Myanmar Thilawa SEZ Holding Public Limited (MTSH) and Japan Thilawa SEZ Company Limited (JTSC) have reached an agreement to sign a joint venture agreement to operate the Thilawa Special Economic Zone.
Japanese multinational corporations such as Marubeni, Mitsubishi and Sumitomo corporations are included in JTSC.
MTSH and JTSC will form a joint venture company to implement Thilawa SEZ. The JV agreement is agreed to sign after October 20 and Myanmar authorities asked to sign the agreement before the end of October, sources say.
During the meeting, MTSH has proposed current Union of Myanmar Federation of Chambers of Commerce of Industry (UMFCCI) Chairman Win Aung to appoint as the joint venture company’s chairman.
But Win Aung is included in Specially Designated Nationals List which is listed by US Secretary of the State. If he is still included in the sanction list, it will be difficult to proceed the implementation for SEZ. Japan argued that they are not rejecting him for the post but both sides need to follow the facts which have agreed in the contract.
In the agreement, if Myanmar wants to appoint Win Aung as the Chairman of the joint venture company, the agreement from the Office of Foreign Assets Control (OFAC) under the Secretary of the State is needed. Both sides will submit the proposal for the appointment of Win Aung to OFAC. If OFAC doesn’t agree or doesn’t reply until June 2015, Win Aung will resign from the Chairman of joint-ventured company. Besides the Specially Designated Nationals List will effect on the joint-ventured company, Win Aung have to quit not only the chairman post but also from the Board of Directors. If OFAC has allowed the appointment after June 2015, Win Aung can be worked as a chairman despite his resignation.
Source: ELEVEN Myanmar