Procedures Relating to the Foreign
Investment in Hotels and Commercial Building Projects
1. Official appointment letters to be sent to
the head of Office of the Ministry of Hotels and Tourism for the
appointment with the Minister. During the meeting, the Company
profile shall be presented followed by discussions.
2. After visiting the interested area, the investor is to prepare
the project proposal.
3. The proposal shall include the following salient points.
(a) Master Plan for the project with
conceptual drawings. Types of building and future development
plan shall be included.
(b) Type of Investment with estimated project cost, that is,
stating the Investment is to be made in one phase of to be spilt
into two phases and whether it is 100% or joint venture.
(c) Financial plan for the project shall be mentioned especially
the share holder’s equity and bank loans.
(d) The lease period of the project is 30 years term based on
build- operate-transfer (B.O.T) system. At the end of the leased
period, all the assets are to be transferred to the Ministry.
The investor shall have the option to enter into management
contract of the project for further five year term, three times
(e) The period of the construction is one to two years for the
phase one of the project. The whole project must be completed in
(f) Front payment for the Land Use Premium depends upon the
location, the area and the investment amount of the project. It
shall be paid in two installments. The first installment which
is 50% of the total must be settled on the date of singing the
contract and the rest is to be paid on the date of ground
breaking of the project.
(g) The investor has to pay the Land Lease Rental of the project
from the date of its opening which has already been agreed upon
by the contract. It is collected on the gross income of the
project at certain ratio or the minimum guarantee payment
whichever is higher. Payment should be settled quarterly.
(h) Project of environment awareness, project for return on
investment, human resource development, positive impact on local
community should be mentioned in the proposal.
4. After having discussed on the project
proposal, Memorandum of Understanding shall be signed between the
two parties in the initial stage.
5. The Ministry will report the said MOU to the Myanmar Investment
6. Then, the two parties will prepare for the draft agreement so as
to propose legal advice from the Attorney General Office.
7. With the legal Advice, the draft agreement shall be submitted to
the Myanmar Investment Commission.
8. The Myanmar Investment Commission will seek approval from the
9. After the draft project proposal is approved, both parties can
sign the contract.
10. During the construction period, the Ministry will assist the
project to be completed in time such as import of materials from
abroad, negotiation with local authorities, recruiting of labour,
security of the project site, facilitation of travel for the experts
MYANMAR INVESTMENT PROCEDURES