PHNOM PENH : Thailand and Myanmar reaffirmed their commitment to the development of the Dawei special economic zone at the Asean summit yesterday.
They aim to complete the first phase of the project by 2015, to coincide with the launch of the Asean Economic Community.
It was the second time the leaders of both countries officially reiterated their commitment to the project, which was initially proposed by a private Thai company in the Myanmar port city a decade ago.
Myanmar and Thailand signed a memorandum of understanding (MoU) governing development in the Dawei special economic zone and related projects on July 23 this year.
Myanmar President Thein Sein met Prime Minister Yingluck Shinawatra for 25 minutes yesterday to discuss the project.
Thein Sein told his Asean and East Asian partners in the Asean Plus Three forum yesterday that his country was encouraging investors to join the project, said Damrong Kraikruan, head of the Department of East Asian Affairs.
During the bilateral meeting, Ms Yingluck updated her Myanmar counterpart on Thailand's strong commitment to the project, Mr Sihasak said, rejecting reports the multi-billion-dollar venture had stalled.
"The MoU was signed, a joint high-level committee met for the first time on Nov 7 in Bangkok and here the president is pleased to hear about a Thai delegation which will visit Dawei next month," Mr Sihasak said.
Sihasak Phuangketkeow, permanent secretary for foreign affairs, said Ms Yingluck would take businessmen and investors to the area next month, and officials hope to make progress in eight areas of cooperation by then.
Committees have been formed to sort out details and proposals that must be submitted to the government in time for the visit.
The panels include a Joint High-level Committee (JHC) co-chaired by Myanmar vice-president Nyan Tun and Thai Deputy Prime Minister and Finance Minister Kittirat Na Ranong; and the Joint Coordinating Committee (JCC) co-chaired by Myanmar Industry Minister Aye Myint and Thai PM Office Minister Niwattumrong Boonsongpaisan.
Six sub-committees have also been established to oversee infrastructure and construction, development of businesses, communities, rules and regulations and financing aspects of the project.
Eight core priority projects for the first phase of the Dawei development, aimed for completion by 2015, are toll roads, a deep-water seaport, industrial estates, power plants, water supply and waste water systems, telecommunications, a high-speed train, and residential communities.
Mr Damrong said the government has not allocated any money for the development.
"The Italian-Thai Development Co has not abandoned the project either. They remain one of the major investors. Subsidiaries of state enterprises are also participating in the projects. In legal terms, this is a private investment project," Mr Damrong said.
He said Dawei would serve as a regional land bridge between the Indian Ocean and the South China Sea.
A domestic port is also proposed for Thilawa, 25km south of Yangon, but that is a separate project.
Myanmar authorities said they were aware they must make sure the two projects would not compete for investment.
Ms Yingluck also made an offer to President Thein Sein that Thailand provide two 120-megawatt gas-turbine power plants, worth 7 million baht, to support Yangon's electricity supply.