August 2015, Nay Pyi Taw - Concession Agreement Signed between Dawei SEZ Management Committee and A Consortium of Thai Companies on Initial Phase Development

On 5th August 2015, the Dawei Special Economic Zone Management Committee (Dawei SEZ MC) of the Republic of the Union of Myanmar signed the Concession Agreements with a consortium of Thai companies, led by Italian-Thai Development Public Company Limited, to develop the Initial Phase of the Dawei Special Economic Zone which includes the Initial Industrial Estate area of 27 square kilometers and its related infrastructures. The details of the Concession Agreements are as follow:

  • The Initial Industrial Estate (including power and water distribution network)
  • Two-land Road connecting the DSEZ area and Thailand Border at Ban Phu Nam Ron, Kanchanaburi Province
  • Small Port
  • Initial Township
  • Small Water Reservoir
  • Boil-off Gas and Temporary Power Plant
  • Initial Phase Power Plant (Combined Cycle)
  • Telecommunications Landline

The signed Concession Agreements, which are governed under the Myanmar Special Economic Zone Law, will be valid for a period of 50 years; plus an extension period of 25 years. In addition, the Concession Agreement for the LNG Terminal is under the negotiation process and is expected to be finalized soon.

The Concession Agreements for the Initial Phase of Dawei SEZ development mark a significant milestone in Myanmar's economic development in its integration into the regional and global economy. The zone is expected to create hundreds of thousands of jobs in the long-term and contribute up to 5% of Myanmar's GDP by 2045. The initial phase development marks the beginning of a longer-term plan for Dawei SEZ that is even more ambitious in scope. Dawei SEZ is expected to become one of the largest special economic zones in the world, leveraging its strategic position in the center of South-East Asia. It also provides access to the Andaman Sea to the west, proximity to Bangkok and Thailand's Eastern Seaboard and further beyond, to Cambodia and Vietnam.

While the initial phase development will target labour-intensive industries such as textile and garments and food processing, the long-term master plan will attract other industries to Dawei SEZ as well. These industries include automotive, steel, electronics and electric goods, rubber, metals, chemicals, refinery, fertilizers, plastics and pharmaceuticals.

Investors will be attracted by its strategic location, competitive labour costs and import duty exemptions to key export markets such as the European Union. Additionally, an investor-friendly SEZ legal framework, as well as strong growth of the overall Myanmar economy and the abundance of certain local resources will also buoy interest from the business community.

The Dawei SEZ receives support from both the Myanmar and Thai governments. For example, a governance structure involving the two countries has been set up and is jointly chaired by His Excellency, President U Thein Sein of the Republic of the Union of Myanmar and His Excellency, General Prayut Chan-o-cha, Prime Minister of the Kingdom of Thailand.

Italian-Thai Development Public Company Limited has begun to develop the Initial Industrial Estate area which is now open for reservation and will be ready for investors to move in and operate their businesses with the end of 2016.