Three months after over 1,000 shops were destroyed in a fire at Moulmein’s second largest market, Mon State authorities have agreed to a contract with companies who will build a replacement. Shop-owners who lost everything in the fire will be required to purchase new shop-spaces, say local sources, though they will receive a discount.
On February 19th, Lieutenant General Tha Aye from the Moulmain-based Southeast Command (SEC) called a meeting at the Mon State Peace and Development Council office to discuss the contract. According to sources close to the process as well as shop owners, business people, the SEC and officers from the Moulmein Development Affairs Department attended the meeting.
According to the sources, the rebuilding contract was awarded to the Ngwe Moe Hotel Company and the Lot Lat Thaw Eaya Hangthar Company. A third source said that shop owners must pay the two companies as well as U Nyan Thein.
“They [the companies] will build the new market and finish in about 8 months, with two stories. They will give spaces to all the owners who lost their stores in the December 1 fire,” said the third source, a man who owned a shop burned in the fire.
Owners who lost their shops will compete for the best shop locations in a random lottery, and will each be required to pay 4.2 million kyat for a new stall. The initial asking price was 5 million kyat, but shopkeepers were able to negotiate the cost downwards. Business people who did not own space in the old market and would like to purchase new space can enter the lottery for 10 to 15 million kyat.
“This cost is very high for the owners who lost everything in the fire,” said the male shop owner. “The suitable cost is about 2 to 3 million kyat per store. If the company charges about 5 million kyat per store, only 20% to 30% of old owners could continue and buy the new store. The owners who sold the miscellaneous articles are not going to be able to buy it.” Half of the profit will go to the SEC and other Mon State departments, he added.
According to a source close to the Ngwe Moe Hotel Company, shop owners will have to pay the contractors in advance, before the market is completed. Profit from the sale of all the shop space will be divided between the companies and the SEC and other Mon State administrative departments.
The original market, which was one story and home to 1,124 stores, was destroyed in a fire on December 1st. The new market is slated to be two stories, with 10 and 8 foot stalls.
A temporary market currently stands in the place of the old market. Shop owners report that they have had to pay 50,000 kyat per stall for permission to sell goods in the temporary market.
Though ground has not been broken for the new market yet, business people operating temporary stalls are apprehensive. As with the fire before the construction workers, the vendors will be displaced again.
