William D. Greenlee, Jr., Partner and Deputy Managing Director (Myanmar), was recently quoted in the International Financial Law Review (IFLR) article “What Will Kickstart Myanmar Project Finance” about the development of large-scale project finance in Myanmar.
Myanmar’s government has not developed the regulatory structures that will easily facilitate large international lenders financing projects in Myanmar.
Some of the projects that are likely for the near future are related to electricity generation, both gas and coal-fired plants, as well as hydropower projects. Greenlee mentions that the Myanmar government appears to be moving away from large hydropower projects, possibly because the reservoirs in dams are so low during the dry season.
The current regulatory regime does not always provide international banks with the option to secure as much collateral as they would like. Greenlee notes that the new Foreign Investment Law of November 2012 provides encouraging signs of future changes regarding collateralization of loans in Myanmar and represents a huge step forward.
To read the IFLR article, please click here.
For more information about DFDL’s office in Myanmar, please click here.