Research on Technical Evaluation for Promoting Dawei SEZ ...Research on Future Directions for the...

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ITD CAMP

0km PointDeep Sea Port

Main Road

Gov. Office

Andaman Sea

Quarry/ Bawah

To Thailand

Research on Technical Evaluation

for Promoting Dawei SEZ Development in FY2014

March 2015

METI(Ministry of Economic, Trade and Industry)Pacific Consultants Co., Ltd.

http://www.pacific.co.jp/e/

http://www.pacific.co.jp/e/

Contents

1. Purpose of the Research

2. Research Team

3. Research on Future Directions for the Southern Myanmar Development3.1 Current Situation of the Southern Myanmar3.2 Issues for the Southern Myanmar Development3.3 Future Directions for the Southern Myanmar Development

4. Research on the Infrastructure Development for the Dawei SEZ4.1 Outline of the Dawei SEZ Development4.2 Recommendation for Promoting Dawei SEZ Development(sector-wise)4.3 Recommendation for Promoting Dawei SEZ Development(overall)


1. Purpose of the Research

– To research on the directions of infrastructure and industrial developments for Southern Myanmar, the surrounding regions of the Dawei SEZ to create mutual economic benefit.

– To research on the appropriate infrastructure development, environmental and social considerations, etc. to support the Dawei SEZ development.

Research on Future Directions for the Southern Myanmar Development

Research on the Infrastructure Development for the Dawei SEZ


2. Research Team

Pacific Consultants Co., Ltd. ALMEC CORPORATION

Oriental Consultants Global Co., Ltd.

・Environmental and social considerations・Regional development

・Road planning・Electricity planning・Water supply and drainage planning

・Project management・Research coordination・Financial and economic research・Industrial research・Marketing research・Port planning・Urban/Regional planning・Transportation/Logistics planning etc.

3. Research on Future Directions for the Southern Myanmar Development


3.1 Current Situation of the Southern Myanmar3. Research on Future Directions for the Southern Myanmar Development

Source: Social Economics Charts of Tanintharyi Region 2013-2014, Study team（based on field survey）

① Current Situation of Social Economy

UrbanPopupation

Urban PopulationRatio

GRP(million MMK)

GRP/capita(thousands MMK)

Dawei 226,609 155,288 68.5% 165,621 731

Yay phyu 163,373 14,917 9.1% 124,535 762

Loung Lon 219,920 16,248 7.4% 117,164 533

Thayato chaung 181,870 21,217 11.7% 104,140 573

subtotal 791,772 207,670 26.2% 511,460 646

Myeik 320,982 193,916 60.4% 523,949 1,632

Kyun Su 162,917 4,393 2.7% 154,050 946

Pulaw 175,339 36,537 20.8% 146,909 838

Taninther Yee 111,523 8,596 7.7% 72,754 652

subtotal 770,761 243,442 31.6% 897,661 1,165

Kaught Thaung 80,478 57,546 71.5% 241,122 2,996

Bokpyin 70,376 13,546 19.2% 114,645 1,629

subtotal 150,854 71,092 47.1% 355,767 2,358

1,713,387 522,204 30.5% 1,764,888 4,169

EconomyUrbanization

PopulationTownshipDistrict

Dawei

Myeik

KaughtThaung

Total

– Poputation： 1,713,387– Provincial Capital： Dawei– Area： 43,345.07ｋ㎡（6.37％ of Myanmar）– Population Growth Ratio 2013： 1.01％

Downtown of Myeik

[ Population and GRP of Tanintharyi Region(Southern Myanmar) ]– Myeik and Kaught Thaung have relatively-high GRP and GRP/capita.

Source: Study team

※1JPY=8.55MMK as of Mar. 2015

Source: Myeik Future Development Public Co., Ltd.


Item Current Situation

Education − There are six universities (two universities, two technological and two computer universities) in Tanintharyi region.

− Approx. Students： Dawei University; 2,500, Dawei Technology University; 500, Dawei Computer University; 131, Myeik Technology University; 500.

− The educational facilities such as PC, electricity supply and educational materials, are insufficient. − The educational environment and linkage between educated capable human resources shall be improved. − Many graduates are forced to find jobs in other regions due to the lack of employment in Tanintharyi

region.

Medical Services − There are hospitals in each townships in Tanintharyi region and there are three hospitals in Dawei.− The most common cause of emergency patients at Dawei hospital are victims of motorcycle accidents

(more than 600 patients/year), but facilities are not sufficent. − In order to facilitate sufficient medical service in Tanintharyi region, MOU will be signed between Thai

government and Tanintharyi regional government in March 2015.− Currently, a construction project of a new hospital with latest medical facilities is in-progress at Dawei

by using the BOT scheme.

① Current Situation of Social Economy

Downtown of Dawei Downtown of Kaught Thaung Tanintharyi Township Village along main road

Source: Study team（Field Survey）


3.1 Current Situation of the Southern Myanmar


1: Dawei SEZ

■Tanintharyi Coast is the largest export base of fishing industry. (150 million USD / yr)

■90% of the fishery products are exported via Malaysia.

■A fish processing company owns a whole island and developed it as a fish processing base.

■Major industrial conglomerates such as Yuzanaand South Dagon run large scale palm oil plantations.■Infrastructures such as port and road are

developed and operated by these conglomerates.■Many residential area are developed at the

surrounding area for labors in plantations.

・Participation of Japanese companies are expected to secure thousands of local labors, who currently are working for factories in Thailand.

10: Kauwt Industrial Zone・Coal-fired power plants, freezing works, ice works, etc.

■Two public companies are to lead many of the projects.■Development of MyeikEZ for domestic companies is also

promoted with designing a master plan and attracting investment.

Mining zone

Mining zone

9: Popular area for rubber and palm oil plantations.

3: Over 150,000 people work away in the vicinity of Thai border, for example, Kanchanaburi.

■Private farmers produce rubber sheets and export them to Thailand.

■The problem is that the export counterpart is only Thailand due to low quality with low price.

Future Plan

4: Fishing Industry around Myeik2: Maungmagun・Development plan for

resort and hotel .

7: Palm Oil Industry

6: Myeik Industrial Zone・30 registered companies are in-operation.

5: Industrial Development around Myeik

8: Rubber Industry

② Current Situation of Industry- Summary -





Industries Current Situation

Agriculture − Agriculture is primary livelihood (paddy, betel nut, coconut, rubber and fruits), a part of which is for export.

− On the other hand, vegetable productions are assumed not so much, because dry-fields are few and most of vegetables in a local market are imported.

Fishery and Processing Industry

− Tanintharyi Coast is the largest stronghold for fishing industries and it is also the largest export base for fishing industries in Myanmar.

− A fish processing company in Myeik owns a whole island and developed a fish processing base.

Rubber Industry − Private farmers, most of which reside in southern lowlands, produce rubber sheets and export them to Thailand.

Palm Oil Industry − Major industrial conglomerates such as Yuzana and South Dagon run large scale palm oil plantations.

− Ports and roads for transport are developed and operated by these conglomerates.

Mining − Mining is a significant industry in resource-rich Tanintharyi, with supplying up to two-thirds of Myanmar’s tin and tungsten.

Industrial Zone − There are several regional industrial zones, such as Myeik I. E. and Kauwt Thaung I. E. .− Development of the Myeik Economic Zone for national companies is in-progress, and

designing a master plan and attracting investment are in-progress.

Tourism − There are abundant resources for tourism, such as beautiful sea and untouched natures.− Construction of hotels and development of resort areas are in-progress at some areas.

Overall − A prominent driver of the economy are the vast rubber and palm oil plantations, most of which are in southern lowlands.

− Agriculture, fishery and proceeding industry, mining etc. are basic industries.

