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Project: Challenges in Dawei Special Economic Zone (SEZ) Project


The paper presents a precise discussion associated with the development of the Dawei Special Economic Zone, specifically, in context of financial, social, environmental and competition aspects.   

Overview of the Project

A memorandum of understanding was signed by Thailand and Myanmar in 2008 for the development of an industrial district plus a deep seaport covering 250 sq. km area. Online writing companies are authentic resource to get  help with dissertation. The developments were to be carried out in the Myanmar city of Dawei. The major aim behind this development of Dawei Special Economic Zone was to turn out the city as a major gateway to India, Europe and Africa. The overall cost of the project was estimated around $80 billion US. Due to its SEZ nature, project received concession. However, like every big project, Dawei Special Zone Project has been facing severe challenges that are discussed below:     

Challenges in the Development of the Dawei Special Economic Zone


Fundraising and financial areas are of great concerns for the companies involved in a massive development and construction project. With the initial forecasted investment of $80 billion US, additional investment will also be required for the preparation of relocating housing plans prior to imitating the project. Proper planning for resettlement of the affected individuals will increase the budget of the project. Countries are expected to face shortage of funds for the projects and for this purpose, Japan was concerned to seed money in the project but it was preferred to take support from the Thai taxpayers picking up huge guarantees to develop the Dawei port. It has been revealed that Italian Thai Development Company has not projected to bear much of the financial and monetary burden. Get  custom assignment paper written by top writing company.  Estimations revealed that US$8.5 billion are required for just setting up infrastructure and $50 billion for its completion. Although many international authorities and lenders of different countries like Japan and China has showed their interest in the project but coordinating with large group of investors will be a challenging and demanding task for the ITD company, who has won the permission to run and develop the Dawei SEZ. Additionally, financial challenges also include high dependency of growth and revenue on the government policy and public sector contracts. Rising prices of Oil, exchange rates and inflation has been contributing effectively in the rising cost of the project.    


Similarly like financial challenges, project also indicates potential social problems, particularly associated with the lives of those individuals whose lives, belongings and properties will be influenced by the construction. Social welfare of people and social structure will be highly impacted from this project. As mentioned above that the production of project requires 250 sq km area and the land designated to this SEZ project is not a vacant land. The area is a residential place for at least 20 village communities. Online  thesis writing service is better option for learners to submit their assignments on time.  The entire region will be impacted by the drastic structural changes associated with this project. Rising social movements by the volunteers and villagers are also protesting against the impact of this project. Local media has also become a severe challenge to the success of this project by critically creating awareness among the affected population and possible effects of project on their life. In the fulfillment of its corporate social responsibility, project will require additional budget for the social security of affected people.  


The enactment of the Myanmar’s first ever environmental law in March 2012 was a great shock for the Thai investors as the same was imposing several challenges in the development of the Dawei SEZ. According to the law, it has become mandatory for all the development projects in the country whether associated with the private sector or public sector to carry out an environment impact assessment (EIA) and social impact assessment (SIA). To save time and effort ask profesionals to  write my coursework.  Perceptions of the local people as well as government authorities with development projects make them connect the Dawei SEZ projects with the pollution and public health problem for the local people in the country. Published reports revealed that the construction of the deep seaport only is expected to eradicate 35 km2 of mangrove, natural and reserved forests. Additionally, it has been also identified that the construction of the huge water reservoir for the project will become a blockage for an inland river used for storing fresh water to satisfy the daily needs of industrial factories in that area and 200 household villages. It is inevitably proven by the assessment conducted by ERIC that project will immensely result in the drastic changes to the environment and also to the distribution of resources to domestic communities.                

Competition from Alternative Ports

Every big development and construction port does not have stiff competition due to large capital requirements and process. Hire online  essay writer for better writing papers.  Dawei Social Economic Zone (SEZ) is not facing any severe challenges with respect to competition from the large alternate ports yet there are threats that other small and medium sized seaports in Myanmar can impacts the activities on this port like Port of Sittwe, Port of Bassine, Port of Yangon, and Port of Moulmein. Other than these, the project can also be highly impacted by the seaports developed in the south East Asian countries like India and Pakistan. Furthermore, competition faced by the ITD in this context showed the presence of approximately more than 590 companies in construction business along with foreign construction companies that can be of great threat to the ITD in the completion of project in effective way.    


The project when on one hand is associated with numerous economic and financial benefits, on the other hand also gave rise to many social, environmental and competitive issues. Now it is upon the authorities involved in the construction of project that in case of proceeding, same is a beneficial project rather than a subject matter of debates on injustice and inefficiencies.    



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