China, Myanmar agree to renegotiate $ 1.3 billion Kyauk Phyu deep sea port contract

China and Myanmar on principle agree to renegotiate the deep sea port project in Kyauk Phyu which may cost USD 1.3 billion.

"It is learned that the junta leader Min Aung Hlaing has agreed to discuss and negotiate the contracts signed by the governments of China and Myanmar," said a BETV Business report.

A part of BRI, China's Modern Silk Road (one belt and one route), the initiative comprises Kyauk Phyu Special Economic Zone, deep sea port and residential complexes. The deep sea port project has already launched.

Various local social activists allege that the China's project will not be useful for Rakhine people, rather it will affect their livelihood and development.

"The current project may cause damages to the local environment. The previous Chinese projects (gas and oil pipelines) also harmed the local residents. They are not given any opportunities from the Chinese projects,” said a local youth.

According to previous agreements, $1.3 billion was planned for using in the project, where the Chinese government owned CITIC group owns 70 percent stakes and the rest belong to Myanmar government.

The framework agreement of the project was signed in November 2018. The shareholders' agreement and concession agreement were signed in January and November 2020.

The Beijing authorities will build the deep sea ports for Kyauk Phyu Special Economic Zone where one will be 2,500 meter wide on Maday island and another 1,500 meter wide on Rambree island.