② Current Situation of IndustryPaddy field

Fishing boat

Rubber factory

Palm berry

Myeik Industrial Estate





5.Dawei～Myaeik

6.Dawei～Myeik

10.Myeik～Kaw Thaung

10.Myeik～Kaw Thaung

2.Dawei～Hti Kee

4.Dawei～Myittar

9.Tanintharyi～Maw Taung

9.Tanintharyi～Maw Taung

Source: Study team(Field Survey)


Dawei SEZ

Dawei

Myeik

2: Dawei SEZ～Phu Nam Ron(about 132km)・Under improvement by ITD

1: Dawei～Mon State(about 112km)・Under improvement (Completion in Summer, 2016)

4: Dawei～Myittar・Under improvement by the

government (Completion in Mar. 2015)

5: Dawei～Myeik（about 230km）

・Under improvement by the regional government (Completion in Dec. 2014)

・daily bus service

Kauwt Thaung

10: Myeik ～Kaw Thaung (about 400km)・Under improvement mainly by the regional

government (Completion in 2016)

Tanintharyi

11: The section, 8 mile near Kauwt Thaung, has been improved mainly by the local government (good road condition)

6: No bridge point・Boarding a ship or circumvention

is required to pass this point.

3: Port of Dawei・Commercial port with

fishery port function

7: Port of Myeik・A large commercial and

fishery port (not a deep sea port)

8: Port of Bokpyin・A port, but not large

12: Port of Kauwt Thaung・Commercial port with

fishery port function

About 200km About 280km(Asian Highway)

Ranong

Maw Taung

9: Tanintharyi ～ Maw Taung・Bad road condition・Under improvement by Myeik

Public Company as a BOT project (by 2016)

Prachuap Khirikhan

About 20km

Main Road

Legend


Bokpyin Airport

Kauwt Thaung Airport

Myeik Airport

Myeik Airport

③ Current Situation of Infrastructure[ Road and Port ] - Summary -


Dawei

Myeik

Kauwt Thaung

5: Myeik【Under Construction⇒Operating】・15MW Coal-Fired Power Plant (Completion at the end of 2014)※IPP project plan by Than Phyo Thu Co.,

(Myanmar company)

6: Myeik【Plan】・1,000 MW Coal-Fired Power Plant (considering FS)※IPP project plan by Ratchaburi

Electricity Generating Holding PCL (Thai public company)

7: Kauwt Thaung【Operating】・8MW Coal-Fired Power Plant・Import coal from Indonesia※IPP project by Than Phyo Thu Co.,

Ltd. (Myanmar company)

Dawei SEZ

【Electricity in Tanintharyi Region】①Large municipalities own diesel electric generations. Industrial plants

have power plants on site.②Rural communities without power plant need to purchase solar power

equipment (Provision from the national government is also ongoing)③High electricity price owing to limited electricity generation ways is

an urgent problem to solve. Consideration of the electricity system is in-progress.

2: Kanpouk【Under Construction】・8MW Gas Engine Power Plant(Completion Mar. 2015)⇒power supply to surrounging area of Dawei【Plan】・200MW Combined Cycle Power Plant (CCPP)※IPP project by Andaman Power Utility Co.,(Myanmar company) 4: Dawei

【Operating】・5MW Diesel Engine Power Plant (+ suburban area +1MW)

3: Dawei SEZ: Initial Phase【Plan】・15MW Gas Engine Power Plant

1: National electricity transmission and distribution network (National Grid)

・Up to Dawei (2015 ~ 2016)・Connect from Dawei to Meyik in 2017,

and the electricity price will lower to the same level as in Yangon.

Already operating

Constructing

Planning

Legend

③ Current Situation of Infrastructure [ Electricity ] - Summary -

4.Dawei:Diesel Engine Power Plant

4.Dawei:Diesel Engine Power Plant

Solar Power Equipment in a rural region

7.Kauwt Thaung:8MW Coal Fired Power Plant

7.Kauwt Thaung:8MW Coal Fired Power Plant(Port)





Sector Current Situation

Road − Dawei - Mon State(112km)： Under improvement(by summer, 2016).− Dawei SEZ(132km)– Phu Nam Ron： Under improvement by ITD.− Dawei - Myeik（230km）： Under improvement by the regional government（by Dec. 2014）.− Tanintharyi - Maw Taung： Bad road condition. Under improvement by Myeik Public

Company as a BOT projecet （by 2016）.− Myeik - Kauwt Thaung（400km）： Under improvement mainly by the regional government

（completion in 2016）.

Port − Port of Dawei： Commercial port with fishery port function.− Port of Myeik： A large commercial and fishery port(not a deep sea port).− Port of Kauwt Thaung： Commercial port with fishery port function.

Airport − There are four domestic airports at Dawei, Myeik, Kawt Thaung and Bokpyin.− Dawei, Myeik and Kawt Thaung have regular flights to each other and Yangon.

③ Current Situation of Infrastructure

Port of Myeik Port of Myeik Port of Kauwt Thaung Dawei Airport





Sector Current Situation

Electricity − Large municipalities own diesel electric generators. Industrial plants have power plants on site.

− Rural communities without power plant need to purchase solar power equipment. Provision from the national government is also in-progress.

− Ｉmprovement of the electricity system is in-progress.

Water Supply − Rain water is usually used during rainy season, and well water or water in reservoirs is usually used during dry season in the most of surrounding areas of Kauwt Thaung.

− However there are some regions which has water provision by private companies in those areas, that are normally much more expensive.

③ Current Situation of Infrastructure

Water well in Kauwt Thoung Water well in Kauwt Thoung Water collecting pipe on a house Reservoir for dry season in Kauwt Thoung





3.2 Issues for the Southern Myanmar Development –industry-

Item IssuesAgriculture − Needs to promote approaches to secure productivity growth and stabilize the production

environment, and studies on approaches for agricultural and rural development such as production of high-added value crop and new technologies to increase additional value, etc.

Fishery and Processing Industry

− Most fisheries are transported by marine traffic. The long transport time is hindering the expansion of export to consuming regions such as Bangkok.

− Capacities of port and logistic facility are insufficient.

Rubber Industry − Due to product quality issues, export counterpart is limited to Thailand. Low on pricecompetitiveness, and forced to sell as low as the prime cost.

− Requires technical guidance/implementation to improve the product quality.

Palm Oil Industry − Although transportation of energy resources and raw materials necessary for production,and final products are highly dependent on marine traffic, improvements of roadenvironments are necessary to support industries by reducing their transport cost.

Industrial Zone − Electricity shortage is hindering the promotion of industrialization. There are urgent needsto secure a stable electricity supply system necessary for the operation of factories.

− Needs to strengthen the industrial partnership with other regions and to develop lightindustries (such as textile industry, and sundries industry)

− Needs to consider measures to attract foreign investments in order to strengthen theeconomical base and promote industrialization.

[ Issues of Industry （１） ]



3.2 Issues for the Southern Myanmar Development –industry-

Item Issues

Mining − Needs to strengthen partnership with related private companies while improving thetransportation infrastructure, and utilize the rich resources as the driving force ofregional development.

Tourism − Needs to develop lodging facility and infrastructures (hard) to attract foreign tourist and consumption, and promote soft measures such as forming a tourism contents utilizing high potential tourism resources.

− Meanwhile, deployment of an externally aggressive marketing promotions are considered important.

Employment − Over 150,000 people work away in the vicinity of Thai border, such as Kanchanaburi.

− Urgent need to develop and create regional industries for the improvement ofemployment situation.

Overall − Needs to develop linkage between Dawei development and regional industrial development,and aim for a well-balanced development between regions. Therefore, there is urgent needfor the development of infrastructures, such as electricity, roads, ports, etc., which willsupport the industry and livelihood of the region.

− Also, needs to promote industrial and logistical partnerships with other regions, attractforeign investors, and intensify the economical activities of the region.

[ Issues of Industry （２） ]



3.2 Issues for the Southern Myanmar Development –infrastructure-

Item IssuesPort − Although marine transport is the main transportation mean for logistics, Myeik, the port

leading the regional economy, lacks in features and capacity of port and logistic facilities.− The insufficiency to respond to demand increase is hindering industrial development.

Needs development study of port and logistic facilities.

Road − Roads between major cities, and most road sections within the regions are unpaved. Although there is an urgent need to improve the road environment, it requires large expenses and takes too long to accomplish.

− There are some road sections which are considering road improvement by utilizing private funds via BOT, however many lacks specifics on improvement and funding plan.

