Dawei deep-sea port project

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Burmacuda
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Dawei deep-sea port project

Post by Burmacuda » Sat Jun 23, 2012 10:44 am

Looks like the Chinese are all over this ...
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The Asian Development Bank (ABD) says the Mekong River Subregion Economic Corridor should be extended to include the Dawei deep-sea port and economic zone in Burma, but it cautioned that the Dawei Project needs more careful planning and funding guarantees from private sources and governments for adequate development.

The ADB, which is part of the Greater Mekong Subregion (GMS) secretariat, believes the hugh infrastructure project, which is designed to shorten the shipment of oil, gas and commodities to China and Southeast Asia, needs more preparation time, said Arjun Goswami, the bank's director of regional cooperation and operations coordination in Southeast Asia, according to an article in the Bangkok Post on Friday.

For example, the preparation stage for the Nam Theun 2 hydropower project in Laos lasted 10 years, he said.

“The project needs to complete all feasibility studies including environmental and social impact assessments as well as due diligence. You should not rush into it,” Goswami told the Euromoney's Greater Mekong Investment Forum in Bangkok.

He said the Dawei project is critical for the GMS's credibility and failure would damage the group's reputation.

However, the Dawei project, which has been met by skepticism from environmental groups who say there has been a lack of transparency, may not need all of its planned elements to succeed, said Kenneth Stevens, the managing partner of Leopard Capital LP, an investment manager providing financial and operational support to small and medium-sized enterprises in frontier markets.

He said a controversial coal-fired power plant might not be the right option for the project, in light of renewable energy becoming “more interesting.” The power plant could even be located somewhere else in Burma besides Dawei.

He said the high profile Italian-Thai Development (ITD), Thailand largest company, is under pressure to move the Dawei project forward, or Burma could seek another contractor.

ITD has a concession to develop the Dawei Special Economic Zone including infrastructure for the deep-sea port, power plant and steel mill. The company is searching for financial partners, including governments, in the project.

Goswami said Dawei will require public investment and assurance from relevant governments in order to attract multilateral agencies and private investors.

Burma is the only Asean country that is not a member of the Asean Infrastructure Fund, which was set up last year to invest in regional Dawei-scale projects, said the article.

The latest developments in Burma are encouraging, but the final shape of reforms has yet to be seen, said Goswami.

Source: http://www.mizzima.com/business/7380-mo ... t-adb.html
Myanmar photo galleries: www.ontheroadasia.com

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Myanmar Tycoon says Pulling out of Dawei Project

Post by Poi » Wed Jul 04, 2012 9:34 pm

The leading local partner in the Dawei port and industrial complex in Myanmar being led by Thailand's Italian-Thai Development Pcl said on Wednesday he was pulling out of the project, adding to doubts about its viability.

Reports have circulated that Max Myanmar Group, which owns 25 percent of Dawei Development Co Ltd, had become lukewarm about the venture.

"We are pulling out from the project gradually," Zaw Zaw, Max Myanmar's owner, told Reuters by telephone when asked about the reports. He declined to elaborate further.

Italian-Thai was already thought to be struggling to find financial backing for the $50 billion, 250 sq km (97 sq mile) complex that was planned to include a deep-sea port, steel mills, refineries a petrochemical complex and power plants, although the government had already vetoed a coal-fired power station.

The project was agreed with the military government that ruled Myanmar until March 2011.

The energy minister in the quasi-civilian Myanmar government that succeeded the junta told Reuters in February that at least two other special economic zones would be developed more quickly than Dawei.

The government of Thailand has been more enthusiastic. In May it approved a budget of 33.1 billion baht ($1.1 billion) for infrastructure in the west of the country that would provide links with the border area by Dawei.

