News & Articles on Burma-Saturday, 04 February 2012-uzl

News & Articles on Burma Saturday, 04 February 2012 ----------------------------------------- Myanmar's Karen rebels say ceasefire 'fragile' KIA attacks Burma army convoy in Kachin State Unesco to help draft Myanmar media law In Myanmar, Karen Rebels Deny Signing a Cease-Fire Political prisoners walk free as Burma comes in from the cold Burma's rebel group warns ceasefire deal is unstable Slow Burma ANALYSIS-Myanmar's ambitious Dawei project faces uncertainty ------------------------------------------- Myanmar's Karen rebels say ceasefire 'fragile' Bangkok, Feb 4 2012, (AFP) One of Myanmar's most prominent rebel groups today warned a ceasefire deal seen as a breakthrough in relations with the regime was "fragile", as ethnic unrest continues to cast a shadow over reforms. The Karen National Union (KNU) signed a pact with a delegation of ministers from the new government on January 12 in a move that raised hopes of a permanent end to one of the world's longest-running civil conflicts. "We have to make the ceasefire durable. This is a tentative step and still very fragile," said Saw David Tharckabaw, vice-president of the KNU in charge of foreign affairs. He said charges against a senior rebel figure and continuing conflict in other ethnic areas was eroding trust in Myanmar's nominally-civilian government, which has launched a series of changes that have persuaded some Western powers to re-evaluate tough sanctions on the country. The KNU's Mahn Nyein Maung is facing trial for treason -- for which the maximum penalty is death -- despite assurances from the government's top negotiator that he would be freed, according to Saw David Tharckabaw. "Not much is changing so the government can't keep its promises... that is not good for us to continue trust building," he told AFP. "Some countries say there is a great change, real change, but we have to see proof on the ground, we cannot rely on promises." Civil war has gripped parts of Myanmar since its independence in 1948, and an end to the conflicts is a key demand of the international community. Tentative peace deals have been inked with several rebel groups, but fighting in Kachin has caused uncertainty about the progress of the reconciliation effort. Citing reforms, the United States announced plans to exchange ambassadors with Myanmar soon after the KNU ceasefire and a major release of political prisoners in January. http://www.deccanherald.com/content/224563/myanmars-karen-rebels-say-ceasefire.html ----------------------------------------- KIA attacks Burma army convoy in Kachin State Category: News Created on Friday, 03 February 2012 02:21 Published Date Written by KNG kachin army kachin stateLAIZA, Burma --- Several trucks belonging to a military convoy in Kachin state were severely damaged Friday following a series of road side bombs. The convoy was attacked near the Mali Hka River outside Japu village in Waingmaw township in Kachin State, according to witnesses in the area. The Kachin Independence Army claimed responsibility for the attack but a KIA member stationed in the area told the Kachin News Group the KIA was uncertain of the number of troops killed or wounded. The convoy is believed to have been carrying supplies for soldiers stationed on the frontline. Friday also saw a firefight breakout between the Burmese army and KIA forces near Namlim Pa village in Manje (Mansi) township in southern Kachin State, local villagers told the Kachin News Group. The Burmese troops involved in the clash are said to be from Tactical Command No. 991 under Meiktila-based Light Infantry Division No. 99, while the Kachin troops involved were from the KIA's Battalion 12. On Thursday, a government soldier from Infantry Battalion No. 141 died after he was shot by KIA forces in the Sinbo area in central Kachin State. Sources in Kachin state say there has been an increase in fighting in the area over the past few days. Officials at the KIA's Laiza headquarters told the Kachin News Group on Friday, that the Burmese army has recently stepped up its offensive in order to make advances against the KIA ahead of next week, when representatives from both sides are expected to meet for another round of talks. The upcoming talks will be the second such meeting between the two sides this year. The KIA and its political wing the Kachin Independence Organization form Burma's largest armed ethnic group currently fighting the government. Over the past month most of Burma's other major armed groups that were still fighting the government including the Karen National Union (KNU), the Shan State Army South (SSA South), the SSA North, the New Mon State Party (NMSP) and the Chin National Front (CNF) all signed ceasefire agreements with President Thein Sein's