue Feb 4, 2014 7:22am EST

(Adds comment from Myanmar government official)

SINGAPORE Feb 4 (Reuters) - A consortium including Singapore's Changi Airport Planners and Yongnam Holdings has been invited by the government of Myanmar to re-enter negotiations to build and operate a new international airport in the country.

In August a consortium led by South Korea's Incheon International Airport Corp was named as the preferred bidder to build Hanthawaddy International Airport, but those discussions have since broken down.

A Ministry of Transport official told Reuters the government wanted an airport capable of handling 12 million passengers. Incheon offered to build one with capacity for 10 million people, which was one of the issues that caused negotiations to stall, the official said.

"It doesn't mean the deal with Incheon is off now. It's just been temporarily suspended and the ball is in their court," said the official who asked not to be named because he was not authorised to speak to media.

Yongnam said in a statement that its consortium, which also includes Japan's JGC Corp, has been asked by Myanmar's Department of Civil Aviation to enter negotiations for a 30-year public-private partnership to build, run and maintain the airport. It was named in August as the back-up bidder to the Korean group.

The order was estimated in August to be worth around $1 billion and would oversee the construction of an airport near Yangon, Myanmar's former capital and commercial centre.

(Reporting by Rachel Armstrong in SINGAPORE and Aung Hla Tun in YANGON; Editing by Louise Heavens)

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