Myanmar’s Union Parliament approved a proposed loan from the Asian Development Bank (ADB) worth around $483.8 million to finance construction of the Bago–Kyaikto highway. The Bago–Kyaikto highway lies along the Greater Mekong Subregion (GMS) East–West Economic Corridor (EWEC), which links Myanmar to Thailand, Lao People’s Democratic Republic, and Viet Nam, and Myanmar’s Thilawa Port in Yangon to Viet Nam’s Danang Port. Myanmar’s Deputy Construction Minister U Kyaw Linn noted to Parliament that the expressway would contribute to Myanmar’s economic development, and increase linkages and trade among GMS countries. 

The planned ADB loan will address capacity issues and improve road safety by constructing a new 62 kilometer-long Bago-Kyaikto expressway with 4-lanes. A 2.3 km bridge will also be constructed across the Sittaung river. The highway will connect the Bago region to the Mon State, and boost connectivity in the country through linking with the Bago–Thanlyin road in the Yangon Region, Yangon outer ring road, Hanthawaddy International Airport in Bago, and the Yangon–Mandalay Highway.  

The ADB-financed GMS Highway Modernization Project, amounting $194.70 million and approved in November 2018, financed preparation of the detailed design for the Bago-Kyaikto highway, as well as improvements for the Bago-Thanlyin highway and the Yangon-Mandalay expressway. The pre-feasibility study for the Bago-Kyaikto expressway was prepared in cooperation with the Japan International Cooperation Agency (JICA).