negotiators. http://www.kachinnews.com/news/2231-kia-attacks-burma-army-convoy-in-kachin-state.html ------------------------------------------ Unesco to help draft Myanmar media law IANS India Private LimitedBy Indo Asian News Service | IANS India Private Limited Yangon, Feb 4 (IANS) Myanmar will draft a media law with help from the UN Educational, Scientific and Cultural Organisation (Unesco), the official media reported Saturday. The information ministry is drafting the law in accordance with international and regional norms, Xinhua quoted the daily New Light of Myanmar as saying. Both sides will hold a discussion on the proposed law that guarantee press freedom, responsibility and accountability in promoting democracy. Meanwhile, the Myanmar Writers and Journalists Association (MWJA) and Singapore's Asian Media Information and Communication Centre (AMIC) Monday jointly organised a workshop here on media development in democratic society. Representatives from Indonesia, Myanmar, Malaysia, the Philippines, Singapore, Sri Lanka, Thailand and the US took part. The workshop discussed media-related laws and publication. http://in.news.yahoo.com/unesco-help-draft-myanmar-media-law-103804641.html ------------------------------------------ In Myanmar, Karen Rebels Deny Signing a Cease-Fire By THOMAS FULLER Published: February 3, 2012 TAY BAY HTA, MYANMAR When Myanmar announced a cease-fire last month with one of the countrys most prominent rebel groups, images of longstanding enemies shaking hands across a table were beamed around the globe and touted as evidence of further reconciliation in a country emerging from decades of military dictatorship and interethnic strife. .Now, three weeks after the deal was announced, the leadership of the rebel group is denying that a cease-fire was signed. We cant say theres a cease-fire yet, Naw Zipporah Sein, the general secretary of the Karen National Union, said in an interview. We still need to discuss the conditions. There have been no reports of clashes between Karen rebels and government troops in recent weeks. But the defiant stance of the Karen leadership appears to be a significant setback for the governments efforts to end the grinding civil conflicts that have divided the country for decades. Reconciliation with the countrys armed ethnic groups has been one of the conditions that the United States and other Western countries have put on Myanmar before economic sanctions and other punitive measures are lifted. The day after the cease-fire announcement, Hillary Rodham Clinton, the U.S. secretary of state, said that the United States would reward action with action and announced that Washington would appoint an ambassador to Myanmar after more than a decade without one. She called the cease-fire an important step forward for the country. The confusion over the cease-fire remains murky and appears to be a mix of misunderstanding and backpedaling by the rebel groups leadership. Ms. Sein said the delegation sent to negotiate with the government was not authorized to sign a cease-fire. A document was signed, but all that was agreed upon in January, she said, was that the two sides would meet again at the end of February. She declined to release a copy of the agreement. Top officials of the Karen National Union, a cash-strapped organization with a ragtag army of several thousand troops, also admit that they underestimated opposition from the organizations rank and file to a deal with the government. The grass roots are very much concerned that it went too quickly they thought it was a sellout, said Saw David Tharckabaw, vice president of the Karen National Union and chief of its foreign affairs section. There is a feeling that we have been cheated. The organization must now move more slowly in dealing with the government, Mr. Tharckabaw said. He portrays the cease-fire announcement in January as part of a public relations campaign by the government for the benefit of foreign nations. The government wanted to show the world that the longest-running war between the government and a rebel group was over, Mr. Tharckabaw said. He said the Karen delegation came under high pressure to sign an agreement. The government of President Thein Sein has pushed ahead with a raft of changes in recent months, including the release of hundreds of political prisoners and a loosening of restrictions on the news media. But ethnic strife remains a key challenge, one that has dogged Myanmar, also called Burma, from the first days of independence in 1948. E-mails to Mr. Thein Seins office seeking comment on the status of the Karen cease-fire were not answered. About one-third of Myanmars population are members of minority groups arrayed along the borders with Bangladesh, India, China and Thailand. In the impoverished