Myanmar to tap ADB for Dawei loans
Bangkok Post - Published: 2 Oct 2013
The stagnant Dawei deep-sea port and
industrial project took a small step forward after Myanmar 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 yesterday that at the recent
tripartite meeting with Thailand and Japan that Myanmar remains strongly
committed to Dawei, saying that the project will play a significant role in the
nation's future economic development.
Thailand, Myanmar 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.
It was the first tripartite meeting
with Japan attending as a potential third partner in the Dawei development
project.
In previous meetings of the joint
high-ranking committee involving Thailand and Myanmar, Japan participated only
in the capacity of an observer.
The neighbouring Southeast Asian
nations have high hopes that Japan will eventually agree to hold a stake in
Dawei SEZ Development Co (DSEZ), a special-purpose vehicle set up to manage
Dawei's port and special economic zone.
"As a representative of the
Thai government, I also assured at the meeting that Thailand is ready to
support the project's development as well as the plans to attract both Thai and
foreign investors to the project," said Mr Niwatthamrong.
The minister added that Myanmar had
also accepted Japan's proposal to take a lead in investing in important
infrastructure projects such as the port and roads.
While it has expressed an interest
in investing in the Dawei project, Japan asked for time before making any
decision to jointly invest in DSEZ.
In June, Thailand and Myanmar agreed
to set up DSEZ with an equal shareholding and an initial investment of 12
million baht, far below the 100 million baht projected earlier. The company
will be registered in Thailand.
Thailand and Myanmar also agreed to
set up special-purpose companies (SPCs) to manage projects including the port,
road and rail links, power plants, water facilities, industrial estates, a
telecommunications network and the township. SPCs will be registered in
Myanmar.
According to Mr Niwatthamrong, other
countries such as South Korea and China have also shown an interest in
investing in the project.
He noted, however, that the final
decision to choose the third stakeholder in DSEZ will rest with Myanmar's
government, as Dawei is located in Myanmar.
Thailand is scheduled to organise
the second tripartite meeting in November, with an agreement between the
Myanmar government and DSEZ due to be signed.
Writer: Chatrudee Theparat
----------------------------------------------------------------------------------------
Japan
Shows Interest In Dawei Mega Project
September 30, 2013 |
- Author: Karen News
Japan joined a meeting between Thailand
and Burma to discuss how to kick-start the Dawei $60 billion mega project in
southern Burma. It was the first time the three countries had met to discuss
Japan’s role as a potential investor in the massive Dawei project that
includes, a deep-sea port, industrial zone, rail and road links to Thailand,
power plants and refineries.
Despite Japan attending the meeting
with Thailand and Burma as a potential partner, Japan is still wanting more
information before it decides on its level of involvement as a capital
investor.
The Bangkok Post
reported on Saturday, 28 September that Thailand and Burma “agreed to set up
special-purpose economic companies (SPCs) to manage projects including the
port, road and rail links, power plants, water facilities, industrial estates,
tele-communications network and the township.”
Villagers adversely affected by the
The Dawei mega project have been protesting that the huge development project
has resulted in land loss, forced displacement, pollution and that there needs
to be a number of impact assessment statements carried out before the project
gets fully underway.
In an interview with Karen News
earlier this month villagers spoke of their concerns about the affects of the
Dawei project on their lives.
Naw Blay Blaw, a Kaw Htee Lor
villager from the region explained why he was protesting against it.
“The company did not pay villagers
the compensation that they had promised. Their road construction also polluted
the villagers’ water sources. The villagers blocked the road and demanded that
400 million kyat (around $400,000) be paid to the 30 Karen villagers whose land
and plantation were damaged.”
Villagers protested against the Thai
company for not paying them ‘promised compensation’ blocked vehicles from
delivering supplies to the $60 billion Dawei project in southern Burma.
Back in May 2013 this year the
Japanese government confirmed its commitment when Prime Minister, Shinzo Abe,
promised “all possible assistance” to launch Burma’s stagnant economy.
Japan on Sunday announced a
development aid and loan package for Burma worth hundreds of millions of
dollars as it boosts trade ties with the fast-changing nation seen as a key
regional emerging market.
