Dawei deep-sea port project

News and updates on business and industry in Myanmar/Burma.
Saiua
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Re: Dawei deep-sea port project

Post by Saiua » Sat Aug 03, 2013 8:43 am

Dawei Special Economic Zone In Myanmar, A Thai Venture, Runs Into Financial Trouble

Thailand’s ambitious project in the Myanmar city of Dawei is a projected to be a $50 billion industrial hub and deep-sea port that will connect with Bangkok by a road cut through a stretch of mountainous jungle. But the Special Economic Zone (SEZ) may be facing some serious financial troubles.

Recently, Myanmar unveiled a 75-year plan to develop the Dawei SEZ. The first phase alone, which will span five years, will require an investment of $976 million, according to Mizzima, an India-based Myanmar news outlet.

The project was set in motion by a former prime minister of Thailand, Thaksin Shinawatra, the brother of the current minister, Yingluck Shinawatra. When it was proposed in 2006, it was seen by many as a vanity project that would never get off the ground. But since Myanmar’s reforms began two years ago, some concluded that the former minister was a visionary, according to the Economist.

While Yingluck Shinawatra is due to inaugurate the border checkpoint on the road connecting the Thai capital to Dawei, financial difficulties are once again bringing the project into question.

The plan is grand. The project is supposed to take up 205 square kilometers (80 square miles), which is the size of the Vietnamese capital Hanoi, and nearly ten times as large as Thailand’s largest industrial area at Map Ta Phut.

Dawei’s proximity to Bangkok, Myanmar’s cheap labor force and land are among the factors that attracted Thailand in the first place. In anticipation of a new gateway for international trade and tourism into Southeast Asia, land prices in some parts of Thailand’s Kanchanaburi, bordering Myanmar, have already begun to rise. Supporters of the project claim Thailand’s annual GDP could grow by 2 percent as a result.

The plan is running into some trouble, however, in execution. The jungle, which would have to be cleared, is still mostly untouched. There are concerns about security in the region, despite a ceasefire between Myanmar’s army and the armed wing of the Karen National Union (KNU), which has long sought autonomy for the region. And the local people remain resentful toward the army.

Financial problems are the project’s biggest roadblock, however. The project is well short of the $50 billion investment it needs to see completion. A number of Thai banks, many of them state-run, have provided a total of $4 billion to move things along, and some Japanese investors have been looking into the project, but much more private money will be needed, the Economist wrote.

Twice this year, Prime Minister Yingluck has urged Japan’s Prime Minister Abe to support the Dawei project. But on both occasions, Abe only politely smiled, according to the Chiangrai Times, a Thai newspaper, as the Japanese are focused on developing a port and industrial zone at the Myanmar city of Thilawa.

Source: International Business Times

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Re: Dawei deep-sea port project

Post by Admin » Tue Aug 06, 2013 7:58 am

Italian-Thai company to quit after the treaty take effect between Myanmar & Thailand
The Italian-Thai Development Company has yet to cease their operation at the Dawei Special Economic Zone and will quit after the treaty between Myanmar and Thailand goes into effect, said Minister for Labour, Employment and Social Security Aye Myint, who is also a Chairman of the Central Working Committee for Implementation of Dawei SEZ.

The company is facing financial difficulties for the project and failed to implement the project to within the required time frame. Myanmar and Thailand co-established the main company Special Purpose Vehicle-I to continue the project and registered it in Thailand. The public concerned that making the registration in Thailand can make the Dawei SEZ to control by Thailand but the project will be administered by Myanmar.

For the Dawei SEZ and its related projects to be successful, Myanmar and Thailand will have to sign agreement between share holders, and other agreements. Both countries will hold equal shares in the company through Myanmar’s Foreign Economic Relation Department (FERD) and Thailand’s Neighbouring Countries Economic Development (NEDA).

Although the progress in Dawei SEZ is halted, the company which are replaced in place of Italian-Thai Development Company have to give back the money invested by the Italian-Thai company, said Set Aung, Chairperson for Rules and Regulations Sub-Committee and Vice Chairman of Central Bank of Myanmar.

“The highway road constructed by the Italian-Thai company is good enough to drive big trucks. The company which will implement the Dawei SEZ have to give back the cost of the road to the Italian-Thai company,” he said.

Source: Eleven

KoKo
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Re: Dawei deep-sea port project

Post by KoKo » Sun Aug 11, 2013 7:33 pm

India to link with Myanmar port to boost ASEAN connectivity

In its push for greater connectivity with ASEAN countries, India is focussing its attention on a deep-sea port in southern Myanmar that would provide a much shorter sea route to the economically vibrant Southeast Asian region and help boost trade.

The Dawei deep sea port and special economic zone is slated to give a huge boost to connectivity and trade in the Southeast Asian region when it is commissioned in a few years. The $8-billion project is being developed jointly by Myanmar and Thailand.

“The Dawei deep sea port, when complete, will provide India an alternative sea route to Southeast Asia and reduce dependency on the congested Strait of Malacca and cut transport time,” an official told IANS.

