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ST-Myanmar's new airport still empty after six months



The Straits Times
JAN 12 2000

Myanmar's new airport still empty after six months

Cost $250m, boasts 4.2-km runway, high-tech control tower, 36 check-in counters, but...

The miracle cure for its economic ills has been thwarted by funding hitches and Western trade sanctions so far, but a Thai firm hopes to change that

By JAMES EAST
IN BANGKOK

STANDING on a plain outside Myanmar's second city sits the ghost town of South-east Asia's airline industry -- an empty gleaming US$150 million (S$250 million) international airport capable of handling three million passengers a year.

Mandalay International Airport is a technological marvel in a country famed for its ox-cart transport, crumbling colonial buildings and its tin-pot economy.

But despite being finished for six months, not one tourist plane has roared down its 4.2-km runway nor a single passenger passed through its glassed and golden-roofed terminal building.

Few outside Myanmar know of the existence of the airport, built 35 km south-west of its second city and on the fringes of Pagan, the most exquisite temple complex in South-east Asia outside of Cambodia's Angkor Wat.

Built with help from Thai construction firm Italian-Thai Development Company, the top of the range airport in Mandalay boasts a longer runway than Bangkok, a sophisticated control tower able to handle 45,000 aircraft movements annually and a fully mechanised passenger terminal with 36 check-in counters.

The pet project of Prime Minister Than Shwe, it was to have been a miracle cure for the country's economic ills, bringing in Boeing 747s full of tourists and millions of dollars of desperately needed foreign aid.

But trade sanctions imposed by Western nations and funding difficulties have until now put paid to the government's dream.

But this week, Thailand's Thai Airports Ground Services (TAGS) hopes to change all that.

TAGS expects to win a 28-year operations concession to run the airport.

TAGS president Anuphong Rojnuckarin says: "The airport is ready but they do not have the ground equipment. The airport hasn't opened because they don't have the capital or the know-how."

Mr Anuphong knows the difficulties but adds: "I'm a gambler but a safe one."

He believes his high level contacts with the government -- meeting Deputy Minister of Transport Kyaw Myint and Department of Civil Aviation chief Win Maung as well as gaining Myanmar Cabinet approval -- will help ensure the venture's success.

In Thailand, the deal is being brokered by businessman Maung Maung Gyi Al Haj, a former classmate of Myanamar's most powerful man, military intelligence chief Khin Nyunt.

Sitting at TAGS' headquarters at Bangkok International Airport, Mr Maung Maung says: "I don't think politics is a major issue at present. Compromise is what is needed. Let the people come in and naturally things will change."

TAGS is now searching the world for the equipment needed to run the airport, having received a loan of US$2 million from Thailand's Exim Bank.

Aircraft tugs, tractors and loaders will be shipped to Myanmar's capital Yangon and trucked on to Mandalay.

Mr Anuphong says Exim is anxious to see a return on the US$150 million loan it has already ploughed into the airport terminal.

Once open, Mandalay will be Myanmar's main international airport challenging Bangkok, Malaysia and Singapore as a hub for South-east Asian and Chinese traffic.

The old domestic airport at Mandalay will be shut and direct flights will be laid on from Chiang Mai, in northern Thailand, and Bangkok.

Travel companies have already promised charter flights of French tourists and scheduled flights have been pledged by China Airlines, Japan's All Nippon Airways and Thailand's Angel Air.

TAGS hopes to cater to 98 flights a week, rising by 20 per cent a year over the following four years. But human rights groups and exiled groups of students are certain to oppose any dealings with Myanmar and the opening of the airport.

Bangkok-based pro-democracy group Alt-Asean-Burma coordinator Debbie Stothard says: "We have always opposed tourism because it benefits the regime more than the people."

The ruling generals have no clue how to run the economy in a way that is attractive to foreign investors. "Many investors go wrong in a very short time in Burma," she warns.


Discouraging visitors and investment

TO WESTERN governments, Myanmar is a pariah state; its opposition leader Nobel Peace Prize winner Aung San Suu Kyi discourages foreign investment or visits by tourists; and the government is notoriously unpredictable in international relations.

In a recent tiff with Thailand, Myanmar shut its borders and banned fishermen from its waters following Thailand's failure to capture a gang of hostage takers who fled after seizing the Myanmar Embassy in Bangkok in October.