Myanmar government is planning to use Chinese loans to cover the electrical expenditures of two major low-cost housing projects in the outskirts of Yangon, according to the Ministry of Construction.

Myanmar will borrow a total of US$9 million from Chinese EXIM Bank for the public housing and infrastructure projects, according to the government's projections for investments in national projects and foreign loans during 2013-14.

Chinese loans will be used for electrical expenses in Ayeyarwun and Yadana housing projects located in Dagon Seikkan Township, said an official from the Ministry of Construction.

Ayeyarwun project lies on 120 acres of land and it will consist of 26 buildings, each 18-storey high. Meanwhile, 22 building of the same height will be built at the Yadana project on 100 acres of land. The two housings together will provide nearly 20,000 units of rooms.

Shwe Taung Development Company and IGE Company will build these two housing projects separately in cooperation with the Department of Human Settlement and Housing Development. Both Shwe Taung and IGE companies are the well-connected local companies in Myanmar.

Myanmar's civil housing sector is facing several challenges due to the growing population and weak infrastructures in the major cities. Soaring land prices, lack of effective regulations regarding with civil housing development, and government's budget constraints are causing difficulties in the sector, officials said.