Junta, Chinese firm sign addendum to Kyaukphyu project as fighting rages in Arakan State

By Admin 29 Dec 2023

DMG Newsroom
29 December 2023, Sittwe

The Myanmar junta and the Chinese state-owned firm CITIC Group signed an addendum to a concession agreement on the Kyaukphyu deep-sea port project in Arakan State’s Kyaukphyu Township on Tuesday. The two sides agreed to the earliest implementation of the project.

The regime and the Arakan Army (AA) are currently engaged in fierce fighting in Arakan State, with clashes also taking place in Kyaukphyu, where the deep-sea port project will be implemented.

On December 23, junta troops and the AA clashed between Sane town and Awataung Village in Kyaukphyu Township. The two sides also clashed near the junta’s Danyawaddy naval base on December 22. The two sides have also been fighting in neighbouring Ramree town since December 18.

Politicians say the regime has asked China to pressure the Brotherhood Alliance into stopping its Operation 1027 offensive in exchange for the Kyaukphyu deep-sea port project.

“The regime thinks China can pressure the Brotherhood Alliance, including the AA, into stopping the fighting. China might put pressure on them for its own interests,” said a politician from Arakan State.

The regime has suffered heavy losses since the Brotherhood Alliance launched the offensive known as Operation 1027 in late October.

Mediated by China, the junta’s National Solidarity and Peace Negotiation Committee and the Brotherhood Alliance held talks on December 11, but fighting continues to rage.

An activist monitoring China-backed projects said the Kyaukphyu effort is unlikely to take shape because of the ongoing fighting.

“We are aware of the signing of the addendum. But fighting has been taking place near the project. The Brotherhood Alliance will not make concessions at this time. So, the addendum will not work,” he said.

The Myanmar government and CITIC Group signed a framework agreement for the Kyaukphyu deep-sea port project in 2018.

Myanmar holds a 30 percent stake in the project, and China has a 70 percent stake. The project will be implemented in four phases, and will include 10 jetties.