Naypyidaw, Myanmar: Yesterday Parliament approved the Ministry of Transport and Communications proposal to take out a Euro 5 million loan from the KFW known as German Government-owned Development Bank to upgrade the Locomotive Shed (Ywahtaung) under the Myanmar Railways (MR).
Transport and Communications Minister Thant Zin Maung submitted the proposal to the Union Parliament on February 17.
The project’s objectives are the renovation the German made Locomotives running on the Mandalay-Myitkyina Railroad, to installation the Universal Wheel Lathe, major renovations to coaches and wagons, upgrading the Technical High School, capacity building training of staffs for the emergence of skillful and qualified human resources.
3.25 of the loan will be used for the renovation of seven locomotives and the purchase of a Universal Wheel Lathe, and 1 million will be used for the lathe’s maintenance.
Moreover, a quarter million of the loan will be spent on the purchase of supporting equipment for Railways Technical Training School (Ywahtaung) and fees for the State leaders.
The interest rate of the loan is 0.75 per cent per year and the suspension period is 10 years. The loan must be paid back within 30 years.