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Myanmar: Dawei SEZ continues at a snail’s pace
The long-delayed Dawei special economic zone (SEZ) project is still moving at a glacial pace, with new development unlikely to take shape until the tripartite meeting among Thailand, Myanmar and Japan in April. Porametee Vimolsiri, secretary-general of the National Economic and Social Development Board (NESDB), said the development of the first phase of the Dawei project has stalled as Japan and Myanmar want to take into account a full-phase master development plan. Thailand wants the development of the first phase, especially for the construction of the road linking it with Myanmar, to conform with the comprehensive master plan of the Dawei SEZ project.
The Japan International Cooperation Agency is scheduled to submit a comprehensive development plan for the project to the tripartite meeting next month.
Once approved, the master plan still needs approval from the Myanmar-Thailand Joint High-Level Committee before any new developments can proceed.
Mr Porametee said Thailand and Myanmar had jointly surveyed the 138-kilometre road, from Dawei’s proposed deep-sea port to Ban Phu Nam Ron, Kanchanaburi, before the latter asked for loans to finance road construction. The Thai government agreed to offer a 4.5-billion-baht loan to Myanmar to finance the road in 2015, but Myanmar only agreed to borrow the funds last year at a 0.1% interest rate with a 10-year grace period and 20-year repayment window.
The Thai cabinet has already endorsed the loan plan, but the road construction was subject to delays as the new Myanmar government asked to restudy the plan.
Myanmar and Thailand first signed a memorandum of understanding to develop the area in 2008, with the aim of transforming Dawei into Southeast Asia’s largest industrial and trade zone.
Two years later, Myanmar granted a 60-year concession to SET-listed Italian-Thai Development Plc (ITD) to develop a deep-sea port, industrial estate, road and rail links.
ITD then withdrew from the agreement in 2013 citing financial difficulties, before re-signing the first phase of the megaproject, which covers 18,000 rai, with an initial investment budget of UScopy.7 billion (52.9 billion baht) The first phase consists of a 27 sq km industrial estate, a liquefied natural gas receiving terminal, telecom landlines, a power plant, a small port and reservoir. Of the total space, 12,000 rai has been allocated for an industrial estate covering light industry.
Some $500 million is forecast to go toward a 450-megawatt gas-fired power plant. ITD also has plans to invest in an additional coal-fired power plant once the Dawei industrial zone is finally fully developed. An additional $500 million is targeted for a petrochemical plant and oil refinery to serve demand at the facility.
Source: https://www.bangkokpost.com/business/news/1428334/dawei-sez-continues-at-a-snails-pace