The Organisation of Petroleum Exporting Countries (OPEC) will assist Myanmar in building two edible oil mills worth $5 million, reports Xinhua.

The projects, which also involve the UN Food and Agricultural Organisation (FAO), will be implemented in this capital city and the second largest city Mandalay, the FAO resident representative was quoted as saying by the 7-Day News journal Thursday.

OPEC is currently implementing a $12 million project to help Myanmar upgrade its oil crops production for self-sufficiency. The government will provide another $2 million for the venture.

The five-year project, the biggest since 1988, will assist farmers in 36 main oil seed growing areas and deal mainly with the development of oil palm and four oil seed crops - sesame, groundnut, sunflower and soybean.

Myanmar obtained OPEC's international development fund in May 2003, which was provided at an annual interest rate of one percent payable in 25 years.

OPEC has previously provided Myanmar with loans for agriculture, telecommunications, energy, transport and water supply improvement networks.

According to official statistics, Myanmar produces around 250,000 tonnes of edible oil annually and imports the same amount of palm oil to meet its local demand. Its cultivated areas of oil crops have reached 2.8 million hectares. 

The country has been making efforts to turn southern Tanintharyi division into an oil bowl. Companies from Malaysia and Thailand are carrying out feasibility studies for investment in oil palm cultivation in Myanmar.