− Construction and maintenance of many road sections are conducted manually by local residents. Needs technical development and implementation for effective/efficient construction.

Electricity − Due to lack of power plants and distribution network, electricity prices are high andprices differentiates between regions.

− High electricity prices is hindering industrial developments such as advancement offactories, and has become a serious issue for some regions.

Water Supply − Water is basically supplied by rain water and well water. Some regions face growing water shortage and water quality problem during dry season, and needs measures to be taken.

− Development of the water supply system and plumbing facility from reservoirs and water sources are preferable however, most of the regions has not accomplished this due to financial and technical issues.

[ Issues of Infrastructure ]



3.3 Future Directions for the Southern Myanmar Development

– To improve the basic infrastructure of each sector as basis of regional industrial development and livelihood.

– To enhance the road networks between important cities, Yangon and the border of Thailand and enhance the maritime transportation networks to contribute to economic linkage with the Mekong region and coastal area of the Indian Ocean.

– To promote the industrial linkage between surrounding areas and develop transportation infrastructure between important cities, in order to maximize the effect of the Dawei SEZ development and achieve a balanced regional development.

[Ｄｉｒｅｃｔｉｏｎｓ]

[Key Issues]– It is indispensable to link a strong relationship between Dawei SEZ development and the regional

industry to realize the balanced development in the southern Myanmar.

– Development of infrastructure, such as electricity and roads, which will support regional industries and livelihood are urgently required.

– The wide-scale industrial linkages are limited, and it is insufficient use of the geographical advantage of neighboring Thailand and the Indian Ocean and abundant regional resources.

– Insufficient transportation network is hindering the industrial linkage between regional economic activities and development.



3.3 Future Directions for the Southern Myanmar Development

Gatewayto/from India, Thailand (Mekong

region), and Indian Ocean Region

Dawei

Myeik

Kauwt Thaung

Connectivity enhancement amongst main cities

~ by road, sea, and air ~

Connectivity enhancement with Thailand

~Industrial cooperation~

Connectivity enhancementbetween Yangon and Tanintharyi

Southern Myanmar Industrial Development

Agriculture (plantation), Fishery, Natural resources, Mining, Energy development, Tourism, etc.

Dawei SEZ

Bokpyin

Tanintharyi

Kanchanaburi

Ratchaburi

Petchaburi

PrachuapKhiri Khan

Thailand Neighborhood Provinces Industrial Development

~Promoting Industrial linkage~

Tourism , Agriculture, Industrials, Commercial Trade, etc.

Bangkok

Chumphon

Ranong


Source: Study team

ITD CAMP

0km PointDeep Sea Port

Main Road

Gov. Office

Andaman Sea

Quarry/ Bawah

Small Port

To Thailand

4. Research on the Infrastructure Development for the Dawei SEZ


4.1 Outline of the Dawei SEZ Development4. Research on the Infrastructure Development for the Dawei SEZ

[ Outline of the Dawei SEZ Development ]

Dawei

Laem Chabang

Yangon

Chennai

Singapore

Bangkok-Chennaivia Laem Chabang; approx. 10 days (4,590 km)via Dawei; approx. 6 days (2,250 km)

Bangkok-Yangonvia Laem Chabang; approx. 10 days (3,697 km)via Dawei; approx. 3 days (890 km)

＜Transportation Route Change＞

-

50,000

100,000

150,000

200,000

250,000

2000 2014 2000 2014

US$(millions)

Year

西側

その他Export Import

Regional export/import value of Thailand

＜Demand of Economic Corridor＞

Western countries*

Others

Source: Study on business possibility of the Dawei Development Project in the republic of Myanmar in FY2012*Western countries are including South Asia, Middle East, Africa and Europe. Source: Ministry of Commerce, Foreign Trade Statistics of Thailand

– Dawei SEZ is the industrial development project site located on the coastline approximately 30km North of Dawei city. Planned for a large-scale industrial estate including steel industry and petrochemical industry, deepwater harbour, and large-scale joint development including roads and railways to the boarders of Thailand, and electricity/power grid, etc.

– From a broad viewpoint, Dawei being located 300km west of Bangkok, Thailand is the largest missing link for the Southern Economic Corridor connecting to Ho Chi Minh=Vietnam, Phnom Penh=Cambodia and Bangkok, and also for the Mekong-India Economic Corridor connecting to Chennai=India.

– When Dawei Development is completed, and Bangkok～Dawei is connected, the Pacific and Indian Ocean will be connected without the travelling around the Straits of Malacca, and will become the gateway for Mekong region to the Indian Ocean.Furthermore, Dawei has the potential to become the West regional hub for the entire Mekong region.


4.1 Outline of the Dawei SEZ Development

[ Outline of Full Phase Development ]


– Total development area is 196.5k㎡, of which 27 k㎡（industrial estate area） is allocated to the Initial Phase Development.– The following development plan is the full phase development plan which ITD created at that time when ITD had the

development rights. – However, this Full Phase Development plan, aside from the Initial Phase Development, is left vacant since the termination of

ITD’s development rights in Nov. 2013. – Currently, Roland Berger has been executing the “Dawei SEZ Integrated Master Plan Project” assigned by NEDA.

Source； ITD (Photographed by Study team on site, Sep. 2014)


4.1 Outline of the Dawei SEZ Development

[ Outline of Initial Phase Development ]


– Initial Phase Development TOR has been presented in August 2014, and bidding has been sealed by ITD association on September 2014.

– After several negotiations, the contract is assumed to be signed by March 2015, and constructions are scheduled to start.

– Initial Phase Development is mainly-composed by the following 7 projects.

Project Outline1. Two-lane Road – From borders of Thai and Myanmar （Phu Nam Ron） to Dawei SEZ

– Make maximal use of existing construction road to build toll roads

2. Small Port, LNG Terminal – Berth for general cargo and LNG terminal

3. Initial Industrial Estate – Industrial estate site, plumbing facility, electricity distribution included

4. Small Power Plant – Power facility for temporary-use and Boil-off gas generating facility– Small-scale Power generating facility （GT/CCGT 450MW）

5. Initial Township/Residential Area

– Construction of 9 buildings are scheduled for the 1st Phase （720 people per building×9＝6,480 people capacity）

6. Small Water Reservoir – Initial water reservoirs are completed (Pa Yain Byu Reservoir)– Scheduled to build another, if necessary (Laing Gya Reservoir)

7. Telecommunication Landline – Scheduled to layout fiber cables along the road

＜Main projects of Initial Phase Development＞ Source； ITD (Photographed by Study team on the site, Feb. 2015)

Source； ITD


4.2 Recommendation for Promoting Dawei SEZ Development （sector-wise）

①Port [ Current situation of Full Phase Development ] Past Full Phase Development plan

– Berths for the industrial estates accommodating general freights and cargo containers was planned in the ITD Master plan.

– Planned for a 500m wide artificially-excavated port with breakwaters at North and South offshore.

– Planned to excavate in a L-shape bay, with total of 55 berths, approach channel depth at 20m, outer harbour depth at 14m, inner harbour depth at 16m, and L-shape excavation depth at 11.5m.

Current situation of development

– All construction work, such as the construction of breakwaters, are suspended.

– Planned port site was originally a lagoon, and there are temporary roads along the coastlines built on landfill, however, some parts to-be excavated remains under water.

– Planned quay site already has temporary roads along the coastline, and possible to envision the form of the port.＜Planned excavated port site＞＜Coastline temporary road＞

Source； Study team

Small Port(Initial Phase)

Original Planned Site for Full Phase




Item Issues/future directions

Coexistence of commercial port and industrial port

− Coexistence of commercial port and industrial ports may cause freight line discordance, disturb the safety of ship handling, entry-exit congestion, etc.

− Adjacent to berth for raw material and commodities may cause adverse effect such as exposure to dust.

Port Layout(L-shape, 500m wide,total key length approx. 3.7km）

− Difficult layout to handle ships. Layout that allows large ships and ships with hazardous material (LNG) to berth along the pier without making a complete stop is preferable. Needs to change the position of the North breakwater, and devise ways to expand the area of the port.

