Myanmar has axed a number of high-value contracts with a major foreign developer in the Dawei Special Economic Zone over project delays and a lack of transparency.

Early this week, Thailand-listed Italian-Thai Development (ITD) revealed that Myanmar had ended nine agreements signed in 2015. Speaking to reporters, U Tun Naing, chair of the Dawei SEZ Management Committee, said that ITD had numerous delays and failed to produce reports about its operations and financial status. He added that ITD has sought legal counsel for a potential lawsuit. However, the Management Committee remains optimistic. U Tun Naing called ITD’s ouster an opportunity to reexamine the project and bring on more capable partners.

The Thai government also got involved. The Bangkok Post reports that Thai Prime Minister Prayut Chan-o-cha tasked Supattanapong Punmeechaow, chairman of the Thai-Myanmar Joint High-Level Committee (JHC) for the Dawei SEZ, and Finance Minister Arkhom Termpittayapaisith, chairman of Joint Coordinating Committee (JCC), to negotiate with Myanmar officials on this issue.

SEZ officials have mulled ITD’s departure since at least 2018, and squabbles with the company have occurred since the SEZ’s inception in 2008. The cancelled contracts are part of an ongoing effort to revitalize the project, which stands to be one of the largest special economic zones in Asia. The SEZ’s saving grace may lie in Japan, which has taken an interest since 2015. Japan is currently considering a fresh round of funding for the development of the deep sea port.