The Government of Myanmar is reported to be re-evaluating a Chinese investment project to develop the deep-water port of Kyaukpyu because of rising costs.
According to the Singapore daily Sinchew, the Kyaukpyu Port project is a part of China's One Belt One Road (OBOR) initiative. Beijing has invested an estimated USD 9 billion in the project.
A concerned Myanmar is anticipating a potential debt default, whichcould lead to losing control of Kyaukpyu.
The Sinchew is quoting unnamed Myanmar government sources, as saying that negotiations are going on with the Chinese to reduce the cost of the project.
Kyaukpyu is located in west Myanmar's Rakhine Province. That port offers China a direct path to the Indian Ocean from Southwest China, bypassing the Strait of Malacca.
If started, the Port of Kyaukpyu development project will be the largest infrastructure project in Myanmar's history.
The project is also located at the starting point of an oil and gas pipeline station leading to China's Yunnan Province.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)