Sunday, May 12, 2013

Thailand, Myanmar to sign SPV deal

Thailand and Myanmar will sign a deal on May 27 to set up a special purpose vehicle (SPV) to manage the massive Dawei project for a deep seaport and economic zone, said Prime Minister's Office Minister Nivatthamrong Boonsongpaisal.

The signing will take place after a meeting of the Joint High-Level Committee, co-chaired by Myanmar Vice President Nyan Tun and Thai Deputy Prime Minister Kittiratt Na-Ranong, from May 26-28 in Thailand.

Nivatthamrong, who co-chairs the Myanmar-Thai Joint Coordinating Committee, said the Thai government had assigned the Neighbouring Countries Economic Development Cooperation Agency to sign the SPV deal with a state agency under aegis of Myanmar's Ministry of Planning and Economic Development.

Thailand and Myanmar each will hold a 50-per-cent share in the SPV in the initial stage.

He added that Thailand and Myanmar each separately invited Japan to take part in the SPV but Tokyo is expected to take time to consider the case. He expects that in the future the SPV will see two more countries as shareholders besides Thailand and Myanmar. He said the appropriate number of countries taking shares in such an SPV was four to maintain a balance of interests.

The signing of the SPV will show that the project is making progress and will encourage investors to form special purpose companies (SPCs) to invest in specific areas such as roads and the seaport. 

Nivatthamrong said Italian-Thai Development had continued construction work on the roads and port. 

He added that Myanmar wanted to study Thailand's industrial zones to acquire information on all aspects of the Dawei project, given its size and comprehensive nature. The Thai government has coordinated with relevant state agencies to provide all crucial information to Myanmar.

The Thai state agencies have also prepared key information for potential investors to help them calculate the cost-effectiveness of participating via SPCs.

Many state agencies such as the Industrial Estate Authority of Thailand and the Electricity Generating Authority of Thailand are keen to take part in the project, Nivatthamrong said, adding that PTT might also invest in it.-Asia News Network

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