Costs of Dawei project exploding
The huge industrial zone planned in Myanmar’s southern district of Dawei are expected to be significantly higher than estimated two years ago and reach project costs $10.8 billion just for the first two phases, a 62 per cent increase over the initial estimates.
The project is spearheaded by Thailand’s construction giant Italian-Thai Development (ITD) which has been struggling to organise the required funding. The company said that special purpose vehicles for investments in Dawei will be set up within three months with the help of the Thai government.
The first phase of the investment is set to be completed by 2015 and will entail an investment of $6.8 billion while the second phase from 2016 to 2020 will see an infusion of an additional $4 billion.
Out of the investment, 77 per cent will be spent in Myanmar while the rest will be used in Thailand for the construction of motorways and railroads to upgrade connectivity. Of the increased amount, $1.06 billion will be spent on a 33 megawatt gas power plant and a 180 megawatt co-generating power plant.
Myanmar has already expressed concerns about the long delay of the project. The country’s investment board is seeking to modify the Dawei contract to have a holding company or special purpose vehicle set up to handle the investment instead of ITD.
The new company will probably be formed by Thai state-owned enterprises, Japan’s investment organisation, the Myanmar government and ITD.
The huge industrial zone planned in Myanmar's southern district of Dawei are expected to be significantly higher than estimated two years ago and reach project costs $10.8 billion just for the first two phases, a 62 per cent increase over the initial estimates. The project is spearheaded by Thailand's construction giant Italian-Thai Development (ITD) which has been struggling to organise the required funding. The company said that special purpose vehicles for investments in Dawei will be set up within three months with the help of the Thai government. The first phase of the investment is set to be completed by...
The huge industrial zone planned in Myanmar’s southern district of Dawei are expected to be significantly higher than estimated two years ago and reach project costs $10.8 billion just for the first two phases, a 62 per cent increase over the initial estimates.
The project is spearheaded by Thailand’s construction giant Italian-Thai Development (ITD) which has been struggling to organise the required funding. The company said that special purpose vehicles for investments in Dawei will be set up within three months with the help of the Thai government.
The first phase of the investment is set to be completed by 2015 and will entail an investment of $6.8 billion while the second phase from 2016 to 2020 will see an infusion of an additional $4 billion.
Out of the investment, 77 per cent will be spent in Myanmar while the rest will be used in Thailand for the construction of motorways and railroads to upgrade connectivity. Of the increased amount, $1.06 billion will be spent on a 33 megawatt gas power plant and a 180 megawatt co-generating power plant.
Myanmar has already expressed concerns about the long delay of the project. The country’s investment board is seeking to modify the Dawei contract to have a holding company or special purpose vehicle set up to handle the investment instead of ITD.
The new company will probably be formed by Thai state-owned enterprises, Japan’s investment organisation, the Myanmar government and ITD.
