YANGON, March 28 (Xinhua) -- Myanmar will launch the first phase of a development project in southwestern Ayeyawaddy region by the end of this year, the official Global New Light of Myanmar reported Wednesday.

As part of the initial stage of the project, a new highway will be executed and the first phase is expected to be finalized before 2020, U Ye Linn, executive member of Myanmar Construction Entrepreneurs Federation, was quoted as saying.

The development project covers a smart city, an international airport, economic zone, housing complex and industrial facilities.

Negotiation is underway with local and foreign companies for the implementation of the project, the report said, adding that feasibility study on the highway project is being carried out by a South Korean company and is nearing complete.

Ayeyawaddy region occupies the delta region of the Ayeyawaddy River, bordering Bago Region in the north and Yangon Region in the east, and the Bay of Bengal to the south and west. It is contiguous with the Rakhine State in the northwest.

The region has an area of 35,140 square km with a population of over 6.18 million according to the National Census 2014.

The Ayeyawaddy region, flanked by the Rakhine Yoma Mountain range in the west, is the main rice producer in the country.