Thailand justified the work, to include a four-lane road, government offices and homes for Thais who might work in Myanmar, by saying many Thai firms wanted to set up in Dawei and the government had to support that investment.

http://www.reuters.com/article/2012/07/ ... YB20120704

Source: Reuters

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Re: Dawei deep-sea port project

Post by Admin » Mon Jul 09, 2012 9:26 am

Thail Company Seeks New Investors For Big Myanmar Port Project
Thailand's largest construction firm, Italian-Thai Development Pcl, is in talks with new investors to replace Max Myanmar Group, which has pulled out of the multi-billion-dollar Dawei project in Myanmar, an Italian-Thai unit said.

''Four or five local investors in Myanmar have showed interest in investing in Dawei after Max Myanmar's withdrawal.

Italian-Thai is in talks with them,'' Somchet Thinaphong, managing director of Dawei Development Corp, told reporters.

Somchet also said Italian-Thai aimed to use liquefied natural gas (LNG) as the fuel for a 400-megawatt power plant in Dawei, but he declined to say where that would come from.

Zaw Zaw, Max Myanmar's owner, told Reuters this week the group was pulling out of the Dawei port and industrial complex, adding to doubts about its viability.

Reports have circulated that Max Myanmar Group, which owns 25 percent of Dawei Development Co Ltd, had become lukewarm about the venture.

''We are pulling out from the project gradually,'' Zaw Zaw, Max Myanmar's owner, told Reuters by telephone when asked about the reports. He declined to elaborate further.

Italian-Thai was already thought to be struggling to find financial backing for the $50 billion, 250 sq km (97 sq mile)

complex that was planned to include a deep-sea port, steel mills, refineries a petrochemical complex and power plants, although the government had already vetoed a coal-fired power station.

The project was agreed with the military government that ruled Myanmar until March 2011.

The energy minister in the quasi-civilian Myanmar government that succeeded the junta told Reuters in February that at least two other special economic zones would be developed more quickly than Dawei.

The government of Thailand has been more enthusiastic. In May it approved a budget of 33.1 billion baht ($1.1 billion) for infrastructure in the west of the country that would provide links with the border area by Dawei.

Thailand justified the work, to include a four-lane road, government offices and homes for Thais who might work in Myanmar, by saying many Thai firms wanted to set up in Dawei and the government had to support that investment.

SOURCE: MB

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Re: Dawei deep-sea port project

Post by Admin » Mon Jul 23, 2012 8:49 am

Dawei Tops Agenda for Thein Sein’s Thai Trip
The burning issue of the future of the Dawei (Tavoy) deep-sea port and industrial zone in southern Burma is due to be the main subject of discussion when Burmese President Thein Sein visits Thailand at the weekend.

Thein Sein will arrive in the Kingdom for three days on Sunday for a twice-postponed trip to Burma’s second biggest trading partner—bilateral trade with Thailand amounted to US 6.1 billion in 2011 and was only beaten by China.

“The development of the Dawei deep-sea port and industrial zone in Myanmar will be a major topic of discussion during the official visit of the Myanmar President,” said a statement issued by the Thai government.

In May, the Thai government approved a 33.1 billion baht ($1 billion) budget allocation for infrastructure to link with the Dawei megaproject. However, its future remains in doubt following the rejection by Naypyidaw of a coal-fired power plant in the area and one of the biggest investors, Max Myanmar Company, pulling out earlier this month.

The Dawei port complex, across the border from Thailand’s Kanchanaburi Province, is being developed by Thailand’s largest construction company Italian-Thai Development PLC. The $8.6 billion project was agreed with the former Burmese junta in 2008.

In order to aid bilateral economic development between the two countries, Thailand also will propose opening another border checkpoint in Kanchanaburi with an access road towards Dawei.

However, humanitarian groups have long voiced human rights concerns regarding the megaproject with particular reference to land seizures by the construction zone.

Other subject to be discussed include the 92 Thai citizens who were detained in Kawthaung Township, southern Burma, early last week for alleged illegal logging and illegally crossing the border. The Thai government will no doubt bring up the fate of those arrested with Thein Sein during his visit.

Meanwhile, Human Rights Watch (HRW) urged the Thai government in a letter on Thursday to use Thein Sein’s visit to press for immediate and concrete steps towards addressing serious human rights violations in Burma.

