India to complete Myanmar port project in May.

India will complete the reconstruction of Sittwe port and the associated river transport facilities, as part of the Kaladan Multi-modal Transit Transport Project in Myanmar, in May this year.

The project cost, however, is expected to be 29 per cent higher at Rs. 450 crore, compared with the initial estimate of Rs. 350 crore, largely due to unexpected volatility in exchange rate, say sources.

The rupee-denominated project was awarded at a time when one dollar was fetching Rs. 44 and Myanmar Kyat 900. Both the currencies are now ruling at much lower levels.

'The port and the river transport facilities will be ready for operations within the extended timeline of May 2015,' a Government official told BusinessLine.

While the commissioning of the port-cum-waterway will surely boost bilateral relations, India has to wait for years to start transhipment of goods to Mizoram in the North-East, as the Ministry of External Affairs (MEA) is yet to kick off the road transport part of the Kaladan project.


HBL