“China’s Strategic Port Project Moves Step Closer to Reality as Myanmar OKs Joint Venture”, 10 August 2020

The Myanmar government’s investment agency… approved the registration of a joint venture between a Chinese company and a government-backed committee to develop China’s strategic deep-sea port project in western Rakhine State.

The approval moves the long-delayed backbone project of the China-Myanmar Economic Corridor (CMEC) one step closer to actually getting off the ground…

The Kyaukphyu Special Economic Zone and deep-sea port project is designed to provide China with direct access to the Indian Ocean… It also plans to construct an industrial zone with facilities for textile and garment manufacturing, construction materials processing, food processing, pharmaceuticals, electronics, marine supplies and services, and research.

According to company registration documents… the agency… approved the registration of Kyaukphyu Special Economic Zone Deep Seaport Co. Ltd, a joint venture between Chinese consortium CITIC Myanmar Port Investment Limited and the Myanmar government-backed Kyauk Phyu Special Economic Zone Management Committee…

Kyaukphyu SEZ Management Committee Secretary U Yee Win told The Irrawaddy the project could start once an environmental and social impact assessment (ESIA) report was completed.

“… As far as we know, the company is still carrying out the EIA and SIA. Actual implementation of the project can start after that,” U Yee Win said.

In July 2019, the Chinese company hired Canadian company HATCH to supervise the ESIA and a “pre-geo survey”. Last September, the company submitted a project proposal report (PPR) to the Ministry of Natural Resources and Environmental Protection (MONREC).

In its 2017 report, Kofi Annan’s Rakhine Advisory Commission recommended the Myanmar government conduct a Strategic Environmental Assessment (SEA) and labor assessment for the SEZ before beginning the ESIA process, in order to determine the likely consequences on local communities, as well as the project’s risks and benefits for other industries in the area.

However, CITIC said in January that MONREC had determined the deep-sea port project required an EIA under Myanmar law. The Chinese company said it would choose an independent consultant to conduct the EIA through a bidding process. However, the company has yet to announce what progress has been made on the EIA…