Three Japanese companies have confirmed their withdrawal from a port project in Myanmar, prompting calls for a responsible exit that upholds human rights.
In response to an inquiry by civil society groups from Myanmar and Japan, Kamigumi, the Sumitomo Corporation and Toyota Tsusho stated that they have started the liquidation process and are preparing to exit the Thilawa Multipurpose International Terminal in Thanlyin Township, Yangon.
The civil society groups said the firms pledged to take measures to support employee safety and transitions during the disengagement.
The terminal was developed by Japan’s Official Development Assistance and is operated in partnership with the Ever Flow River Group, a company linked to the military-owned conglomerate Myanma Economic Holdings Limited, which is under international sanctions.
On March 19, seven NGOs, including Justice for Myanmar (JFM), sent letters to Kamigumi, Sumitomo Corporation, Toyota Tsusho, the government-backed Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (Join) and Nippon Export and Investment Insurance (Nexi) asking if human rights due diligence had been conducted following the 2021 coup.
The letters questioned the companies’ plans for disengagement after the Myanma Port Authority picked a new long-term operator for the terminal.
Kamigumi, Sumitomo and Toyota Tsusho provided no details on how they would meet international human rights standards; how project assets would be handled, whether penalties to terminate the concession would be paid to the junta and how revenue would be prevented from funding military-linked entities, according to the seven NGOs.
Their statement on Wednesday said Join’s lack of public accountability over the use of Japanese public funds was deeply concerning.
Nexi reportedly stated that the project was having minimal environmental impact while concerns over human rights were not mentioned, the seven organizations said.
Yuka Kiguchi of Mekong Watch, one of the seven organizations, said: “Silence from Join and a narrow interpretation of business risk by Nexi fall far short of responsible business conduct.”
The organizations urged Join and the three companies to carry out a transparent and responsible disengagement from the project that upholds their duty to protect human rights and commit to preventing any financial benefit to Myanmar’s junta.
Yadanar Maung, JFM’s spokeswoman, said: “The military has continued to commit atrocities, intensifying its airstrikes in the aftermath of the March 28 earthquake. Opaque exits that don’t respect human rights risk fuelling atrocities. The companies and the Japanese government must disclose how they are avoiding complicity in the junta’s crimes, in line with human rights standards.”