The Dawei port is part of the southern corridor of the Mekong India Economic Corridor. India is concentrating on the southern economic corridor, which would connect Ho Chi Minh City in Vietnam, Phnom Penh in Cambodia, Bangkok in Thailand to Dawei in Myanmar.

“When Dawei port is ready, India is planning to connect it with Chennai. There will be no need to go through the Strait of Malacca then,” said the official, unwilling to be named.

During Prime Minister Manmohan Singh’s visit to Thailand last May, the Thai government invited Indian business to invest in the Dawei Special Economic Zone, especially in areas where Indian companies have expertise, such as steel, manufacturing, power, petrochemicals and services.

Thailand’s construction giant Italian-Thai Development Co has been involved in construction of the deep-sea port, which is designed to accommodate ocean-going cargo ships that pass through the Indian and Pacific oceans, cutting short the maritime distance over a relatively long detour via Singapore.

The Dawei Special Economic Zone Development Co, jointly owned by Thailand and Myanmar, will be assigned to run the project.

The Greater Mekong sub-region also has a North-South corridor linking cities of the Mekong basin countries – Cambodia, Laos, Myanmar, Thailand and Vietnam – to China. But India is not keen to join this. “That corridor cuts across to China and India is not very keen to join it,” said the official.

India is involved in the 1,400-km Trilateral Highway, linking India, Myanmar and Thailand, that is slated to become a reality by 2016.

The highway – from Moreh in Manipur to Mae Sot in Thailand via Myanmar – would open up India’s landlocked northeast to Southeast Asia. The project is being funded by the Asian Development Bank.

The highway is expected to allow freight and container trucks to move across the borders from India to Myanmar and Thailand and play a crucial role in boosting trade and investment in the three countries.

The Kalewa-Yargi section of the highway in Myanmar, which India has offered to upgrade, is facing some problems due to the hilly terrain, said the source.

“The major chunk of the Trilateral Highway has been completed. On the Kalewa-Yargi section and upgradation and repairing of 71 bridges, which India had agreed to undertake during Manmohan Singh’s visit to Myanmar in May 2012, work is on,” the official added.

India and the 10-nation ASEAN countries of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam have a combined population of 1.8 billion, which is one-fourth of the global numbers. The combined GDP of India and the regional bloc is around $3 trillion.

Source: Mizo News

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Re: Dawei deep-sea port project

Post by Admin » Wed Sep 18, 2013 7:41 am

Myanmar locals slam Dawei contractor

A group of angry Myanmar villagers have accused Thai construction giant Italian-Thai Development PCL (ITD) of failing to keep its promise to compensate them for losses caused by the building of new roads for the Dawei deep-sea port and industrial project.

Civic group Community Sustainable Livelihood and Development (CSLD), which represents the villagers, held a press conference to air concerns on Tuesday at the office of the Dawei Development Association in Dawei district, Taninthayi region.

The group also issued a statement criticising what it described as "unfair and non-transparent compensation” offered by ITD.

According to the statement, ITD began its transnational road link construction project in Myitta, Pyinthataw and Thabyu Chaung in 2010. The villagers say the work destroyed betel nut, rubber, and cashew nut plantations, which are the main source of income for local communities.

The group allege that land was confiscated unfairly for the project, ruining the livelihoods of many villagers. They also claim the company promised compensation would be paid to locals after an assessment of areas affected by the road project.

Full Storu: Bangkok Post

KoKo
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Re: Dawei deep-sea port project

Post by KoKo » Thu Sep 19, 2013 4:28 pm

Myanmar Eyes Success In Joint Dawei Investment With Thailand

Myanmar is eyeing for successful investment with Thailand in projects related to the development of its Dawei deep seaport, Thai News Agency (TNA) reported.

Myanmar's Supreme Commander, General Min Aung Hlaing, on Tuesday conveyed the message from Myanmar's President Thein Sein, during a courtesy call on Thai Prime Minister and Defence Minister, Yingluck Shinawatra at Bangkok's Government House.

Yingluck responded positively and gave assurance of the Thai government's strong commitment to mega investment projects.

Myanmar's Dawei deep seaport development, initiated in 2008, covers the construction of the deep seaport itself and an industrial complex in the southern Myanmar township, with both governments having formed a joint venture named, Special Purpose Vehicle-1, to run their joint investment...........................

Full Story: Bernama

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Re: Dawei deep-sea port project

Post by Admin » Mon Sep 23, 2013 8:09 am

Thai company proposes to build 60 mw gas power plant in Dawei
Thai-based Admin Power & Utility Co Ltd has submitted a proposal to the Ministry of Electric Power to build a 60 megawatt power plant in Dawei district that runs on natural gas from Zawtika gas project, officials from the company said yesterday.

As part of the 500 megawatt natural gas power plant project, the 60 megawatt power plant will be built within eight months to supply electricity to Dawei area after receiving permission from the ministry, according to the officials.

Officials and an engineer team from the company visited Dawei yesterday morning to study the area where the power plant will be built and meet with the chief minister of Tanintharyi Region.

