An oil refinery, a natural gas processing plant, a petrochemical complex and a large power station are all part of an ambitious multi-billion-dollar scheme to turn a remote corner of Myanmar into a sprawling new economic zone.
Italian-Thai Development, Thailand's largest construction concern, which is spearheading the development of the Dawei Special Economic Zone in southeastern Myanmar, last week highlighted these energy-related facilities as it wooed international investors in Bangkok.
And in a series of roadshows in Japan, China and South Korea -- the first in Tokyo on June 15 -- and later in India, ITD is trying to spark interest in joint investments in the heavy industries planned for the DSEZ, especially for the refining, petrochemical and power plants.
ITD President Premchai Karnasuta said last week that state-owned Thai companies, such as PTT, Egco Group, Ratchaburi Electricity Holding and Electricity Generating Authority of Thailand, as well as Japanese and Chinese power companies, had already expressed an interest in the venture.
European and US companies were also interested, Premchai said in his presentation, but due to economic sanctions from the international community against Myanmar, they may funnel investment through Thai companies.
The scale of the facilities has yet to be determined as much of the overall development is still conceptual, but ITD executives indicated the refinery would have a capacity of around 100,000 b/d, while the gas separation plant would process natural gas from fields operated by PTT Exploration and Production in the Gulf of Martaban. The 3,600 MW power plant would be coal-fired.
These energy-related facilities would provide the infrastructure for other heavy industries such as paper, steel and fertilizer plants. The proposed DSEZ covers 250 square kilometers around the sleepy fishing village of Dawei, formerly known as Tavoy. The site is about 615 km (380 miles) south of the former capital Yangon, and would be developed into a new logistics and trading hub for Southeast Asia.
Plans for the DSEZ include oil and gas pipelines stretching 170 km eastward to the province of Kanchanaburi in Thailand.
These facilities are part of broader development, including the construction of a large deepsea port, a cross-border 170 km eight-lane highway, and a rail link from Dawei to the Thai border town of Pu Nam Ron in Kanchanaburi.
ITD secured a 60-year concession on November 2 last year from Myanmar for the mega infrastructure development. The project was first mooted 12 years ago but the 1997 Asian economic crisis brought a halt to any further development.
Premchai last week estimated the cost of building the deepsea port, roads and railways in the first stage of infrastructure development at under $4 billion. Construction is expected to start early next year and finish in late 2015, setting the stage for the development of the energy-related facilities.
ITD is seeking to dilute its share in its wholly owned Dawei Development Co., the sponsor of DSEZ, to 51% by offering the stakes to international strategic partners, the main mission of the roadshows.
ITD has named Siam Commercial Bank as the project's financial adviser. The bank is to complete the financial scheme for DSEZ in the next few months.
--Boonsong Kosit, newsdesk@platts.com
