Myanmar negotiating with Chinese consortium on deep-sea port project in Rakhine

Myanmar is negotiating with a Chinese consortium to carry out a strategic deep-sea port in Kyaukphyu, in the western state of Rakhine, as part of the planned special economic zone (SEZ) in the region, according to a report released by the Global New Light of Myanmar on Sunday.

The negotiation between Myanmar’s Commerce Ministry and the China International Trust and Investment Corporation (CITIC) is expected to reach an agreement soon.

A consortium of six companies, led by China’s CITIC, won tender in December 2015 for the implementation of two projects – an industrial park and a deep sea port on 1,737 hectares of land. These projects make up two of the three components of the overarching Kyaukphyu SEZ project.

The CITIC Consortium will form joint project ventures together with local Myanmese enterprises for the construction and operation of the two projects, which will be implemented under the framework of the Myanmar Special Economic Zone Law promulgated by the Myanmese government in 2014.

The Kyaukphyu deep-sea port project represents part of the economic corridor of the China-proposed Belt and Road initiative, and the two countries are approaching this in a way to ensure it becomes a win-win situation for both sides, said Myanmar’s Minister of Commerce Than Myint.

The deep-sea port project consists of the MADE Island Terminal and YANBYE Island Terminal, with 10 berths.

By 2025, 90 percent of project manager positions will be undertaken by local Myanmese people. Once in full operation, the two projects will bring approximately $10 billion in annual GDP growth to Myanmar.