Kom Chad Luek, 28 August 2012
Research from Chulalongkorn University shows that Italian-Thai Company’s investment on deep seaport–Dawei Industrial Estate has escalated after Myanmar pushed the burden of the negotiation to move mass population out of the area to the company, causing problem of insufficient financial capital.
Miss Narumol Tapjumpol, Director of Master of Arts Program, International Development Section, Faculty of Political Science, Chulalongkorn University, revealed results from the study on "the Development, Democracy and Human Security in Burma: Case Study in Dawei Special Economic Zone" that the investment on the Deep Seaport Project and Dawei Industrial Estate in Dawei, Myanmar has more difficulties than expected. This is because the Myanmar government has pushed the burden of negotiating with the mass population to move out of the construction area of the industrial estate and deep seaport out to be under sole responsibilities of Italian-Thai Development PCL.
"At the present, there are many countries that are interested to invest in Dawei deep seaport project. If Italian-Thai Company cannot handle it, other companies are ready to jump in and continue the project.” Miss Tapjumpol said, and added that a big problem that Italian-Thai Company is facing now is the shortage of capital. It was initially budgeted at approximately 2 billion USD or about 60 billion Baht. Currently, its budget for the compensation to people in the area has increased from around 500,000 Kyat per rai to 2 million Kyat per rai already.
In addition, the President of Max Myanmar Group, which is Myanmar’s capital group, announced that he would sell his shares in Dawei Development Co.,Ltd., which is the owner of the Dawei Deep Seaport Project. As a result, Italian-Thai Company needs to seek another Burmese investor. However, a consequent impact is that this program will lack credibility in the view of foreign investors. The announcement to withdraw the shares may precipitate the Thai government to support Italian-Thai Company. The Myanmar government has an idea to divide Dawei Deep Seaport Project to two parts: the Deep Seaport and Industrial Estate Project and the project on construction of roads connecting Punamron District, Kanchanaburi to the Dawei deep seaport.