− Undesirable to block the port entry with a turning basin.− Needs corner cutoff of the turning basin area for a closed-off L-shape port

Channel width（Width＝350m,Length=10km）

– 10km long, and 350m wide (1L: ship length) approach channel will be consideredoccupied when 200,000-300,000 ton (VLCC: iron ore carriers) ship sails through thechannel, and will effect the operation of other ships.

Placement of ContainerBerth

– Unlike general goods, cargo handling shall focus on its operation efficiency, andmooring shall be kept short, as 1 day.

– Therefore, instead of placing the berth at the far excavated position which limits thein-and-out coming of ships, it is necessary to plan a position which allows easy-mooring.

①Port [ Issues for Full Phase Development ]

4.2 Recommendation for Promoting Dawei SEZ Development （sector-wise）4. Research on the Infrastructure Development for the Dawei SEZ


①Port [ Issues for Full Phase Development ]



Position of LNG Berth – Berth for LNG is located at the most difficult position, and is an apparent navigationalproblem for “high-risk ships”

Phased Development – The purpose of the berth is planned to change as the port expands. However, this isinconvenient and economically irrational.

Placement of Shipyard – Shipyards are preferable to be placed near the port entry, not at the far excavatedposition. Also, needs to be apart from the quay handling products.

Maintenance – Port is presumed to be costly to maintain (such as maintenance dredging,countermeasures for erosion, etc.) Profitability needs to be considered carefully onport development projects.

Port Operating System – This project assumes for all development/operation to be conducted by privatesectors. In order to secure the project profitability of the port developers, there is apossibility that the burden may be borne onto the port user (possibility of becomingan “expensive” port).


①Port [ Current situation of Initial Phase Development ] Initial Phase Development plan

– Planned to develop a small port and LNG terminal at the Initial Phase Development on the estuary south of DSEZ.

– 1st Berth on the estuary has already completed. No dredge work is done to secure water depth (currently 2-3m), however possible for ships to berth.

– Adjacently planned 2nd Berth and LNG terminal are planned to be formed in between by the south and north breakwater


– No construction work has started as of February 2015.

＜Status of the small port (1st Berth）＞

Source； ITD (Photographed by Study team on the site, Feb. 2015)Water depth

(plan)length Incoming Carrier Remarks

1st Berth -7m 100m13,000DWT(400TEU)multi-purpose vessel

Pier completed

2nd Berth -10m 150m25,000DWT(1,600TEU)feeder vessel

Future plans

LNG Terminal -14m －－

＜Terminal Design Specifications＞



Source； ITD



Port Access Road − The small port is located far from the industrial estates to-be built for Initial Phase Development, therefore accessing road needs improvement.

Consideration of local residents

− Nga Pet tet Village is located approx. 2.5km north of the small port site (outside the DSEZ area), requires sufficient consideration upon development.

Countermeasures for sedimentation ・erosion

− Port site is located on a straight sandy beach. Deformation are expected due to the placement of structures such as breakwaters along the coastline, and sedimentation and erosion is believed to occur at several locations.

− As mentioned above, there are villages along the coastline, therefore may require study on countermeasures for erosion, if necessary.

①Port [ Issues for Initial Phase Development ]



②Road [ Current situation of Full Phase Development ] Past Full Phase Development plan


＜Current status of access road＞Source； Study team

– Access Road consists of

(1) 18.5km within Dawei Industrial Estate

(2) approximately 132km Road Link (main road)

from Dawei to the border of Thailand.

– Initially, this road was planned to be developed by the end of 2015 as 4-lane road.

– This road had been planned to be expanded to 8-lane road in future. It was said that ITD would secure land for road width 80m, for future expansion.

– Study for full phase development plan has been suspended since ITD’s termination of development rights in 2013.

– Currently, 2-lane road is under study for the Initial pahse development plan.


Source； ITD (Photographed by Study team on the site, Feb. 2015)



Traffic demand − Traffic lane was not planned to correspond to the traffic demand.

− Based on the result of traffic volume forecast which conducted by ITD, traffic volume was estimated approximately 5,000 vehicles/day at beginning time of operation (2016); thus, 2 lanes road seems to be enough at the early stage of operation.

Alignment − Design speed differs according to geometric type (Level, Rolling, Mountainous). Difference in design speed along the alignment may cause low road safety, rapidity and comfort.

− Utilization of tunnel sections, grade-separated structures and climbing lanes are important to apply the same design speed along the alignment for road safety, rapidity and comfort.

Profitability − There is concern about profitability by BOT (Built-Operate-Transfer) with result of ITD’s traffic volume forecast; approximately 5,000 vehicles/ day at the early stage of operation, 10,000 vehicles/ day in 2024, and 9,000 vehicles/ day in 2040.

− Active involvement of the Myanmar government for the construction of basic infrastructure in Myanmar (development as a public road) is essential to secure profitability of road project.

②Road [ Issues for Full Phase Development ]



②Road [ Current situation of Initial Phase Development ] Initial Phase Development plan

– Total Length:18 km(Industrial estate road)

138 km(Trans border corridor link)

– 2-lane pavement road

– Toll road(4 toll booths)

– Re-alignment of the existing temporary road to modify small curve

– Planning of level for road and bridge considering H.W.L

– Applied standards: Class-IV Thailand DOH standards


Source； ITD (Photographed by Study team on the site, Feb. 2015Description

Primary Terrain Classification

Level Rolling Mountainous

Design speed 70-90 55-70 40-55

Lane width 3.5 3.5 3.5

Outer Lateral Clearance 1.5 1.0 1.0

Maximum Gradient 4% 8% 12%

＜Design Specifications＞

Toll Booth

Toll Booth

Toll Booth

Toll Booth

<Re-alignment section><Temporary slope>


Source； ITD

– Construction work will start after the concession agreement and will take 30 months to complete.



Item Issues and future directions

Alignment − Design speed differs according to geometric type (Level, Rolling, Mountainous). Difference in design speed along the alignment may cause low road safety, rapidity and comfort.

Safety countermeasure − Needs safety countermeasures such as signs, mirrors and etc. at steep gradient and small curve.

Pavement design − Proper pavement design corresponding to future traffic volume and pavement design considering proper pavement life (until full phase) is required.

Disposal of waste soil − Due to significant Cut earth, a large amount of surplus soil is expected. Therefore, a suitable waste soil treatment is needed.

Approval − 2-lane road (former construction road) was constructed without official approval of Myanmar Government(without EIA)

Finance − The past total construction work cost of access road is approximately five billion yen. Additional fifteen billion yen will be required for completion of 2-lane road.

Bridge design and construction

− Proper bridge design corresponding to H.W.L based on the water gate survey and interview survey on site.

− Safe execution scheme will be required, since bridges with approx. 40m high bridge columns are planned in the Initial Phase Development.

②Road [ Issues for Initial Phase Development ]




③Industrial Estate [ Current situation of Full Phase Development ] Past Full Phase Development plan

– Industrial Estates were planned as follows in the past Full Phase Development plan by ITD.


＜Current Status of Industrial Estate＞Source； Study team

Coal Fired Power Plant

Medium Industry



Steel Mill

Light Industry

Petro Chemical

Oil & Gas

Steel Mill： 2,348ha Coal Fired Power Plant： 427ha Oil & Gas Industry： 1,373ha Petrochemical Industry： 2,881ha Medium Industry： 6,144ha Light Industry： 3,523ha Fertilizer： 449ha Ship Yard： 109ha

Industrial Area Total： 17,254ha

– EIE（Early Industrial Estate）, 1,006ha, was planned as early development, aimed for business commencement by 2014.

– All construction works and studies for the Full Phase Development are suspended.

– Construction work for Initial Phase Development will start after the concession agreement.


③Industrial Estate [ Issues for Full Phase Development ]



Land UsageZoning

– Note that in the previous development plan, heavy industry which have large impact on the environment were placed adjacent to the manufacturing/assembly industry, textile/light product industry, logistics, and also near residential districts, and that the study on environmental preservation measures (vegetated buffer etc.) for smoke and odor, etc. exhausted from heavy industry were insufficient.

