Thailand Agrees to Sign Dawei Mega-Project Deal

[Jacob Maslow]

The Dawei Mega Project is expected to be signed in the coming week. The $60 billion deal will build 138 km road between Dawei and Thailand.

Prayut Chan-o-cha is expected to sign a memorandum of understanding during his visit to Japan next week. The Prime Minister of Thailand will sign the $60 billon deal for the Dawei project.

This past week, the cabinet approved partnerships with Japan that aim to increase the relations between both countries. These economic partnerships are expected to be finalized in the next week in Japan.

The details of the deal indicate that a road will be built connecting Dawei and the Thailand border. The road will be 138 km in length. According to a spokesman for the Thailand government, Japan may be open to offering a loan for the construction of the road. Myanmar is also part of the deal.

The countries agreed to hold an equal share in the DSEZ Company that will control the project.

The DSEZ Company has replaced the ITD Company. DSEZ was founded in 2013 as an equal partnership between Thailand and Myanmar. The company is registered within Thailand, and an initial investment of 12 million baht has been put into the company. A cash infusion from Japan is hopeful. Initial investments of 100 million baht was the figure initially proposed when the company was founded.

Thailand and Japan have come to an agreement on the running of the project. Special-purpose vehicles, such as the DSEZ, will be utilized to manage different aspects of the project, including the rail links and ports.

The memorandum of understanding will also include a railway development that will link Bangkok and Chinag Mai. Railway development links have not been finalized, so they are subject to change in the future.

Dawei will be a major investment into the Thailand economy. The Japanese Prime Minister has pledged to support Thailand. Japan hopes to use their advanced technology and experience to help further develop and maintain Thailand’s infrastructure

-- 2015-02-06

[rasmus5150]

I thought that this was Thaskin's pet project.........

[bobmac10]

It was

[wowfactor10]

What u mean Thailand agrees?

[maidee]

why a road? why not a railway ?

or is he still looking for other countries to sponsor the costs and he can get big face time for bringing happyness, again

[rabid old goat]

so we are to see this as japan supporting military coups?

Edited February 7, 2015 by rabid old goat

[rickirs]

Like the Dual Rail System, the Junta does NOT seem to want to make any significant investment in Thailand's infrastructure. Apparently, Thailand made an initial investment in the Thailand-Myanmar partnership of 6 million baht. If you want peanuts, that's great but obviously not even a teardrop towards the 60 billion baht needed for the project. Now it hopes to get Japan to invest 100 million baht that would give Japan 89% interest in the partnership. Obviously, if more foreign countries make a partnership investment, Japan's share will shrink but Thailand's share will never increase. The Junta is basically farming out Thailand's soverneignty to get foreign investments . Good for GDP growth of foreign investors, bad for Thailand GDP growth.

[mango66]

Like the Dual Rail System, the Junta does NOT seem to want to make any significant investment in Thailand's infrastructure. Apparently, Thailand made an initial investment in the Thailand-Myanmar partnership of 6 million baht. If you want peanuts, that's great but obviously not even a teardrop towards the 60 billion baht needed for the project. Now it hopes to get Japan to invest 100 million baht that would give Japan 89% interest in the partnership. Obviously, if more foreign countries make a partnership investment, Japan's share will shrink but Thailand's share will never increase. The Junta is basically farming out Thailand's soverneignty to get foreign investments . Good for GDP growth of foreign investors, bad for Thailand GDP growth.

the road to be builded most part in Myanmar.

and as for now without china !!!!

[Tomtomtom69]

Like the Dual Rail System, the Junta does NOT seem to want to make any significant investment in Thailand's infrastructure. Apparently, Thailand made an initial investment in the Thailand-Myanmar partnership of 6 million baht. If you want peanuts, that's great but obviously not even a teardrop towards the 60 billion baht needed for the project. Now it hopes to get Japan to invest 100 million baht that would give Japan 89% interest in the partnership. Obviously, if more foreign countries make a partnership investment, Japan's share will shrink but Thailand's share will never increase. The Junta is basically farming out Thailand's soverneignty to get foreign investments . Good for GDP growth of foreign investors, bad for Thailand GDP growth.

the road to be builded most part in Myanmar.

and as for now without china !!!!

The road is already there, but needs some serious upgrading. Go across the Phu Nam Ron crossing to check it out for yourself. It takes around 4-5 hours to reach Dawei from the border, which is pretty slow going when you consider the distance is only 138km.