Setback for $50 billion project in Myanmar
The huge Dawei industrialisation project on Myanmar’s south coast has suffered a setback as one of the local key partners, the Max Myanmar conglomerate, on July 2 confirmed that it will pull out of the project.
The company’s owner, Zaw Zaw, one of Myanmar’s most influential businessmen with close ties to the government, said that his group will give up its 25 per cent stake in the Dawei Development Company, according to news reports.
He did not give concrete reasons, but reportedly the group has doubts about the project’s viability and also has difficulties to secure the funding for the first phase of the development.
The Dawei Development Company is 51 per cent owned by Italian-Thai Development, Thailand’s largest construction and engineering group. Italian-Thai is still committed to the project, but also struggles to raise the first $8.5 billion batch of the necessary funding to build the basic infrastructure – roads, a telecoms network, utilities and a port.
In a latest development, Italian-Thai is now hoping to get support from the Japan Bank for International Cooperation and the Japan International Cooperation Agency to finance up to 75 per cent of the investment for the first phase, the Bangkok Post reported.
The Dawei project is meant to become Southeast Asia’s largest industrial complex spanning over 250 square kilometers and including a deep-sea port, steel mills, refineries, a petrochemical complex and power plants, as well as super highways, shipyards, pulp and paper mills plus two golf courses and a holiday resort. The first phase of the deep-sea port is planned to be finished in 2016.
Current problems with the project development have to do with unsecure land ownership rights and difficulties with power supply.
Thailand’s Bangkok Bank and Siam Commercial Bank are advising on the project. Among investors that have signalled interest in Dawei are Malaysia’s Petronas, Japan’s Mitsubishi Corp, Mitsui & Co and Sumitomo Corpas well as and South Korea’s Posco.
[caption id="attachment_3711" align="alignleft" width="300"] Blueprint of the huge Dawei project in Myanmar, which is meant to become Southeast Asia's largest industrial complex.[/caption] The huge Dawei industrialisation project on Myanmar's south coast has suffered a setback as one of the local key partners, the Max Myanmar conglomerate, on July 2 confirmed that it will pull out of the project. The company's owner, Zaw Zaw, one of Myanmar's most influential businessmen with close ties to the government, said that his group will give up its 25 per cent stake in the Dawei Development Company, according to news reports. He did not give...
The huge Dawei industrialisation project on Myanmar’s south coast has suffered a setback as one of the local key partners, the Max Myanmar conglomerate, on July 2 confirmed that it will pull out of the project.
The company’s owner, Zaw Zaw, one of Myanmar’s most influential businessmen with close ties to the government, said that his group will give up its 25 per cent stake in the Dawei Development Company, according to news reports.
He did not give concrete reasons, but reportedly the group has doubts about the project’s viability and also has difficulties to secure the funding for the first phase of the development.
The Dawei Development Company is 51 per cent owned by Italian-Thai Development, Thailand’s largest construction and engineering group. Italian-Thai is still committed to the project, but also struggles to raise the first $8.5 billion batch of the necessary funding to build the basic infrastructure – roads, a telecoms network, utilities and a port.
In a latest development, Italian-Thai is now hoping to get support from the Japan Bank for International Cooperation and the Japan International Cooperation Agency to finance up to 75 per cent of the investment for the first phase, the Bangkok Post reported.
The Dawei project is meant to become Southeast Asia’s largest industrial complex spanning over 250 square kilometers and including a deep-sea port, steel mills, refineries, a petrochemical complex and power plants, as well as super highways, shipyards, pulp and paper mills plus two golf courses and a holiday resort. The first phase of the deep-sea port is planned to be finished in 2016.
Current problems with the project development have to do with unsecure land ownership rights and difficulties with power supply.
Thailand’s Bangkok Bank and Siam Commercial Bank are advising on the project. Among investors that have signalled interest in Dawei are Malaysia’s Petronas, Japan’s Mitsubishi Corp, Mitsui & Co and Sumitomo Corpas well as and South Korea’s Posco.
