Myanmar kicks out Thai company involved in special economic zone development

The Myanmar government has terminated contracts with Bangkok-headquartered construction company Italian-Thai Development over a lack of progress in the development of the first phase of the planned special economic zone at the country’s southeastern seaboard near the city of Dawei, according to local media reports.

Dawei Special Economic Zone, set to become Southeast Asia’s largest industrial complex spanning over 196 square kilometers, is located 250 kilometers west of Bangkok and a joint project by the Myanmar and Thai governments agreed on in 2015 that envisions constructing an industrial park with its own power facilities, as well as a deep-sea port which would enable Thai shipments to reach the Indian Ocean without passing through the Strait of Malacca.

The zone would also bring new employment and business opportunities to this impoverished part of the country, the Myanmar government reckons.

However, the project has suffered from long delays, partly owing to the Thai firm’s problems of securing funding.

Partners from Japan and China in the pipeline

Eventually, the Myanmar government terminated the cooperation on December 30 and cancelled seven out of eight contracts with Italian-Thai, with only a contract for the construction of a highway between Dawei and the Thai border remaining.

Myanmar authorities said that Italian-Thai also failed to pay the concession fee related to Dawei and had not complied with certain conditions prior to commencing operations under its concession agreements.

Italian-Thai said it will be seeking legal counsel in the matter.

Mynamar, in turn, is now seeking assistance in funding and engineering and construction expertise from Japanese companies, while Chinese firms reportedly also showed interest in a potential project cooperation.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

The Myanmar government has terminated contracts with Bangkok-headquartered construction company Italian-Thai Development over a lack of progress in the development of the first phase of the planned special economic zone at the country’s southeastern seaboard near the city of Dawei, according to local media reports. Dawei Special Economic Zone, set to become Southeast Asia’s largest industrial complex spanning over 196 square kilometers, is located 250 kilometers west of Bangkok and a joint project by the Myanmar and Thai governments agreed on in 2015 that envisions constructing an industrial park with its own power facilities, as well as a deep-sea port...

The Myanmar government has terminated contracts with Bangkok-headquartered construction company Italian-Thai Development over a lack of progress in the development of the first phase of the planned special economic zone at the country’s southeastern seaboard near the city of Dawei, according to local media reports.

Dawei Special Economic Zone, set to become Southeast Asia’s largest industrial complex spanning over 196 square kilometers, is located 250 kilometers west of Bangkok and a joint project by the Myanmar and Thai governments agreed on in 2015 that envisions constructing an industrial park with its own power facilities, as well as a deep-sea port which would enable Thai shipments to reach the Indian Ocean without passing through the Strait of Malacca.

The zone would also bring new employment and business opportunities to this impoverished part of the country, the Myanmar government reckons.

However, the project has suffered from long delays, partly owing to the Thai firm’s problems of securing funding.

Partners from Japan and China in the pipeline

Eventually, the Myanmar government terminated the cooperation on December 30 and cancelled seven out of eight contracts with Italian-Thai, with only a contract for the construction of a highway between Dawei and the Thai border remaining.

Myanmar authorities said that Italian-Thai also failed to pay the concession fee related to Dawei and had not complied with certain conditions prior to commencing operations under its concession agreements.

Italian-Thai said it will be seeking legal counsel in the matter.

Mynamar, in turn, is now seeking assistance in funding and engineering and construction expertise from Japanese companies, while Chinese firms reportedly also showed interest in a potential project cooperation.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply