The Myanmar military council’s deputy leader Soe Win has ordered negotiations to dissolve the Special Purpose Vehicle (SPV) for the Dawei Special Economic Zone, which was previously a joint initiative between Myanmar, Japan, and Thailand, in preparation for transferring the project to Russia. This directive was issued during a central committee meeting on Myanmar’s special economic zones held in Naypyidaw. Soe Win emphasized the need for trilateral discussions between Myanmar, Thailand, and Japan regarding the dissolution of the SPV, while also stressing the importance of properly resolving legal matters related to the previous Italian-Thai investment in the project.
Following junta leader Min Aung Hlaing’s visit to Russia, the military council claimed that significant opportunities had been secured for the Dawei Special Economic Zone and announced plans for rapid implementation. Officials were instructed to prepare necessary arrangements to ensure smooth operations for incoming investors. The Dawei Special Economic Zone, which was initially launched in 2008, has shown little significant progress despite its long-standing status as a development project. The management committee of the Dawei Special Economic Zone (DSEZ MC) terminated all project concession agreements with the Italian-Thai company on December 30, 2020.
The termination of the Italian-Thai company’s involvement was attributed to multiple factors, including weak project implementation, repeated delays in operations, failure to fulfill financial obligations stipulated in the contract, and inability to provide financial documentation for the project. The military council is now actively pursuing the transfer of the Dawei Special Economic Zone to Russia, marking a significant shift in the project’s direction and potential future development. This move represents the latest attempt to revitalize the long-stalled project under new management and investment, though it comes amid international concerns about the military council’s governance and human rights record.
