Dawei Special Economic Zone Project Kicks Off
The governments of Myanmar and Thailand have signed a concession agreement with a consortium of private developers for the Dawei Special Economic Zone (Dawei SEZ) initial phase development.
The consortium of private developers includes Italian-Thai Development Public Company Limited, Rojana Industrial Park Public Company Limited and LNG Plus International Company Limited.
The initial phase development involves the construction of a small port, power plants, a two-lane road to Thailand, and an LNG terminal.
Japan, Thailand and Myanmar recently signed a Memorandum of Intent (MoI) to build the Dawei Special Economic Zone in Myanmar as part of the “New Tokyo Strategy 2015 for Mekong-Japan Cooperation,” adopted during the Seventh Mekong-Japan Summit on July 4.
Thailand and Myanmar signed a memorandum of understanding (MoU) to develop the Dawei Special Economic Zone in 2008, followed by another MoU in 2012.
As part of the MoU, Myanmar granted Italian-Thai Development PCL a 75-year concession in 2008 to construct the project, and attract investments. The project should have been completed by 2015, but was suspended due to the lack of financing. ITD lost the 75-year concession in 2013, with the governments of Thailand and Myanmar taking a 50% stake in the project each.
On January 30, 2015, Japan agreed to participate in the project. It was revealed that they will hold equal partnership to Thailand and Myanmar in the Dawei Special Economic Zone Development Co, and provide technical and financial support for the project.
The Dawei Special Economic Zone Development will include a deep-sea port with a capacity to hold 250 million tons of cargo, surrounded by an economic zone covering some 200 square kilometers.