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Old May 1st, 2012, 08:29 PM   #21
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India eyes Dawei access

Published: 1/05/2012 at 02:21 AM

India is urging Thailand to move forward with the logistics development project connecting Kanchanaburi to Dawei so it can use Thailand as a springboard to export products to Asean.

Industry Minister M.R. Pongsvas Svasti said after meeting the Indian ambassador Anil Wadhwa that discussions were made with the chemical and oil sectors of India to use Dawei as a port, which will have connections to Pu Nam Ron and Kanchanaburi province.

Mr Wadhwa said the move will further bilateral investment, and a Thai Board of Investment office is set to open in Mumbai in July.

M.R. Pongsvas said Dawei is a good base for the petrochemical industry, as Thailand's PTT Plc is looking to extract oil and gas from the Gulf of Martaban. Thailand is also looking to set up supporting industries for the petrochemical sector, he said.

Currently transporting goods from India to Thailand takes 15 days, as the route ships through Singapore.

If the Dawei port is constructed, it will take only two days for a product to be transported from Chennai to Dawei, and another day from Dawei to Bangkok.

"India is interested in Dawei because the government is providing a large budget, and it will also use Thailand as a base to enter the Asean market. Thailand will benefit from increased market access for products sent to India," said Satish Sehgal, president of the India Thai Business Association, adding that 90% of products from India are from its ports.

As to the Thailand-India free trade agreement, M.R. Pongsvas said the Commerce Ministry is reconsidering the list of products it will allow lower customs on, which is expected to be finalised by mid-June.

Meanwhile, Tata Motors and Tata Steel are interested in increasing investment in Thailand, with talks underway.

http://www.bangkokpost.com/business/...s-dawei-access
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Old May 10th, 2012, 01:19 PM   #22
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Myanmar Raises Doubts on Italian-Thai’s Deep-Sea Port Plans


By Flavia Krause-Jackson and Daniel Ten Kate - May 3, 2012 3:31 PM GMT+1000
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Myanmar President Thein Sein’s top political adviser questioned Italian-Thai Development Pcl (ITD)’s ability to oversee a planned $8.6 billion industrial zone in the country, raising doubts about the Dawei project’s viability.

Executives at Thailand’s biggest construction company “haven’t much experience in developing such a very big special economic zone,” presidential adviser Ko Ko Hlaing said yesterday in an interview in Yangon, Myanmar’s biggest city. “We need other big investors.”





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Thein Sein, Myanmar's president puts on his safety helmet before touring a plant Kawasaki City, Kanagawa Prefecture, Japan. Photographer: Tomohiro Ohsumi/Bloomberg
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Thein Sein pitched both Dawei, 300 kilometers (186 miles) west of Bangkok, and Thilawa, a port 25 kilometers south of Yangon, to Japanese investors during meetings in Tokyo last month, he said. The trip ended with an agreement for Japan to study Thilawa’s potential that made no mention of Dawei.

Italian-Thai has struggled to win financing to build the Indian Ocean industrial hub that it was awarded a concession to develop in November 2010, before Thein Sein took power as Myanmar shifted from five decades of direct military rule. Earlier this year, Myanmar’s government told reporters it canceled plans for a 4,000-megawatt coal-fired power plant on the site without informing the company in advance.

Italian-Thai helped build the infrastructure for Map Ta Phut, Thailand’s biggest industrial estate, and can handle the project in Myanmar, according to Somchet Thinaphong, managing director of the Dawei Development Co., a unit of the company. Every project of this scale needs multiple investors to be successful, he said by phone today.

‘Global Project’

“This is a global project, it’s an international project,” Somchet said. “One company cannot handle.”

Italian-Thai shares fell 1.1 percent as of 12:26 p.m. in Bangkok, the most in a week. They have climbed 1.1 percent this year, compared with a 21 percent gain for Thailand’s benchmark SET index. The company has reported a loss three of the past four years, according to data compiled by Bloomberg.

“One of their biggest problems is because it was so much supported by the previous government, now they need to restart again and try to get support from the new government,” said Ruth Banomyong, an assistant professor at Bangkok’s Thammasat University who has worked with the Asian Development Bank. Italian-Thai likely needs financial guarantees from Thailand’s government for Dawei to be successful, he said.

Five days before Myanmar held elections in 2010, Italian- Thai signed an $8.6 billion contract with the government to build a deep-sea port and industrial estate, according to Vice President Anan Amarapala. The company expected to secure at least $12.5 billion in loan agreements this year to develop the project, Chairman Premchai Karnasuta told reporters on Dec. 26.