Prime Minister Yingluck should use Thailand’s leverage as one of Burma’s major political and economic partners and a core member of the Association of Southeast Asian Nations to help improve respect for human rights and promote political reform in the country, said the advocacy group.

“The Burmese government’s record on human rights remains poor, despite recent signs of change,” said Brad Adams, Asia director at HRW. “As a neighbor long affected by Burma’s abysmal rights record, the Thai government should not miss this opportunity to press Thein Sein to end army abuses against ethnic minorities and protect the basic rights of all people in Burma.”

Thein Sein was due to attend the World Economic Forum on East Asia in Bangkok from May 30 to June 1, but canceled his trip apparently after hearing opposition leader Aung San Suu Kyi was booked to address the event.

The former general also postponed a subsequent visit on June 4-5 ostensibly to tackle domestic crises including power shortage protests and sectarian violence in Arakan State, but rumors abounded that he was irked by the Nobel Laureate’s performance in the Kingdom.

SOURCE: Irrawaddy

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Yingluck Meeting Over Stalled Deep-Sea Port

Post by KoKo » Mon Jul 23, 2012 9:12 am

Myanmar President Thein Sein meets Thai Prime Minister Yingluck Shinawatra in Bangkok today to assess options for a planned $8.6 billion port and industrial zone that has struggled to attract private sector financing.

Thein Sein arrived yesterday for a three-day trip and visited Laem Chabang port, near Thailand’s biggest industrial zone that companies such as Ford Motor Co. (F) (F) and Samsung Electronics Co. (005930) use as a production base. The two leaders will discuss developing a similar zone in Myanmar’s Indian Ocean coastal town of Dawei, according to Thailand’s foreign ministry.

Developer Italian-Thai Development Pcl (ITD) has found it difficult to secure funds to develop the area, which sits about 350 kilometers (219 miles) west of Bangkok. The company is courting Japan to secure $12.5 billion in loan agreements this year to build the port, roads, power plants and a railway, Chairman Premchai Karnasuta said on Dec. 26.

Thein Sein is seeking to attract labor-intensive industries after pledging to create jobs and targeting economic growth of 7.7 percent per year until 2016. Democratic reforms since he took power last year prompted Western nations to ease sanctions and galvanized lawmakers to focus on economic growth after about five decades of military rule left Myanmar disconnected from the global financial system.

“The government’s biggest priority now is to realize the inflows of Western investment and aid that have been among its main goals in implementing the reform process,” Eurasia Group, a New York-based political risk firm, said in a July 20 report. U.S. and European companies will face “strong competition” from those in Thailand, China, Japan and South Korea, it said.

Source: Bloomberg

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Agreement to Support Dawei Economic Zone

Post by KoKo » Mon Jul 23, 2012 9:21 pm

Thai and Myanmar leaders on Monday offered a much-needed lift to the multi-billion dollar Dawei port and industrial zone in southern Myanmar that has been struggling to find private investors.

Thai Prime Minister Yingluck Shinawatra and Myanmar President Thein Sein told a joint news conference they had agreed to connect the strategically located Dawei Economic Zone with industrial areas along Thailand's eastern seaboard, including the Laem Chabang deep sea port.

But they gave few details except to say ministers from both sides would start regular meetings from August.

The $50 billion project led by Italian-Thai Development Pcl ITD.BK in southern Myanmar could be one of the most important projects for the country whose young quasi-civilian government is eager to revive a battered economy by attracting foreign investment previously held back by years of sanctions.

It was the first time the two governments have said they would together support the $50 billion project led by Italian-Thai Development Pcl ITD.BK.

The two leaders said they had agreed to connect the new zone, with its deep sea port, with industrial areas along Thailand's eastern seaboard, including the Laem Chabang port.

However, they did not say what level of support they would give the 250 sq km (97 sq mile) Dawei complex, a private initiative with plans to include steel mills, refineries, a petrochemical complex and power plants.

