Myanmar junta signs addendum for deep seaport project with China amidst Rakhine conflicts

Amidst the ongoing conflicts in Rakhine State, the military junta has signed an addendum to the concession agreement with China to proceed with the implementation of a deep seaport project in Kyaukpyu Special Economic Zone.

The signing ceremony was held on 26 December at Horizon Lake View hotel in Naypyidaw.

According to the addendum, the rapid implementation of the industrial park project is set alongside the construction of the deep seaport project within the economic zone.

U Kyaw Shwe Tun, chairman of the Kyaukpyu Special Economic Zone management committee and  Liang Chuanxin, director of Kyaukpyu Special Economic Zone deep seaport company limited signed the agreement.

Deputy Prime Minister and Union transport & communications minister general Mya Tun Oo addressed the signing ceremony.

In  his address, Mya Tun Oo highlighted that Kyaukphyu township, situated in the Bay of Bengal, holds the strategic importance for future developments. Recognizing the significant economic potential, the government encouraged international investments to establish a special economic zone in Kyaukpyu on 23 November 2011.

Furthermore, the upcoming deep seaport project within the Kyaukpyu Special Economic Zone, characterized by a substantial investment volume, is anticipated to play a pivotal role in supporting the economic growth of the country.

"This project aims to create job opportunities for the local people and residents of the Kyaukpyu region, thereby contributing to the overall socio-economic development of the country. Moreover, the project is poised to offer an efficient route for imported products from South Asia, West Asia and African nations to reach the Chinese mainland, leading to reduced transportation time and expenditures," he added.

The ceremony was attended by CITIC group president Chargé d'Affaires, representatives  from the China embassy and other dignitaries, reported the junta-owned newspapers.

Despite the natural resources and strategic geographical locations, Rakhine State continues to be the second poorest province among 14 Myanmar  States and regions as the Rakhine people always face discrimination from the central administrative system, claimed Shwe environmental activists.

In 2022, the junta earned USD 1.43 billion from exporting Rakhine natural gas to China, stated the General Administration of Customs China (GACC). From 1 April to 1 December 2023, a sum of USD 2.2 billion was earned by the junta from the export of natural gas to foreign countries. The majority gas reserves originated from the Shwe natural gas project, claimed a MOC statement.