Project Profitability – Profitability of the industrial estate development needs to take into account the profitability of the entire DSEZ development project as a whole, and incorporate the integration of all the projects.

Demand Prospect – Due to wage growth and expiration, Thai companies are being drained out overseas, however, there seems to be no foreseeable large/massive investment demand.

– Promotion of a comprehensive infrastructure development by the cooperation of Japanese government/companies is necessary to invoke investment/advancement of Japanese companies.

Human Resource – It is important to sustainably secure skilled human resource from the surrounding region. From a long-term perspective, the human resource development and training within Tanintharyi district is considered important. However, currently there are no specific plans under study.

Benefits for the surrounding region (Tanintharyi district)

– The effects on local regions by the DSEZ development has not been sufficiently studied

– The linkage with the regional industry and the synergetic development associated with the DSEZ development is important


③Industrial Estate [ Current situation of Initial Phase Development ] Initial Phase Development plan

– Initial Industrial Estate development is planned as follows;


＜Current Status of Industrial Estate site for IPD＞



Planned site of Industrial Estate for the Initial Phase Development


– Infrastructure and utilities for Initial Industrial Estate Development are planned as follows;

Phase Area Area(sellable) Development year

A zone 700ha 520ha 2015-2016

B zone 700ha 520ha 2017-2018

C zone 700ha 520ha 2019-2020

D zone 600ha 470ha 2021-2022

E zone 800ha N/A 2023-

＜Industrial Estate Plan for the IPD＞

Source； ITD

– Construction work will start as soon as the execution of the concession agreement.

Road Network within the DSEZ with Drainage System, etc. Land Leveling, Land Zoning Preparation Flood Control Power Distribution System Water Treatment Plant and Water Distribution System Waste Water Treatment Plant and Waste Collection System Solid Waste Management System Fire Fighting System Environmental Monitoring System Green Area


③Industrial Estate [ Issues for Initial Phase Development ]



Land Use Zoning

・ If any problems concerning consideration for the environmental society occur during the Initial Phase Development, there is a possibility of effecting the promotion of the entire remaining DSEZ development. Therefore, implementation of an eco-friendly advanced industrial estate developments are preferable.

DevelopmentSchedule

・ If implementations can not proceed as scheduled, the concession contract itself willbe terminated, and again stagnate the entire development project and backset theentire remaining schedule, and risk of leading to an economic loss.

Demand Prospect ・ Important to accurately grasp the needs of potential-occupants, and continuously improve infrastructure and soft services accordingly.

Human Resource ・ Important to also emphasize the employment of regional residents/Tanintharyi region residents from the perspective of the human resource development.

・ Enhancement of the human resource development/employment system that contributes to the improvement of the regional employment situation, and increasingthe benefits of the regional economy is considered to underlie the fundamental for a sustainable development of the entire DSEZ.

Benefits for the surrounding region(Tanintharyi region)

・ The linkage with the regional industry and the synergetic development associated with the DSEZ development is important. Needs a mechanism to invoke industries that will create synergetic effect to the regional industry and contribute to the regional employment.



④Township [ Current situation of Full Phase Development ] Past Full Phase Development plan


Original Planned Site for Early Townhip(76ha)

Original Planned Site for Township(747ha)



– Township was planned as follows in the past Full Phase Development plan by ITD.

Township area： 747ha(350,000persons)-Apartments for employees in IE-Apartments for management level employees and skilled workers-Commerce facilities-Public facilities-Park, athletic facilities, etc.

Early Township area： 76ha(43,000persons)-Total 220 Apartments・Apartments for employees 35,000persons・Apartments for management level employees 2,000prsons

-Shop houses




④Township [ Issues for Full Phase Development ]



Employment Plan – Important to study a well-planned housing facility development and housing environment plan incorporating the assumed employed labor force (population) of DSEZ and the benefits of the regional economy in perspective.

Relationship with the regional society

– Increase of employment opportunity is one of the main purposes of the DSEZ development.

– Housing environment of the employees shall incorporate not only the relationship with the residential/neighboring region, but important to study on a wider perspective of vitalizing the regional economic activity of DSEZ surrounding region, and the connectivity with Dawei and other cities to built the residential area into an attractive region.

Relationship with the regional economy

– Important to study the prospective expansionary effect of employment and population for Taninthayri region and Dawei district, and conduct a well-planned development.

– Important to consider the relationship and economic ripple effects on regional industry.

– Important to study necessary measures to maximize these effects in cooperation with the local administration and authorities.


④Township [ Current situation of Initial Phase Development ] Initial Phase Development plan

– 9 apartments for employees in DSEZ will be constructed first. （for 6,480 persons）

– Eventually, construction of additional apartments and other facilities such as commercial complexes, sports clubs, etc., are planned according to demand.




＜Current Status of Township site for IPD＞Source； Study team

– No construction work has started as of Feb. 2015.

– Construction work will start after the concession agreement.

Initial Township planned site


④Township [ Issues for Initial Phase Development ]



Employment Plan – Since the increase of employment opportunity and development of regional economy is one of the main purposes of the DSEZ development, it is important to study the overall employment plan (framework）and effects on regional residents etc., which can be considered as effects on the region.

Relationship with the regional society

– Important to clarity the creation of employment and relationship with the surrounding region.

– In order to vitalize the regional economy activity in the surroundings of DSEZ, and build an attractive housing environment for employees within DSEZ, it is important to study on a wider perspective, such as the connectivity with Dawei and other cities.

Relationship with the regional economy

– Important to study the prospect of the expansionary effect of employment and population within the region, and also the impact on the relationship with the existing regional industry and how it will impact the economic ripple effect.

– Important to study necessary measures to maximize these effects in cooperation with the local administration and authorities.


⑤Power [ Current situation of Full Phase Development ] Past Full Phase Development plan

– Initially, power supply service for EIE which had been planed to start operation in 2015: Gas Engine Power Plant (33MW) + Gas Combined Cycle Power Plant (250MW) = Total 283 MW

– Power supply service for entire DSEZ in 2016: above 283MW + Coal Fired Power Plant 400MW = 683 MW

– Power Plants, eventually, planned to be exported to Thailand: Gas Combined Cycle Power Plant: 700MW + Coal Fired Power Plant: 3,600 MW

– 1% of the total generated power to be supplied to Myanmar with free of charge.

– Fuel to be imported from foreign countries.


– No procurement activities has been executed for Gas Engine Power Plant (33MW) which was planned to be completed in 2014.

– Presently, only a set of gas engine generator with 1MW has been prepared for power supply.

＜1MW Gas Engine Generator＞




Original Planned Site for Full Phase・700MW Gas Combined Cycle PP(2018-2019)・250MW Gas Combined Cycle PP(2015)・33MW Gas Engine PP(2014)

Original Planned Site for Full Phase・400MW Coal Fired PP(2016)・1800MW Coal Fired PP(2018-2019)・1800MW Coal Fired PP(2020-)




Demand Forecast − The demand was excessively forecasted.

Power Development Plan

− Benefits to the government of Myanmar shall be considered in the development planfor coal fired power plants that will generate electricity for power sales to Thailand.

− Implementation of renewable energy has not been examined.

Transmission and Distribution

− The transmission and distribution network was planned to be upgraded in phases（66KV⇒132KV⇒264KV）. Overlapping investment should be avoided.

Environmental Impact Assessment(EIA)

− Simulation analyses for air pollution and warm water recirculation have not beenconducted.

− Although environmental impacts should be minimized based on comparison withalternatives, studies from perspevtives of energy conservation and utilization ofrenewable energy have not been conducted.

− Only IEE（Initial Environmental Examination） was conducted. EIA should be conducted.

Project SchemeProfitability

− A private company is expected to be a proponent of power business. It is necessaryto reach an agreement with the government of Myanmar.

− It is assumed to set a higher tariff than Thailand (30 to 80% higher) and Yangon (50to 100% higher) to secure profitability. Since higher tariff is not attractive for tenants,the tariff should be reexamined.

