The Thilawa Special Economic Zone (SEZ), involving more than US$ 1 billion investment, will be extended to Zone B and construction of infrastructures will be completed by mid-2018, SEZ Management Committee Chair U Set Aung told the media.
Total FDI in Zone A has amounted to US$1055 million and the zone is now 95% occupied. In order to complement the development of the first zone, Myanmar Japan Thilawa SEZ Development Co initiated Phase I of the second zone, encompassing 101 hectares out of 2000 hectares of the entire zone.
The construction of the second zone took place after 3 years (35 months) following the launch of Zone A.
“The construction of Zone B will take about one and half years. But before the completion of the construction, we will start accepting investors. Those investors can begin their factory construction only after the completion of this infrastructure project,” Committee chair U Set Aung said.
Thilawa SEZ was initiated with the support of Myanmar and Japanese governments. Companies from a total of 16 countries and regions, such as Japan, China, Hong Kong, Taiwan, the US and Australia, invested in Zone A covering 405 hectares since 2014.
Since the beginning of the project, 79 firms have decided to locate their factories, production lines or logistics hubs in the zone. At present, the cumulative investment is US$1055 million. 24 companies have already started their operations in the SEZ.
Two 25-megawatt (one million watts) gas turbines in Thanlyin built as part of the government’s scheme will supply electricity to Thilawa SEZ, according to SEZ Management Committee joint-secretary Daw Than Than Thwe.
“Currently, one 25-MW gas turbine is running. 14 MW is supplied to Thilawa and the rest [11 MW] is put into the national main grid,” she said.
However, when Zone B construction work begins, the 50 MW will not be sufficient and they are making arrangements for additional electricity supply, said U Set Aung.
Zone B is the southward extension of Zone A. Land lease price for Zone A was set in 2014 June as US$70 for 50 years for lease of one square metre (US$ 1.4 per year per square metre). However, the price of land lease for Zone B has not been released yet.
Out of the three SEZs in Myanmar, namely Dawei, Kyaukphyu and Thilawa, Thilawa SEZ is the earliest to commence its development and the most advanced so far.
Source: The Myanmar Times