$70 Million

In July 2011, Italian-Thai obtained a credit facility valued at 2.17 billion baht ($70 million), according to an annual financial statement released on Feb. 29. Somchet said he couldn’t provide details on financing for the project.

The ADB would find it hard to lend money for Dawei given concerns “about how this project should move forward,” Craig Steffensen, the bank’s Thailand country director who also oversees Myanmar, said last month.

“I’m not sure it makes sense for them to borrow to build roads and rail connections and transmission lines for something they don’t own, where they will turn it over in 60 years, unless they get an extension,” he said, referring to Italian-Thai. “And I’m not sure it makes sense for the government to borrow from the ADB for investments in what is essentially an undertaking by a foreign investor in Myanmar.”

Japan, Myanmar’s biggest creditor, forgave $3.7 billion in debt last month during Thein Sein’s visit. Japan also agreed to complete a feasibility study by year’s end to develop a port and industrial estate at Thilawa that promote Japanese investment into Myanmar, according to a statement.

http://www.bloomberg.com/news/2012-0...ort-plans.html
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Old May 20th, 2012, 07:40 PM   #23
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As Far As I Concern, Italian Thai Development PCL who is handling the construction of Dawei Deep sea port is going to construct the railway line in the following manner according to the advice from Team Consultant Co.Ltd.

1. Dawei Deep Sea Port - Phu Nam Ron Checkpoint - 160 km
2. Phu Nam Ron Checkpoint - Ban Kao (Upgrading from Stop to Junction) - 30 km

REF: Than Setthakij 20-23 May 2012
This is quite amazing they have chosen that way - probably, they are throwing more home on the Motorway No. 81 - Bang Yai - Kanchanaburi - Ban Kao - Phu Nam Ron without thinking about the issue of massive track Rehabilitation from Nong Pla Duk to Ban Kao to allow the cargo trains (in Mixed 485/486) to go all the way to Ban Kao to drop the cargo boxes (in case that Dawei Deep Sea Port - Ban Kao line using different gauge) or even to Dawei Deep Sea Port (in case of using the same meter gauge)
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Old July 4th, 2012, 04:44 PM   #24
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Max Myanmar confirms ‘pulling out’ of Dawei
Wednesday, 04 July 2012 17:29 Mizzima News

Burma’s Max Myanmar Group, a domestic partner in the Dawei deep-sea port and industrial complex, officially said on Wednesday it was pulling out of the project, adding to doubts about how the US$ 50-billion project will go forward.


Mizzima reported on June 3 that Max Myanmar Group, which owns 25 percent of Dawei Development Co Ltd, had decided to pull out of the project, which has had problems finding financial backers.

“We are pulling out from the project gradually,” Zaw Zaw, Max Myanmar's owner, told Reuters by telephone when asked about the reports this week. He declined to give more details.

The project’s main developer, the Italian-Thai Company of Thailand, has had problems finding financial backing for the $50 billion, 250-square kilometre (97-sq mile) complex that is planned to include a deep-sea port, steel mills, refineries, a petrochemical complex and power plants. Earlier this year, the Burmese government cancelled a coal-fired power plant after strong opposition by environmentalist over the project’s health costs to nearby villagers.

The Dawei project was started by the military government that ruled Burma until March 2011. Critics complained that the project lacked transparency and had very little input from citizen stakeholders.

The Burmese energy minister told Reuters in February that at least two other special economic zones would be developed more quickly than Dawei.

Thailand, which will benefit from cheaper energy through the port and the project, is still committed to developing Dawei. In May, it approved a budget of 33.1 billion baht ($1.1 billion) for infrastructure in the west of the country that would link with the border area and Dawei.

Asean officials have said that the Dawei project must be completed because the prestige and credibility of the region hinges on the project’s follow through. It is designed to provide major savings in transportation of energy and other goods to the Southeast Asia region.

Mizzima reported that in January Max Myanmar said it had agreed to acquire one-quarter of Dawei Development Company (DDC). Earlier, the contractor, Italian-Thai, had said it will maintain at least a 51 per cent stake in DDC, but other partners are needed.

Reports by local residents said there has been little building going on in the Dawei project area.
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Old July 10th, 2012, 05:55 PM   #25
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Japan assistance sought for Dawei Ital-Thai insists Max Myanmar still a partner

Published: 7/07/2012 at 03:36 AM

Italian-Thai Development Plc (ITD) expects to get soft loans from Japan to finance up to 75% of the US$8.6 billion required for infrastructure development at its Dawei project in Myanmar.

