Junta officials met in Naypyitaw on Wednesday to focus on plans for building the infrastructure necessary for a massive China-backed seaport to be built in Rakhine State’s Kyaukphyu Township.
The meeting followed the signing of an addendum to the concession agreement for the deep seaport project about three weeks ago, as well as a China-brokered ceasefire between the regime and the Brotherhood Alliance.
The alliance comprises the Arakan Army, Myanmar National Democratic Alliance Army and Ta’ang National Liberation Army. One of the provisions of the ceasefire is that both the regime and the alliance must protect Chinese investments and ensure the safety of Chinese citizens in Myanmar.
The Kyaukphyu port and special economic zone are key to the 1,700-kilometer China-Myanmar Economic Corridor connecting Kunming in Yunnan province to the Indian Ocean.
The project is being developed by the Kyaukphyu SEZ Deep Seaport Co. Ltd., a joint venture between China’s CITIC Myanmar Port Investment Ltd. And the junta-backed Kyaukphyu SEZ Management Committee.
At Wednesday’s meeting, Aung Naing Oo, the chairman of Myanmar Special Economic Zone Central Working Committee, called for closer coordination between ministries to complete their tasks on time. Aung Naing Oo is also a minister in the regime’s governing body, the State Administration Council.
At the press briefing to announce the addendum to the concession agreement on Dec. 26, he was upbeat. The seaport and the SEZ would become a hub connecting the markets of Asia, Africa and Europe, and spur the socioeconomic development of Myanmar and the region, while providing a new gateway to the world, he said.
After losing a large swath of territory in northern Shan State to the Brotherhood Alliance following the launch of Operation 1027 in late October, the regime in December asked Beijing – which has some influence on ethnic armed organizations based along the border – to intervene.
The addendum for the concession contract for the Kyaukphyu deep seaport was signed against this backdrop.
The Brotherhood finally agreed a ceasefire at talks brokered by China last week. The regime likely made numerous concessions in the addendum to entice the Chinese side to move forward, observers say.
The Arakan Army, however, has been fighting the regime since November in Rakhine State where the seaport project is located. The junta has imposed a blockade on the state and hit civilians with indiscriminate air and artillery strikes. However, the Arakan Army appears to be gaining the upper hand. It has seized Chin State’s Paletwa Township, which borders Rakhine State, and defeated a few junta battalions in northern Rakhine. It has seized much of rural Rakhine and is not focusing on towns.
Ongoing fighting in Ramree Township, which borders Kyaukphyu Township, also makes it increasingly difficult for the massive project to proceed, business analysts say.