hills that make up the Karen homeland, tensions persist between rebels and government troops, according to Bo Aung Hang, a battalion commander in charge of a region along the Moei River, which separates Myanmar from Thailand. The area is strewn with land mines. In Tay Bay Hta, a hamlet along the river without electricity or running water or roads, there is a palpable pessimism that is in stark contrast to the rekindled hopes for democratic reforms in some of Myanmars biggest cities. The mood here is for defiance, not reconciliation. During a ceremony this week to commemorate 63 years of fighting against the central government, Mr. Bo Aung Hang told an assembled group of about 150 villagers that the Burmese Army wanted to eliminate the Karen people. All that will remain of the Karen is a picture in a library, he said. As he spoke, rebel soldiers stood guard, carrying a variety of assault rifles and a grenade launcher. Over the past 10 years, 40 soldiers have been killed in my battalion, Mr. Bo Aung Hang said. Those of us still alive are still leading the revolution. Rebels call the central government the enemy. The leadership of the Karen National Union said that no date had been set for the next meeting with the government but that they are ready to respect the deadline and convene before the end of this month. The organization has submitted a sweeping list of 11 demands, including a call for a simultaneous cease-fire encompassing all ethnic groups. (Fighting has flared in recent weeks between ethnic Kachin rebels and the government along the border with China.) Mr. Tharckabaw, the vice president of the Karen National Union, summarizes the Karen demands as wanting equality and self-determination. In short, we want a genuine federal system where the states will have their own autonomy, he said. Villagers who over the last few decades have been in the cross-fire of one of Asias longest-running conflicts, are skeptical that a deal can be reached, said Bothien Thientha, a long-serving officer in the Karen National Liberation Army who was wounded in a battle with a pro-government militia two and a half years ago. No one trusts the government, he said. Weve been cheated so many times. http://www.nytimes.com/2012/02/04/world/asia/in-myanmar-karen-rebels-deny-signing-a-cease-fire.html?ref=global-home&pagewanted=all ----------------------------------------- Political prisoners walk free as Burma comes in from the cold AUNG HLA TUN YANGON, BURMA - Jan 13 2012 07:51 Political prisoners began to walk free from jails around Burma on Friday in an amnesty that officials said could cover a total 651 inmates, as one of the world's most reclusive states opens up after half a century of authoritarian rule. The US and Europe have said freeing political prisoners is crucial to even considering lifting economic sanctions that have isolated the former British colony, and, over the years, pushed it closer to China. Among those to be freed are Min Ko Naing, a leader of a pro-democracy uprising in 1988 in which thousands of protesters were killed, and Shin Gambira, a well-known Buddhist monk who led 2007 street protests, prison officials said. Family members and prison officials said many more political activists, including other members of the dissident "88 Generation Students Group", would be released in the second major prison amnesty in four months. Secluded Burma has initiated radical reforms since a civilian government was allowed to take power in March after almost half a century of rule by the military. Media curbs have been eased, some prisoners freed and the government has initiated a dialogue with Nobel peace laureate Aung San Suu Kyi, who has led the fight for democracy and was herself released from years of house arrest in late 2010. Last month, Hillary Clinton became the first US secretary of state to visit Burma in more than 50 years and said Washington stood ready to support reforms in the country and possibly lift sanctions. Uncertain numbers The next major step in the reform process will be April by-elections in which Suu Kyi and her National League for Democracy (NLD) will take part. Authorities freed about 230 political detainees in a general amnesty on October 12. A senior political adviser to President Thein Sein said in November that hundreds of political detainees may soon be released. In Friday's amnesty, Min Ko Naing will be freed from Thayet Prison, a prison official and a member of his family said. A top leader of the 1988 protests that the military crushed with heavy loss of life, he was arrested in 1989, released in 2004 and then arrested again in 2007 on charges of organising protests. Shin Gambira was a leader of the All-Burmese Monks Alliance, which played a prominent role in street marches in 2007 that were again