Myanmar revives stalled infrastructure projects with China and Russia
Military regime moves to woo key partners amid pressure at home
BANGKOK/YANGON -- Myanmar's military regime is breathing new life into major infrastructure projects with China and Russia, courting their support amid a protracted conflict with armed rebels at home.
A new committee led by Deputy Electricity Minister Aye Kyaw is currently reviewing the budget and timeline of the stalled Myitsone hydroelectric dam project, located in the northern state of Kachin.
Work on the China-backed dam originally began in 2009. It was expected to cost $3.6 billion and come online in 2019 with the capacity to produce 6 gigawatts of electricity -- equivalent to around six nuclear reactors.
But the project drew backlash in Myanmar, partly because 90% of the dam's output was slated to be sent across the border to China. Construction was suspended in 2011 by then-President Thein Sein's government, and the project has since become symbolic of Myanmar's shift away from China under democratically elected rule.
A stalled deep-sea port project at the Kyaukphyu special economic zone, in the western state of Rakhine, has also drawn renewed interest.
In December, local authorities signed an addendum to a concession agreement on the port with a joint venture led by China's state-owned CITIC Group. A Chinese diplomatic mission arrived there Saturday to assess the project's progress, local media reported.
Myanmar Deputy Prime Minister Soe Win in May urged for preliminary work at the port to be completed swiftly. The issue of compensation to locals for land has largely been resolved, he said.
Many are skeptical of large-scale infrastructure development in Rakhine and Kachin, where intense fighting between the Myanmar military and armed ethnic groups continues. But the military regime is forging ahead in light of China's interests in these regions.
Rakhine state is a key link in the China-Myanmar Economic Corridor, and a deep-sea port there would boost shipments along this route. Meanwhile, a large-scale hydroelectric project in Kachin can supply stable electricity to China.
The Myanmar regime receives support from China, including defense equipment. China handed over six patrol vessels to Myanmar at a ceremony in Yangon on Tuesday, which are expected to be deployed off the coast of Rakhine.
Myanmar is working with Russia on infrastructure development as well. In a March interview with Russia's Tass news agency, Myanmar military leader Senior Gen. Min Aung Hlaing revealed the countries were negotiating on building a deep-sea port in the Dawei special economic zone.
Myanmar previously drew up a development plan for the zone with Japan and Thailand, but work had stalled.
Dawei is located near the Andaman Sea, where Myanmar and Russia staged their first joint naval drills in November. News service Myanmar Now in May reported that that the military regime and Russia entered initial negotiations on the port project.
These developments come as fighting across Myanmar weighs on the country's economy. The World Bank on Tuesday said it expects growth in Myanmar's gross domestic product to remain at 1% for the year ending March 2025. There is concern that Myanmar's protracted economic woes could undermine the country's position as it negotiates on concessions and other terms regarding these infrastructure projects.