Burma’s President Thein Sein
released a joint statement that declared that the two countries would take
their relationship to a higher level and identified areas of future cooperation
that included up to $500 million in new loans to Burma.
As well as wiping out nearly $2
billion of Burma’s debt Japan would assist with a nationwide development
investment in roads, electricity and water supplies and development of Thilawa
special economic zone near Rangoon.
International financial experts said
Prime Minister Abe underlined Japan’s commitment to Burma when in May this year
he led a delegation of chief executives from his biggest companies including
Mitsubishi, Mitsui, Taisei and JGC.
------------------------------------------------------------------------------------------------
Myanmar's Dawei development seeks major investors
Major Asian investors are crucial to developing Dawei, a massive
special economic zone on Myanmar's western seaboard.
Channel NewsAsia | 27 September 2013: http://www.channelnewsasia.
Construction labourers working on an elevated
platform at a deep sea port project in Mayingyi, part of the Dawei Special
Economic Zone development. (AFP PHOTO/SOE THAN WIN)
DAWEI: 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.
Set Aung, Myanmar's Deputy Minister of National Planning and Economic Development, said: "The significance of the signing of this shareholder agreement is the cooperation between Thailand and Myanmar. And not only for that; but also the possible cooperation and commitment, and the interests from Japan to be involved.
"These cooperation actually shows, not only the stronger commitments for Dawei project development; it also shows the passion and the friendship of the three countries together."
So far, there has been no official Japanese involvement in Dawei.
The speculation is that for Japanese interest to be there, the vision for the massive project has to be revamped to make it more favourable for the Japanese.
Meanwhile, Thailand hopes Dawei comes to fruition as it seeks to secure its energy needs.
A major port in western Myanmar means easier access to the oil producing nations in the Gulf, and the ability to bypass the Straits of Malacca in order to refine and export that oil.
Moving forward, this could be the game changer for the energy security of Asia.
Logistics experts say the regional impact won't be as big as some have imagined.
"It is true that Dawei has been seen as the potential "energy gateway", but that will be really for Thailand," said Dr Banomyong.
He added: "Will this affect the Straits of Malacca? Maybe (it will) reduce congestion for a bit. In reality, even now the big tankers do not want to go through the Straits of Malacca because of the congestion. In fact, they go the other way around but the role of Singapore as a key trading place will not be affected."
Japan has committed a US$205 million low-interest, long-term loan for Myanmar to develop another port in Thilawa - a one-hour drive away from Yangon.
- CNA/fa
-----------------------------------------------------------------------------------------------------
Challenges facing Dawei project in
Myanmar
Channel NewsAsia |
27 September 2013
The Dawei
megaproject in southeastern Myanmar will combine a deep sea port with a
manufacturing and logistics hub. But critics have said it still has years
to go before it will come online and provide the economic benefits its backers
have promised.
The Dawei project in southeastern Myanmar
will be 10 times bigger than Thailand's largest industrial estate.
DAWEI, Myanmar: The Dawei megaproject in
southeastern Myanmar will combine a deep sea port with a manufacturing and
logistics hub.
But critics have said it still has years to go before it will come online and provide the economic benefits its backers have promised.
The joint venture between the Myanmar and Thai governments marks the first time either side has become involved in a project of this nature.
The Dawei project in the so-called "Kite's Tail" of southeastern Myanmar will be 10 times bigger than Thailand's largest industrial estate.
Thai developers, like Ital Thai and Rojana, with the help from the Yingluck Shinawatra government, hope for it to be a Western seaboard industrial zone they have always coveted.
But it will take time.
Pisit Girdmongkol, an engineer of the ITD Project, said: "There could still be changes after the signing of the framework agreement, because then it will be the responsibility of the Thai and Myanmar governments. They may change the timeframe of the project.
"However, in our initial planning for the Dawei project, each construction phase is about five years long, so overall, the project should take 15 years to complete."
The roads needed to handle the heavy vehicles and materials to make the Dawei dream a reality still have a long way to go.
Engineers have said the project is currently at Phase Zero.
