Reported by Ah Ngae Htwe Translated and Edited by Myint Win Thein + MYA, Weekly Eleven
Although it is expected that Dawei Deep Seaport Project will be an attraction for Thai and Chinese investor, Thai oil and gas firm PTT is to review its investment plan in the project, which is ten times larger than the biggest Thai port Laem Chabang.
“Major foreign investors in Dawei Industrial Zone will be Thailand and China. The Nippon Steel Company from Japan is also likely to invest in the project. However, the PTT is reviewing its investment plan in the project,” said a correspondent from the Bangkok Post, quoting Mr. Chainoi Puankosoom, an advisor to the PTT.
The Italian-Thai Development Company is constructing Dawei Deep Seaport Project with an investment of US$ 8.6 billion. It is also expected that the Thai company will invest another US$ 6 billion in the project.
Although rubber growers and farmers in the region may be profitable from the super highway and the rail track linking the port with Kanchanaburi, it is also likely that land disputes will arise due to the project. Similarly, the project can generate jobs, but it will also push up the cost of living in the region. In addition, the project may increase the number of dirty industries in the region as there are no environmental laws in Myanmar. Weaknesses in the conservation programs may lead to deforestation, shallower beds in rivers and creeks and extreme climatic conditions. This will affect the health of the locals.
“Companies from Thailand and China are interested in the project. A Japanese company is also interested in the project. Industries that are prohibited in other regions may move to the project site as there are no environmental restrictions in the area, and the environmental protection committee has also been disbanded. It is also heard that the PTT is reviewing its investment plan. The company has already invested US$ 8 billion just for the construction of the project. It will have to invest 15 times as much as it has already invested because the port is a mega project of over one hundred billion dollar. Then, they will operate the port under a sixty- year contract. So the company is reconsidering its profit in the long term,” said an environmentalist.
Institutional, social and cultural infrastructures play an important role in the development of a country. Institutional infrastructure includes economic infrastructure, monetary system, banking system, political stability, judicial system, and government machinery while social infrastructure covers hospitals, health care, basic education schools, colleges and universities and social welfare system. Cultural infrastructure includes museums and libraries.
With the special economic zone law enacted on 28 January 2011, foreign firms will invest in Myanmar. Economists and environmentalists are of the view that sustainable development can only be achieved by allowing socially responsible businesses to invest in the projects in order to reduce the social, economic and environmental impacts. As mega development projects are often accompanied with negative impacts on a community, taking precautionary measures may reduce the negative impacts and help achieve sustainable development.
“Foreign investment is invited for economic development. Some responsible corporations usually take precautionary measures to reduce social and environmental impacts on a community. It is required for us to allow only responsible businesses to invest here. Otherwise, irresponsible small and medium size businesses from neighboring countries will come and invest in Myanmar. Even in China, there are responsible businesses. If irresponsible firms with weak business ethic enter into Myanmar, this will affects the well-being of the local people. Such irresponsible firms with weak business ethics cause economic, social and environmental impacts. They ignore the sufferings of the local people and put their commercial interest in the fore. Small businesses are not able to take other factors into consideration except their own interest. Only big corportes abide by standards. If a small company is charged for its wrong doing, the owner will deregistered it, and set up another one. Large companies cannot do like this. Their business reputation will be hurt if they are legally charged. So
they are very careful with their operations. If only irresponsible small businesses enter into Myanmar, the people will get into trouble,” said founder U Set Aung of Asia Development Research Institute.
Environmental impacts are the most obvious among the impacts. In addition, environmental impacts can cross borders, and it is important to be cautious of such impacts.
“As environmental problems tend to affect neighboring countries, environmental problems from other countries may affect us and ours may affect others. Although environmental security is one of the important factors for consideration, effective assessments cannot be carried out. As a result, other countries cannot know they are affected by environmental problems here. So it is required to increase the awareness of such problems. Most people think only of their own life span without considering the long term affect. However, we are responsible for our posterity. A society cannot thrive if there are a lot of people with such short sighted mentality,” said an environmentalist.
Source: http://eversion.news-eleven.com/index.php?option=com_content&view=article&id=1370:thailand-and-china-expected-to-be-major-investors-in-dawei-deep-seaport-project&catid=42:weekly-eleven-eversion&Itemid=109
