Success can be achieved only through government’s efforts

A new master plan for Dawei Special Economic Zone (SEZ) near Dawei in the Taninthayi Region was adopted with the assistance of the Japan International Cooperation Agency (JICA) after the project was adjourned for various reasons. Here is an interview with Vice-Chairman Dr Myint Hsan of Management Committee of Dawei SEZ.

Q: When will Myanmar launch Dawei SEZ?

A: In 2008, the Myanmar and Thai governments met in Singapore and conceived a plan to implement the Dawei SEZ project. The two then signed a Memorandum of Understanding (MoU). At first, the Myanmar Port Authority signed an agreement with an Italian-Thai company. Because of the delay, the agreement was terminated in 2013. The tenders were invited again.

The same company won the tender. A new agreement was reached in 2015 between the management committee and the Italian-Thai company, and the works were resumed. The project was stopped between 2013 and 2014. The Myanmar and Thai governments then signed an agreement to implement the project themselves. However, the investment from Thailand was small.

As it was impossible for the Italian-Thai company alone to implement the project, a new agreement was signed by Myanmar, Thailand and Japan.

Q: What are the functions of the Management Committee of Dawei SEZ?

A: We started our work in October 2017. We have to look into the details of the agreement reached with the Italian-Thai company and also the three-country agreement. We found 78 points that need bilateral implementation —58 points for Thailand and 20 points for Myanmar. We can resume work only if these points are fulfilled.

The Myanmar government did its best to fulfil the requirements. Currently, only one or two remain. They are important matters such as EIA (Environmental Impact Assessment) and SIA (Social Impact Assessment). They are a bit complicated and difficult. However, now the EIA and SIA are nearly completed. A law firm will be hired for land agreements. We asked the Italian-Thai company to implement its part. We will begin the project soon after the two aides fulfil their agreements. The work will start according to the portion-wise time schedule.

Another part in the portion is called full phase. We have requested the Japanese government to take charge of that phase. A master plan was drawn by Thailand in 2015, but it had no detailed facts and was outdated. So JICA tried to upgrade the master plan.

The Japanese said that a new plan must be drawn and that it must include the technical details. They drew a new master plan in 2017 and completed it in 2018.

It has three phases. Phase-1 will be implemented between 2018 and 2030, but the area lacks infrastructure. We need at least a two-lane highway. No electricity and jetties exist. Without infrastructure, foreign investment is not possible. So we are giving priority to it.

Some 6,000 acres of land were fixed for phase-1. We will build the infrastructure during the 2018 to 2030 period. Foreign investment may come in only after three years.

JICA will finalise its plan in May. Phase-1 will deal with the infrastructure, investment by the Myanmar government, foreign loans and a deep-sea port. Currently, only Dawei and Kyaukphyu have a deep-sea port project.

Q: What are your plans to supply enough power?

A: The Italian-Thai company has an LNG project for power supply. So we will need large LNG tanks. We urged them to build the facilities, but they couldn’t. Plan B was to import LNG. But the rate they proposed was too high. The price in the neighbouring country is usually only 10 cents, but their rate is 27 cents now.

The Ministry of Electricity and Energy has already signed with Total to generate more than 1,300 megawatts of LNG in Kanbauk. Power will be available within three years. The whole Taninthayi Region will be electrified in 2021.

Q: Could you tell us about the plans for the Thiki road that connects Dawei SEZ with Thailand.

A: The Italian-Thai company will construct the 138-kilometre road as a gravel road. The Thiki road is crucial, and the previous government’s administration planned to upgrade it to a tar road, but it was never accomplished due to certain reasons. We don’t have sufficient funding to construct a road, so we will acquire a loan from a Thai group called NEDA. But we need the approval of the Hluttaw first, and if they approve the loan, then we will contact the Thai group and call for a tender for the project, which we estimate will take three years.

Q: How will Dawei develop after the SEZ is established?

A: It is pretty significant. The SEZ is a deep-sea port and is close to Thailand, so potential development opportunities exist.

The Taninthayi Region is abundant in natural resources, fishery businesses, rubber plantations, oil palm and mineral productions. But it does not have the electricity to produce high-end finished products yet. Once the SEZ is completed, we will be able to produce high-quality products that can rival our neighbours. This will in turn boost the economy and create jobs.

Q: Local residents have voiced fears about the SEZ damaging the natural environment. What measures are being taken to prevent this?

A: In the past, no EIA or SIA were conducted when projects were carried out, and it was obvious the natural environment was being damaged. But now, the democratic government has ensured projects are more transparent, with the vision to reduce as much harm to the environment and to the society as possible.

Now, you cannot start a private company without providing an EIA or SIA. All the projects related to the SEZ have submitted their EIA and SIA to the union government, and we had a meeting with the local people to inform them of these practices and to answer all their questions and concerns.

Q: Are there other plans to ensure the SEZ’s plans and environmental reports are more transparent?

A: We know it is obligatory to put up our environmental reports online but, for some reason, we are still unable to launch our website. I have been told it will be up and running in two weeks. All the EIA and SIA reports will be available online, and people can submit questions on the website. The democratic government will not maintain any secrecy.

Q: What are your projections for investment prospects once the SEZ is completed?

A: It will take three to five years to complete the construction of roads, basic infrastructure and to supply electricity to the area.

Once these are completed, more investments can be expected, but large industrial works will be minimal initially. We will also need to upgrade and develop the rubber factories and fishery-related factories in our region.

Japanese companies, such as those with a firm foothold in Thailand, are interested in the steel industry and the automotive industry. Being a least developed country (LDC), Myanmar has numerous trading opportunities. For example, Thailand does not receive a GSP (Generalised Scheme of Preferences) and needs to pay tax to export to the EU and the United States, but Myanmar has a GSP and enjoys free trade. We have received these opportunities but have yet to make use of them.

Q: What is the most difficult challenge the project is facing currently?

A: The most pressing concern right now is that of the project developer. Currently, the Italian-Thai company is leading the project, but it has financial difficulties, and so cannot achieve optimal performance. But we must employ a financially stable and internationally experienced developer during the full phase of the project. After we complete the master plan in May, we will employ developers for each project.

Q: Do you have any closing remarks?

A: Leading a project requires political stability, national integrity, active participation and support from one’s government for the project to take off and succeed. These are national-level projects and thus require in-depth participation from the union government.

Interviewers: Thi Thi Min, Min Thit (MNA)

PHOTO: NAY LIN

Ref; The Global New Light of Myanmar