ITD casts net to haul in US$8bn over 3 years
ITD, Thailand's largest construction company by market value, needs as much as US$8 billion (252 billion baht) over the next three years to develop infrastructure such as roads, railways, a port, a telecom network and utilities in Dawei, on the southwestern coast of Myanmar.
"The funds will be raised in the form of equity, loans and strategic partners," said Somchet Thinaphong, managing director of Dawei Development Co (DDC).
The local investor Max Myanmar has agreed to acquire 25% of DDC, which ITD had set up to manage the Dawei project. The Thai contractor has said it will maintain at least a 51% stake in DDC, while other partners are welcome.
ITD has been granted a 75-year concession for the special economic zone in Dawei that covers 250 square kilometres, 10 times bigger than the Map Ta Phut Industrial Estate in Rayong.
Located on the Andaman shoreline, Dawei is about 350 kilometres west of Bangkok.
Apart from infrastructure, the Dawei Special Economic Zone will comprise an integrated steel mill, power plants, a petrochemical complex and a fertiliser plant. Separate entities will be set up to invest in each of these projects.
"China, Japan and South Korea are the key strategic partners of our projects," Dr Somchet said. "Finding a balance for each of these groups is important. For example, if we have a lot of Chinese partners, the US might not be happy with that."
The US has made clear that it wants to restore full diplomatic relations with Myanmar after last month's visit by Secretary of State Hillary Clinton. Japan's minister of economy, trade and industry also paid a visit last week.
Dr Somchet said the Thai and Myanmar governments had been called on to provide support in four areas for the Dawei project.
First is physical infrastructure such as roads in Thailand to link transport routes with Myanmar.
Second is institutional infrastructure required for the Dawei project, such as simplifying border connections between the two countries under the Asean Economic Community (AEC) in 2015.
Third is financial facilitation for transactions such as money exchange between the two countries.
Fourth is enhancing competitiveness of Thai and Myanmar businesses in terms of cross-border investment.
"All of these factors will make Dawei globally competitive in the eyes of foreign investors by serving as a linkage to the rest of the Greater Mekong Southern Economic Corridor," Dr Somchet said.
As for Dawei's planned coal-fired power plants, which reportedly have been halted after an outcry over the project's environmental impact, he insisted that the company has yet to be notified about the issue by Myanmar's government.
Shares of ITD closed Friday on the SET at 3.46 baht, up 2 satang, in trade worth 56.6 million baht.