Premchai Karnasuta, Ital-Thai's president, is scheduled to visit Japan from July 16-17 and hopes to clinch financial support for the Dawei project from the Japan Bank for International Cooperation and the Japan International Cooperation Agency.

Ital-Thai's Dawei Development Co (DDC) has been in talks with Japanese investors who have expressed keen interest in co-investing in infrastructure projects at Dawei such as the road from the Thai-Myanmar border to Dawei, said Somchet Thinaphong, DDC's managing director.

"Japan has an infrastructure fund. We expect to get soft loans from the fund at very low interest rates," Dr Somchet said on the sidelines of a seminar about Myanmar hosted by Krung Thai Bank.

He said the company plans to raise 75% of the total infrastructure cost in yen, with the rest a mixture of baht and US-dollar loans.

The Dawei Special Economic Zone, which is being developed under a 75-year concession from the Myanmar government, once again came into the spotlight after Max Myanmar, which owns 25% of DDC, announced its intention to pull out of the venture gradually.

The withdrawal raised questions about the viability of the project, but Dr Somchet yesterday pointed out that Max Myanmar remains DDC's partner and said there are no politics behind the move.

Max Myanmar, which is owned by Zaw Zaw, a Myanmar entrepreneur, is a private company with investments in property, agriculture, trading and jewellery.

"Max Myanmar does not want to inject more money into DDC through a capital increase in the future. Consequently, the company will see its ownership diluted from the current 25%," said Dr Somchet, adding that DDC's registered capital of $1 billion is not fully paid up.

He said DDC has been in talks with four or five potential local partners.

The first phase of Dawei's deep-sea port is scheduled to be operational in 2016.

Winston Set Aung, an economic adviser to Myanmar's president, said given the problems with fundraising and joint investment partners, the start of the Dawei project will be delayed from original schedule.

He reaffirmed the Myanmar government fully supports the massive project.

The governments of both countries should have discussions to finalise the project's structure - state holdings might be one of the options, said Mr Set Aung.

"Technical problems faced by the project and the structural changes required will cause delays at the start, but it will be implemented on time," he said.

Apart from Dawei, there are two other special economic zones in Myanmar including Thilawa.

Given the fact that infrastructure is already in place, Thilawa will be much faster realised than Dawei, said Mr Set Aung.

Thinn Htut Thidar, a former deputy director of Myanmar's International Trade Promotion Department, said challenges remain for companies entering the country such as the level of education and the mismatch of labour skills and job descriptions.

Kittinan Kunapermsiri, the regional marketing director at Boonrawd Trading, warned that Thai companies should make sure they understand the Myanmar market before entering it.

Items such as water are listed in the limited import category but are in fact still prohibited, he said.

Boonrawd has nevertheless been able to export beer and soda water to Myanmar.

It is important to know the market and the actual procedures there, Mr Kittinan noted, adding that political stability remains a concern.

Mr Set Aung said the elected government is working on the reform of three sectors - telecommunications, electricity and finance - in order to allow private participation.

The reforms serve Myanmar's needs by creating employment and reducing poverty.

Labour-intensive industries are acceptable under this strategy, but a sustainable approach must be taken, said Mr Set Aung.

http://www.bangkokpost.com/business/...ught-for-dawei
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Old July 10th, 2012, 06:42 PM   #26
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^
Let's see - How much millions Baht more ITD has spent to bring back Max Myanmar to joitn Dawi Project
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Old August 11th, 2012, 04:12 AM   #27
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Directives given to local companies to take leading roles in Dawei Special Economic Zone
Myanmar citizens except experts, skilled workers and supervisors must be employed
The New Light of Myanmar 11 Aug 2012
http://www.mrtv3.net.mm/newpaper/118newsn.pdf
or
http://www.burmalibrary.org/docs13/NLM2012-08-11.pdf
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Old September 12th, 2012, 05:06 AM   #28
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Setting up an Ad Hoc company to handle Dawei Deep Sea port with a price tag of 15 billion Baht funded by Wayuphak funds of KTB and Government Saving Bank
http://www.prachachat.net/news_detai...id=10&catid=09
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Old September 27th, 2012, 08:33 PM   #29
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Dawei deep sea port speed-up

Published: 27/09/2012 at 06:36 PM Online news: Economics

NEW YORK - Leaders of Thailand and Myanmar have agreed to speed up the Dawei deep sea port project and will announce their development plan this November under the three-level mechanism.


The confirmation came during half and hour of bilateral talks between Prime Minister Yingluck Shinawatra and Myanmar President Thein Sein on the sidelines of the United Nations General Assembly.

They also agreed they want the project to progress quickly and Myanmar would like meetings under the three-level mechanism to continue, said a source.

