Myanmar Times | The Italian Thai Development Public Company (ITD) has informed the Stock Exchange of Thailand that contracts signed between the company and Myanmar involving work on the first phase of Dawei Special Economic Zone have been cancelled.
Myanmar was reported to have cancelled seven out of eight contracts made in 2015 for development of the SEZ after ITD failed to deliver its part of the agreement.
When contacted, the Dawei SEZ Management Committee from Myanmar said the cancellations have yet to be officially announced. “We have yet to approve the cancellations and have no comment at the moment,” said U Myint San, vice chair of Dawei SEZ Management Committee.
The ITD is seeking legal counsel on how to proceed given the circumstances.
Last month, the Japanese government said that it would commence a survey to determine the total amount of capital expenditure required to participate in the development of the Dawei deep sea port project.
Myanmar is now counting on financial and technical support from Japan to kickstart construction of the long-delayed SEZ after Japan in November made an official offer to Myanmar and Thailand to invest in Dawei.
The Dawei SEZ is expected to be the largest SEZ in South East Asia – about eight times larger than Thilawa SEZ in Yangon – and over ten times larger than Kyauk Phyu SEZ in Rakhine when complete.
Located 20 kilometres north of Dawei, the capital of Tanintharyi Region in Myanmar’s southeast coast bordering Thailand, the Dawei SEZ comprises 20,000 hectares of land and includes industrial as well as port facilities.
Loans have been acquired from the Thais to construct a highway between Dawei and the Thai border, which will be complete in 2023. Work to connect the SEZ to the national grid is expected to be completed in 2023 as well.