Dawei project slimmed down by developer
The development of an industrial zone in Myanmar’s southern town of Dawei has received new backing by master developer Italian-Thai Development (ITD), albeit at a much lower level than expected.
ITD has committed to invest $677 million until 2014 to construct basic infrastructure such as utilities and roads and to relocate people from the area, the company said on March 11 at a press conference in Bangkok. The investment will also be used to start construction of a deep-sea port, the National News Bureau of Thailand said in an additional release on March 12.
The funding will be supported by Thai banks including Siam Commercial Bank, Kasikornbank, Bangkok Bank and Krung Thai Bank.
The developer has also agreed with the Myanmar government to set up several joint ventures and a special purpose vehicle to reduce the financial burden on ITD after major funding partner Japan has been reluctant to join the project.
ITD will hold at least 25 per cent each in eight joint ventures to be set up in Myanmar to develop infrastructure for Dawei and the construction of the deep-sea port during the first phase slated to open in 2016. Under the structures agreed by both governments, a special purpose vehicle will be set up as a parent company with the Thai and Myanmar sides holding a combined 60 per cent and the rest held by Japan and South Korea. China has also expressed interest in participating.
In the original planning, $8.5 billion were needed to finance infrastructure and utilities under the first phase of the complex which was planned to also include steel mills, refineries, a petrochemical complex, road and rail links, power plants, water facilities, industrial estate, a telecom network and townships.
The industrial zone in Dawei is of structural importance for Thailand as it would give the country direct access to the Indian Ocean and reduce shipping times significantly.
[caption id="attachment_7576" align="alignleft" width="189"] Click to enlarge[/caption] The development of an industrial zone in Myanmar's southern town of Dawei has received new backing by master developer Italian-Thai Development (ITD), albeit at a much lower level than expected. ITD has committed to invest $677 million until 2014 to construct basic infrastructure such as utilities and roads and to relocate people from the area, the company said on March 11 at a press conference in Bangkok. The investment will also be used to start construction of a deep-sea port, the National News Bureau of Thailand said in an additional release on March...
The development of an industrial zone in Myanmar’s southern town of Dawei has received new backing by master developer Italian-Thai Development (ITD), albeit at a much lower level than expected.
ITD has committed to invest $677 million until 2014 to construct basic infrastructure such as utilities and roads and to relocate people from the area, the company said on March 11 at a press conference in Bangkok. The investment will also be used to start construction of a deep-sea port, the National News Bureau of Thailand said in an additional release on March 12.
The funding will be supported by Thai banks including Siam Commercial Bank, Kasikornbank, Bangkok Bank and Krung Thai Bank.
The developer has also agreed with the Myanmar government to set up several joint ventures and a special purpose vehicle to reduce the financial burden on ITD after major funding partner Japan has been reluctant to join the project.
ITD will hold at least 25 per cent each in eight joint ventures to be set up in Myanmar to develop infrastructure for Dawei and the construction of the deep-sea port during the first phase slated to open in 2016. Under the structures agreed by both governments, a special purpose vehicle will be set up as a parent company with the Thai and Myanmar sides holding a combined 60 per cent and the rest held by Japan and South Korea. China has also expressed interest in participating.
In the original planning, $8.5 billion were needed to finance infrastructure and utilities under the first phase of the complex which was planned to also include steel mills, refineries, a petrochemical complex, road and rail links, power plants, water facilities, industrial estate, a telecom network and townships.
The industrial zone in Dawei is of structural importance for Thailand as it would give the country direct access to the Indian Ocean and reduce shipping times significantly.