Everything about the completion of this project depends on the road from Thailand. Recent changes to the initial development plans by the Thai side mean Dawei may not turn out as previously envisioned.
Right now, Dawei is a landscape of unspoiled beaches and pristine rainforest.
Lead developer Ital Thai has undertaken a host of corporate social responsibility activities.
These range from purpose-built resettlement villages built by local subcontractors to career training and employment opportunities at Dawei.
They have promised to monitor groundwater and air quality, but none of this may matter to some.
Some of the locals are facing an uncertain future such as where they will live and how they will make their living after the Dawei project displaces them. Many of them do not own homes or farms, so according to the government, they are not entitled to any compensation at all.
While Myanmar is opening up to modern industrial development, very few civil society groups are developing at the same pace.
Dr Ruth Banomyong, head of the Department of International Business, Logistics and Transport at the Thammasat Business School, said: "The companies that are going in, initially, they have this idea that 'we don't have to worry like in Thailand, where there are a lot of NGOs'. Then they start going and they still have to deal with it. That is why the issue is more complicated than they expect."
An NGO (non-governmental organisation) activist, a Dawei local, said it has been Thai colleagues who have helped out in this regard.
Ye Lin Myint, mentor of the Civil Society Strengthening Initiative, said: "Thai companies and the Thai government are not accountable for our people, but the Thai NGOs... are the first ones who informed us about the implication, the negative impact of the megaproject. They are the first one to inform us, they are the first one to educate us about it. They are the one who are supporting us."
Though Dawei is one of the rainiest places in the world, water management is key.
The river will be dammed, used as a reservoir and potentially for hydroelectricity.
In either case, a nearby village surrounding a decades-old monastery will be completely submerged.
The community has hired independent geologists to come up with an alternative plan.
A monk said: "At first, when we learned our village would have to be relocated, we had an alternative plan drawn up to submit it to the government and Ital Thai, but they disregarded our proposal."
So, for now, there are no guarantees what will happen to the people affected by development meant to bring economic benefits to all.
But critics have said it still has years to go before it will come online and provide the economic benefits its backers have promised.
The joint venture between the Myanmar and Thai governments marks the first time either side has become involved in a project of this nature.
The Dawei project in the so-called "Kite's Tail" of southeastern Myanmar will be 10 times bigger than Thailand's largest industrial estate.
Thai developers, like Ital Thai and Rojana, with the help from the Yingluck Shinawatra government, hope for it to be a Western seaboard industrial zone they have always coveted.
But it will take time.
Pisit Girdmongkol, an engineer of the ITD Project, said: "There could still be changes after the signing of the framework agreement, because then it will be the responsibility of the Thai and Myanmar governments. They may change the timeframe of the project.
"However, in our initial planning for the Dawei project, each construction phase is about five years long, so overall, the project should take 15 years to complete."
The roads needed to handle the heavy vehicles and materials to make the Dawei dream a reality still have a long way to go.
Engineers have said the project is currently at Phase Zero.
Everything about the completion of this project depends on the road from Thailand. Recent changes to the initial development plans by the Thai side mean Dawei may not turn out as previously envisioned.
Right now, Dawei is a landscape of unspoiled beaches and pristine rainforest.
Lead developer Ital Thai has undertaken a host of corporate social responsibility activities.
These range from purpose-built resettlement villages built by local subcontractors to career training and employment opportunities at Dawei.
They have promised to monitor groundwater and air quality, but none of this may matter to some.
Some of the locals are facing an uncertain future such as where they will live and how they will make their living after the Dawei project displaces them. Many of them do not own homes or farms, so according to the government, they are not entitled to any compensation at all.
While Myanmar is opening up to modern industrial development, very few civil society groups are developing at the same pace.
Dr Ruth Banomyong, head of the Department of International Business, Logistics and Transport at the Thammasat Business School, said: "The companies that are going in, initially, they have this idea that 'we don't have to worry like in Thailand, where there are a lot of NGOs'. Then they start going and they still have to deal with it. That is why the issue is more complicated than they expect."
An NGO (non-governmental organisation) activist, a Dawei local, said it has been Thai colleagues who have helped out in this regard.
