Following the March 28 Sagaing earthquake measuring 7.7 magnitude that caused extensive damage to government buildings in Naypyidaw, including the Presidential Palace, ministerial offices, staff housing, military offices, hospitals, and parliament buildings, military council leader Min Aung Hlaing has ordered the original construction companies to participate in reconstruction efforts. The council leader blamed the widespread collapse on substandard construction quality during the initial building phase.
An official directive was issued on April 26 requiring the original construction companies to contact the Naypyidaw Development Committee’s Building Renovation and New Construction Supervision Committee. The military council leader has assigned Defense Minister General Maung Maung Aye to oversee the reconstruction of Naypyidaw, promising tax exemptions for necessary construction materials including cement, steel, and other building supplies.
Naypyidaw was established as the capital city in 2006 when government ministries were relocated there. The city was originally built by major crony companies including Htoo, Eden, Asia World, Max Myanmar, IGE, Shwe Thanlwin, and ACE. These companies are now required to respond to the military council’s order regardless of whether they are still in operation or not, with warnings of potential consequences for non-compliance according to the original construction contracts.
Construction companies have expressed concerns about the feasibility of rebuilding the collapsed structures at current market prices, fearing significant financial losses. According to a member of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), some crony business owners are worried about potential imprisonment if negotiations fail, leading to considerable anxiety among the business community. The situation highlights the complex relationship between the military council and the business sector in Myanmar’s current political climate.