The three-level mechanism comprises a joint high level committee chaired by the Myanmar deputy president and Thai Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong; a coordinating committee headed by the Office of National Economic and Social Development Board; and the six sub-committees on infrastructure, industrial estates, energy, community development, rules and laws, and financial aspects, said the source. The sub-committees will be headed by the relative ministers in each country.

"Thailand and Myanmar will announce the project plan during the Asean Summit in Cambodia this November and the Bangkok government will host the first meeting soon," added the source.

Other issues to be discussed during the meetings include Thailand's interest in cooperating with Myanmar to develop its economic special zone at Thilawa port in Yangon, he said.

http://www.bangkokpost.com/business/...-port-speed-up



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Old October 4th, 2012, 07:39 AM   #30
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Thai Government asking Burmese government to Open 5 New Permanent Checkpoints as the exchange for full commitments on Dawei Deep Sea Port Projects - started with 100 Billion Baht investment packages - since the Dawei Special Economic Zone Law pulmugated by Burmese government along with the new Forex regulation which allow individual to do the exchange for investmnets 100 Million Dollars and the legal entities to do the exchanges for investment without limit are not enough.

Here are 5 pairs of Checkpoints to become New Permanent Checkpoints
1. Ban Phu Namron - Thiki
2. Singkhon - Mudong
3. Three pagoda pass - Hpyatongsu
4. Kiaw Pha Wok - Ponpayin
5. Huay Tone Nun - Mae Jae

Now, Highway dept is going to deal with 70 km new motorway from Kanchanaburi to Ban Phu Namron - studies will be done by the end of 2013 while hte construction can be done by the end of 2015.

SRT is going to deal with the rail link from Dawei Deep Sea Port to laem Chabang using the existing railway lines and the new line ...

http://www.prachachat.net/news_detai...&subcatid=1900
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Old October 4th, 2012, 07:49 PM   #31
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Dawei 'back on track' after meet

The Nation October 5, 2012 1:00 am

The delayed Dawei mega-project is expected to forge ahead again soon, after Prime Minister Yingluck Shinawatra and Myanmar President Thein Sein discussed the issue on the sidelines of the United Nations General Assembly in New York last week.

The leaders of the two nations plan to visit the site of the Dawei deep-sea port and industrial project. Meanwhile, Italian-Thai Development is expected to sign a contract for construction of the port and the road connection from the Thai border this month.

"Initially, the governments of the two countries will put themselves behind a budget for the project to send a signal to private sector of their support," said Pansak Vinyarath, chief of the prime minister's economic advisory board and director of the Strategic Committee for Reconstruction and Future Development.

He told the media yesterday that the National Economic and Social Development Board was drafting a master plan for connectivity development between economic zones of Thailand and Myanmar.

There are six major plans, consisting of infrastructure development in Dawei Economic Zone, target industrial development, power and energy development, social and community development, legislation improvements, and financial |support.

"The Finance Ministry is setting up a working panel to consider the project's appropriate financial and shareholding structure between the state and private sectors of Thailand, Japan and Myanmar as well as sources of funds," he said, adding that approval for this would then be sought from the Cabinet. After that the Thai government would set up a formal working group to handle negotiation tasks.

Also yesterday, Setsuo Iuchi, president of the Japan External Trade Organisation (Jetro) Bangkok, met with Industry Minister Pongsvas Svasti to discuss the Dawei project.

Pongsvas said after meeting with Iuchi that Jetro had confirmed its participation in the Dawei project. The Industry Ministry also informed Jetro that a joint committee chaired by Myanmar's deputy president and Thai Deputy Prime Minister Kittiratt Na-Ranong had been formed after talks by the two leaders in New York last week.

"The investment plan is expected to be announced in November, so we will know which parts will be invested by which state, private sector or joint investment of the three countries - Thailand, Myanmar and Japan," Pongsvas said.

Italian-Thai Development, Thailand's biggest contractor, has been granted a concession from the Myanmar government to develop the special economic zone and deep-sea port in Dawei. The delayed project is expected to cost US$8.6 billion (Bt263 billion) or more.

Premchai Karnasuta, chairman of Italian-Thai Development, said the company expected to sign a contract for developing the Dawei deep-seaport project.

"ITD is trying to move up completion of the Dawei deep-sea port project to the beginning of 2014 from 2015 as scheduled," he said.

The contract includes a 160-kilometre road linking with Thailand's border. The port will cost $2 billion and the road $1 billion. The project includes a power plant, water-distribution grid, railway and information-technology system.

