Dawei SEZ (Special Economic Zone)
■About Dawei SEZ and Deep Sea Port Project
The development of Dawei SEZ (Special Economic Zone) in southern Myanmar was confirmed in 2008 by the two governments of Thailand and Myanmar in cooperation with each other, and has been promoted mainly by Thai private companies.
Daway is the capital of the Tanintharyi Region, located about 350km west of Bangkok, the capital of Thailand. The project will develop an industrial park of 20,451 hectares in a rural area about 20km north of it, and will have a deep sea port, an oil refinery complex, and a steel mill. , Fertilizer / petrochemical factories, pulp / paper mills, medium / light industrial factories, power plants, etc. are planned to be constructed.
Related infrastructure projects outside the SEZ region include an international highway connection project connecting the SEZ and Thailand, a large water storage dam project aimed at supplying water to the SEZ, and residents who have lived for many years will relocate to the planned project site. It also includes a plan to build a resettlement site.
The SEZ development project is said to be the largest industrial zone in Southeast Asia when completed.
After the Thai company withdrew due to the failure of financing in 2013, the development entity moved to the special purpose vehicle (SPV) funded by the Thai and Myanmar governments, and after that, due to political instability in Thailand, etc. For the year, the outlook for the business remained uncertain.
However, in October 2014, after the governments of both countries confirmed the resumption of the SEZ project, expectations for new support and investment from Japan as a new investment source were rising.
Then, in July 2015, a memorandum of intent (MOI) was signed by the governments of Japan, Thailand and Burma, and in December of the same year, the Japan Bank for International Cooperation (JBIC) signed an equal investment agreement for SPV.
■Progress
Dawei SEZ
In November 2020, the Japanese government submitted a proposal to the Dawei SEZ Development Plan, and it became clear that it would participate in earnest.
According to the announcement, the Myanmar-Thailand Joint Coordinating Committee (JCC) meeting was held on November 5, 2020, and submitted a proposal that the Japanese government would participate in earnest.
Dawei SEZ is classified into two categories, initial development and main development, and the Japanese government says that it will participate only in this development regardless of the initial development.
Until now, the Japanese government’s involvement in the Dawei SEZ was indirect and limited to lateral support such as field surveys and technical cooperation. This time, the Japanese go
vernment submitted a proposal to directly participate with the governments of Myanmar and Thailand. From now on, Japan will directly participate in the Dawei SEZ development plan.
On November 24, 2020, the Myanmar government approved Japan’s offer to participate in the Dawei Special Economic Zone announced by the Ministry of Investment and Foreign Trade.
・Dawei Deep Sea Port
In December 2020, it was announced that the Government of Japan was proposing a study to determine the total amount of capital expenditure required to participate in the development of the Daway Deep Sea Port Project.
The move came after Japan officially offered Myanmar and Thailand to invest in the Dawei Special Economic Zone (SEZ) last month.
Japan offers to participate in Dawei SEZ development
U Myin San, Vice Chairman of the Dawei Special Economic Zone (SEZ) Management Committee, said Japan has officially offered to participate in the development of the Dawei Special Economic Zone (SEZ).
“The Government of Japan has made a proposal after calling for participation at the intergovernmental (G2G) level on November 5. They are interested in joining the Myanmar and Thai governments in the Daway Special Economic Zone. I sent a letter to show. ”
“Despite the pandemic, Myanmar was able to quickly approve Japan’s participation,” he said. Myanmar expects financial and technical assistance from Japan to kickstart the long-delayed construction of the SEZ.
The latest developments took place after Chinese state-owned enterprises showed interest in investing in the Dawei SEZ in February.
Meanwhile, the feasibility study for the construction of a refinery in the SEZ by two Chinese companies has been postponed due to the impact of COVID-19. The survey was planned to be conducted in collaboration with a local company, Myanmar Chemical and Machinery Co. Ltd.
The Dawei SZ is expected to be the largest SZ in Southeast Asia, about eight times the Thilawa SZ in Yangon and more than ten times the Kyauk Phyu SEZ in Rakhine when completed.
Located 20 km north of Dawei, the capital of the state of Tanindary on the southeastern coast of Myanmar, which borders Thailand, the Dawei Special Economic Zone covers 20,000 hectares of land with industrial and port facilities.
When the memorandum of understanding was signed between the Myanmar government and the Thai government in 2008, the development was led by the Thai construction company Italy-Thailand Development (ITD), but in 2013 the company funded it. There was a shortage and development was stalled. Talks to resume development are ongoing, and the project has been delayed many times.
Yangon-Japan has decided to invest in a full-scale implementation of the Dawei Special Economic Zone (SEZ) in southern Myanmar, Japan’s Ambassador to Myanmar Ichiro Maruyama said in an exclusive interview with the Irrawaddy newspaper.
The $ 8 billion project will be the largest industrial park in Southeast Asia.
Maruyama said ongoing discussions with his government have decided to help implement both Deep Sea Port and SZ with private companies.
