Japan ‘sure to play major role in Dawei’

 Sunday, 04 August 2013
Myanmar officials say they remain confident Japan will play a major role in developing the Dawei Special Economic Zone, as officials from the country have joined talks about the ambitious project following the decision of Italian-Thai Development to step aside as developer in June due to lack of funds.

Japan is set to host the next meeting with Myanmar and Thailand in the coming months, U Aye Myint, union minister of railway and transportation and the chairman of Dawei SEZ construction committee, told The Myanmar Times after a press conference on the project last week.

 He said the meeting will be in Tokyo and that the Japanese government is currently discussing the details of the project with Japanese business people.
However, U Set Aung, deputy minister of national planning and economic development, said there is no timeframe for finalising an agreement between Myanmar, Thailand and Japan. “We are trying to get it done as soon as possible,” he said.

Japanese officials said they are mulling several options to participate in Dawei.
The country could share its expertise through planning and infrastructure development, while financing the project could also be considered, Japan External Trade Organisation Yangon executive managing director Masaki Takahara said. “Contribution to the connectivity and development of this region is the task of Japan as one of the largest economies in the region,” he said.

The massive Dawei SEZ has been discussed formally between Thailand and Myanmar since 2008 and has gone through several versions. The latest plan calls for it to be built in five phases over 75 years. Initially, a deep seaport will be built as well as a highway connecting the zone to Thailand.

Electricity and water supply will be provided to develop light manufacturing. Heavy industry is planned for the latter stages, according to U Aye Myint.
The Electricity Generation Authority of Thai will complete a gas power plant in Dawei with a generating capacity of 36 megawatts by 2014, he said. A total of 44,850 acres of land will be set aside for the zone, including 10,600 acres for urban development, said Thura U Thaung Lwin, chairman of the management committee.

Thai conglomerate Italian-Thai Development was slated to develop Dawei, but asked to be removed from the project in June due to difficulties financing the project.
Government authorities have registered a special purpose vehicle (SPV1) in Thailand to secure funding, but U Aye Myint dismissed concerns this could lead to foreign control of the project.

“It is not true that the project is monopolised by Thailand because SPV1 is registered there,” he said, adding implementation will be conducted by a separate company that will be registered in Myanmar, SPV2.
“The highest authority for the entire Dawei SEZ is the management committee of the Myanmar government,” he added.

The project has faced criticism over its environmental impact and displacement of villages, but Thura U Thaung Lwin said best practices are being followed to ensure minimum disruption.
While adhering to strict environmental regulation, six villages will ultimately be relocated compared to 24 in the original plan, he said.

“We have already ordered construction companies to avoid archaeological sites and to stop work at once if they suspect they’ve found any,” he said.
– Additional Reporting Jeremy Mullins
Share from Myanmar Times