"Now, more than 60 private investors are interested in booking industrial-estate space," he said.

The environmental impact assessment is now complete and there was no objection from the Myanmar government, he said. Initially, the financing would be 80-per-cent loans and 20-per-cent company cash. ITD would first invest in the project and then transfer the assets and concessions to a special purpose vehicle formed by the Thai government and partners such as a representative of Japan.

However, Dawei Development Co will retain a 25-per-cent equity stake in the project, he added.

Aung Kyaw Soe, managing director of Myanmar Textile Industries under the Myanmar Ministry of Industry, said at a seminar yesterday that there were bright investment prospects in his country's textile sector after the US lifted bans on investment and financial services.

http://www.nationmultimedia.com/busi...-30191731.html
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Old October 4th, 2012, 08:01 PM   #32
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JETRO will invest in Myanmar’s Dawei megaproject

BANGKOK, Oct 4 – The Japan External Trade Organization (JETRO) will join Thailand and Myanmar in developing the Dawei deep seaport project, Industry Minister Pongsvas Svasti said today.

Thailand and Myanmar recently signed a memorandum of understanding to collaborate in development of the megaproject, 270km west of Bangkok, to the west of Kanchanaburi.

Jetro Bangkok president Setsuo Iuchi reaffirmed Japan’s interest in the project during a meeting with the industry minister, offering a JETRO financial allocation for infrastructure development and investment by the Japanese private sector for some projects.

Thailand and Myanmar agreed to set up a bilateral committee to work on the project, slated to be announced at the ASEAN Summit in November.

The Finance Ministry and National Economic and Social Development Board are working on a platform to enable Thai private sector to invest in some Dawei-related projects including development of industrial estates and construction of roads from Kanchanburi province, 130km west of Bangkok, to Dawei. (MCOT online news)

http://www.mcot.net/cfcustom/cache_page/421170.html
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Old October 25th, 2012, 08:09 PM   #33
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Thai, Myanmar officials to meet on Dawei development projects early next month

BANGKOK, Oct 26 - Thailand will host a meeting with Myanmar high-level officials November 7-8 on the development of Dawei Special Economic Zone and its Related Project Areas to reach conclusions before the leaders of the two countries will meet the following week.

Thai government spokesperson Sansanee Nakpong told a news conference after Prime Minister Yingluck Shinawatra chaired a meeting of senior Thai officials concerning the Dawei development projects in preparations for the upcoming meeting of senior officials from the two countries.

She said the premier has set up two committees: a Thai-Myanmar joint senior committee, headed by Deputy Prime Minister/Finance Minister Kittiratt Na Ranong on Thailand's part, and a joint coordinating committee which will be chaired by Minister Attached to Prime Minister's Office Niwatthamrong Boonsongpaisal.

Ms Sansanee said the Thai-Myanmar joint committees will convene in Thailand between Nov 7-8 with three points of discussion topics: the 132-km road construction linking the two neighbours, the Dawei Deep Sea Port development project, and the initial stage of construction of a 33-magawatt power plant and transmission lines.

When the Thai-Myanmar officials reach conclusions, she said the leaders of the two countries will meet to discuss the issue again on the sidelines of the ASEAN Summit to be held in Cambodia between Nov 17-20. (MCOT online news)

http://www.mcot.net/cfcustom/cache_page/429285.html

Last edited by napoleon; October 26th, 2012 at 09:11 PM.
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Old October 26th, 2012, 05:27 AM   #34
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Yinglux keeps Dawei project going while JBIC has raised the issues about the condition before approving any loan to Thai government to deal with Dawei project
http://www.bangkokbiznews.com/home/d...%E0%B9%89.html

Dawei Project is too important to be ignored at all - the project will make Burma as a good neighbor while turning Thai investors to become another alternative source of investors other than Chinese investors.
http://www.bangkokbiznews.com/home/d...0%B8%A2--.html
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Old October 31st, 2012, 06:54 AM   #35
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Now, early industries and SME such as textile, agriculture products, canned food, leather, furniture, para rubber process, shoes, jewelry and gem and wood products from Thailand are heading to Dawei Industrial Estate and use small port within Dawei Deep Sea Port to carry their products
http://www.dailynews.co.th/businesss/163764
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Old November 5th, 2012, 06:20 AM   #36
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‘Light Industry’ Puts Dawei SEZ in Doubt
By WILLIAM BOOT
BUSINESS
THE IRRAWADDY| October 31, 2012 |



Dawei Development Company Managing Director Somchet Thinaphong shows a model of the proposed SEZ during an interview in Bangkok. (Photo: Reuters)


New confusion has surfaced around the much-delayed port and industrial special economic zone (SEZ) project on Burma’s southeast coast at Dawei.