Ye Lin Myint, mentor of the Civil Society Strengthening Initiative, said: "Thai companies and the Thai government are not accountable for our people, but the Thai NGOs... are the first ones who informed us about the implication, the negative impact of the megaproject. They are the first one to inform us, they are the first one to educate us about it. They are the one who are supporting us."
Though Dawei is one of the rainiest places in the world, water management is key.
The river will be dammed, used as a reservoir and potentially for hydroelectricity.
In either case, a nearby village surrounding a decades-old monastery will be completely submerged.
The community has hired independent geologists to come up with an alternative plan.
A monk said: "At first, when we learned our village would have to be relocated, we had an alternative plan drawn up to submit it to the government and Ital Thai, but they disregarded our proposal."
So, for now, there are no guarantees what will happen to the people affected by development meant to bring economic benefits to all.
- CNA/ms
--------------------------------------------------------------------------------------------
Japan nears Dawei participation call
Myanmar Times By Aye Thida Kyaw
| Sunday, 29 September 2013
Japan aims to make a decision on the
level of its involvement in the Dawei Special Economic Zone project by
November, Myanmar officials said.
The world’s third-largest economy is
mulling possible technical assistance or Official Development Assistance (ODA)
support to the SEZ, said U Set Aung, deputy minister for National Planning and
Economic Development at the beginning of a September 27 trilateral meeting in
Yangon.
Japan will declare its role in Dawei
at the November meeting of the Joint Coordinating Committee in Nay Pyi Daw, he
added.
Union Minister U Aye Myint said that
Myanmar is looking for reliable partners with technological expertise in order
to speed up work on the SEZ.
The troubled Tanintharyi Region
project was initially spearheaded by Italian-Thai Development Company, but
government officials said in August it stepped aside as it ran into funding
difficulties, though still operates as a contractor.
Dawei has been the result of
high-level negotiations between Myanmar and Thai officials, who have requested
Japanese assistance in the SEZ. Dawei would be linked to Bangkok some 350
kilometres (220 miles) away by road, providing the Thai capital with an outlet
to the Andaman Sea.
The ambitious project is to cover
250 square kilometres, with the first phase projected to cost nearly US$9
billion including a deep-sea port and large industrial estate.
U Aye Myint said the SEZ could
greatly benefit from Japan’s participation.
Japanese Ministry of Foreign Affairs
deputy director general Hidenao Yanagi said the September 27 meeting was an
effort for Japanese players to gain information about the project.
“We have some expertise we can
share, as Japan has been involved in similar projects,” he said.
He pointed to the Map Ta Phut
industrial estate on Thailand’s eastern seaboard as a successful project begun
20 years ago. Map Ta Phut had gone through growing pains as well, but ended up
successful, he said.
Thai deputy prime minister
Niwattumrong Boosongpaisan said Dawei has so far seen strong cooperation
between Myanmar and Thailand, though he said he would like to see Japanese
cooperation as well.
---------------------------------------------------------------------------------------
Residents call for halt to Dawei
economic zone
Myanmar Times
By Noe Noe Aung | Sunday, 29 September 2013
Dawei residents are demanding a
suspension of work at the huge deep-sea port project, claiming promised
compensation has not been paid and work conducted so far has damaged
agricultural land.
The Dawei-based Tavoyan Women’s
Union (TWU) distributed a documentary video on September 26 recording the
difficulties of the residents.
“Residents’ dissatisfaction is
growing as their farms and gardens are being destroyed without their
knowledge,” said U Ye Linn Myint of the Dawei Development Association (DDA).
“This is why we are asking for the
project to be suspended. We want the government to solve the problems first.
The more the project grows, the more the residents are unhappy,” said Daw Su Su
Swe of TWU.
Myanmar and Thailand signed an
agreement to develop a deep sea port and special economic zone at Dawei in
2010. The original developer, Italian-Thai Development, stepped back from the
project after struggling to obtain financial backing. The Myanmar and Thai
governments have since taken over and are attempting to bring Japan into the
project, the first phase of which is expected to cost around US$10 billion.