violently suppressed by the junta. He was 27 years old when he was sentenced in 2007 to 68 years in prison. "Shin Gambira will be freed later today," said a prison official in Myaungmya prison, southwest of the commercial capital, Yangon. An official from Taunggyi prison in Shan State said two other prominent activists, Ko Jimmy and Ko Zaw Thet Htwe, would be freed there. Prisoners of conscience "We are going to take them to the bus terminal later this morning," the official said. Phyo Min Thein, brother-in-law of Htay Kywe, one of the leaders of the "88 Generation Students Group", said: "I've got confirmation that Ko Htay Kywe and almost all members of the 88 Group and other prominent figures like Shin Gambira and U Khun Tun Oo will be released today." The exact number of political prisoners behind bars is unclear. Rights groups and the UN have put it at about 2 100. But Home Affairs Minister Lieutenant General Ko Ko told UN Special Rapporteur Tom?s Ojea Quintana in August the number was 600, or about 400 after the October 12 amnesty. The Assistance Association for Political Prisoners (AAPP), a group that tracks prisoners, had identified more than 1 000 "political prisoners". But diplomats and some independent analysts question those numbers and say they depend on different definitions of political prisoners and whether rebels or those who used force to oppose the government are included. A review of the AAPP's list of prisoners by European diplomatic missions in Thailand suggested the number of non-combatant "prisoners of conscience" appeared to be about 600, or about 800 before October's amnesty. Rights group Amnesty International has dropped an earlier estimate of about 2 000 political prisoners due to the conflicting definitions. -- Reuters http://mg.co.za/article/2012-01-13-burmese-government-prepares-to-release-political-prisoners/ ----------------------------------------- Burma's rebel group warns ceasefire deal is unstable KELLY MACNAMARA BANGKOK, THAILAND - Feb 04 2012 13:34 One of Burma's most prominent rebel groups on Saturday warned that the ceasefire deal seen as a breakthrough in relations with the regime is "fragile", as ethnic unrest continues to cast a shadow over reforms. The Karen National Union (KNU) signed a pact with a delegation of ministers from the new government on January 12 in a move that raised hopes of a permanent end to one of the world's longest-running civil conflicts. "We have to make the ceasefire durable. This is a tentative step and still very fragile," said Saw David Tharckabaw, vice president of the KNU in charge of foreign affairs. He said charges against a senior rebel figure and continuing conflict in other ethnic areas was eroding trust in Burma's nominally civilian government, which has launched a series of changes that have persuaded some Western powers to re-evaluate tough sanctions on the country. The KNU's Mahn Nyein Maung is facing trial for treason -- for which the maximum penalty is death -- despite assurances from the government's top negotiator that he would be freed, according to Saw David Tharckabaw. 'Have to see proof on the ground' "Not much is changing so the government can't keep its promises ... that is not good for us to continue trust-building," he said. "Some countries say there is a great change, real change, but we have to see proof on the ground, we cannot rely on promises." Civil war has gripped parts of Burma since its independence in 1948, and an end to the conflicts is a key demand of the international community. Tentative peace deals have been inked with several rebel groups, but fighting in Kachin has caused uncertainty about the progress of the reconciliation effort. Citing reforms, the United States announced plans to exchange ambassadors with Burma soon after the KNU ceasefire and a major release of political prisoners in January. Optimistic On Thursday, US assistant secretary of state for human rights Michael Posner said violence in the northern state was getting worse and called on Burma to address "serious human rights abuses". Saw David Tharckabaw said the KNU would look at Mahn Nyein Maung's treatment as well as ongoing unrest in northern Kachin province, where the army is fighting another rebel group, as indications of the regime's intentions. But he said the KNU remained committed to giving "peaceful resolution a chance" and would participate in further negotiations with the government later in February. President Thein Sein has surprised observers by freeing hundreds of political prisoners and reaching out to the opposition. Democracy icon Aung San Suu Kyi is optimistic enough that she is seeking a seat in parliament in the April 1 by-elections. --Sapa-AFP http://mg.co.za/article/2012-02-04-burmas-rebel-group-warns-ceasefire-deal-is-unstable ------------------------------------------- London Evening Standard Slow Burma Adrian Mourby 3 Feb 2012 Welcome to the new Burma!' says Myo, forgetting for a moment that the generals renamed it Myanmar. Myo is a cheerful man, wrapped in the traditional longyi. He leads us to a beautifully polished Chevrolet bus left behind after the Second World War. Now, at last, we get the chance to see a country whose regime has been so roundly criticised in the West. From what I can glimpse through the small windows, Yangon (British Rangoon) looks run-down but full of cars. Myo tells us there are no motorbikes (the generals banned them) and no university students either. 