This long-delayed project is one of the priorities of the National League for Democracy, which has repeatedly called for the involvement of the Japanese government. After many Chinese companies offered to invest in Dawei, Tokyo finally agreed to join.
According to Maruyama, Japan had previously planned to focus on expanding the Thilawa Special Economic Zone in Yangon, but State Counselor Aung San Suu Kyi often mentions it as the country’s best achievement.
However, Myanmar’s enthusiasm for the Dawei SEZ has boosted Japan’s involvement in the Tanindary Division project.
Maruyama says. “We are currently considering a deep sea port project, and after that we will discuss how the project can be implemented,” he said.
He emphasized that Japan will also discuss ways to fund the project with formal development assistance and other means.
The Dawei SEZ is located in the Andaman Sea and can cross the Thai border to reach the Gulf of Thailand by road.
It could connect the Indian Ocean with the Pacific Ocean, Southeast Asia, South Asia, and beyond.
The special economic zone can also play an important role in Japan’s Southern Mekong Economic Corridor, which aims to connect Vietnam, Cambodia, Thailand and southern Myanmar. The 196 sq km project is expected to include a deep sea port and use the crowded Straits of Malacca to boost businesses.
The planned projects also include high-tech industrial areas, information technology development, export processing, transportation hubs, business services and other infrastructure.
The project was initially supported by the Thai government and was acquired by the Italian-Thailand Development PCL (ITD) for 75 years to develop and attract investment in Dawei SZ. However, due to financial constraints, the ITD withdrew the agreement in 2013.
In 2015, Myanmar and Thailand renegotiated the original agreement, allowing ITD and its consortium to develop up to 27 square kilometers in the early stages of infrastructure projects.
Last year, Myanmar and ITD completed final negotiations for the construction of the initial phase. However, he is reluctant to start the project.
In October 2019, Thailand and Myanmar agreed to start the “initial phase” and the “full phase” at the same time. In addition, it has decided to solicit third-party investment in special economic zones, including deep sea ports and electricity supply.
The Japan International Cooperation Agency (JICA) conducted a fact-finding survey based on the existing master plan of the Organization for Economic Co-operation and Development (NEDA) of neighboring countries in Thailand.
According to the Dawe Special Economic Zone Management Committee, NEDA’s master plan focuses on the construction of heavy industrial estates, while the JCA survey targets light industries.
The Steering Committee said it had received a formal proposal from the Government of Japan to support the full implementation of the Dawei Special Economic Zone.
Thun Nine, chairman of the management committee, said the three countries must cooperate while taking advantage of the technical assistance proposed by Japan.
Myanmar accepts Japan’s offer to cooperate with Dawei SEZ Myanmar welcomes the offer of investment from Japan in the Dawei SEZ project in the Tanintary region, according to the Dawei SZ Management Committee.
A formal response from the Ministry of Foreign Affairs has been sent to Japan.
On November 5, Japan offered to invest at the intergovernmental level in Dawei SZ, which is expected to be the largest industrial zone in Southeast Asia, which has been delayed for a long time.
The Commission’s Vice-Chairman, USan Myin, said the Myanmar and Thai governments were sent letters stating their interest in participating in the Dawei SEZ.
Japan will be involved in the development of a US $ 8 billion, 20,000 hectare special economic zone, which will be phased in and will include a deep sea port and a high-tech zone.
A ministerial-level meeting is currently planned between the three governments, but committee officials say it is unclear whether it will take place before or after the new cabinet is inaugurated.
Japan’s involvement came after many delays in the start of construction of the Dawei SEZ.
When the memorandum of understanding was signed between the Myanmar government and the Thai government in 2008, the Thai construction company Italy-Thailand Development should have taken the initiative in development, but due to the lack of funds of the company in 2013. Development was stalled.
Discussions and proposals for resuming development are ongoing, including in China.
“I expect the new government to have a policy to manage delays, and more importantly, it needs a political will to drive the project. We look forward to the government prioritizing this project for the next term. With the involvement of Japan and the international community, the project will be more active than ever, “said Wu Sang Mint.
Last week, Japanese Ambassador to Myanmar Ichiro Maruyama told the Irrawaddy River.
He said his country is currently considering a deep-sea port project and will consider whether to fund the project with public development assistance or other means.
It has become clear that the Japanese government has submitted a proposal to the Dawei Special Economic Zone Development Plan and will participate in earnest. Announced by Vice Chairman Min Sun of the Dawei Special Economic Zone Management Committee. MYANMAR TIMES reported. According to the announcement, the Myanmar-Thailand Joint Coordination Committee (JCC) meeting was held on November 5, and a proposal was submitted to the effect that the Japanese government would participate in earnest. The Dawei Special Economic Zone is classified into two categories, initial development and main development, and the initial development is being developed mainly by Italian Thai. The Japanese government says that it will only participate in this development, regardless of the initial development. Thun Nine, chairman of the Dawei Special Economic Zone Management Committee, said, “So far, the Japanese government’s Dawei