Japanese, Thai loans put Myanmar's clean coal plant on track

Myanmar's clean coal plant to be built at Dawei special economic zone may now push through with Thailand and Japan providing loans.

The proposed multi-billion dollar Myanmar port and special economic zone that could transform Southeast Asian trade appears back on track.

Thai banks aim to keep the project afloat with short-term loans until an expected Japanese loan of up to $3.2 billion can be secured, officials and sources famliar with negotiations told Reuters.

Thailand's largest construction firm, Italian-Thai Development Pcl, signed a deal in 2010 to build a deep-sea port and special economic zone in southern Myanmar's coastal Dawei into Southeast Asia's largest industrial complex.

But the project foundered, as the Thai builder failed to secure $8.5 billion to finance construction of its first phase -- roads, utilities and a port.

Underlining Dawei's strategic importance, Japan and Thailand have since intervened to rescue the project.

Among those to be built at Dawei SEZ is the clean coal plant that can generate 400 megawatts.

The so-called clean-coal technology involves capturing carbon dioxide and other toxic emissions, and either storing them deep underground or piping them to oil and gas fields.

"If it is clean coal technology, then we will allow it," said Thaung Lwin of the Dawei SEZ. "Our president visited Japan and saw the clean coal technology at J-Power Group."

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