Dawei Project Myanmar

Myanmar Project Dawei

The Dawei project is picking up speed INITIAL Bt37 billion Dawei Special Economic Zone will begin this year after the Myanmar administration contracts with Italian-Thai Development (ITD) this months, said Premchai Karnasuta, CEO of the group. In Yangon last night, after attending a signing ceremony for the opening of a representation of the Export-Import Bank of Thailand, he said that he had been meeting with representatives of the Thai authorities earlier this weeks to talk about the implementation of the Dawei project and was assured that the supply agreement would be finalised this moth.

Last year's elections in Myanmar and the establishment of a new administration will delay the first stage, which will involve 20,000 Rha (3,200 hectares) of the 120,000 Rai-Dawei project. "Once the Myanmar authorities have agreed to the supply agreement, we are prepared to start the first stage immediately, after investing Bt 7 billion since last year, after our group received the building order, in the development of some highways and other infrastructures," Premchai said.

In the first stage, the company will expand its infrastructures such as streets, power, water and industry facilities. Both ITD and its associate Rojana lndustrial Park have been awarded the contract for the first stage of the project in August 2015. Work was due to begin in June last year, but the project was postponed by the poll.

This agreement covers a 50-year licence plus 25 years after completion of the work. Premchai said the capital expenditure will come from ITD's own internally generated operating funds and project finance from Bangkok Bank and other companies such as the Export-Import Bank of Thailand. As soon as the first stage begins in the second half of this year, more than 10,000 builders will be employed in Myanmar.

It is anticipated that this stage will be completed and that the commercial parks will begin to be sold to the investor in 2019. Dawei SEZ's first stage has attracted a number of investor interest from Thailand, China, Taiwan, South Korea and Japan. He said they are estimated to provide between 60,000 and 100,000 employment opportunities for the Burmese population.

"We suggest that Thai producers should be investing in Dawei so that they can take advantage of fiscal incentives," he said, remarking that Myanmar, unlike Thailand, still enjoys the General System of Preferences of advanced countries. Now that the first stage has begun, ITD is also interested in a tender for later stages of the Dawei project, Premchai said.

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