The Burmese government’s decision to take back the Dawei deep-sea port concession from Italian-Thai Development Pcl (ITD) may raise the eyebrows of some investors looking at the country, but negative repercussions on investment are unlikely.
Thailand and Burma seized control on Thursday of the multi-billion dollar Dawei special economic zone from Italian Thai Development Pcl to rescue the floundering project and convince foreign investors to finally come on board.
The 75-year concession granted to Italian-Thai Development Plc in Dawei remains in place, but construction of the deep-sea port has stopped while the participation of international investors is being arranged, a spokesman for the Burmese government said.
Representatives of the Karen National Union (KNU) met last week with members of the Tenasserim division government in Tavoy where they agreed that plans to teach ethnic languages in Karen schools should move ahead.
Italian-Thai Development Plc is ready to defend itself if the Burmese government decides to seize the concession of the Dawei megaproject awarded to the Thai contractor but says it has not been informed about any such decision.
Local farmers in the Tenasserim division coastal town stage a protest on Monday morning demanding a return of farmlands confiscated by the military and associate companies in 1990, allegedly without the landowners’ knowledge in many cases.