The chief project licensee, construction company Italian-Thai Development (ITD), has announced drastically downsized plans to build a small “light industry” estate instead of a grand heavy industry complex focused round a deep-sea port.

The plans, which would use only a tiny segment of the 24,000 hectares envisaged in the original scheme, come just a few weeks after the Burmese and Thai governments agreed to establish a joint committee charged with reviving the stalled project.

ITD subsidiary Dawei Development Company Managing Director Somchet Thinaphong told Thailand-based The Bangkok Post newspaper that just 100 of the 24,000 hectares would now be used to develop factories for textile, food and furniture production. Somchet said building would start early next year and the estate would be powered by a small 33-megawatt gas-fuelled electricity plant.

The original plans included a large port to handle crude oil from the Middle East for transhipment to Bangkok and heavy industries such as a refinery, petrochemicals and a steel mill. But this ambitious scheme, linked to Thailand by new highways and a railway, has languished due to a lack of ITD finance and investment partners.

ITD has previously said it needs a minimum US $8.5 billion initial capital with the overall development eventually costing up to a whopping $50 billion.

In September, Thai Prime Minister Yingluck Shinawatra met Burmese President Thein Sein on the sidelines of the UN General Assembly in New York and agreed to effectively take over the project including seeking new foreign investors, in particular large Japanese industrial corporations. Representatives of the two governments are scheduled to meet in Bangkok on Nov. 7.

“The latest proposal by Somchet does not seem to make sense. Without a port and proper road infrastructure linking with Thailand and others parts of Myanmar, who is going to set up production of garments and furniture and suchlike in a remote place like Dawei,” Bangkok energy industries consultant Collin Reynolds told The Irrawaddy on Wednesday.

“The whole point of Dawei was to create an import-export port and hinterland communications. Instead, the project has been in limbo for so long it really seems to have missed the boat. The Japanese and Koreans are investing in the new Thilawa economic zone in Rangoon.”

The Thai government has promised $1 billion for infrastructure such as a new highway but only inside Thailand up to the Burmese border crossing by Kanchanaburi.

“If you want investors to go there [Dawei], infrastructure must be ready to support their investments, but so far nothing has been confirmed,” the vice-chairman of the Federation of Thai Industries Thanit Sorat told The Bangkok Post.

Dawei Development Company’s Somchet was unwilling this week to identify the firms that would establish light industry businesses on a green-field site. He also conceded that his company did not yet know where it would obtain the natural gas to fuel the proposed small electricity plant needed to power these factories.

ITD’s woes are compounded by new allegations of land grabbing around Dawei, with local people reportedly paid poor compensation or forced to relocate. These claims are made in a joint report by the Amsterdam-based human rights NGO Transnational Institute and its local partner Paung Ku.

Energy analysts believe the Thai government wants to try to save the project because it sees the advantage of a port to tranship oil from tankers to trains or a pipeline for the 100 kilometres or so into Thailand.

Dawei would short-cut the long sea journey for oil tankers from Africa and the Middle East currently having to journey via Singapore and the narrow Straits of Melaka and up through the Gulf of Thailand to the greater Bangkok region.

However, a port at Dawei will be of little use to Burma’s short-term economic revival and is being seen by some observers as a distraction from more urgent infrastructure and industrial needs.

While Dawei has remained nothing more than an elaborate 3D blueprint, major Japanese and South Korean businesses have signed agreements to invest in the Rangoon port and adjoining SEZ of Thilawa.

Burmese Minister for National Planning and Economic Development Kan Saw last week forecast that parts of the Thilawa zone would be operational during 2013.

Foreign firms lined up for Thilawa include Japan’s Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation, and a consortium from South Korea led by Hyundai. Most of these are engaging in infrastructure contracts, not least a 500-megawatt gas-fired electricity generating plant. Suzuki Motor Corporation also plans a car factory.

The continued lack of a big investor joining the Dawei project, the absence of infrastructure development there and ITD’s latest failure to name firms supposedly joining even a light industry alternative do not bode well for the future of this particular SEZ.
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Old November 6th, 2012, 03:15 PM   #37
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Thailand to push for Dawei special economic zone development

BANGKOK, Nov 2 -- The high-level Thai Myanmar officials meeting in Bangkok next week will focus on the development of Dawei Special Economic Zone and its related project areas, according to Deputy Prime Minister/Foreign Affairs Minister Surapong Tovichakchaikul.