The deep-sea port, which would cost $2.5 billion and is due for completion in 2018, would bring in goods to be transported by rail or road from the Indian Ocean along a corridor that runs past Bangkok to its eastern seaboard.

The goods could either be used in Thai industrial estates there or shipped onwards to third countries, having bypassed the long and congested shipping lane through the Malacca Strait.

Ital-Thai president, Premchai Karnasuta, recently told Reuters he was in talks with companies from Japan and planned to build gas, coal-fired and hydropower plants after Myanmar's government scrapped a planned 4,000 megawatt coal-fired plant on environmental grounds.

Through its Dawei Development Company, Ital-Thai is in a rush to find new partners after Max Myanmar, owned by tycoon Zaw Zaw, decided to reduce its 25 percent stake in Dawei.

Source: Reuters

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Re: Dawei deep-sea port project

Post by Admin » Thu Jul 26, 2012 8:56 pm

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Transparency and accountability are crucial to ensure the Dawei (Tavoy) deep-sea port project in southern Burma does not adversely affect local people or the environment, claim human rights activists.

The US $8.6 billion project has been on shaky ground recently with Naypyidaw blocking a coal-fueled power plant in January and major investor Max Myanmar pulling out earlier this month, but the signing of three memoranda of understanding (MoUs) between Thailand and Burma has put the scheme firmly back on track.

The agreements took place when Burmese President Thein Sein met Thai Prime Minister Yingluck Shinawatra in Bangkok this week, but people living around Dawei have complained that their views are still not being take into account.

“To have transparency and accountability are very important. It is not a matter of national security to let us know what is happening,” Thant Zin, a coordinator for the Dawei Development Association (DDA), told The Irrawaddy at a conference in Chiang Mai, northern Thailand, on Thursday.

“Even in our small organization, we let people know what we are doing. The Dawei project is huge and it is going to displace 30,000 people where they build the special economic zone. The government should let us know what is in the agreement.”

Photos of the natural landscape, beaches and wildlife were shown at the conference which was attended by more than 300 people. Activists also posted photos of the devastation caused by the scheme and how much the environment was due to suffer from construction work.

“If our president respects our people, he will not destroy our livelihoods and environment,” said Ko Lay Lwin, another coordinator of DDA. Development should mean helping the prospects of local people first rather setting up a foreign-backed project that will ruin their livelihoods, he added.

Activists said that instead of allowing Italian-Thai Development (ITD), Thailand’s largest construction firm, to build Dawei, the Burmese government should implement a local project instead.

Residents also complained that Dawei is a project which Thailand would not permit on its own soil. The scheme is due to contain a huge petrochemicals center similar to the controversial Map Ta Phut plant, in Thailand’s Rayong Province, which exploded in May claiming 12 lives.

“We feel like Map Ta Phut is a toilet from Thailand that came to settle in our Dawei,” said Ko Lay Lwin.

ITD intends to construct a special economic zone by Nabuledaw village in Dawei as part if the megaproject which involves displacing local people from 50,536 acres of land.

“Without Nabuledaw, there will be no Dawei. This is how the people are feeling,” said Ko Lay Lwin. “If the project forces people to leave their homes, there will be a strong reaction.”

Activists called on the Burmese government to talk directly to local people about the project and warned that tempers were becoming frayed over the unfair compensation being offered by the local authorities for land being used.

“There is no reason to blame local people if some violence came out or they attack the project as the government has no transparency or accountability,” said Thant Zin.

ITD is not offering equal compensation to local people affected by the construction work, according to rights activists. While Karen people on the east side of the project were reportedly paid 300,000 kyat ($340) per rubber tree lost, those who stay on the west side only receive 150,000 kyat ($170).

ITD was first granted a 75-year concession to use land for Dawei in a deal struck with the Burmese government in 2008. Thailand then approved a 33.1 billion baht ($1.1 billion) budget for infrastructure to link up with the project in May.

