Thai PM in Myanmar for Dawei meet

Thailand and Myanmar on Monday sought to drum up investor interest in the stalled Dawei port and industrial megaproject.

Prime Minister Yingluck Shinawatra and 40 Thai business leaders flew to Dawei on the Andaman coast for talks with President Thein Sein and other officials about the joint development.


Thein Sein voiced a "strong desire" at the meeting to implement the project.

But "it is not possible using only our two nations' strength," he said in televised remarks. "We have to invite other countries who would like to come and invest."

Somchet Thinaphong, managing director of Dawei Development Co (DDC), said Monday's meeting was a "blessing" for the project.

"It is the first time both sides have seen the boundary and clear development taking place at the site," said Mr Somchet, who accompanied Italian-Thai Development Plc president Premchai Karnasuta during the visit. "They also adopted a timeline for Dawei."

DDC was established by ITD, Thailand's largest contractor by market value, to oversee the Dawei project, for which ITD was granted a concession by the former military junta in Myanmar.

In July the two countries signed a memorandum of understanding to create a special economic zone for Dawei, with Thailand agreeing to provide assistance in areas including security, infrastructure and logistics.

Transport Minister Chadchat Sittipunt said a joint Thai-Myanmar coordinating committee on infrastructure finalised plans to divide the project's infrastructure into three zones, at a meeting on Friday.

Phase zero involves setting up basic industries, which is expected to be completed in 2014. Phase one involves building ports, roads, water and transport systems by 2015. Phase two involves the remaining industries and is expected to be complete in 2020.

The coordinating committee is reviewing a project to build an electric train linking Map Ta Phut industrial estate in Thailand's Rayong province and the Dawei industrial project, Mr Chadchat addes.

The section of the rail link from Dawei to the Thai border alone would cost 30 billion baht.

Kiwamu Honda, DDC's senior adviser to the chairman, said Monday's visit by Prtemier Yingluck and President Thein Sein was an important step to improve investors' confidence.

Delays to the project had prompted the Japanese government and investors to shift their focus to Thilawa, a special economic zone near Yangon, he admitted.

"Thilawa is the priority for the time being because it is close to the big market of Yangon while Dawei is a long-term project. Thilawa is for light industries but Dawei is for heavy industries," Mr Honda told the Bangkok Post.

"Japan has an interest in both Dawei and Thilawa, but it has to choose one for now."

The huge Dawei project has faced funding difficulties and resistance from local villagers.

"Thai investors are afraid and hesitating about Myanmar's political policies and the funding," Italian-Thai marketing manager Pravee Komolkanchana told AFP in Bangkok ahead of the visit.

"Thai banks are less likely to lend money if it is to invest in other countries, especially in Myanmar."

He said a number of Japanese investors were also due to join the trip, which the company hoped would put the project back on track.

Potential Myanmar investors are also wary, according to a businessman in Yangon who did not want to be named.

"We dare not invest there because of the costs," he said. "We would have to pay Thai salary rates. The project won't benefit Myanmar much but mainly Thailand."

Work has yet to progress far beyond the construction of new homes for the thousands of villagers due to be resettled.

Next year the developers hope to begin work on infrastructure and factories in a planned industrial zone.

Opponents to the plan were emboldened by Thein Sein's decision last year to suspend construction of a $3.6-billion Chinese-backed hydropower project in the northern state of Kachin in a rare response to public outcry.

But local resistance to Dawei appears to have eased, although some villagers are still reluctant to move despite the offer of new homes.

"We understand that we cannot stop the whole project," said a local environmental activist who did not want to be named, adding that campaigners had instead vowed to oppose any coal-fired plant or chemical factory.

The Foreign Ministry has offered to help Myanmar relocate people displaced by the project, said Foreign Minister Surapong Tovichakchaikul.

The ministry's plan would involve teaching displaced people about integrated farming practices, and providing welfare and vocational training for labourers, he said.

It also includes a renovation project at the Dawei Hospital.

source: Bangkok Post
http://www.bangkokpost.com/news/local/326485/pm-in-myanmar-for-dawei-meet