Italian-Thai Development requests Thailand Government’s help over Myanmar’s Dawei issue
SET-listed Italian-Thai Development Plc (ITD) submitted a request for government help on Friday to Prime Minister Prayut Chan-o-cha after the Dawei Special Economic Zone Management Committee (DSEZ MC) sent a notice of termination for seven concession agreements at Dawei special economic zone (DSEZ) to five project companies in which ITD has partial ownership.
Speaking after meeting with the prime minister, Deputy Prime Minister Supattanapong Punmeechaow, chairman of the Thai-Myanmar Joint High-Level Committee (JHC) for the DSEZ, said he told Gen Prayut about possible procedures for the government. He is awaiting a response from the Finance Ministry and related agencies in handling the issue.
Finance Minister Arkhom Termpittayapaisith called an urgent meeting on Thursday with representatives from the National Economic and Social Development Council, the Budget Bureau, the Foreign Ministry and the Neighbouring Countries Economic Development Cooperation Agency to find solutions and monitor the progress of the 4.5-billion-baht loan the government planned to offer Myanmar for road construction from the border to the Dawei project.
Mr Supattanapong said the government remains committed to offering the 4.5-billion-baht loan to Myanmar’s government for construction of a 139-kilometre road from Ban Phu Nam Ron in Kanchanaburi to the Dawei project.
“The government has still reserved a 4.5-billion-baht budget for road construction from the border to Dawei to support traffic along the route. The road also supports logistics and transport in the future,” he said.
Mr Supattanapong said the government is committed to the Dawei development project and already invested a massive budget for motorway construction from Bang Yai in Nonthaburi to Kanchanaburi.
This motorway aims to reduce travel time by 45 minutes and relieve congestion on other highways.
The government approved 12.5 billion baht for land expropriation for Bang Yai-Kanchanaburi motorway construction in 2019.
The construction costs total 49.1 billion baht.
The project is estimated to be complete in 2022.
Mr Supattanapong said the Dawei project is expected to have deep-sea port construction, which will enhance Thailand’s strategic shipping plans in the Andaman Sea.
ITD informed the Stock Exchange of Thailand on Tuesday that on Dec 30, 2020, five project companies received a notice of termination for seven concession agreements from DSEZ MC.
The five project companies allegedly failed to make concession fee payments and cannot comply with certain conditions precedent prior to commencing the operations under the concession agreements.
The ITD board met on Jan 11 and resolved for the legal adviser to prepare a letter of clarification and rebuttal of the allegations by the DSEZ MC.
ITD and consortium partners through its five companies registered in Myanmar (the project companies) were granted the concessions for the DSEZ Initial Phase from DSEZ MC for the development of an industrial estate of 27 square kilometres, along with the necessary supporting infrastructure and utilities.
Altogether there were seven concession agreements, six of which were signed on Aug 5, 2015, with an additional concession agreement signed on March 29, 2016.