Myanmar civil war delays development assistance from Thailand
With the ongoing conflict between the military government and opposition forces, which is prolonging the civil war, Myanmar’s economy has been significantly impacted. That’s a complete turnaround from just a few years ago when Myanmar was seen as a rising star in ASEAN and enjoying a steady influx of Foreign Direct Investment (FDI).
In the past, Thailand, as a neighbouring country, continuously engaged in dialogue with the Myanmar government and provided assistance in developing infrastructure, both financially and in an advisory capacity. However, these projects have been delayed due to the ongoing conflict.
Peeramet Wutthithornnetirak, director of the Neighbouring Countries Economic Development Cooperation Agency (NEDA), told The Nation that the assistance provided by Thailand to Myanmar must be delayed and reevaluated.
Due to security concerns, consultants involved in studying projects for approval cannot access the project areas to monitor progress.
Projects that have previously been approved must undergo a review of their budget and timeline for implementation. This is because costs may have changed since the initial approval. It is therefore necessary to wait for the situation in Myanmar to stabilise and return to normal before resuming discussions on earlier joint projects.
In the past, the NEDA provided assistance to Myanmar through 7 projects, totalling 2.4 billion baht. This assistance includes financial aid of 2.3 billion baht and advisory support totalling 67 million baht.
Ongoing assistance projects include:
Upgrading the electricity system in Yangon.
Economic corridor development under the Greater Mekong Subregion (GMS) Phase 3.
Contracting for the design of the construction details of a 66 kV power transmission line from Myawaddy Substation.
Study of improvement of two-lane roads connecting the special economic zone of Dawei to the Thai-Myanmar border.
Projects that have been completed include:
Thailand-Myanmar Road Link Project: construction of a road connecting Thailand and Myanmar from Myawaddy to Tenasserim Range foothills, spanning 17.35 kilometres. The budget allocated before construction was 122.9 million baht. Construction was completed in May 2006.
Construction of Roads from Three Pagodas Pass Checkpoint - Payathonzu and Border Checkpoint Buildings: Studies for this project were completed in June 2014.
The NEDA is a significant mechanism of the Thai government in promoting its foreign policy and fostering economic cooperation between countries, particularly in advancing connectivity within regions and subregions to expand trade, investment, and opportunities for prosperity while reducing economic disparities. The assistance provided to various countries yields positive economic and trade outcomes for Thailand.
Over the past 19 years, the NEDA has collaborated with 7 countries on a total of 96 projects, with combined assistance worth 22.3 billion baht. This assistance comprises 52 financial aid projects totalling 22.2 billion baht and 44 projects for knowledge transfer amounting to 31.29 million baht.
