Dawei Development has claimed that its Myanmar-based Dawei port project is on the right track although one of the major investors- Max Myanmar Group of Companies is yet to offer its obligatory share of funds. The company is a 100% subsidiary of Italian-Thai Development.
The managing director of Dawei Development- Somchet Thinaphong has stated in previous week that Max Myanmar must trim down its stake subsequent to its failure to add to the paid-up capital.
The Dawei Development is in search of local associates and so far it has received interests from four investors for the project. However, it is moving forward with the Phase-I of the project, including construction of a deep-sea port as well as an industrial park for which it will need funds worth Bt300 billion.
Meanwhile, the Ital-Thai Chairman Premchai Karnasuta will make Japan visit on next Monday in order to confirm financial assistance for the project and will hold discussions with the Japan Bank for International Cooperation (JBIC) and Japan International Cooperation Agency.
The company is positive to receive 75% of financial support from Japan while it will use its own cash and loans from local banks for the residual 25%.
The senior executive vice president of Siam Commercial Bank -- Arthid Nanthawithaya has stated that loans from multiple sources, not shareholders, are the key means for project funding. The Siam Commercial Bank is the financial adviser for the Dawei project.
On the other hand, if Max Myanmar Group dumps the project, still it will maintain as Dawei is a national project and the Myanmar government is keen to accomplish the grand-project to push its economic development. He has further stated that both JBIC and China are very eager to assist the project.
The president of Krungthai Bank-- Apisak Tantiworavong has revealed that they are prepared to join the venture if a leading lender seeks so. Despite its sluggish nature of development, it will finally take place and Thailand will be beneficial from it, he added.
