Capital hiccup 'wont' delay Dawei project
Dawei Development insists that its Dawei port project in Myanmar is on track even though a major shareholder, Max Myanmar Group of Companies, could not put in its quota of capital as requested.
Somchet Thinaphong, managing director of Dawei Development, a wholly owned subsidiary of Italian-Thai Development, said last week that Max Myanmar will have to reduce its ownership percentage after failing to contribute to paid-up capital.
Dawei Development is seeking local partners. Four investors have expressed interest in the project.
The company is going ahead with the first phase of the project, consisting of a deep-sea port and an industrial estate, which requires Bt300 billion in financing.
To nail down funding, Ital-Thai chairman Premchai Karnasuta will go to Japan next Monday to talk with the Japan Bank for International Cooperation (JBIC) and Japan International Cooperation Agency.
Dawei Development expects to rely on Japan for about 75 per cent of funding and its cash and loans from local banks for the rest.
Arthid Nanthawithaya, senior executive vice president of Siam Commercial Bank, the financial adviser for the Dawei project, said loans from many sources are the key catalyst for the project, not shareholders. Whether Max Myanmar Group withdraws from the project or not, it will continue because Dawei is a national project and the Myanmar government wants to have the mega-project to drive its economy.
JBIC and China are clearly keen on supporting the project, he added.
Apisak Tantiworavong, president of Krungthai Bank, said the bank was ready to be involved with the project if a major lender wants the bank to participate. Even if it is slow in development, it will eventually happen and Thailand will benefit from it, he said.
