Nay Pyi Taw, The Myanmar government has signed a framework agreement with a Chinese consortium to develop Kyaukphyu Special Economic Zone Deep Sea Port Project in the Rakhine state.
The agreement was signed by Myanmar’s Deputy Minister of Planning and Finance and Chairperson of the Management Committee of the Kyaukphyu SEZ, U Set Aung, and President of the CITIC Group Chang Zhenming, on Thursday in the Myanmar capital.
China’s Ambassador to Myanmar Hong Liang told Xinhua news agency that the Kyauk Phyu SEZ the Kyauk Phyu SEZ is part of the China-Myanmar Economic Corridor, and the project would “benefit the people of Myanmar and promote the China-Myanmar paukphaw (fraternal) friendship”.
Preliminary feasibility studies and site surveys for the Kyaukphyu Special Economic Zone Project were conducted in 2012 and 2013. A consultant company was selected through an international tender in 2013.
Investors and developers were invited and selected through an international tender in 2014.
On 30 December 2015, a consortium led by CITIC won the tender to develop the deep sea port and industrial estate projects. The framework agreement aims to implement the Kyaukphyu Deep Sea Port project, according to international norms.
Myanmar occupies unique position in the China’s Belt and Road Initiative ( BRI), as it is located between South Asia and Southeast Asia, and also between the Indian Ocean and China’s landlocked southwestern Yunnan province. It is seen as a link that connects both the 21st Century Maritime Silk Road and the Silk Road Economic Belt, making it an integral component of both.
It is reported that in this project, Citic Group will take a 70 per cent stake, while the Myanmar government and 42 domestic companies hold the rest. Citic is also leading a separate group that will develop an industrial park within the special zone, investing $2.7 billion for a 51 per cent stake.
The SEZ is being set up for the economic development of Rakhine State, to create job opportunities for local residents, and to support the development of transportation and production.
In September this year, Myanmar agreed to scale down a Chinese-led port project slashing the initial price tag to $1.3 billion from $7.2 billion over concerns about excessive debt, Nikkei Asian Review reported.
In 2011, Myanmar had suspended work on the Myitsone dam, a $3.6 billion Chinese-financed project that was to send 90 per cent of its electricity back to China, after strong local opposition to plans to displace villagers.