Mr Surapong said the Myanmar Vice President will lead ministers who supervise six related areas in the Dawei project to Thailand on Tuesday and is scheduled to meet Deputy Prime Minister/Finance Minister Kittiratt Na Ranong on that evening for dinner and preparatory discussions for the high-level officials meeting on Wednesday.

The meetings will take place at Government House and be divided into two groups, a high-level official meeting co-chaired by Mr Kittiratt and the Myanmar vice president; the coordinating level official meeting co-chaired by Minister Attached to the Prime Minister’s Office Niwattumrong Boonsongpaisan and the Myanmar industry minister, he said.

Mr Surapong said that, during the meeting, Thailand and Myanmar will discuss infrastructure projects including electrical power system, tap water, and the road and communication network. Both sides will consider details of investors in the project and how to invest for mutually benefit. Thailand and Myanmar will sign an Exchange of Notes on establishing three levels of Thai Myanmar joint committees to implement a Memorandum of Understanding (MoU) on the development of Dawei Special Economic Zone and its related project areas.

The meeting may discuss the planned bilateral meeting between Thai Prime Minister Yingluck Shinawatra and Myanmar President Thein Sein on the sidelines of the ASEAN Summit in Cambodia Nov 15-20. On Wednesday afternoon, Mr Kittiratt will lead Myanmar delegates to visit Chon Buri's Laem Chabang Industrial Estate and Rayong's Map Ta Phut Industrial Estate. (MCOT online news)

http://englishnews.mcot.net/site/con...6cb3320b000052




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Old November 7th, 2012, 08:50 PM   #38
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6 joint panels set for master plan

THE NATION November 8, 2012 1:00 am

Thailand and Myanmar have agreed to set up six working subcommittees to complete a master plan for development of the Dawei project within three months and kick off infrastructure investment next April.

The resolution was reached at the first meeting yesterday of the Thai-Myanmar Joint High-Level Committee (JHC) on the Dawei special economic zone and areas related to the project. Leading the Thai delegation was Deputy Prime Minister Kittiratt Na-Ranong, while Myanmar's team was led by Vice President Nyan Htun.

"At the meeting, we assured Myanmar leaders that Thailand has no intention to take advantage of Myanmar by promoting Thai investment in the project," Kittiratt said. "The project will indeed benefit both countries and people in the Greater Mekong Subregion. Because of its massive size, it is essential that both countries work closely."

The six subcommittees will start their joint consultation immediately, having Thai PM's Office Minister Niwatthamrong Boonsongpaisal and Myanmar's industry minister as the main coordinators.

Among all the subcommittees, the one on infrastructure will take the lead, with Transport Minister Chatchart Sithipan representing Thailand. This committee will pave the way for infrastructure investment, which will involve road construction, a rail network, the deep-sea port and others such as water for manufacturing activities.

Next in line is the subcommittee on energy, with Energy Minister Pongsak Ruktapongpisal representing Thailand. The unit will have to get power resources ready to accommodate the industrial plants. It will also plot the investment plan for the petrochemical industry.

Thailand's Finance Ministry will join the subcommittee on trade and investment, responsible for proposing tax and non-tax incentives to draw global investors to the special economic zone. On this, Thailand will attempt to replicate its successes during the development of similar projects such as the deep-sea port and industrial estate at Laem Chabang.

The other three panels will deal with financing, industrial development, and community and the environment.

Kittiratt said that though the project would require huge investment, there should be no problem mobilising funds thanks to immense interest from many countries. Several developers have also expressed interest in financing it.

Still, Thailand and Myanmar will need to work closely in plotting the investment and financing plans, and this should be completed once the development phases are clearer, he said. He foresees the relocation of light and labour-intensive industries to Dawei in the initial stage, and heavy and advanced industries would follow when infrastructure is ready.

According to Somchai Sajjapongse, director-general of the Fiscal Policy Office, the investment cost may be reviewed. Italian-Thai Development, which was awarded the concession from the Myanmar government, earlier estimated the investment cost at Bt1.8 trillion.

Niwatthamrong said the six subcommittees aimed to complete the master plan for development of the deep-sea port and related areas within three months. The master plan will cover development details as well as the investment cost for each project.

The committees will convene again next month in Nay Pyi Taw. Then the JHC will meet again in March. This will pave the way for the construction of roads, the port and other infrastructure in April, for completion in 2015.

The estimated investment cost has tended to increase from the earlier forecast, as Myanmar proposed more basic infrastructure to make the project more enticing, Niwatthamrong said. For example, Myanmar is interested in making Dawei part of the Asean high-speed-rail project.