"Admin Power & Utility Co Ltd has signed a MOU with the Ministry of Electric Power to conduct preliminary survey to build the natural gas power plant project in Kanpauk area. We are now in the last stage of the preliminary survey. [The project] can generate 500 megawatt power. It will take a long to build a power line and power plant [for the 500 megawatt power plant project]," said an official from Admin Power & Utility Co Ltd.

"As we will start receiving natural gas around March 2014, we will try to build this 60 megawatt power plant quickly in order not to waste the gas. At the same time, we will build the 230 KVA power line from Kanpauk to Dawei. It will take eight months to construct the 60 megawatt power plant and the 230 KVA power line. We've already bought the 60 megawatt machine," said the official.

Full Story: Eleven

Pear
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Re: Dawei deep-sea port project

Post by Pear » Tue Sep 24, 2013 6:18 pm

Burma, Thailand Agree to Speed up Dawei Project

The governments of Burma and Thailand have agreed to accelerate work on the Dawei Special Economic Zone in southern Burma’s Tenasserim Division, reports The Bangkok Post. The project, which will give Thailand access to the Dawei deep-sea port and also includes power plants and refineries to help meet Thailand’s energy needs, was discussed on Monday by Thai PM Yingluck Shinawatra and visiting Burmese Union Parliament Speaker Shwe Mann. “Thailand and Myanmar must work together to move this project forward and inform the public about the benefits of the Dawei deep-sea port, Yingluck said. Shwe Mann’s five-day trip to Thailand will conclude on Thursday.

Source: Irrawaddy

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Re: Dawei deep-sea port project

Post by Admin » Sat Sep 28, 2013 8:12 am

Dawei development seeks major investors
Bilateral ties between a changing Myanmar and its neighbour Thailand have long been important.

However, the co-development of a massive special economic zone on Myanmar's western seaboard will need other investors and may have implications for the entire region.

The Dawei megaproject in southeastern Myanmar is closer to Bangkok than Yangon or Myanmar's capital Napyidaw.

The Thai government has now taken over responsibility for the project which was initially developed by Ital Thai, Thailand's largest construction company.

A glance around Dawei reveals a completed small port, but much, including the necessary dredging to construct a deep water harbour remains undone.

ITD's project engineer Pisit Girdmongkol, explained: "What you see behind (me) is the main port for the Dawei project. The shipping land will be shaped like an "L". Each phase will take about five years. At this point, I cannot confirm when it will all start. Also, the five years for each phase is a rough timeframe."

Also missing are other major Asian investors crucial to developing Dawei for its strategic location.

Dr Ruth Banomyong, head of department of international business, logistics and transport at the Thammasat Business School, said: "If you ask the Burmese, the Myanmar government they are not going to put in any money because they are providing in kind.

"If you ask the Thai government, this is a big risk for Thailand to suddenly say ‘Okay, we want to invest in this mega project’ and I wouldn't be surprised to see that at the end of the day we might have another investor coming in the SPV (special purpose vehicle)."

Officials closest to the project consider it a trilateral partnership with Japan as the third party.

Full Story: CNA

KoKo
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Re: Dawei deep-sea port project

Post by KoKo » Tue Oct 01, 2013 6:47 pm

Thai, Burmese govts fail to persuade Japan to invest in Dawei SEZ

Attempts by Thai and Burmese officials to persuade Japan to invest in the Dawei Special Economic Zone (SEZ) have ended fruitlessly, DVB has learned from a member of the Dawei SEZ management committee who asked to remain anonymous.

Representatives of the three nations met three times last week, the last meeting being on Friday, 27 September. The Japanese delegation was led by the Ministry of Foreign Affairs Deputy Director-General of Southeast and Southwest Asian Affairs Department Hidenao Yanagi. The meeting followed preliminary talks between Thai and Burmese delegations on 25 September, and Burmese and Japanese delegations on 26 September. At a previous meeting in Naypyidaw with Japanese upper house member Eriko Yamatani, Burmese president Thein Sein requested the Japanese government to assist and participate in the Dawei SEZ.

On September 26, Thailand and Burma announced that they had agreed to speed up the development of the Dawei industrial zone............

Full Story: DVB

Saiua
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Re: Dawei deep-sea port project

Post by Saiua » Wed Oct 02, 2013 7:00 pm

Burma remains ‘strongly committed’ to Dawei, says Thai minister

The stagnant Dawei deep-sea port and industrial project took a small step forward after Burma agreed to secure loans from the Asian Development Bank (ADB) to invest in significant infrastructure development.

Deputy Prime Minister and Commerce Minister Niwatthamrong Bunsongphaisan said on 1 October at the recent tripartite meeting with Thailand and Japan that Burma remains strongly committed to Dawei, saying that the project will play a significant role in the nation’s future economic development.

Thailand, Burma and Japan held a meeting in Yangon last Friday to discuss ways to get the Dawei deep sea port and industrial project off the ground.....................

Full Story: DVB

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