⑤Power [ Issues for Full Phase Development ]




⑤Power [ Current situation of Initial Phase Development ] Initial Phase Development plan

– As shown in “original Full Phase Development Plan”, Gas Engine Power Plant (33MW, operation in 2014),Gas Combined Cycle Power Plant (250MW, operation in 2015) and Coal Fired Power Plant (400MW,operation in 2016 -2017) were planned as IPD.

– Plan of IPD has been reviewed and modified as shown in the following table.


– Except for the 1MW Gas Engine Generator (temporary), no construction has been started as of Feb. 2015.

– Until the operation of GT1 in CCPP (permanent facility) is started, the temporary power plant will beexpanded corresponding to the progress of development.

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 After 2024

33MW 250MWGas

EngineCCPP

　　15MW94MW 94MW 94MW 133MWGT 1 GT 2 GT 3 ST 1

415MW asCCPP

For sales to Thailand

Current（IPD）

Temporary

Temporary Power Plant (Gas Engine) 　To be expanded to 15MWBoil-off Gas Power Plant

Permanent415MWCCPP （As parts of CCPP）

OriginalPlan

400MW 700MW CCPP1,800MW CoalCoal 1,800MW Coal

For DSEZ



＜Original Plan and Current Plan of Power Plant＞


※CCPP：Combined Cycle Power PlantGT：Gas TurbineST：Steam Turbine



Demand Forecast − Basis for power demand forecast is unknown and consistency with the powerdevelopment plan can not be confirmed.

Power Development Plan

− Introduction of renewable energy has not been considered.− Completion of CCPP is scheduled to be 2023. It is prospected to complete expansion

by 2023. Possibility of connection with the national power grid should be studied.

Environmental Impact Assessment(EIA)

− Simulation analyses for air pollution have not been conducted.− Cooling system for 415MW CCPP is unknown. If warm water is to be discharged to

the sea, simulation analyses for warm water recirculation should be conducted.

Project SchemeProfitability

− Since electricity will be supplied from gas engine generators (LNG, a power generationefficiency of less than 40%) in the meantime, power generation cost may be high. UntilCCPP (Small Power Plant) is completed in 2023, the generation cost will not bedecreased due to the low efficiency of GT in Small Power Plant(approx. 40%). Tariffshould be carefully examined.

− It is said that a plant factor of more than 80% should be confirmed to secure theprofitability of power generation business, but power demand at night and on holidaysmay be low. Power sales to the national grid should be considered.

⑤Power [ Issues for Initial Phase Development ]




Past Full Phase Development plan

– Water Demand; 400,000 m3/day in 2016, 600,000 m3/day in 2018, 1,000,000 m3/day in 2020

– Reservoir; Ka Loat Htar Dam with capacity of 600 million m3

– Water Treatment Plant (WTP); One Plant with capacity of one Million m3/day

– Wastewater Treatment Plant (WWTP); Two Plants (Currently under revision)

– Facility for EIE; One Reservoir (Pa Yain Byu Pond with capacity of 700 million m3) and One wastewater treatment plant


– Construction of Pa Yain Byu Pond for IPD has been completed.

– Bank of WTP has been completed.

– Design of WWTP is under revision.

＜Pa Yain Byu Pond＞Source； Study team



Ka Loat Htar Dam

WWTP for EIE

WTP

Pa Yain ByuPond for EIE

Location of WWTP for EIE has not been

finalized

⑥Water [ Current situation of Full Phase Development ]

Initially, water sector for the Full Phase Development was planned as follows;



Construction Schedule − Construction of Ka Loat Htar Dam requires time for construction of access road andbanks of the dam, and also time for administrative relocation of the households andfor getting approval for EIA are an issue.

EIA (Environmental Impact Assessment)

− Negotiations between ITD and the residential people regarding compensations andsubstitute lands after the construction of Ka Loat Htar Dam are required. Prudentialstudies are also required.

Demand Assumption − The unit water consumption which was used by ITD was reasonable value. Howeverexcessive assumption value is not good for the future planning. Development planmatching to demand is required.

− If the construction of Ka Loat Htar Dam is canceled, studies for new water resourceswould be required.

− Desalination plant might be one of new water resources for super long-term plan.


⑥Water [ Issues for Full Phase Development ]


Initial Phase Development plan

– Water Resources； The Pa Yain Byu reservoir with capacity of 7.7 million m3 and the Ta Laing Gya reservoir with capacity of 2.7 million m3.

– Water demand and water supply plan； Up to 2017, water will be supplied by the Pa Yain Byu reservoir and from 2018, water also be supplied by the Ta Laing Gyareservoir based on the following table. Two reservoirs are connected by two pipelines with a diameter of 1,100 mm and distance of 11. 6 km.

– WTP； There is a construction plan of WTP with the capacity of 180,000m3 /day, near the Pa Yain Byureservoir.

Source； ITD

＜Water Demand and Water Supply for IPD＞


Phase/ZonePhase A Phase B Phase C Phase D

2016 2017 2018 2019 2020 2021 2022 2023

Water Demand （Cu.m./day）

1.Industrial zone 15,000 25,000 39,000 55,000 79,000 97,000 116,000127,000

2.Township 3,200 5,500 7,500 10,000 13,500 16,000 15,000 21,000

3. ETC. 1,800 2,800 4,500 6,500 7,500 9,000 10,000 12,000

Total Water Demand 20,000 33,300 51,000 71,500100,000122,000141,000160,000

Water Supply (Cu.m./day）

1. PaYain Byu 42,500 42,500 42,500 42,500 42,500 42,500 42,500 42,500

2. Ta Laing Gya 96,000 96,000 96,000 168,500 168,500 168,500

Total Water Supply 42,500 42,500 138,500 138,500 138,500 211,000 211,000211,000

⑥Water [ Current situation of Initial Phase Development ]

＜Water Sector＞

Source； ITD (Photographed by Study team on site, Feb. 2015)

Source； ITD (Photographed by Study team on site, Feb. 2015)

＜Perspective of the Ta Laing Gya Reservoir＞


– WWTP； WWTP will be constructed at each zone of Industrial Estates, A, B, C, and D in IPD. Lagoon system will be applied for treatment process.

– Wastewater collection system； Separate system will be applied for the wastewater collection system.

– Recycling of treated wastewater； Treated wastewater will be used as recycling water for plantation watering and a pond for storage of effluent that is to be constructed.

– Flood control system； Retarding basin will be constructed at each zone and after the rain storage, water will be discharged to the creek by pump.

– Creek and dike； New creek against the flood will be made by expansion of the existing ditch, and dike will be made along the creek up to +13.0 m.


– The Pa Yain Byu pond has been completed. Other structures and countermeasures against flood are under planning and design as of Feb. 2015.


⑥Water [ Current situation of Initial Phase Development ]

＜Wastewater Sector＞

＜Drainage Sector＞

＜Water, Wastewater and Drainage Sector＞



Water Sector − Construction works of WTP should be started based on the schedule.

− Transmission and distribution systems should be designed carefully taking intoconsideration of distribution block system.

− New water resources should be studied and considered for the future plan.

Wastewater Sector − There are no water quality standards for influents and effluents.

− Water quality standards and regulations on influents and effluents needs to beestablished for disciplinary control of influent and discharge quality from thefactories.

Drainage Sector − The size of the retarding basin will be larger because the value of the rainfallintensity will be very high. The space for the retarding basin requires a large space.The space for the retarding basin should be designed considering enough allowanceof water inflow.

− Creek structure should be rigid to decelerate velocity of the water flow in the creek(if not, the water flow will be faster than the existing ditch).


⑥Water [ Issues for Initial Phase Development ]



⑦Waste Treatment [ Current situation of Full Phase Development ]

Past Full Phase Development plan

– There were basic directions and the outline of the plan in the past Full Phase Development plan, however, concrete plans or methodologies had not been established.

＜Basic directions in the past Full Phase Development plan＞





To construct waste treatment and disposal facilities adaptive to the demand of the waste generation which will change due to project proceedings or industrial categories of located companies.

To promote the enhancement of linkages between companies and industries which try to decrease quantities of wastes and re-use wastes as resources or fuels.


