A 2,400 hectare special economic zone (SEZ) in Rangoon’s Thilawa Port will be jointly developed by three Japanese groups and the Burmese government, local media reported on Sunday.
Under the agreement, Japan's Mitsuibishi Corporation, Marubeni Corporation and Sumitomo Corporation will hold a 49 per cent stake to run Thilawa SEZ, while Myanmar entrepreneurs in the form of a public company will take 56 percent, said the Myanmar's Federation of Chambers of Commerce and Industry in an article in the Voice on Sunday.
The Japanese side will provide financial assistance for the SEZ' s infrastructural development such as factories and workshops and one natural-gas-fired power plant, the report said.
In addition to foreign investors, the government has also invited domestic entrepreneurs to make investment in the project through shares. The permitted amount of the investment and the duration of the project and other details have not been reported.
Thilawa SEZ project lies between Thanlyin and Kyauktan townships in Rangoon region, which is next to the Dawei Special Economic Zone project in southern Taninthayi region.
The government also invited other foreign investors from South Korea, China, Singapore, Thailand and Malaysia to join in the Thilawa SEZ project.
Burma’s previous government put into place the Special Economic Zone Law in January 2011, three months before the new government came into being in March.
In the fiscal year 2011-12 which ended in March, trade between Burma and Japan nearly doubled, reaching US$ 822.5 million compared to 493.8 million the year before.