Thai firm scales back Myanmar mega-port role

[webfact]

Thai firm scales back Myanmar mega-port role

BANGKOK, November 22, 2013 (AFP) - The Thai industrial giant behind a controversial deep-sea port in Myanmar agreed Thursday to dramatically scale back its role in the project, leaving it short of investors.

The Dawei mega-project was trailed as a way to encourage foreign investment in Myanmar as it emerges from decades of military rule, and give Thailand a gateway to the Indian Ocean and Western markets.

But it has faced funding difficulties and resistance from local villagers amid accusations of land-grabbing.

Operator Italian-Thai Development (ITD) said it had agreed with Myanmar's government to end its role as sole developer.

"With the new framework agreement, ITD will no longer take the sole concession," said a company spokesman Pravee Komolkanchana.

The Dawei project aims to build a deep-sea port and a 250 square kilometre (100 sq mile) industrial estate in southern Myanmar.

The plans include a steel mill, a fertiliser plant, a coal-fired power station and an oil refinery as well as the port.

Thailand's Prime Minister Yingluck Shinawatra led a business delegation to Dawei last year to drum up more support for the 10-year, $8 billion project.

Pravee said ITD has invested more than $30 million so far and completed an estimated 15-20 percent of the project.
"We are now stopping main construction work", he said, adding his firm will continue with some maintenance contracts.

Pravee added that the agreement "will give opportunities for other private companies to invest".

"It will be more secure and keep the project going," he said, adding Myanmar may seek funding from international lenders or other foreign companies.


-- (c) Copyright AFP 2013-11-22

[northengr]

always seemed pretty over the top. As an owner of a small engineering company, I did find the lesson of a engineering/construction company setting the thing up and being primary developer to be exciting. Client instead of consultant,but JEEZ, its a lot of money. Maybe they had government promises that have proven as good as Obama's word?

Better luck next time, but 10 year projects don't seem to survive the flux of changes in governments and economic cycles.

[bigbamboo]

ITD have invested 30 million dollars in an 8 billion dollar project and say they've completed 15-20 per cent of the work?

No wonder the Japanese said no thanks because the figures didn't add up.

[ratcatcher]

ITD have invested 30 million dollars in an 8 billion dollar project and say they've completed 15-20 per cent of the work?

No wonder the Japanese said no thanks because the figures didn't add up.

Dawei is a Thaksin wet dream.

The Thilawa port project closer to Yangon is where the action is.

http://www.hph.com/globalbusiness/business.aspx?gid=110

http://www.hph.com/webpg.aspx?id=87

Edited November 22, 2013 by ratcatcher

[JoeThePoster]

For a different perspective....

http://www.reuters.com/article/2013/11/19/us-myanmar-industry-idUSBRE9AI0BP20131119

[belg]

land grabbing

so rich thai-chinese can buy land in other countries

but no farang will ever be able to buy land in his own name to put a house in his name and not his GF or wife