Yingluck, Thein Sein to discuss Dawei in New York City

Wednesday, 26 September 2012 12:41 Mizzima News

Thai Prime Minister Yingluck Shinawatra and Burma’s President Thein Sein will discuss the Dawei deep-sea port project in New York on the sidelines of the UN 67^th General Assembly meeting on Thursday.  


The project has been having trouble finding financing to go forward, although both countries pledged in August to back the proposed US$ 60-billion port and special economic zone.

Last week, Reuters news agency reported that Thai banks would keep the project afloat with short-term loans until an expected Japanese loan of up to US$ 3.2 billion can be secured.

Thailand's largest construction firm, Italian-Thai Development Pcl, signed a deal in 2010 to build a deep-sea port and Special Economic Zone (SEZ) in southern Burma’s coastal Dawei region.

But the project foundered, as the Thai builder failed to secure $8.5 billion to finance construction of its first phase – roads, utilities and a port.

“Italian-Thai has had difficulty in mobilizing the funding. So now the Thai government has effectively taken over the project,” Thaung Lwin, chairman of the Dawei SEZ told Reuters. “The next step is to invite Japan,” which he said is committed to seeing the project succeed.

Two trips by Yingluck to Burma have been postponed since she and Thein Sein met in Thailand in August to discuss the project.

Last week, Yingluck met with Thai Finance Minister Kittiratt Na-Ranong, Foreign Minister Surapong Towichukchaikul, Transport Minister Charupong Ruangsuwan and Deputy Transport Minister Chatchart Sithipan to prepare for her possible meeting with Thein Sein in New York, a Government House source said, according to the Bangkok Post. Officials have reportedly been seeking various governments and international lending groups to take a stake in the project.

The Thai construction firm Italian-Thai Development, which singed a MoU with Burma in 2008, initiated the Dawei project. The 10-year project includes deep-sea ports, heavy industries, office buildings and commercial areas.

The company was awarded a contract, the first phase of which was worth about $8.6 billion.

Italian-Thai's contract for developing the industrial estate in the Dawei Special Economic Zone was eventually scaled down from 250 to 200-square kilometers.

Myanmar, Thai govts to gear up Dawei special economic zone

Published on Sunday, 16 September 2012 14:06

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Photo shows the developing project area of Dawei Special Economic Zone

Myanmar and Thai governments will make ‘contract modification’ on the Framework Agreement to accelerate the construction of Dawei Special Economic Zone Project, an official of the Supporting Working Body of the project said.

The Framework Agreement was signed on  November 2, 2010,  and that granted Italian-Thai Development Pcl (ITD) the right to develop and operate over 75 years land lease period for the Dawei Project with an associated deep sea port, industrial estate, trans-border corridor link and supporting infrastructure.

The new contract with amendments will be revised and modified the policy agreement by two governments and ITD.

“Italian-Thai Development Company was hired for a project developer initially. Now both Myanmar and Thai governments will be involving as project developers,” said the official.

Two governments are mainly joining the project as developers to assist the project financially.

The preparation works are expected to complete by the end of 2012 to be able to resume the project urgently.

After completion of project preparation, investment companies involving in the project will sign the contract with relevant government ministries.

Myanmar government on March 2012 permitted a total of 50505.0233 acres of land in Dawei district of Tanintharyi Region to establish the Dawei Special Economic Zone.

President U Thein Sein and Thai Prime Minister Yingluck Shinawatra signed three MOUs on his visit to Thailand last July, including  the Dawei Deep Seaport and Special Economic Zone project.

Myanmar Port Authority as authorized implementing agency and ITD on June 12, 2008 signed a Memorandum of Understanding ( MOU ) relating to the implementation of a feasibility study and comprehensive project site for the Dawei Deep Sea Port and Industrial Estates Development Project.

The project contents will be for the development of a deep sea port, an industrial estate divided into six industrial zones including a residential/commercial zone with related infrastructure within the industrial estate, a connecting road and rail link to Thailand as well as oil and gas pipeline from the Gulf of Muttama to the Myanmar and Thailand border along the road and rail link.