DSEZ MC, MEDIA RELEASE 9 January 2020

MEDIA RELEASE
DAWEI SPECIAL ECONOMIC ZONE MANAGEMENT COMMITTEE
NAY PYI TAW, MYANMAR

9 January 2020

Modifications to Dawei SEZ concession agreements pave the way for construction to start

The Management Committee of the Dawei Special Economic Zone is pleased to announce that changes have been made to the contractual arrangements for the development of the initial industrial estate at Dawei. This project underpins the development of the eight other initial phase projects.

With the Government of Thailand having recently agreed to provide a concessional loan for construction of the two-land road from the SEZ to the Thai border, the key elements are now in place for the private sector project developers, led by Italian-Thai Developments (ITD), to move ahead with this key economic development for the benefit of Myanmar.

The Management Committee mandated the changes to contractual arrangements following an extensive period of consultation with ITD. A win-win outcome was reached whereby improved conditions for the financing of the industrial estate as a phased development were accepted without the Government of Myanmar having to assume an increase in project risk or a decrease in the overall financial benefit. The Management Committee received advice from international and Myanmar legal experts to help achieve this outcome.

Persons most affected by the development will be compensated and relocated in accordance with international standards and strict environmental conditions will need to be met by ITD and all future tenants of the industrial estate as the project proceeds.

The Management Committee will issue ITD with a notice to proceed with the initial industrial estate once it receives further evidence from ITD about its capacity to meet the capital expenditure requirements of the project and certain other procedural conditions are met. It expects to do this shortly.

Changes to arrangements for the other initial phase projects similar to those mandated for the initial industrial estate will be announced shortly, clearing the way  for the Management Committee to require ITD to proceed with these projects as well.  These projects include an LNG terminal, initial phase power plant and small port.

In parallel to this, the Management Committee and other stakeholders are taking steps to enable the planning and development of other projects at the Dawei SEZ in addition to the initial phase projects awarded to ITD.

For more information please contact;
DSEZ MC OFFICE
Office No.27, MOEE Compound, Naypyitaw
Ph:+95-067-3410257
Email: [email protected] (Contact Person)