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April 21, 2019

Thai based-companies sign to develop Dawei SEZ

A graphical representation of the Dawei Special Economic Zone and deep  sea port project.
A graphical representation of the Dawei Special Economic Zone and deep sea port project.

Italian Thai Development Pcl and Rojana Industrial Park will sign a $1.7-billion deal in March to develop the Dawei industrial zone in Myanmar, according to a statement of the Thai government on 30 January.
After a meeting between Thai and Myanmar officials in Bangkok, Deputy Transport Minister Arkhom Termittayapaisit told reporters the initial stage of investment from the two companies will be $1.7 billion for the first stage of the project.
The Dawei project, located in southern Myanmar, has been delayed since ousted Prime Minister Yingluck Shinawatra dissolved parliament in December 2013. The development is expected to be completed in five years, and it will be, at completion, Southeast Asia’s largest industrial complex that includes highway links to Bangkok and the eastern seaboard of Thailand.
Dawei SEZ Development Co (DSEZ) invited Japanese investments in the first phase of this project, but only two companies — Italian-Thai Development Plc (ITD) and Rojana Industrial Park Plc (ROJNA) — have bid, proposing to develop the highway linking Thailand with Dawei, plus an industrial estate.
The industrial estate is expected to be 34 sq km, increasing in size from a previous allotment of 27 sq km, with a 75-year concession
of 50 years plus a 25-year extension. The construction period is targeted at eight years starting in the second half of the first year after contract
signing.
According to the statement of the Thai government, Thailand will provide soft loans to Myanmar, to meet a budget of around 3.9 billion baht ($119.23 million) for the road construction.
“Today, bilateral relations between Thailand and Myanmar are at their best,” Thai Deputy Prime Minister Pridiyathorn Devakula said in the statement, saying the first phase aims to complete within five years such infrastructure projects as a telecoms network, a small port and a reservoir.
Japan also agreed on 30 January to take part and possibly offer loans for road construction.
Deputy Prime Minister Pridiyathorn Devakula said Japan had agreed to help develop the Dawei Special Economic Zone with an equal partnership in Dawei SEZ Development Co (DSEZ), a special-purpose vehicle, to run the project.
Thailand and Myanmar in June 2013 agreed to set up DSEZ with an equal shareholding and initial investment of 12 million baht, far below the 100 million proposed earlier. The company is registered in Thailand.
Myanmar Vice President U Nyan Tun said the huge project would see quick progress after Japan’s agreement to join the development.
The initial phase, which is expected to see construction work start this year, will include the industrial estate covering 27 sq km, the small port, a small power plant, the telecommunications network, a small reservoir, an LNG terminal, the road network linking the Thai border with the project, and a township for the workers.

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