Italian Thai struggles to escape death “Dawei Project” after Myanmar terminates the concession contract, keeping an eye on “Japan-China”, reveals 8,000 million investment with venture capitalists, “Supatthanaphong” launches to protect Thai investors. Direct report “Big Ku “3 big banks SCB-KTB-KB confirm not to be affected
A source from the Government House revealed. “Prachachat Business” That as Italian-Thai Plc. Development (ITD) Notify the Stock Exchange of Thailand (SET) if the company And the joint venture partners of 5 companies received 7 letters of termination of the Dawei Special Economic Zone Project from the Dawei Special Economic Zone Administrative Committee of the Republic of the Union of Myanmar (DSEZ MC) on 11. Jan. the past that The company therefore made a letter to Gen. Prayut Chan-o-cha, Prime Minister and Minister of Defense And discussed with Mr. Supatthanaphong Phan Meechaow, Deputy Prime Minister And the Minister of Energy too
To ask the government to help Thai investors In accordance with the agreement on the promotion and protection of investments at all levels, such as protection from unfair termination of contracts, protection of investments where ITD may not receive contractual compensation for the completed 3-party infrastructure. To achieve amicable negotiations with DSEZ MC not to cause disputes. Including negotiating land lease contracts to continue
Down 8 billion
ITD stated that DSEZ MC sent a letter of termination to the joint venture group. And cited two reasons for the termination, namely the case of failing to submit the ITD waiver letter receiving compensation for investment in the Dawei Special Economic Zone Project, which has been constructed since 2008, and the case of non-payment of regular concession rights. Years to DSEZ MC
Which the ITD insisted that it did not meet the claims. In the past, the Group has invested more than 8,000 million baht in the area. During the five years after signing the agreement, DSEZ MC has sent only one draft of the land lease agreement to the Group. It is in the process of negotiating with DSEZ MC never clarifying the reasons why the lease agreement was not considered.
The ITD clarified that Before the termination of the agreement, DSEZ MC issued a notice of modification of the concession agreement of the first phase of the industrial estate project dated 14 August 2019 with a request to amend the concession agreement. And let the land lease agreement of the said project take effect This was an unexpected event because the DSEZ MC determined it alone. By not sending the land lease contract for the rest of the project back to the Group for consideration Causing the group of companies to exercise the right to partially suspend payment of the concession fee It is the reason for the cancellation of the contract in the end.
“In the Notice of Modification, additional conditions mandate ITD to sign a Deed of Release to receive compensation for the investments used in the construction of industrial estates. Infrastructure And utilities in the Dawei Special Economic Zone since 2008, which the compensation is, ITD insists that it is a right that the company has under the 3-party contract. “ The source said.
The termination of the contract by creating new conditions and allowing ITD to waive the rights under the 3-party contract may affect the investment climate. Because there is a government agency as a party
“Still have to wait for the Prime Minister to decide How will continue to help Thai investors? Preliminary negotiations must be opened. “
Ready to appoint Mr. Supattanaphong Chair of the Joint High-level Committee between Thailand and Myanmar For the development of the Dawei Special Economic Zone and Related Project Areas (JHC) and appointed Mr. Arkom Termpittayapaisit Minister of Finance To be the Joint Coordination Committee between Thailand and Myanmar For the development of the Dawei Special Economic Zone And related area (JCC)
3 banks have not affected
Mr. Sarat Ratanaporn President Siam Commercial Bank said to “Prachachat Business” Now, it is too early to assess the impact because ITD still has sufficient cash flow. And this problem has not yet affected the repayment ability.
“Contract cancellations are complicated, complicated, difficult to talk about, as the discussions and meetings are unlikely to cause any direct problems with banks. Even though we have lent to ITD, the Dawei Project has invested all of our money. Have to go back and see what the company will do To be able to assess the impact “ Mr. Sarat said.
A source from Krung Thai Bank told “Prachachat Business” I have to wait and see, how will ITD set up an accounting reserve? And will it cut investment at all? Initially, there was no impact on the bank. For or to set aside debt or not. Must see the conditions first The bank does not directly lend to the Dawei Project.
A source from Kasikorn Bank told “Prachachat Business” The bank was not affected by this case, cash flow and the ITD business still had debt repayment capacity. Because the company has income from other sources, however, must look at the impact on accounting. Including the risk of future bonds that will have to rollover
“Supatthanaphong” helps you hard.
Last January 15, 2021 Mr. Supatthanaphong said after meeting with the Prime Minister that Have reported the matter already This is a matter between the Myanmar government and the Thai private sector.
“Asking whether the Thai government has abandoned it or not, we must look at the facts. Today I have not seen the dispute of contract cancellation. If you see it, you have to go and take care of it, don’t worry, because it is an ASEAN Community contract. It is an agreement of ASEAN countries with the private sector. What protection will he receive? He probably used the protection rights. The government must manage. Or help In order to achieve an agreement “
Mr. Supatthanaphong said that The aid channel will have the Thai-Myanmar-Japan Joint Committee. And the Joint Coordination Subcommittee between Thailand – Myanmar Join the negotiations in this platform
“Will accelerate as soon as possible Which Italian-Thai has already made a request for help We will look at what kind of assistance can be done within the framework of the government. The Thai private sector is already protected in the ASEAN Community Agreement. As for the Thai government to help in the way that the private sector has requested We just have to help as requested. As for the part that he cannot ask to do, “
The government has not abandoned Because the Dawei Project is a collaboration between Thailand-Myanmar-Japan Long time ago Sufficient progress to connect the 3 countries to have an outlet on the Andaman coast As for the loan to Myanmar to recover 4,500 million baht, build a road to Dawei If the loan has been set aside, it has to be done.
“The Thai government has invested a lot in the motorways of Bangkok-Kanchanaburi. And Kanchanaburi-Dawei Which is discussed how to help each other Which was surprised what the cause of the incident And this dispute will lead to success or what industry direction in Myanmar? Still achieving the original objective of the government? If the original objective of the government is achieved There is no reason for us not to support “
May pull a Japanese-Chinese plug.
Myanmar Times reported that DSEZ MC has not yet had an official statement regarding termination of its contract with ITD, but sources said. It may be because the need for new investors from abroad to join the project that has been delayed for a long time.
The Japanese government still hopes to continue investing. Recently, in December 2020, the Japanese authorities sent agencies to inspect the area. Because there are Chinese companies interested as well, which Japan does not want China to have power to cover this economic zone.
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