'The generals close the old universities and build new ones in the rice fields. I don't think the government trust students. I think they are scared.' He talks freely about how poor people are and how bad healthcare is. One of our party asks if he would have spoken this openly a year ago, before Aung San Suu Kyi was released and began negotiatons with the government. 'Oh, no!' he answers. We pass Inya Lake, a pleasant stretch of water that edges the smarter downtown houses. 'You remember that American who swam across the lake to visit Aung San Suu Kyi?' says Myo. 'It was here.' It is more built up than I expected, and the houses are sumptuous. I'd imagined a vast stretch of water patrolled by boats with searchlights. History is always less dramatic when you get there. Our hotel, The Governor's Residence, is in the diplomatic district. It's an air-conditioned haven sealed off from the broken pavements and overgrown gardens outside. A lodge manned by diminutive security staff and over-eager porters gives way to a covered bridge across fish ponds and a swimming pool. In the lobby, fans sweep overhead. The place is owned by Orient-Express and the look is tropical-chic. I catch echoes of empire, Somerset Maugham and George Orwell - although they actually stayed at The Strand further into town. After lunch we tour the city in bicycle rickshaws, squeezed into basic sidecars designed for slim Burmese hips. Old Rangoon is dominated by huge red-brick buildings that the British left behind in 1947. In 2005, the government moved the capital hundreds of miles away at a cost of $250 million; money this impoverished country could ill afford. Ever since, the British administrative buildings have stood empty. In the sultry climate they are rapidly growing moss; saplings cling to the gaping window ledges. We are shown the Secretariat, a vast building, where General Aung San (father of Aung San Suu Kyi) and his cabinet were assassinated soon after independence. That was when Burma started to go wrong - people tell you this quite openly. It hasn't gone right yet, despite some very positive moves by the new president, Thein Sein. Two of our group manage to arrange a visit to Aung San Suu Kyi at her party headquarters. She greets us solemnly. Softly spoken, she insists that democracy is coming, but that now is 'only the beginning of the beginning'. Known respectfully as Daw (Aunt), Suu is keen that Westerners visit Burma. Her country can only benefit from the contact. 'Tell people to come to Burma,' she insists as we shake hands. Goldene, my guide to Scott's Market, a 1920s structure containing more than 1,600 tiny stalls, admits she is amazed at the recent changes. When we see photos of Aunt Suu and her father for sale, she says that even a few months ago this would not have happened. I compliment her on her English and she tells me that for her it was easy to learn but for her parents it was impossible because in 1965 the daughter of General Ne Win (who seized control of Burma in 1962) was refused a visa to study in the UK; in retaliation the general banned the teaching of English in his country. The regime has loosened its grip since then, thank goodness. Throughout my visit I was struck by the enthusiasm and efficiency of the hotel staff and later by the boat crew when our party took a cruise up the Ayeyarwady (now Irrawaddy) river to Mandalay. All but two of the 75 crew were Burmese and seemed to relish the opportunity to work. In a country where a farm labourer earns $4 a day, tourism pays well. In Bagan we took a balloon trip over the ruins of some 2,000 temples built in the 11th and 12th centuries. Bagan was the first visit that Aung San Suu Kyi took outside Yangon after the conditions of her house arrest were eased last summer. Our balloonist was Lee from Bristol, a jolly man who relished the chance to drink European wine and talked openly about the recent changes in Burma and the hard work done by his 60-strong ground crew. 'Everyone wants democracy,' he laughed. 