BKK Post, March 16, 1998. DEVELOPME

[burma@xxxxxxxxxx]

March 16, 1998. DEVELOPMENT / BID TO ATTRACT INDUSTRY 

Pledge of funds for Mae Sot economic zone
Work likely to start next fiscal year 
Saritdet Marukatat

The Industry Ministry is poised to transform Mae Sot into an economic 
zone following a pledge from the government to provide money for the 
project next fiscal year.

Aphiwat Asamaporn of the policy and planning division said he had been 
assured that funds for the plan, which had been shelved by the 
government's financial squeeze, would be available in the budget for the 
1999 fiscal year starting in October.

He declined to reveal the amount needed, but the International 
Consultancy Network, which made a preliminary study last year, estimated 
the cost of a master plan for the town at 10.6 million baht.

The ministry wants to develop Mae Sot as an economic zone to attract 
industries. It believes the town will flourish after the road to 
Rangoon, 400 kilometres to the west, is completed. Thailand and Burma 
are connected by a bridge over the Moei River, between Mae Sot and 
Myawaddy, which opened last year.

Burma is considering developing Myawaddy as an industrial zone twinning 
with one in Mae Sot.

Mae Sot is one of 11 border towns nationwide earmarked for development 
to service growing links with neighbouring countries. Others include 
Mukdahan and Sadao.

The development of Mae Sot is funded entirely by the government. The 
Asian Development Bank has helped town planning projects for other 
centres, but refused to assist Mae Sot because the project involves 
Burma.

The Manila-based bank avoids deals with Burma, citing that country's 
human rights violations and suppression of democracy.

Meanwhile, the Burmese government has agreed to find a new bidder to 
develop a road from Thachilek to Keng Tung using a low-interest loan of 
300 million baht from Thailand, according to Pornchai Rujiprapa, 
assistant secretary-general of the National Economic, Social and 
Development Board.

The project has been delayed by the previous inability of construction 
firms to start work.

The 164-kilometre road is designed to link Mae Sai in Chiang Rai with 
Yunnan in southern China through Shan state in Burma as part of an 
economic cooperation plan including links with Laos.

Another road to China will go through Laos from Chiang Khong district.

"We expect to see the roads ready in three years," Mr Pornchai said. 

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