By AUNG THET WINE
RANGOON — Burmese authorities have told businessmen in the construction sector to complete their stalled their projects across the country or face nationalization.
“The Department of Human Settlement and Housing Development, Ministry of Construction met with private construction businessmen to sign a notification of this nationalization program,” a well-known construction businessman told The Irrawaddy.
Khin Shwe, the chairperson and owner of Zay Gabar Construction Company, confirmed the move during the annual meeting of the Myanmar Construction Entrepreneurs Association held on March 14.
An estimated 100 construction projects are currently stalled in Burma. The stalled projects include companies such as Zay Gabar and Htoo, whose owners are close to high-ranking members of the military regime.
Since 2007, many construction companies have lost their operating capital due to the financial crisis which halted numerous housing projects, according to businessmen.
“Contractors have been losing money for two years successively and have yet to overcome the situation,” said a 50-year-old contractor. “In this period of the global financial crisis, it is impossible to complete stalled housing projects.”
Observers in Rangoon said that, like other Asian governments, the Burmese regime should support to the businessmen, because their companies are in a slump.
“The government needs to prop up the construction companies to be able to survive [in this critical moment]. Every contractor wants to complete their projects, but they halted the work due primarily to the [financial] difficulties,” said a housing contractor. “The construction business [in Burma] will collapse if the government just pressures companies without giving any assistance.”
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