'But no one is sure what it means.' Lee was welcomed in by the Burmese government nine years ago and is now the single biggest employer in Bagan. There was no doubting the commitment of his workers as they chased our balloon through peanut fields to make sure we landed safely and didn't disrupt the ox-cart traffic for too long. A balloon trip at dawn over Bagan's temples is stunning, like seeing an aerial view of a landscape conjured up for Queen Amidala in Star Wars. As the number of tourists to Burma increases, it's going to be on many lists of things to see before you die. But each flight brings huge benefits to those on the ground too. Without Balloons Over Bagan, those 60 men would be back working on farms for $4 a day. Since my visit in October 2011, more progress has been made in Burma than anyone expected. Many political prisoners have been released by President Thein Sein, and Aung San Suu Kyi has registered her party to take part in future elections, a demonstration of her cautious faith that this time the regime is serious about reform. As The Lady herself said, now is the time to come to Burma. ES CHECK IN Abercrombie & Kent offers a seven-day itinerary to Burma including two nights B&B at The Governor's Residence hotel in Yangon and four nights full board on The Road to Mandalay, cruising from Bagan to Mandalay, starting from ?2,795pp (0845 485 1543; abercrombiekent.co.uk). http://www.thisislondon.co.uk/lifestyle/esmagazine/article-24033222-slow-burma.do ----------------------------------------- ANALYSIS-Myanmar's ambitious Dawei project faces uncertainty Fri Feb 3, 2012 10:23am GMT * Plans for $50 billion special economic zone * Southern Myanmar site billed as gateway to Indo-China * Thailand's Italian-Thai construction lead developer * Construction of 4,000 MW coal-fire power plant halted By Jason Szep DAWEI, Myanmar, Feb 3 (Reuters) - Dusty roads and makeshift offices are the only hints of the ambitious $50 billion project slated for the thick jungles near Myanmar's southern city of Dawei, billed by its developers as the "new global gateway of Indo-China". Big questions surround the far-reaching plans by Thailand's largest construction firm, Italian-Thai Development Pcl ITD.BK, to transform 250 sq kms (97 sq miles) of scrubland in southern Myanmar into Southeast Asia's largest industrial complex. "There is very little activity around here related to this project. A lot of us wonder if they are really confident enough about it to go forward with it," said Kyaw Naing Oo, 40, a trader in Maungmakan, whose white-sand beaches would border the project. That comment is echoed by other villagers, industry analysts and even the government. In a country where a third of the 60 million people live on less than one U.S. dollar a day, Dawei is striking in its scale and ambition. Super-highways, steel mills, power plants, shipyards, refineries, pulp and paper mills and a petrochemical complex are part of it, as are two golf courses and a holiday resort --- all strategically nestled in Southeast Asia between rising powers India and China. But just over a year since the former military junta signed a deal to create Myanmar's first and biggest special economic zone (SEZ) at Dawei, the project has made little headway, despite the dramatic political reforms sweeping the country and the prospect of a gradual lifting in Western sanctions as the former British colony emerges from half a century of isolation. Italian-Thai has yet to secure $8.5 billion to finance construction of its first phase -- roads, a telecoms network, utilities and a port -- after building a dirt road of more than 100 km (62 miles) to neighbouring Thailand. Its executives hope to find a strategic partner by year-end and plan to present the project to potential investors in South Korea this month. Myanmar Energy Minister Than Htay told Reuters last week that at least two other SEZs would be developed more quickly than Dawei: the Thilawa project near the commercial capital, Yangon, and Kyaukphyu, where the China-Myanmar pipeline starts and a deep-sea port is nearly finished. "It is faster than the Dawei zone," he said of Kyaukphyu. "Now we are considering supplying the electricity at Kyaukphyu area," he said. Securing a stable source of electricity has been at the heart of Dawei's problems since the government abruptly halted construction of a 4,000 megawatt coal-fired power plant in the area on Jan. 10, citing environmental concerns. ENERGY SUPPLY "NOT SURE" Somchet Thinaphong, managing director of Dawei Development Co Ltd, controlled by Italian-Thai, told Reuters on Jan. 23 that its power plant partner, Ratchaburi Electricity Generating Holding Pcl RATC.BK, would decide on a fuel type within three months, including the possible use of natural gas funnelled to the site via a 50 kms (31 mile) pipeline from fields within Myanmar. But Than Htay ruled out using natural gas to