However, things have not all gone smoothly as ITD was already thought to be struggling to find financial backing for the 250-square-kilometre complex that was planned to include a deep-sea port, steel mills, refineries, a petrochemical complex and power plants. These financial woes were exacerbated by the loss of Max Myanmar which was due to contribute 25 percent of capital, with 50 percent coming from ITD.

SOURCE: Irrawaddy

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Re: Dawei deep-sea port project

Post by Admin » Thu Aug 23, 2012 10:11 am

Thai Prime Minister Yingluck Shinawatra will travel to Myanmar next month to follow up on the joint deep sea port project, Foreign Minister Surapong Tohvichakchaikul said on Wednesday.

During her two-day official visit, Yingluck will meet Myanmar's President Thein Sein at the new capital of Nay Pyi Daw.

The visit, which will start on September 13, will see Yingluck follow up progress of bilateral cooperation following Thai-Myanmar MoUs signed during Thein Sein's visit to Bangkok in July.

Surapong said the joint development of the Dawei deep-sea port project in Myanmar as well as the plan to connect the Dawei project to Thailand's Laem Chabang deep sea port project, will be a major topic for discussion during the visit.

The three MoUs have reaffirmed the two countries’ cooperation on the project that will not just be key to development of southern Myanmar but also its link with Thailand’s Eastern Seaboard.

The MoU, particularly on Dawei, has sent a strong signal to foreign investment that the two governments are committed to development of the strategic economic corridor that would give a boost to this impoverished region in Myanmar.

SOURCE: The Nation

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Re: Dawei deep-sea port project

Post by Admin » Sat Sep 15, 2012 8:24 am

Local companies to replace Max Myanmar in Dawei Special Economic Zone
Max Myanmar Company quit the Dawei special business zone project which is the value of US $8.6 billion on basic building structure although the company hasn’t withdrawn its US$ 2 million share money yet.

“The project is now seeking for local companies to fill its vacant position,” said Deputy Minister Thura U Thaung Lwin of the Ministry of Rail Transportation at the last day of the Fourth Regular Session of First Pyithu Hluttaw.

MP U Thein Nyunt has requested the Parliament to answer two questions regarding to Dawei Deep Seaport Project after leaving of Max Myanmar. The questions are (1) Any disadvantage to national benefit when the company left the project and (2) Any other local companies are allowed to take the vacant spot. The Lower House Speaker Thura U Shwe Mann brought up questions to answer by concerning Union Ministers.

Deputy Minister for Rail Transportation Thura U Thaung Lwin said "I will reply to the question of the Lower House Speaker. Despite leaving the Dawei project, Max Myanmar Company has not withdrawn its initial capital yet. Instead, local companies have been invited to join hand in the implementation of the Dawei project. Meanwhile, Taninthayi Region government has proposed to establish an industrial zone for locals. While in Bangkok, we discussed with Italian-Thai Company to return half area of Dawei project measuring 204.5 square kilometers for the establishment of the industrial zone for the locals and the company showed us a green light. The Italian-Thai Company has been invited to amend the Framework Agreement. Further invitations to local companies for the Dawei project have been so far suspended. If the Italian-Thai Company agreed on the amendment of the Framework Agreement, we will go ahead.

He added: "Italian-Thai Co has registered and formed Dawei Development Co Ltd in Myanmar to implement Dawei Special Economic Zone project. It is working in partnership with Myanmar national-owned Max Myanmar Co, whose shares in the project represent 25 percent. Italian-Thai Co has so far spent US$ 98 million on the project while Max Myanmar has spent about 2 million. But now we have learned that the Myanmar company is preparing to withdraw. Dawei Development Co Ltd has formed various committees to work in their related fields of the project. It is also inviting foreign investments. The project needs about US$ 8.6 billion for building infrastructures."

The Dawei deep seaport and special economic zone project is being undertaken in the land area of 250 square kilometers in Yebyu Township, Dawei District, Taninthayi Region.

SOURCE: Eleven

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Re: Dawei deep-sea port project

Post by Admin » Sun Sep 16, 2012 8:31 pm

Myanmar, Thai govts to gear up 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.

SOURCE: Eleven

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