Myanmar's long-awaited multibillion-dollar Dawei megaproject has inched forward, with Japan yesterday signing a shareholder's agreement in a special purpose vehicle that runs the project.
Japan, through the Japan Bank for International Cooperation, signed the deal with Thailand's Neighbouring Countries Economic Development Cooperation Agency and Myanmar's National Planning and Economic Development Ministry, under which the JBIC would hold equal shares in the Dawei SEZ Development Co.
Deputy Prime Minister Somkid Jatusripitak called the move significant, saying Japan's commitment to the development of the Dawei project covering 196 square kilometres would instil confidence among investors.
"Japan will help to revise the project's master plan for both the deep-sea port and the industrial estate," he said after the fifth meeting of the Myanmar-Thailand Joint High-Level Committee (JHC) for the comprehensive development of the Dawei Special Economic Zone (Dawei SEZ).
He said the JHC also agreed to establish a working committee to work out the full phase of the project's development without waiting for development of an initial phase. The committee will be tasked with revising the master plan while considering appropriate industry categories for investment.
The full phase of Dawei development is estimated to cost 400 billion baht.
Mr Somkid said the revision should be finished before the next JHC meeting in late February or early March, after the establishment of Myanmar's new government. He said political change in Myanmar would not affect Dawei's development, as Myanmar had confirmed the project would be very significant for future development of the country.
He said the meeting also agreed to use the baht and Myanmar's kyat for project financing.
Poramatee Vimolsiri, secretary-general of the National Economic and Social Development Board, said using both countries' currencies would facilitate development.
The meeting also agreed independent experts might be allowed to assist Myanmar authorities to align the development process with international standards and engagement with local communities, he said.
Mr Poramatee said an environmental impact assessment was needed, while a one-stop service centre would be established to function as a single window for interested investors.
Transport Minister Arkhom Termpittayapaisith said Italian-Thai Development Plc, Rojana Industrial Park Plc and LNG Plus International, developers that had already agreed to work on the project, were required to start construction of the industrial estate's first phase by next March.
Finance permanent secretary Somchai Sujjapongse said Myanmar wanted to accelerate investment in Dawei, as 78 companies were interested in using it as a production base -- 70 Thai and eight Japanese.
The Japanese government intends to build a four-lane road linking Kanchanaburi province with Dawei, he said.