YANGON, Aug. 11 (Xinhua) -- Myanmar's Dawei Special Economic Zone (SEZ) project in southern Tanintharyi region, being implemented by the Italian-Thai Development Company and involving six local contractors, is basically in progress, local media quoted a senior official as reporting on Saturday.

Deputy Minister of Rail Transportation U Thuang Lwin, however, told the ongoing session of the parliamentary House of Representatives (Lower House) on Friday that the famous Max Myanmar company, which has 25-percent share in the Dawei Development Company, is planning to withdraw its investment from the project and the stake is to be replaced by other local companies or investors from abroad.

About 8.6 billion U.S. dollars are needed for investment in the infrastructure being built with over 1,000 Myanmar workers, he said.

He disclosed that there is plan to amend the framework agreement for more profit of Myanmar side.

"The involvement of local companies is currently suspended. It would be resumed after Italian-Thai company agrees the signing of a new framework agreement," he added.

He further revealed that the state will receive land premium of 30.675 million U.S. dollars in five installemnts for 204.5 square- kilometers of Dawei SEZ at the rate of 150,000 dollars per square- kilometer.

Myanmar and Thailand signed a framework agreement in November 2010 covering the projects of industrial zone, road and rail link to Thailand in Myanmar's Tanintharyi region.

The Dawei deep sea-port, industrial zone and road and rail link to Thailand construction project represents the first ever special economic zone in Myanmar.

The project includes construction of Dawei deep sea-port, buildings for shipyard and maintenance work, establishment of zone, petrochemical industries, oil refinery, steel plant, power stations and Dawei-Bangkok motor road and railroad and laying of oil pipeline along the motorway and railroad, according to the framework agreement.

The project, scheduled to complete by 2018, will feature steel mills, refineries, a petrochemical complex and power plants and the strategic Dawei deep-sea port will contribute to bypassing the Malacca Strait by shortening the transportation route to Southeast Asia and the Pacific.

The two countries agreed to establish connectivity between the Dawei Special Economic Zone in the southernmost part of Myanmar and Laem Chabang Industrial Estate of Chonburi seaboard of Thailand.