Roadblock for Dawei SEZ

The Myanmar government will have to finance the proposed 134-kilometre road from the Thai-Myanmar border in Kanchanaburi to the Dawei special economic zone as there has been no private sector interest in the project, says Thailand’s Neighbouring Countries Economic Development Cooperation Agency (Neda).

The government of Myanmar has yet to make a decision on the investment of the 4.5-billion-baht road but has signalled a positive direction, said Neda president Newin Sinsiri. The government should itself finance the construction as the private sector believes the project will offer low returns, he said.

Even though the joint committee managing the Dawei special economic zone, better known as the Dawei board, has been set up, progress of the project has been made at a snail’s pace. The project includes a deep-sea port, an industrial estate, a power plant, a tap water plant and roads connecting the Pacific and Indian oceans.

SET-listed Italian-Thai Development Plc has been awarded a 75-year land lease concession on 18,000 rai for the first phase of the project and an additional 80,000 rai for the second phase.

The road connecting Kanchanaburi province with Dawei is one of the three projects Neda plans to grant cheap loans. After construction is completed, the road is expected to help shorten travel time between Kanchanaburi province and Dawei to two hours from 4-5 at present.

Neda also plans to grant cheap loans to the improvement of the power grid worth 1.78 billion baht in North Okkalapa and North Dagon districts in Yangon, and the development of Road No 11 for a section of Khok Khaodor-Ban Nam Sang worth 6.3 billion baht.

Neda was founded in May 2005 as a public organisation under the supervision of the Finance Ministry, tasked with providing financial and economic aid for neighbouring countries’ infrastructure. The agency has provided financial assistance and academic support to 72 projects worth 15.7 billion baht over the past 12 years.