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Article

11 Apr 2016

Author:
Shibani Mahtani, Wall Street Journal (USA)

Myanmar: New govt. to review all Chinese-led major projects on social & environmental impacts

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"China Moves to Revive Its Sway in Myanmar", 28 Feb 2016

China is trying to rekindle its influence in Myanmar by building a deep-water port here…But the initiative is in doubt because Ms. Suu Kyi’s party…says it will review big previously awarded projects, including this one made in December to a Chinese-led consortium…The consortium’s leader, Citic Group, said it won a fair and open bid that considered all the project’s stakeholders…

 In 2008, Myanmar’s generals awarded to China National Petroleum Corp. the right to build oil and gas pipelines that displaced thousands of villagers. In 2011, environmental concerns led the government to abruptly halt Chinese plans for a massive hydropower project in Myitsone. The new government must rule on whether to resume the project. Demonstrations against the Chinese state-run Letpadaung copper mine [by Wanbao mining] in central Myanmar led to confrontations with police before it was suspended and then reinstated by a Suu Kyi-led commission 2013. The company plans to start production this spring amid continued protests. The controversies are weighing on the incoming administration.

“…[W]e will look through all these major projects, including Kyaukphyu, and will review them case by case to decide what is suitable for our country,” said Han Thar Myint, who chairs the economic committee of Ms. Suu Kyi’s National League for Democracy…

In interviews, dozens of villagers in Kyaukphyu expressed deep suspicion of the latest Chinese effort, many fearing they would be moved to areas less suitable for farming and lack the skills required for new work…

Aung Kyaw Than, a spokesman for the Myanmar state panel that awarded the Citic contract, said only a small number of villagers may have to be resettled, and that the project would bring economic benefits to the surrounding Rakhine state.

Citic described a seven-year planning process and efforts to win the support of local officials and residents through dialogue and millions of dollars in financial aid. The company said it hoped the incoming government would “respect internationally accepted commercial principles” to ensure the project’s survival. Still, some said the Kyaukphyu project would bring little benefit to the local population…