Thai banks on alert for Dawei's financing

Vorapak Tanyawong, president of Krungthai Bank, said that the SPVs will shed lights on detail of each development phases. 

"KTB is preparing to advise the Thai government on this project. The financing plan will be finalised and we are fully ready to provide the assistance," he said.

Bangkok Bank Senior Executive Vice President Chansak Fuangfu noted that Thailand and Myanmar's signing of joint development pact would help draw new investors.  Aside from the deep-sea port, the development project will entail a power plant and an iron smelting plant, among others. The bank is closely monitoring the updates of the investment plans, he said.

Vasin Vanichvoranun, executive vice president of Kasikornbank, said that his bank is waiting for investment details before making the decision if it will participate in the financing. 

"It's too soon to say if we will take part. The overall picture however improves with the greater participation of the Thai government," Vasin said.

A source told Eleven Media recently that the project may be in jeopardy, said an informed source, citing the lack of financial transaction going into the constructions of the project.

The budget for the construction of the project was set at US$8 billion. But two years have been passed and the project has used up only US$52 million, the source said.

The project, implemented by Italian-Thai Development (IDP) has imported construction tools and machineries since January 2011.

Although the company has spent on tools and machineries for project, no one knows the company's actual amount on investment. There was no transparency. It is believed that the company is in financial difficulty, the source said.

The construction tools and machineries have been imported via Nabule and Htikhi border trade centers in last year. This year they were imported through Nabule border trade center.

More than $16 million of import were through Htikhi and Nabule border trade centers last fiscal year. The IDP imported more than US$36 million construction tools and machinery through Nabule according to the report of Border Trade Department.

The company is seeking Japanese investors as partners to keep going the project. However, the project was delayed for two years already due to lack of fund.

Myanmar and Thai governments are funding the project to be accomplished.