Thais to approach Japan for Dawei help

Thais to approach Japan for Dawei help

Caretaker Deputy Prime Minister Niwatthamrong Bunsongphaisan will ask Japanese Prime Minister Shinzo Abe to support Dawei development during the Asean-Japan commemorative summit from Thursday until Sunday.

Mr Niwatthamrong, who was asked by caretaker Prime Minister Yingluck Shinawatra to take part in the celebration of the 40-year relationship between Japan and Asean on her behalf, said he would use the moment to sound out Mr Abe for financial support of the deep-sea port, roads and industrial estate at Dawei.

As co-chairman of the Myanmar-Thailand Joint Coordinating Committee, Mr Niwatthamrong said he would solicit Japan to hold a stake in Dawei SEZ Development Co (DSEZ), a special-purpose vehicle set up to run Dawei's port and special economic zone (SEZ).

DSEZ, a 50-50 venture of Thailand and Myanmar, has a 75-year concession from Myanmar's government to develop the SEZ and port, replacing Italian-Thai Development Plc (ITD), which was granted a concession in November 2010.

Thailand and Myanmar agreed in June to set up DSEZ with an equal shareholding and an initial investment of 12 million baht, far below the 100 million baht proposed earlier. The company will be registered in Thailand.

Japan is the likeliest partner in DSEZ, as the country has been invited to join several previous meetings as an observer.

"As Dawei is capital-intensive and a large-scale project where heavy industry and high technology are located, the choice to invite a third or fourth partner to hold a stake [in DSEV] is limited," said Mr Niwatthamrong, who is also the caretaker commerce minister.

The Dawei project is four times the size of the Thilawa project that Japan has already invested in. Even so, Mr Niwatthamrong said Dawei would become competitive with its deep-sea port sustaining export-oriented industry.

The deputy premier said foreigners investing in Dawei should be from countries that aim to expand production in Southeast Asia, such as Japan, China, South Korea and Taiwan.

Firms looking to join the Dawei scheme should submit bids for the first three projects by the end of next February. The projects are a dual-lane highway linking Thailand with Dawei, a small port and an industrial estate.

Thailand and Myanmar last month signed memoranda of understanding.

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