Rethinking Nearly a Half-Decade Implementation of the Project - ZAW AUNG Chulalongkorn University and M-POWER - CPWF Mekong Program on Water ...
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Rethinking Nearly a Half-Decade Implementation of
the Project
ZAW AUNG
Chulalongkorn University and
M-POWER – CPWF Mekong Program on Water, Environment
and Resilience
Local Resource Center, Yangon
March 9, 2013
1. The Agreements 2. The Policy 3. The Size 4. The Investment 5. The Landownership 6. The Problems 7. The Misconceptions 8. The Solutions
Memorandum of Understanding between the
Government of the Kingdom of Thailand and
the Government of the Union of Myanmar
On the Development of Dawei Deep Seaport and
Road Link to Bangkok
Signed on May 19, 2008
***Just a few days after the cyclone Nargis and the
constitutional referendum***
Framework Agreement between Myanmar Port Authority
And
Italian-Thai Development Public Co. Ltd.
In Respect to Dawei Deep Seaport, Industrial Estate and
Road and Rail Link to Thailand
Signed on November 2, 2010
***Five days before the general election in 2010***
Change in Agreement (July, 2012) Change in Partnership (G-to-G Project) Change in Myanmar SEZ Law (Drafting Process) Change in Management Body (October, 2012) Unchanged in Financial Investment: No Major Investor
Agricultural development alone is not enough for the
country to become a developed one. So, we must turn
to national industrialization to transform country into
a developed, rich one with a lot of employment
opportunities and high per capita income.
စိုက္ပ်ိဳးေရးနဲ႔ ခ်မ္းသာၾကြယ၀
္ တဲ့ႏိုင္ငံ ျဖစ္မလာႏိုင္တဲ့အတြက္
ေခတ္မီဖြံ႕ၿဖိဳးတိုးတတ္တဲ့ႏိုင္ငံ၊ ခ်မ္းသာၾကြယ္၀တဲ့ႏိုင္ငံ၊ အလုပ္
အကိုင္ေတြေပၚမ်ားၿပီး လူတဦးခ်င္း၀င္ေငြေတြ တိုးပြားတဲ့ႏိုင္ငံျဖစ္
ေအာင္ စက္မႈႏိုင္ငံထူးေထာင္ရပါမယ္။
Ref: The New Light of Myanmar, Vol. XVIII. No. 344 (March 31, 2011)
ျမန္မာ့အလင္း၊ အတြဲ (၅၀)၊ အမွတ္ (၁၈၂)၊ မတ္လ ၃၁ ရက္၊ ၂၀၁၁ ခုႏွစ္
Sector Present Future Direction Agriculture 36.4 29.2 7.2 Industry 26.0 32.1 6.1 Service 37.6 38.7 1.1 Ref: The New Light of Myanmar, Vol. XX, No.61 (June 20, 2012)
Area Area
Zoning Planned Infrastructure Buildings (Sq.km) (Sq.km)
2012 2013
“L” Shape Deep Seaport 8.13 8.13
ITD Camp 1.42 1.42
Fertilizer factory/ Silo & Storage 4.88 5.72
Ship Yard 0.58 0.58
Logistic Hub 3.58 2.05
Zone - A Coal-fired Power Plant 3.70 3.46
Steel Mills (Heavy Industry) 22.00 22.00
Zone - B Oil and Gas Refinery & Storage 13.86 13.79
Zone - C Petrochemical Industrial Complex 27.54 28.77
Zone - D Medium Industrial Complex 62.35 61.43
Zone - E Light Industrial Complex 32.75 34.88
Zone - F Commercial Center & Housing Complex 6.05 7.99
Total Area 186.84 190.22
Vacant Land Area 17.66 14.28Area Area
Zoning Planned Infrastructure Buildings (Sq.km) (Sq.km)
2012 2013
“L” Shape Deep Seaport 8.13 8.13
ITD Camp 1.42 1.42
Fertilizer factory/ Silo & Storage 4.88 5.72
Ship Yard
Mudu & Nyaung Bin Seik 0.58 0.58
Logistic Hub 3.58 2.05
Zone - A Coal-fired Power Plant 3.70 3.46
Steel Mills (Heavy Industry) 22.00 22.00
Zone - B Oil and Gas
Mayin Gyi,Refinery & Storage
Htain Gyi, Lae Shaung & 13.86 13.79
Zone - C PayadatComplex
Petrochemical Industrial 27.54 28.77
Zone - D Medium
PagawIndustrial
Zoon,Complex
Yalai & Mindut 62.35 61.43
Zone - E Light
Thit Industrial
Toh Tauk, Complex
Kyauk Whet Kone & 32.75 34.88