⑦Waste Treatment [ Issues for Full Phase Development ]



Project scheme/Wastetreatment strategy

– Needs to build an independent advanced waste treatment system on-site of DSEZ.– Preferable to study the construction of the waste treatment system as an economic

activity which express the private-sector initiative.– Especially, adoption of concept such as an eco-friendly smart city will improve the

brand image of the whole DSEZ and contribute to attracting well-rated companies.– Envision the future of the smart city that DSEZ should aim for, and study and execute

goals and measures in the field of waste treatment, and strategies to clarify theproject implementing body etc., for the realization.

Waste treatment system

– Necessary to study the separating item/method, collection/transport system, andtreatment method (final disposal site, incineration treatment facility, recycling, etc.)

Facility ConstructionPlan

– Necessary to study the phased treatment/treatment facility construction according towaste production/type.

Control measures for waste treatment/disposal

– Important to study measures formulated towards the promotion of the 3R (Reduce,Reuse, Recycle)

– Effective to study beneficial treatments for industry/companies which can utilizes thewaste generated during production by other industries as raw material/fuel (such ascement industry).


⑦Waste Treatment [ Current situation of Initial Phase Development ] Initial Phase Development plan

– Since waste treatment plans and facilities are not pointed out as a main project of Initial Phase Development, specific plans are not clear.

– A methodology of the waste disposal will be planned as the landfill disposal, however the site of the landfill disposal has not been determined as of Feb. 2015.

– A solid waste treatment plant is planned within the area of Initial Industrial Estate.




Solid Waste Treatment Plant planed site

– No construction work has started as of Feb. 2015.

– Construction work for the solid waste treatment plant will start after the concession agreement.

– Currently, the landfill disposal site is under study.


⑦Waste Treatment [ Issues for Initial Phase Development ]



Project Scheme – In order to prevent the actualization of environmental deterioration risk (total cost increase necessary for the improvement of environmental deterioration, waste treatment/disposal cost increase based on the massive excursion of waste and its treatment/disposal) and to invite internationally competitive factories, execute the study of a well-planned/advanced waste treatment system.

Project Promotion – Envision the future of the DSEZ as the smart city to aim for, and study and execute goals and measures in the field of waste treatment, and strategies to clarify the project implementing body etc., for the realization.

Demand Prospect – Important to set appropriate various condition value (basic discharge unit of each industry, recycle rate, etc.) and study the necessary waste treatment plan.


⑧Environmental and Social Considerations [ Current situation ]

Item Current situation

EIA Study required to meet the international standard

– Gov. of Myanmar is primary responsible for resettlement as well as income restoration program.

– Gov. of Myanmar requested the Concessionaire to prepare for the EIA for IPD within 3 months after the agreement - around June 2015.

– Specific resettlement action plan has not been prepared and consulted to the affected people as of early 2015,.

Past EIA studies – As of 2013, EIA studies for port, water supply, SEZ overall, trans-border link road were drafted, but not approved officially by Gov.of Myanmar.

– Environmental mitigation, monitoring, management plan were elaborated, but limited,though the coal power plant, or large scale land use change were planned.

– Concern for biodiversity and environmental conservation are documented, but limited countermeasures.

– In December 2014, final EIA report for trans-border link highway was completed, yet not disclosed.

Current Efforts for IPD – Thai Consultants as well as international consultants started the EIA studies;, Pollution control, Natural and Social impact are reviewed thoroughly.



<Rushed Preparation for EIA>

<Bawah Resettlement Area >

<Map of Resettlement Target Villages and Bawah Resettlement Area>

• Census study is on-going based on the new demarcation both in DSEZ and the Trans-border Link Road.

• Total affected household is 2,020 households of 10 villages in DSEZ area, 30-40 hh for the Road. Decreased from the initial resettlement requirement over

4,000 hh of 16 villages in DSEZ, yet still large. Affected households of IPD is 442.

• 480 houses and public buildings (school, market, temple, and clinic) were built in the Bawah. Only one hh resettled due to construction of the road in DSEZ.

• Special attention is required for Karen Communities along the Trans-border Link area, as they are still under influence of Karen National Union (KNU).

<Myanmar Border with two flags : Myanmar and KNU >

⑧Environmental and Social Considerations [ Current situation ]


Source； ITD

Source； Study team Source； Study team



Institutional set up for ESC(Environmental and Social Considerations)

– Central Government controls the policy of DSEZ, but ESC issues needs to be more localized for quick action, and direct consultation with local stakeholders.

– Capacity building for ESC are required not only for central government bodies, but also for Tanintharyi Regional Government.

– Special attention for stakeholder meeting with minority groups, such as KNU.

Cumulated Impact / Alternative analysis

– Having large scale land use change and resettlement included, derivative, secondary, and cumulative impacts, alternative analysis needs to be documented for the reviewed EIA reports.

Comprehensive environmental monitoring

– Increase of traffic volume, air pollution, etc., are expected.

– Requires detailed simulation and setting up the environmental monitoring body and system.

Indigenous people fled the project area during the war

– Indigenous People Plan is not required under the current Myanmar law. However, absence of legal land title does not disqualify people from resettlement assistanceunder JICA or international guideline. These gaps needs to be addressed.

Need for income restoration program

– Human resource development scheme for the local people is limited. ITD CSR program has been suspended; Specific assistance from Thai government is under preparation.


⑧Environmental and Social Considerations [ Issues ]


Efforts to comply with international standard EIA andInvoluntary Resettlement by assistance of JICA.

– Location： about 20 km southeast side of Yangon city.

– Project area: center 400ha of the 2,400ha Thilawa SEZ.

– Phase 1 composed of the following 7 plans;

(1) Land Reclamation Plan, (2) Road Plan, (3) Storm Water Drainage Plan,

(4) Water Supply Plan, (5) Wastewater Treatment Plan,

(5) Power Supply Plan, (6) Telecommunication Plan, and (7) Greening Plan

– EIA Study Schedule : Feb 2013 TOR signed, Field survey March to August 2013, Stakeholder meeting, submitted to MOECAF September.

– After detail analysis to minimize the social impact, 65 hh needs to be resettled, 16 hh are affected hh’s farmland. Thilawa SEZ Area


⑧Environmental and Social Considerations [ Proceeding Case –Thilawa SEZ ]

＜Specific feature of EIA reports and Resettlement Work Plan＞• Comprehensive EIA • Consecutive consultation with Project Affected Peoples (PAPs)• Systematic / precise social survey utilizing the aero photo map and GIS to avoid the illegal claimer for

compensation.• Detailed EIA studies conducted for the Thilawa is summarized in the following table “EIA Investigation

Conducted for Thilawa SEZ “

＜Accessible grievance redress mechanisms＞• JICA received complaints from 3 relocated residents regarding the lost farmland, opportunity loss for

income, education, and limited infrastructure, etc. in 2014• JICA conducted the field survey, interview of stakeholders and consultation based on the guideline and

continued the discussion with the 3 residents.

Source； Thilawa SEZ Development Project (Class A), EIA report September 2013


Category Items Survey Item Survey Method Quantity

Pollution Air Quality 1) SO2, CO, NO2, TSP, PM102) Traffic volume

1) Air quality measurement by instrument2) Counting number of each type of vehicle

1) 2 stations x 1 weeks x 2 times (dry and rainy season)2) 2 stations x 3 days x 2 times (dry and rainy season)

Water Quality 1) Natural and living environment parameters2) Health impact parameters (toxic substances)

Sampling & measurement by field equipment and laboratory analysis

4 stations x 6 times (monthly)

Waste 1) Amount of construction waste2) Amount of waste for

1) Prehension of waste as construction work2) Referring a similar project

-

Soil Contamination pH, As, Pb, Cd, Cu, Zn, Mn, Fe Sampling & measurement by field equipment and laboratory analysis

2 stations x 2 times (dry and rainy season)

Noise and Vibration 1) Traffic Volume2) Noise Level

1) Counting number of each type of vehicle2) Noise level measurement by instrument

2 stations x 3 days x 2 times (dry and rainy season)

Ground Subsidence Water demand Prehension of general contents of project which is assumed to cause impact on ground subsidence

-

Offensive Odor Distribution of residences and monastery around the Project area

Prehension of general contents of project which is assumed to cause impact on water use

