Italian-Thai Development Plc (ITD) has confirmed it has not withdrawn from the Dawei deep-sea port project in eastern Myanmar, brushing aside previous reports that it intends to pull out of the project…
A senior executive in charge of the Dawei project at ITD, Thailand’s largest construction company, yesterday told the Bangkok Post the company has the financial capability to proceed with the project and…
“The reports [that ITD would pull out] are not true, and the project has progressed thanks to cooperation between the Thai and Myanmar governments in seeking financing,” said the source.
Construction recently stopped because due diligence needs to be completed so the project can attract new investors.
“Once the process is done and ITD is allowed to go ahead, we will resume the construction immediately,” said the source.
So far, ITD has made significant investments in Dawei including at least UScopy6 million in the first phase of the small port, said the source.
“The Myanmar government has been honest with us, and we’ve been informed at each stage of the development of the project,” said the source.
Deputy Prime Minister Niwatthamrong Bunsongphaisan on Tuesday said both governments will sign three memoranda of understanding (MoUs) on the project in Bangkok today.
The first covers the framework agreement on the Dawei concession, which will be transferred from ITD to a special-purpose vehicle called Dawei SEZ Development Co (DSEZ).
Thailand and Myanmar in June agreed to set up the equally owned DSEZ with initial investment of 12 million baht.
The two countries also agreed to set up special-purpose companies (SPCs) to manage each element of the project such as the port, road and rail links, power plants, water supply, industrial estates, a telecom…
ITD holds a 75-year concession for the Dawei project.
The second MoU revokes the existing concession between ITD and Myanmar, while the third guarantees new investors in the port and roads are legally obligated to pay for what ITD has already invested.
The government estimates ITD has spent 3 billion baht on Dawei.
ITD can join bids for SPCs if it still wants to continue investing in the project.
Shares of ITD closed yesterday on the Stock Exchange of Thailand at 5.40 baht, down 10 satang, in trade worth 541 million baht.
Source: Bangkok Post Thailand