Pyidaungsu Hluttaw gives green light to euro 30 million soft loan from Italy

Pyidaungsu Hluttaw Speaker U T Khun Myat delivers the speech at the eighth-day meeting of the Second Pyidaungsu Hluttaw’s ninth regular session in Nay Pyi Taw. Photo: MNA
Pyidaungsu Hluttaw Speaker U T Khun Myat delivers the speech at the eighth-day meeting of the Second Pyidaungsu Hluttaw’s ninth regular session in Nay Pyi Taw. Photo: MNA

At the eighth-day meeting of the Second Pyidaungsu Hluttaw’s ninth regular session held at the Pyidaungsu Hluttaw meeting hall yesterday morning, the Hluttaw decided to accept a euro 30 million soft loan from Italy to implement projects of the Ministry of Agriculture, Livestock and Irrigation.
The matter was sent to the Hluttaw by the President. During the meeting, Pyidaungsu Hluttaw representatives also discussed a US$40.5 million loan from the Asian Development Bank (ADB) for projects of the Ministry of Agriculture, Livestock and Irrigation. This matter was also sent to the Hluttaw by the President.
3Euro 30 million soft loan from Italy
Responding to suggestions made by Hluttaw representatives on the loan from Italy, Deputy Minister for Agriculture, Livestock and Irrigation U Hla Kyaw said that in continuing the implementation of rural electrification work, selection of villages, formation of village electrification committees, assuring quality and maintenance work would be conducted systematically, according to suggestions from Hluttaw representatives. In the same way, tenders would be called with the help and advice of international consultants, and a group consisting of international experts and departmental officials will assess and evaluate, sign agreement, inspect samples, conduct preliminary project works, monitor and assure quality. The people putting up funds in proportion to the installed system are for them to have a sense of participation and for the sustained existence of the system. For people who are unable to put up their portion of fund, discussions would be made with the World Bank and current partner organizations, to determine suitable ways and means.
Private investors and rural people need to discuss first. Only when the private investors and rural people agree and the rural people can afford, should the work on the small scale electricity generation system work be conducted by the Rural Development Department, investors and rural people.
The Italian government is providing the soft loan with the aim of supporting electrification of the entire country through a preliminary electrification system in villages far away from the national grid. With this loan, villages in states and regions that are far from the national grid and where transport is difficult will be provided with electricity. The euro 30 million is interest free with a grace period of 18 years and repayment period of 10 years. Starting from fiscal year 2036-2037, euro 3 million will be repaid every year. The repayment amount will be included in the yearly budget and will be conducted with the permission and agreement of the Union Government and Pyidaungsu Hluttaw, said the Deputy Minister.
In the same way Deputy Minister for Electricity and Energy Dr. Tun Naing said the government is striving towards providing electricity to the entire country. At the moment, 41 per cent of the population is receiving electricity from the national grid but for people in places where transport is difficult, there are difficulties in constructing national grid lines and independent mini-grids need to be constructed. As this loan will enable the construction of mini-grids, it will provide electricity to such places speedily.
Similarly, Deputy Minister for Planning and Finance U Maung Maung Win said the works to be conducted with the loan will be implemented by the Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation. Ministry of Planning and Finance, Ministry of Agriculture, Livestock and Irrigation Department of Rural Development and representatives from Italy will coordinate and continue the work of acquiring, utilizing and repaying the soft loan. Together with the loan regulations, procedures and regulations on purchasing materials should be followed as discussed by the Hluttaw representatives, said the Deputy Minister for Electricity and Energy.

Discussion on US$40.5 million loan from ADB
Next, matter sent by the President regarding the US$40.5 million loan from the Asian Development Bank (ADB), matter sent by the President, for projects of the Ministry of Agriculture, Livestock and Irrigation was discussed by Hluttaw representatives.
Daw Cho Cho of Ottwin constituency, U Sein Win of Maubin constituency, Tatmadaw representative Maj Zaw Win Naing, U Kyaw Lwin Aung of Sedoktara constituency, U Kyaw Tote of Mandalay Region constituency 7, Daw Khin Than Nu of Mindon constituency, U Tun Tun of Pwintbyu constituency, U Win Win of Minbu constituency, U Kyaw Kyaw of Rakhine State constituency 4, U Yan Lin of Kyaiklat constituency, U Win Maung of Magway Region constituency 6, U Bo Gyi of Chauk constituency, U Min Thein of Taungdwingyi constituency, Dr Tin Htay Aung of Yesagyo constituency, Dr. Zaw Win Myint of Singu constituency and U Kan Myint of Thayet constituency discussed the loan. The ninth-day meeting of the ninth regular session of the Second Pyidaungsu Hluttaw will be held on 15 August, it is learnt. — Myo Myint, Han Lin Naing (MNA)

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