fuel Dawei. "Up to now the electric power supply for that project is not sure," he said of Dawei. In a country beset by chronic electrical outages, powering even a home can be difficult, let alone an industrial zone. Blackouts are common across the country, even at Yangon's international airport. That puts pressure on Ratchaburi, whose involvement is limited to a feasibility study as "a preliminary step", it said in a Nov. 16 statement. Than Htay stressed other ministries would decide Dawei's future, not his. But he offered his personal view of what the government will do: "My guess is sell out, according to the contract made by the previous government." Italian-Thai , which signed a 60-year concession to develop Dawei 14 months ago, has brushed aside those comments. Somchet of Dawei Development Co insists the project will go ahead. "It's at the point of no return. They can say whatever they want but the final decision will depend on the special committee chaired by Myanmar's president," Somchet told Reuters on Jan. 27. He has a powerful local partner. A quarter of Dawei Development is held by Max Myanmar Group, owned by Burmese tycoon Zaw Zaw, whose close ties to the government put him on the U.S. targeted sanctions list in 2009. A Nov. 15, 2007 U.S. diplomatic cable described Zaw Zaw as an "up and coming crony". Today he is one of Myanmar's most influential businessmen. Thailand's top lender, Bangkok Bank BBL.BK, is advising on the power project and Siam Commercial Bank SCB.BK on the whole project. Companies that Italian-Thai has identified as possible investors include Malaysia's Petroliam Nasional Bhd [PETR.UL], Japan's Mitsubishi Corp (8058.T), Mitsui & Co (8031.T) and Sumitomo Corp (8053.T), and South Korea's POSCO (005490.KS). Japanese Trade and Economy Minister Yukio Edano discussed the project with the Myanmar and Thai governments when he visited both countries last month. "This project is huge and is getting a lot of interest from foreign investors," said Somchet, who personally met Edano and sees Dawei as a possible location for Japanese firms to build parts for use at car manufacturing plants in Thailand, as well as a low-cost location for industrial production for Thai companies. He expects much of the infrastructure, including a proper road to Thailand, to be completed within three years, creating a stable route for cargo sent to Dawei from the Middle East and Africa for shipping to Bangkok and beyond in Southeast Asia, bypassing the congested Strait of Malacca. "CLOUDED WITH RISKS" Brokers appear less sure. In a recent note to clients, Singapore stock brokerage DBS Vickers Securities highlighted the risks. "Despite potential to bring economic prosperity to Burma, the project is still in its infancy and clouded with risks," it said. "The sudden call to halt the 4,000 megawatt coal-fired power plant project would make it difficult for Italian-Thai to secure strategic partners to help fund the project." It described Dawei Development Co's plans to sell land in the area to raise funds for the project as "optimistic" and stressed that without strategic partners and firm funding, Dawei Development would remain a drag on Italian-Thai's earnings this year. In the year to date, Italian-Thai shares have underperformed those of its peers and the overall market due to uncertainty over the Myanmar project. The stock has risen just 0.1 percent in the past 12 months. Italian-Thai has an "Analyst Revision Score" of 14 under a model by earnings-tracker StarMine which ranks stocks according to changes in analyst sentiment, with 100 representing the highest rank. Kanit Sangsubhan, director of the Thai Finance Ministry's Economic and Financial Research Institute, told Reuters Dawei would need heavy government involvement or state enterprises to co-invest. Whether that will happen is unclear. Than Htay of Myanmar's Energy Ministry said the government wanted to promote more private involvement. "Regarding the petroleum refineries or the downstream plants, now most of the plans will be taken charge of by the private sector. Up to now, I have no plan to participate in that area because I need to mind existing jobs." PTT Exploration and Production Pcl PTTE.BK, Thailand's top state-controlled oil and gas explorer, has shown little interest in the project, and neither has its parent, PTT Plc PTT.BK, Thailand's biggest company. "It is still very early days on Dawei," said Sean Turnell, an expert on Myanmar's economy at Macquarie University (C) Reuters 2011 All rights reserved. Republication or redistribution of Reuters content, including by caching, framing, or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world. http://uk.reuters.com/article/2012/02/03/idUKL4E8D336E20120203?rpc=401&feedType=RSS&feedName=tnBasicIndustries-SP&rpc=401