This first phase will see 12,000
people from six villages forced to move at the end of this year’s monsoon
season, according to TWU. Future development phases will require another 18,000
residents from 13 villages to relocate, the group says.
Though the project implementation
committee has promised “reasonable” compensation for the plantations, gardens
and farms that will be taken over, residents say so far they have received
nothing.
“The new roads they’ve built block
the waterways for the paddy fields. Now our fields are flooded after the heavy
rain,” said U Aung Myint, from Mudoo village.
“Myel Gyi and Nayin Kyaw villages
face the same problem. Paddy fields in Myel Gyi were flooded and many acres of
fields at Nayin Kyaw were covered with stones where the earth was broken for
the road-building,” he added.
Another villager, U Maung Than, said
residents are watching their fields day and night to make sure they are not
destroyed by the developer.
“We refused to move from our lands
when the authorities asked us. There is evidence that the authorities destroyed
the crops of farmers who refused to move,” said U Maung Than.
The villagers also say local roads
were ruined by the passage of heavy plant machinery.
“When we went to Ital-Thai to ask
them to repair the roads they ignored us. Students who have to attend school in
other villages cannot go because the roads are ruined. In the end, the
villagers had to repair the roads themselves,” said U Maung Than.
U Ye Linn Myint said the government
also needs to be more transparent about the project’s status and its major
investors.
“Though Ital-Thai say they have
withdrawn from the project, they are still there. And now Japan is reportedly
interested. DDA wants the government to solve these problems before the
developer changes so that the situation doesn’t become even more complicated.”
Neither the government nor Ital-Thai
could be contacted for comment last week.
-------------------------------------------------------------------------------------------------------
Thailand, Burma aim to speed up Dawei development
By
DVB and BANGKOK POST 24
September 2013
Shwe Mann is on a five-day trip to Thailand, which will conclude on Thursday.
Yingluck reportedly told him that officials from various state enterprises were conducting an economic study on infrastructure in Dawei, such as transportation and power and water supply.
“Thailand and Myanmar [Burma] must work together to move this project forward and inform the public about the benefits of the Dawei deep-sea port,” the Thai premier is reported saying.
However, last week, villagers gathered to protest against the construction of a highway which will connect the Dawei special economic zone on the Andaman coast of Burma’s Tenasserim division to Kanchanaburi in Thailand.
According to a local civic group, Community Sustainable Livelihood and Development (CSLD), 38 families have still not been compensated for the loss of their land due to the highway construction between the towns of Thitgadon and Myitta in 2010.
“Therefore, on 9 September 2013, the affected villagers gathered at Thabyu Chaung Village to give an accurate answer to the compensation payment process,” CSLD said in its statement. “In order to obtain the public attention to their concern, the villagers detained three vehicles owned by the ITD on 9 September which [they later] released on 11 September.”
The civic group released a statement on 18 September calling on the industrial zone’s main developer, Italian Thai Development PLC (ITD), to respond immediately to the locals’ claims for compensation. However, to date, ITD has not replied nor did they respond to requests for comment from DVB.
CSLD said that in the process of constructing the Dawei-Kanchanaburi Highway since 2010, ITD has displaced 149 villagers or households, 111 of whom were paid compensation. The Thai construction firm has also destroyed many betel nut, rubber and cashew nut plantations, the main livelihoods of the local farmers, the group said.
-----------------------------------------------------------------------------------------------------------
Deal
struck to speed Dawei development
- Bangkok Post |Published: 24 Sep 2013 at 08.14
Thailand and Myanmar have agreed to
speed up the development of the Dawei Economic Zone.
Prime Minister Yingluck Shinawatra
and Myanmar parliamentary president Thura U Shwe Mann discussed the matter on
Monday.
Thura U Shwe Mann is on a five-day
trip to Thailand, which will conclude on Thursday.
Ms Yingluck told him that officials
from various state enterprises were conducting an economic study on
infrastructure in Dawei, such as transportation and power and water supply.
"Thailand and Myanmar must work
together to move this project forward and inform the public about the benefits
of the Dawei deep-sea port," Ms Yingluck said.
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