Dawei SEZ revival in the works

The studies will begin at the end of this month and conclude in March, according to a statement from the Dawei SEZ Working Committee released yesterday. It also said the three research projects would have a combined budget of US$700,000.

The announcement follows a meeting between a delegation led by committee’s chairperson Aye Myint and Japan’s deputy minister of economy, trade and industry Norihiko Ishiguro, Japanese executives and other officials on October 14 in which plans for reviving the SEZ were discussed.

Labour Minister Aye Myint also told state-run media yesterday that Japan would draft a master plan for the SEZ, determine how the countries involved in it could provide technical assistance and cooperate in its development. He also said it would be divided into two zones with construction of the first one, covering 6,000 acres, to start this year. It will be aimed at attracting small and medium-sized enterprises and built in three phases, he said.

The project was launched in 2010 but stalled after its initial developer Italian-Thai Development was unable to raise enough funds for its development.

The Special Purpose Vehicle 1, the core company of the project, registered the zone in Thailand although it is a joint venture with Myanmar. Concerns were raised in Myanmar, following this registration, that the SEZ would be controlled by Thailand.

Aye Myint said that the project would be under Myanmar’s administration. He said Japanese companies would be involved in the second zone, and that the first phase of zone one would cover 1,500 acres. Only after its factory occupancy rate reaches 65 per cent – or 60,000 jobs were created – would the second phase proceed, he told state-run media.

The cost of developing the SEZ – which includes a road link with Thailand, harbour, industrial zone and power plant – had been estimated at $8 billion.