Kyaukphyu Deep Sea Port in Rakhine Likely to Resume Operations
Arakha Times (13-November-2024)
Economic analysts suggest that the suspended Kyaukphyu Deep Sea Port project in Rakhine State might resume operations with Chinese involvement.
Following the military council’s visit to China, which included discussions and signing of agreements regarding projects and land leases, analysts assume the Kyaukphyu Deep Sea Port could restart operations.
A businessperson told Arakha Times that China has been wanting to restart this project for some time, and businesspeople are watching developments following the military council’s recent China trip. They added that China is monitoring what kind of security guarantees can be provided given the current territorial situation.
“We understand that China is watching to see what level of territorial stability guarantees the Myanmar government can provide. Currently, access to the Kyaukphyu Deep Sea Port project area is still challenging, so resolving this depends on the Myanmar government. Although this is a government-to-government project, the domestic conflict situation impacts China, so we need to watch how the Chinese government will help facilitate peace,” he explained.
The military council chairman made his first visit to China since the 2021 coup, attending the Greater Mekong Subregion (GMS) Summit and related meetings.
During the GMS Summit in Kunming, he met with Chinese Premier Li Qiang to discuss Myanmar affairs, trade, economy, peace, and projects. He also invited Chinese investment in Myanmar.
A Mrauk-U resident told Arakha Times that if China wants to restart the Kyaukphyu Deep Sea Port project, negotiations can’t be conducted solely with the military council, as it depends on who actually controls the territory.
“The key answer lies in who controls the ground. Such pipeline projects can’t be decided by Rakhine State alone. Since it crosses through Sagaing, Magway, Mandalay, and northern Shan State, the project can’t be decided by Rakhine alone. It depends on how revolutionary forces across the country and the Rakhine people view it. China can no longer negotiate with just the military council, as they don’t control everything anymore. When China considers this, they have to think about not just the three parties – ULA/AA, the military council, and revolutionary forces – but also the people. It won’t be like before where they could talk to just one group,” he said.
On December 26, 2023, three years after the coup, the military council ministers and China’s CITIC signed a revised agreement for the Kyaukphyu Deep Sea Port concession, which was originally agreed upon during Aung San Suu Kyi’s NLD government.
Under the NLD-era agreement, the shareholding ratio was 70% for China’s CITIC and 30% for Myanmar, with Myanmar’s investment value in the project’s first phase at $1.3 billion.
The supplementary agreement maintains the same shareholding ratio, but the Myanmar side’s investment value for the project’s first phase was not disclosed.
