The Dawei Special Economic Zone (DSEZ) is taking shape, with the first power plant already in operation serving local demand and construction and other projects planned for the coming year.
The massive investment project finally got some momentum last month when Japan joined Thailand and Myanmar in a joint venture.
The highway linking Dawei to the airport is being upgraded and expanded.
Andaman Power and Utility Co (APU), a wholly owned company of SET-listed United Power of Asia Plc, was the first to receive a licence to develop a gas-fired power plant in the zone, with a total generating capacity of 500 megawatts.
The first phase of the power plant, which generates 6-20 MW and is worth US$4.57 million, began operation a month ago using gas-powered generators leased by APU on a two-year contract from UK-based Aggreko.
APU chairman Upakit Patchariyangkun said after the first power generator, other crucial infrastructures were expected to follow. The company is in talks with the Tanintharyi regional government in Myanmar about a power purchasing agreement for its second unit with total capacity of 200 MW near the first-phase power generators. The second phase of the power plant project requires investment of 6.5-7.5 billion baht.
The third phase with a total capacity of 300 MW is part of the long-term plan.
Gas supply for the three power plants is to come from PTT Exploration and Production's (PTTEP) Zawtika gas resource in Myanmar, he said.
The Myanmar Oil and Gas Enterprise and PTTEP are in talks about gas purchasing contracts for the second phase of the power plant.
Mr Upakit said a power purchase agreement for the second phase was expected to be finalised by the end of this year, with construction scheduled to start by early next year. Power generation would commence within three years.
For the longer term, Myanmar's government estimates power demand from local people and the DSEZ will reach 2,000 MW.
"A lot more infrastructure still needs to be developed, ranging from the airport to a deep-sea port, from industrial land to other utilities," he said.
Mr Upakit said APU was looking to longer-term businesses by joining with strategic partners for another coal-fired power plant, which is likely to be more appropriate for the anticipated rapid power demand growth of DSEZ.
Myanmar's government has prepared land for a deep-sea port, utilities and industrial land that will exceed 400 square kilometres.
