Hluttaw backs down after bid to halt tender

Hluttaw backs down after bid to halt tender

By Soe Than Lynn   |   Monday, 01 July 2013

The Pyithu Hluttaw backtracked from its opposition to announcing the results of the tender on June 27 but said it would watch Telenor and Ooredoo closely to ensure they adhere to the new telecommunications law.

The Pyithu Hluttaw on June 26 approved a proposal urging the government to delay the announcement of the tender winners, scheduled for the following day, on the grounds that the telecommunications law should be introduced first to ensure adequate protections for local companies.

The government quickly announced it would proceed as planned but to smooth over any tension Minister for Communications and Information Technology U Myat Hein fronted parliament on the morning of June 27 to explain the tender process.

"The duty of the parliament is to introduce laws that are suitable for the present time and the duty of the government is to practise these laws for the benefit of the people," Thura U Shwe Mann said on June 27.

"In regards to the telecom tender issue we felt it was necessary to discuss it because we were worried that [the tender] will not be in harmony with the telecommunications law.

"The presentation from the minister for communications and information technology showed complete transparency. The tender winners have to pledge that they will completely follow the new law that the hluttaw will soon finalise. The minister also gave a guarantee on this … The Pyithu Hluttaw will monitor how [the companies] approach the telecom sector."

U Myat Hein said the announcement of the tender winners needed to go ahead as planned to "maintain the country's dignity and image". He said the government had also considered the need to ensure the tender resulted in business opportunities for local firms.

"All of the telecom firms that applied through the tender know that the new telecommunications law is still being drafted and has not yet been passed by the hluttaw," he said.

"So far the telecom tender has been praised but it would diminish the confidence of foreign investors across all sectors if we can't proceed as promised. The potential tender winners have also agreed to work under the new law."

Discussing the minister's presentation, North Dagon representative Daw Tin Nwe Oo said the process had "transparency" and accused those behind the June 26 proposal of being "dishonest".

The proposal was submitted by U Myo Swe, the representative for Tanai in Kachin State, and was approved without objection.

He said that while the tender was "a good initiative" there were concerns that Myanmar companies in the sector may "face losses in future due to the monopoly of the foreign companies".

"Under the government's telecom [tender] project, two local companies and two foreign companies look like they will be competing. The foreign companies have overwhelming capital, technology and experience – all of them are definitely superior compared to local companies," said U Myo Swe, who is also secretary of the Pyithu Hluttaw Transport, Communication and Construction Committee.

"Local firms will have fewer chances to acquire technology from foreign companies because they have to work separately," he said, suggesting instead that the foreign firms be required to form joint ventures with local companies.

"It should only happen after the new telecommunications law is enacted."

Pyithu Hluttaw Speaker Thura U Shwe Mann said Myanmar firms that tried to compete with foreign rivals "would not only be dominated but also broken eventually".

While the proposal was approved, it was not supported by all MPs, with Daw Sandar Min from the National League for Democracy describing it as "protectionism".

Translated by Zar Zar Soe

Source: http://www.news.myanmaronlinecentre.com/2013/07/02/hluttaw-backs-down-after-bid-to-halt-tender/