U Sett Aung, Chairman of the Dawei SEZ Management Committee, has said that Japan will only become a part of the SEZ development in the 2nd stage. After a MOI was signed at the Mekong-Japan Summit on the 4th of July, Japan officially became the third joint-investor of the project. He further said that during president U TheinSein's visit to Japan, Myanmar also received other forms of aid and assistance.
The first stage of the Dawei SEZ will be jointly developed by Myanmar and Italian-Thai Company of Thailand. It will include a small industrial zone and 2 ports along with a highway linking Myanmar and Thailand. There will also be infrastructure projects to support these activities, making it altogether 8 projects.
He also stated that The Italian-Thai Company will be judged on its performance at each stage, and further proceedings will follow accordingly.
Once the 2nd stage is underway, Japan will take a major part. The Japanese Ministry of Commerce and Industry has estimated that the infrastructure projects will cost around 800 Billion Japan Yen (about USD 6.52 Billion).
The Japanese government has also confirmed that it will provide Official Development Assistance (ODA) loan of 100 Billion Yen with a repayment period of 40 years to help improve Yangon's circular railway system and Myanmar's power grid.