China Wants Another Try at Myanmar Dam by By Shibani Mahtani, WSJ, 9/5/2013 China hopes to resume a controversial dam project that the Myanmar government suspended two years ago, but only after the country goes under new leadership in 2015. China hopes to resume a controversial dam project that the Myanmar government suspended two years ago, but only after the country goes under new leadership in 2015. State-owned China Power Investment Corp. hopes to restart works on the Myitsone dam project in Kachin state, in the north of Myanmar, which was suspended over environmental concerns and brought the first chill upon close economic relationswith the reforming government of President Sein Thein, which succeeded decades of military dictatorship. Wang Qiyue, director of China Power Investment, said at an energy investment summit Wednesday that his company “cannot restart the dam construction project or the negotiation process with the Myanmar government” at present. “The next incoming government will hopefully do what is best.” Representatives from the Myanmar government couldn’t be reached for comment. Mr. Thein Sein has indicated that he won’t seek office in the 2015 elections, which are expected to be contested by opposition leader Aung San Suu Kyi. She opposed the dam project before it was suspended in 2011 and hasn’t commented on it since. Shwe Mann, speaker of Myanmar’s parliament and another likely contender, hasn’t spoken about it recently. Protests pushed Mr. Thein Sein to suspend construction of the US$3.6 billion dam project, which would have flooded an area the size of Singapore if completed. Environmentalists and civil activists hailed the move as a breakthrough for democracy. The popular resentment against the project was seen as an indication of brewing anti-Chinese sentiment, particularly surrounding big infrastructure projects. Most of the energy generated from the project would go to China, rather than help Myanmar–one of the poorest countries in Asia–build crucial infrastructure. Under the previous contract, 90% of profits would go to China Power Investment with the other 10% going to Myanmar’s government. Mr. Wang indicated the agreement could be renegotiated. Mr. Wang said that the company would invest at least US$1 billion more in the project if it is restarted. Residents have noted renewed activity around the proposed dam site — mostly trucks going in and out of the area — after a ceasefire was reached to halt a surge in fighting between ethnic Kachin rebels and government forces earlier this year. The project remains officially suspended. The government investment agency hasn’t indicated they plan to restart work on it. Environmental activists fear that the Myitsone project and other planned dams across the Irrawaddy river will have serious social, environmental and economic impact throughout the country, especially for villagers who rely on fishing and agriculture for subsistence. “People across the country have already clearly spoken, and said that the Myitsone dam is unacceptable,” said Ah Nan, coordinator for the environmental group Burma Rivers Network. Myanmar’s northern neighbor has for years looked to the Southeast Asian country to provide it with crucial energy resources, recently completing work on a US$2.5 billion oil and gas pipeline which would provide the southern Yunnan province with 440,000 barrels of oil a day and 12 billion cubic meters of natural gas. Another Chinese company, Wanbao Mining Co., recently restarted works on a copper mine in northwest Myanmar, a joint venture with Myanmar’s military-owned conglomerate, the Union of Myanmar Economic Holdings Ltd. The project faced protests similar to that of the dam last year, but a government commission backed by Ms. Suu Kyi proposed that the mine project continue after addressing environmental and social concerns. The Chinese company has signed a new contract granting the Myanmar government 51% of revenue, rather than just a split joint venture between the company and UMEHL. Under the new terms, Wanbao will receive 30% of the profits and UMEHL will take 19%. –Myo Myo contributed to this article.
Posted on: Thu, 05 Sep 2013 20:46:16 +0000
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