Zone - F Commercial Center & Housing Complex
Pein Shaung 6.05 7.99
Total Area 186.84 190.22
Vacant Land Area 17.66 14.28DSEZ Infrastructure Development Investment: US$ 8.6 billion. Myanmar’s Investment: land, water, stone mountains, but not financial investment. Thailand’s Investment: the private investment, not the government budget. Instead, Dawei Development Company (DDC) was formed by Italian-Thai Development PCL owning 75% of the share and Max Myanmar Group of Companies owning 25% of the share. DDC didn’t actually have the investments and intend to find the strategic partners to implement the project. Expected major strategic partner: JAPAN, but no financial commitment so far. Japan’s ODA Loan goes to Thilawa Deep Seaport and SEZ Project: US$ 700 million Where can we get such a huge amount of money?
Company Name Registered at Dawei Development Co., Ltd. (DDC)* British Virgin Islands Dawei Development Co., Ltd. (DDC) Myanmar Myanmar ITD Co., Ltd. Myanmar Ayeyarwady Multitrade Co., Ltd. Myanmar Myanmar Italian-Thai Power 1 Co., Ltd. Bangkok *Indirect Subsidiary Company registered in British Virgin Islands, which is a well- known destination for offshore companies. Source: ITD Annual Report (2011)
Land Area Land Lease Land Area Land Lease
(Sq.km) Price (Rai) Price Year
(US Dollar) (Thai Baht)*
250 sq.km 37,500,000.00 156,250 Rais 1,132,425,000 60 years
.00
1 sq.km 15,000.00 1 Rai 7,247.00 60 year
1 sq.km 2,500.00 1 Rai 120.00 1 year
1 sq.km 208.33 1 Rai 10.00 1 month
Land Lease Price: US$ 37.5 Million or 31.875 Billion Kyat
1st Installment (2010): US$ 1 Million or 30,198,000 THB
2nd Installment (2011): US$ 1 Million or 30.198,000 THB
*Exchange rate: US $1 = 30.198 Baht
Note: Apart from leasing the land from Myanmar government, the ITD has
the responsibility to compensate all the properties of the affected village
and develop the relocation plan.
Source: ITD Annual Report (2011)The Project Feasible Studies Done by the ITD and the
Data Coming from Them
No Independent Environmental and Social Impact Studies
Conducted by Myanmar Government
Community Rights Movements the DSEZ
Growing Discontent towards the Thai Company
The biggest problem is the Size of the DSEZIf Dawei Deep Seaport were constructed, it will affect the Singapore economy significantly. Dawei Deep Seaport can even overtake today’s Singapore port due to its important location to avoid the Malacca Strait. Singapore is secretly financing Myanmar social activists to undermine the DSEZ. As the DSEZ was implemented by the previous government, there is no need to discuss about it in parliament.
Reducing the project size
Re-designing the project components
Reducing infrastructure investment cost
Reducing the affected villages
Reducing Compensation and relocation cost
Limiting the polluted industries
Managing potential environmental issues within
the controllable limit
Engaging with the local communities in a meaningful
way for the realization of the “people-centered
development” envisioned by President U Thein Sein.
Standardizing the compensation methods based
on the systematic socio-economic data collection
including the record of the existing lands owned
by the affected villagers.
Seeking the community support for the
successful implementation of the DSEZYou can also read