He noted that the Thai government would play a role as a coordinator, to pave the way for private investment from this country. He said the government would not inject capital into the project, but Thai state enterprises might co-invest in projects. Ital-Thai will still take the lead, as the main concessionaire. PTT, for instance, could invest in the project but based on its own feasibility study and financing.

"The Dawei project is to benefit the entire region, and the Thai government's role is to advocate added value for Thailand and our neighbour," Niwatthamrong said.

http://www.nationmultimedia.com/busi...-30193887.html
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Old November 7th, 2012, 10:16 PM   #39
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Dawei group crosses fingers Still no word on origin of funding sources

Published: 8/11/2012 at 12:00 AM Newspaper section: Business

Thailand and Myanmar expect to finalise details of the joint development plan for the massive Dawei project in three or four months so that construction can begin next April.

The two countries yesterday reaffirmed their commitment to joint development of a US$50-billion special economic zone (SEZ) and a deep-sea port in eastern Myanmar during the visit of Myanmar Vice President Nyan Tan to Bangkok.

Mr Nyan Tan, also co-chairman of the Myanmar-Thailand joint high-level committee for the Comprehensive Development of the Dawei SEZ and its related project areas (JHC) met with Prime Minister Yingluck Shinawatra and Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong, who is also the co-chairman of the JHC.

After the meeting, Mr Kittiratt said six subcommittees were appointed and started work immediately. Work from these subcommittees will be submitted to a meeting in Nay Pyi Taw next month of the coordination committee chaired by the PM's Office Minister Niwatthamrong Bunsongphaisan and Myanmar's industry minister.

The JHC will meet again next March to finalise details of the Dawei project, he said, declining to confirm whether the Thai government will spend money for joint development of the project in Myanmar.

"Both sides agree this project is very important to not only Thailand and Myanmar but also the Greater Mekong Subregion and perhaps the world too, as it will connect the Pacific with the Andaman Sea," said Mr Kittiratt.

But given that the Dawei project is so huge, the development will be done in phases starting with light and labour-intensive industries before heavy industries are built later, he noted.

"The confidence from international investors is the key, and so far several international organisations have expressed their interest in supporting the project. The more participation the better," said Mr Kittiratt.

Italian-Thai Development Plc, the country's largest contractor by market value, has been granted a concession to develop the Dawei project consisting of infrastructure worth $8.5 billion for the first phase.

Transport Minister Chatchart Sithipan, who was named the chairman of the subcommittee on infrastructure, said details will be finalised within a month including the sources of funding for roads, rail and port construction as well as water supply.

The immediate task is to accelerate construction of nearly 100 kilometres from Nonthaburi through Nakhon Pathom to Kanchanaburi. This route will be connected with a road running from the Thai-Myanmar border in Kanchanaburi to Dawei, said Mr Chatchart.

Somchai Sujjapongse, director-general of the Fiscal Policy Office, said all the details of Dawei including the financing will be concluded in the next three or four months.

Ms Yingluck said the Thai government will speed up the Dawei project, while the JHC should set priorities for which infrastructure projects to develop.

A Government House source said the priority projects include a power plant, the 132-kilometre road from the Thai border to Dawei and the port.

The first phase of investment is worth 120 billion baht for roads, a power plant and a deep-sea port, while another 81 billion is required for infrastructure and facilities in the SEZ.

Ms Yingluck told Mr Nyan Tan that Thailand and Myanmar may announce the results of the JHC at the Asean Summit Meeting in Cambodia next month in order to encourage potential investors.

Mr Nyan Tan said Myanmar expects the JHC meeting will inspire investor confidence, especially among Thai investors, who are the second-largest foreign investors in Myanmar, with 27% of total direct investment.

http://www.bangkokpost.com/business/...rosses-fingers

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Old November 8th, 2012, 03:36 AM   #40
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Cake cutting deals on Dawai Special Economic Zone
Manager Daily 7 Nov 2012 - 10:40 PM

During the discussion about Dawai Special Economic Zone at the Government House, PM Yinglux telling the press that
Thailand and Burma has come up with the deal to support Dawai Special Economic Zone

1. Repairing Mae Sod - Myowadee Friendship Bridge + highway development from Myowadee to Kokarek with the proposed extension to Maulamien

2. upgrading 5 pairs of checkpoints into permanent international checkpoints to allow more trades including the one for Dawei Deep sea port

3. Thailand will give the gas turbine power generators from Nong Chok Power Plant and Lad Krabang power plant in BKK to be installed in Yangon as the way to eliminate blackout and brownout in Yangon.

4. Supporting SEAGAMES in Nepyitaw in 2013

5. Supporting WEF Conference.
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