-

Bottom sediment pH, As, Pb, Cd, Cu, Zn, Mn, Fe Sampling & measurement by field equipment and laboratory analysis

1 station x 1 time (June)

Natural Environment

Flora/ fauna and Ecosystem

1) Flora2) Fauna

Observation and interview survey Project area x 2 times (dry and rainy season)

Hydrology 1) Water demand2) Storm water control plan

Prehension of general contents of project which is assumed to cause impact on hydrology

-



<EIA Investigation Conducted for Thilawa SEZ (１)>



Category Items Survey Item Survey Method Quantity

Social environment

Living and livelihood Condition of living and the livelihood around Project area

Field survey 1 time

Existing social infrastructures and services

Condition of existing social infrastructures and services around the Project area

Field survey 1 time

Water Usage Water demand Prehension of general contents of project which is assumed to cause impact on water usage

-

Cultural heritage Distribution of cultural heritage around the Project area

Field survey 1 time

Landscape Distribution of landscapes and viewpoints in and around the Project area

Field survey 1 time

Risks for infectious disease such as AIDS/HIV

Measures of prevention of infectious disease

Prehension of general contents of project which is assumed to cause impact on infectious disease

Working conditions (including occupational safety)

Safety measures of working environment

Prehension of general contents of project which is assumed to cause impact on working conditions

-

Other Accident Safety measures of working environment

Prehension of general contents of project which is assumed to cause impact on accident

-

Global Warming Traffic Volume Counting number of each type of vehicle 2) 2 stations x 3 days x 2 times (dry and rainy season)

<EIA Investigation Conducted for Thilawa SEZ (２)>






[Port]+Revision of port layout-Separate commercial port function and industrial port function-Consider the safety navigation and ease port traffic congestion-Cope with the phased development efficiently.+Re-structure the business scheme-Secure the profitability of investment by private companies (public investment to basic infrastructure)[Power]+Establish an electricity supply scheme -Offer reasonable price using the domestic natural resources.+Smart Industrial Complex-Consider energy conservation such as energy circulation system among industries and smart community.+Collaboration with domestic gridin Myanmar and Myanmar Electric Power Enterprise.

[Steel mill/ Heavy Industry]+Reflect opinions from private companies to be located-Private berth construction, etc.[Industrial Estate]+Improve attraction to enterprises-Competitive services, price, etc.+Re-consideration of the land use plan considering the environmental concerns.+Phased development considering the actual demand.+Collaborate with surrounding area-Industry, human resources, etc.

[Environmental and Social Considerations]+Proper implementation of EIA.+Establish and implement sustainable monitoring schemes for environmental impact.+Cope with biodiversity and environmental conservation.+Enhance policies and frameworks to support and collaborating with regional government.

[Relocation]+Further minimization of relocation (coexistence of industries and living)+Support to the Livelihood Rehabilitation after relocation

[Human Resources]+HR plan and implementation scheme for locals including SEZ area andofficials of the regional government.+Secure labors and HR to support industrial activities.+Provide appropriate business opportunities to domestic industries.

[Overall]+Design an inclusive development plan and Strategic phased development plan collaborating with the surrounding area.+Installment of concept of “Smart complex” and “Eco Industrial Estate”, proactively working for environmental concerns.+Incentives to promote investment by Japanese enterprises. (e.g. Secure the natural gas interests, institutional design)

[Waste treatment]+Establish a waste management system.+Smart Industrial Complex-Design and Implement of Waste Treatment Strategy+Develop a 3R (reduce, reuse, recycle) policy.

[Water supply/ Wastewater treatment]+Provide water supply service with stable quality, quantity and competitive price+Phased implementation on demand basis.

[Road]+Phased development starting from 2 lines and to 4 lines.-to optimize the initial investment and cope with traffic demand properly.+Introduce stable design speed in each geometric type.- Tunnel, lane for slower traffic, median for safety, rapidly and comfort.+Re-structure the business scheme-Secure the profitability of investment by private companies (public investment to basic infrastructure)

[Railway]+Secure compatibility with the existing railway system.+Early realization of railway-to cope with the demand for railway transportation.

[Township]+Set the framework and phased development plan-reflecting the demand of employment, population and households.+Re-consideration of the land use plan considering the environmental concerns.+Design a comprehensive development plan-consider the surrounding area such as Dawei city, Tanintharyi region.



4.3 Recommendation for Promoting Dawei SEZ Development （overall）

1. Development framework for “Inclusive Development” to integrate local resources and endowments.

2. Strategic Master Plan for overall Dawei SEZ Development with a phased development.

Following considerations will lead to success of the Dawei SEZ Development;

Phase 1 (~2015) Phase 2 (~2025) Phase 3 (~2040)

Form a Robust Development Mechanism with Local Economies

Create a Regional Logistic Hub

Grow up to be an International Industrial Center


– Reconsider a scenario that maximizes the benefits of various stakeholdersincluding the effects on the industrial economic structure of the surroundingregion by this development project.

– Important to form structure, measures, etc. as framework for the realizationof this scenario, and aim for a comprehensive development incorporating theregional economy.

– While capturing the Dawei Development from a long-term ・ broad-basedperspective, design a strategic Master Plan incorporating the phasedinfrastructure development and attraction of industries, promote necessarymeasures/developments toward the realization.

– This can reduce/disperse risk and work as a backup collateral if problemsoccur, and maximize the effects by the development for the regionaleconomy, occupant companies, and also the greater regional economy.


4.3 Recommendation for Promoting Dawei SEZ Development （overall）

3. Public sector involvement especially for basic infrastructures and proper partnership (role-sharing).

4. Construction of the deep sea port and the access road at earlier stage complying with the international standard.


– As evidenced by cases in other countries, supports by public funds are necessary for the basic infrastructure of a large-scale development, such as ports, roads, etc.

– In order for an ascertain realization of the project, the involvement/support of appropriate public sector (government agency) are necessary.

– Especially, for projects that requires massive investment and is difficult to be self-supported individually, such as port and road development, requires the consideration of ascertain way for the realization of the development by appropriate role-sharing of governmental and public sector.

– Actual investments and movements towards advancement is believed to activate after the direction for a reliable deep sea port and high-standard road that withstand active international logistics is clarified.

– Important to consider a reliable infrastructure development in mind that the realization of a deep sea port and high-standard access roads will encourage foreign investments, starting from Japan, and the advancement of heavy industry.


4.3 Recommendation for Promoting Dawei SEZ Development （overall）4. Research on the Infrastructure Development for the Dawei SEZ

5. Enhancement of local resources.

– Human resource development of local community will be the key for Dawei Development to continue a community-based sustainable development.

– Alongside to the DSEZ promotion, important to eye the sophistication of educational institutions etc., establish a comprehensive plan on strategic human resource development・skill development・employment for local communities, and continue to execute necessary measure.


1. Initial Phase Development should be consistent with the entire Dawei development vision and a phased development plan.

2. Initial Phase Development should receive high praise initially, which will lead to success of the entire Dawei Development in the future. (e.g. If Initial Phase Development would have environmental/social issues due to rough-and-ready work, that would cause a big damage to the entire Dawei development.)

3. Public sector involvement especially on basic infrastructures (access road, etc.) and proper partnerships (role-sharing) of Public and Private sectors are indispensable.

Following points shall be considered for the Initial Phase Development;Phase 1 (~2015) Phase 2 (~2025) Phase 3 (~2040)

Form a Robust Development Mechanism with Local Economies

Create a Regional Logistic Hub

Grow up to be an International Industrial Center



1. Sustainable Energy Development (SED)• Demonstration projects to implement renewable energy at Dawei

a. Geothermal power generation system

b. Biomass power generation system

2. New Industry Development (NID)• New industry development making use of local materials

a. Fisheries (demonstration of freezer by renewable energy)

b. New rubber industry, palm oil industry, tropical fruits

3. Human Resource Development (HRD)• Human resource development activities at and around Dawei

a. Open collaboration courses between Dawei Univ. and Japanese Univ.

b. Free personal computers for IT education

Following development is now under consideration to contribute to the Dawei Development;


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