Public-private partnerships should be promoted, particularly in port and road investment, to get the Dawei megaproject off the ground, according to a study submitted to last Tuesday's cabinet meeting.
Without basic infrastructure such as roads and ports, no investment will come to Dawei, said the report proposed by PM's Office Minister Niwatthamrong Bunsongphaisan.
The report, based on a study by Japanese consultants, pointed out private investment alone is unlikely to cover all the construction costs for such basic infrastructure.
Public-private partnerships should be formed to entice investments, as was done in other projects such as India's Mumbai Industrial Corridor or Thailand's Eastern Seaboard development.
"The first stage of the investment should be in roads and ports in order to attract foreign investors to invest in other projects in Dawei," said the report.
"The investment should also take into account the financial capability of Myanmar's government. Road and port investment should be divided into several phases in order to make the projects viable."
The report quoted the consultants' recommendation that return on investment in ports and roads be long-term and need massive capital, so the Myanmar government should also share the investment cost.
The report also suggested the development focus on small-scale port, road, power plant, industrial estate and water projects in the first four or five years.
Industrial estates should also focus on construction materials, medium-scale and light industries such as garments, leather, food processing, rubber, agro-based industries, furniture, electronics and electrical appliances.
The cabinet approved a plan to appoint the Neighbouring Countries Economic Development Cooperation Agency to represent the Thai government to own half of the special purpose vehicle (SPV) to be set up to manage Dawei's deep-sea port and special economic zone.
The SPV, named Dawei SEZ Development Co, will have registered capital of 100 million baht.
The next meeting of the Joint Coordinating Committee and the Joint High-Level Committee is expected next month, with Myanmar and Thailand signing an agreement to establish the SPV.
In Tokyo last Wednesday, Prime Minister Yingluck Shinawatra reaffirmed to the "Building a Strong Foundation for Thailand and Asean" forum her confidence in the Dawei project, which is aimed at turning a quiet Myanmar town into a thriving Indian Ocean port and industrial zone.
The Dawei port will be able to serve industries inside an area of 200 square kilometres and act as a gateway to South Asia, the Middle East, Africa and Europe, she said.
Ms Yingluck was on a four-day official visit to Japan.
She also called on Japanese businesses to participate in Thailand's 2-trillion-baht infrastructure programme including dual-track and high-speed railways and a 350-billion-baht water management scheme.