Dawei SEZ development project faces more uncertainty

An official revealed that the government is considering removing the main developer from the controversial Dawei SEZ project. The main contractor, Italian-Thai Development (ITD), had fallen out of favor over concerns that its contractual obligations are not met. According to deputy commerce minister U Aung Htoo, “under the current contract, the existing company shall pay off investments if it stops operating, but the contract doesn’t clearly state whether another company can replace the existing one”. There has been significant local opposition to the project ever since it was first discussed in 2008. Major concerns relate to a lack of transparency, environmental damage and the alleged forced eviction of local residents. The arrest of ITD president, Premchai Kanasuta sparked more concern for the project. He is on trial for alleged involvement in the poaching of endangered animals in areas close to the SEZ site.

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