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Viewing cable 06RANGOON1240, FEW TAKERS FOR LAND IN BURMA'S NEW CAPITAL

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Reference ID Created Released Classification Origin
06RANGOON1240 2006-08-30 08:35 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Rangoon
VZCZCXRO0325
RR RUEHCHI RUEHDT RUEHHM
DE RUEHGO #1240/01 2420835
ZNR UUUUU ZZH
R 300835Z AUG 06
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC 5022
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBJ/AMEMBASSY BEIJING 1089
RUEHBY/AMEMBASSY CANBERRA 9858
RUEHKA/AMEMBASSY DHAKA 4301
RUEHLO/AMEMBASSY LONDON 1764
RUEHNE/AMEMBASSY NEW DELHI 3493
RUEHUL/AMEMBASSY SEOUL 6956
RUEHTC/AMEMBASSY THE HAGUE 0544
RUEHKO/AMEMBASSY TOKYO 4573
RUEHCI/AMCONSUL CALCUTTA 0878
RUEHCN/AMCONSUL CHENGDU 0881
RUEATRS/DEPT OF TREASURY WASHDC
RUEHGV/USMISSION GENEVA 2827
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 02 RANGOON 001240 
 
SIPDIS 
 
STATE FOR EAP/MLS 
TREASURY FOR OASIA:AJEWELL 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON PGOV BM
SUBJECT: FEW TAKERS FOR LAND IN BURMA'S NEW CAPITAL 
 
REF:  A) 2005 RANGOON 1421 
 
RANGOON 00001240  001.2 OF 002 
 
 
1. (SBU) Summary: On August 20, the Naypyitaw City 
Development Committee (NCDC) announced that it will accept 
applications to buy residential plots and small business 
sites in Burma's new capital.  By tightly regulating private 
development in the new capital, the GOB aims to provide 
services to the unhappy civil servants forced to live there, 
while at the same time keeping their new administrative 
center small and controllable.  Our contacts indicate little 
interest in pursuing commercial opportunities in the new 
capital due to the restrictive conditions and uncertain 
future.  End summary. 
 
Businesses Wanted 
----------------- 
2. (U) On August 20, in full-page advertisements in Burmese 
language government newspapers, the Naypyitaw City 
Development Committee invited applications to buy real 
estate in the new capital.  The NCDC offer includes 8,000 
new residential plots of land, half located north of the 
Naypyitaw government area on the way to Taung Nyo, and half 
in the south beside the road to Lei Way.  Other real estate 
options include land allocated for small businesses, a 
shopping complex, warehouses, car workshops and a bus 
terminal.  The NCDC stated that actual sales prices would 
not be determined until the final week of August. 
 
3. (SBU) The thousands of civil servants forced to move to 
Naypyitaw without their families this year would probably 
welcome the addition of any new services in the capital. 
Cin Suan Mang, a retail trader who travels to Naypyitaw 
regularly for import/export permits told us that, with few 
existing restaurants, teashops or other diversions, and 
great distances between ministries and housing areas, 
government workers can only chat with neighbors near their 
homes or drink and gamble after work.  Those who can afford 
it take the nine-hour train ride back to Rangoon as often as 
possible. 
 
Caveat Emptor 
------------- 
4. (SBU) Naypyitaw land comes with many strings attached. 
Buyers must choose a building design pre-determined by the 
authorities, cannot resell for ten years, and can only open 
businesses on an approved list (restaurants, pharmacies, 
barbershops, beauty parlors, tailors, preschools, and 
appliance shops).  Buyers must begin building within three 
months of settlement, and finish construction within one 
year.  Buyers cannot lease their business, and all 
businesses "must operate successfully."  If owners do not 
meet these conditions, the authorities will confiscate their 
property without compensation. Applicants must also: be 
Burmese citizens; comply with all local laws; have never 
violated Burma's anti-drug and money laundering laws; and 
have no contact with "illegal organizations" or those who 
break the law.  The information office of the NCDC declined 
to explain the restrictions, but banning those with ties to 
"illegal organizations" would keep out of Naypyitaw those 
connected to political parties and organizations not part of 
the regime's "legal fold." 
 
5. (SBU) The announcement also described the government's 
plan to construct community buildings in the new area, 
including schools, markets, fire and police stations, health 
clinics, sports grounds, and parks.  The NCDC promised that 
concrete roads, stable power supplies and telephone lines, 
and water and drainage systems would service all new 
facilities.  Ma Moe, a real estate agent who frequently 
visits Naypyitaw, told us that sales would be sluggish 
because most people doubt the GOB's commitment to supply 
modern infrastructure beyond their own compounds. 
 
 
RANGOON 00001240  002.2 OF 002 
 
 
6. (SBU) Tin Maung Win, an engineer, told us that it would 
be impossible to start construction within the prescribed 
three-month window.  He also shared that a high-level GOB 
official close to him warned against investing in Naypyitaw 
because of the tight restrictions.  Many traders regularly 
visit Naypyitaw to conduct business with the government, but 
few intend to establish a permanent base there.  Others we 
contacted, including tourism sector manager Kyaw Ni Khin, 
hotelier Nay Zin Latt and journalist Min Naing Soe, agreed 
that the Naypyitaw opportunity is unattractive because of 
the government's unreasonable conditions and uncertainty 
about the new capital's future. 
 
7. (SBU) Comment: The GOB's strict sales terms are intended 
to dissuade speculators yet facilitate the development of a 
controllable, compliant commercial presence in the new 
capital.  With most civil servants forcibly relocated to the 
new capital, there is a captive market for shops and 
services.  We do not expect many grand openings in the near 
future since most business people see the regulations and 
risks as still outweighing any potential rewards.  End 
comment. 
 
VILLAROSA