The Kyaukpyu SEZ Project is a heavy infrastructure development project with a large amount of investment through Myanmar-China cooperation.
After the completion of Kyaukpyu Special Economic Zone’s deep seaport project, it will become Myanmar’s first international-level deep seaport, facilitated with ten jetties capable of seven million containers per year, said Union Minister U Aung Naing Oo.
A ceremony to ink the Addendum to the Concession Agreement for implementation of the deep seaport of Kyaukpyu SEZ took place at Horizon Lake View Hotel in Nay Pyi Taw on the evening of 26 December. After the ceremony, Chairman of the Myanmar SEZ Central Working Body Union Minister at the Union Government Ministry 1 U Aung Naing Oo met the media.
On the occasion, the Union minister explained that the Kyaukpyu SEZ Project is a heavy infrastructure development project with a large amount of investment through Myanmar-China cooperation. He continued that the project comprises 30 per cent shares of Myanmar and 70 per cent shares of China to implement the deep seaport project in four phases.
“The project will comprise four phases. The project will be facilitated with ten jetties to admit docking of vessels. On completion, the port will be able to handle some seven million 20-foot containers per year. Primarily, the project will manage the export of our country’s commodities and the commodities passing through Myanmar to African, Southeast Asian, and European countries. Any commodities must be exported to target countries via Singapore and Malaysia. Upon completion of the project, we will have the chance to export commodities to target countries directly,” the Union minister clarified.
The Kyaukpyu SEZ Management Committee and Kyaukpyu SEZ Deep Seaport Co Ltd (Project Company), formed as a joint venture between Myanmar and China, signed the Concession Agreement to implement the deep seaport in November 2020.
In his clarification, the Union minister said, “Both sides held coordination meetings to clearly understand the Concession Agreement and the authority and duties for some facts in the agreement between Myanmar and China. Myanmar initially proposed to ink the Addendum to the agreement.”
According to the coordination meetings, the Chairman of the Kyaukpyu SEZ Management Committee and the official representative of the Kyaukpyu SEZ Deep Seaport Co Ltd inked the Addendum to implement the project as soon as possible.
He added, “This project aims to enhance the socioeconomic life of the people in Rakhine State, including Kyaukpyu region, and create employment opportunities in addition to promoting cooperation in economy and trade between Myanmar and China”.
This project will be a trade focal point among Asia, Africa and Europe and a gateway to the world to improve the socioeconomy of Myanmar and regional countries. Hence, Myanmar and China closely cooperate in implementing the initial process of the project, U Aung Naing Oo commented.
It will be able to attract millions of US dollars in investment to Myanmar, generate a lot of tax revenue for the State, and promote the surrounding upstream and downstream industries, thus increasing the economic development of the entire country and the individual GDP of the people.
In implementing the project, the local Rakhine businesspeople and ethnic business persons who have a great deal of experience and can actually work will be invited to cooperate with the project company, he added.
He continued that the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) complete about 85 per cent, and the work processes will continue to complete a hundred per cent. The geo-topographic survey has been completed, and the relevant work of drafting designs is in progress.
The capital investment financing to start the project will be conducted, and the major infrastructure of the project will be constructed. “If all these processes are completed, the project will start. The two sides will cooperate to start the project promptly,” said U Aung Naing Oo.
“Regarding the Kyaukpyu Deep Seaport Project, the Kyaukpyu locals want to complete it as quickly as possible. Some of the town elders of Kyaukpyu and other locals who previously served senior-level duties met with me and demanded that the project be started promptly. The residents are satisfied with the Kyaukpyu project. They also suggested starting the operations as quickly as possible,” the Union minister said regarding the opinions of the locals.
Along with the construction of the Kyaukpyu Special Economic Zone deep seaport project, the industrial park project will continue to be implemented. If the Kyaukpyu Special Economic Zone Deep Seaport Project and the Industrial Park Project are implemented, job opportunities will be available for locals, and most management positions will be occupied by Myanmar nationals.
The Kyaukpyu Special Economic Zone and the Deep Seaport Project will bring many possession of benefits to the country, such as possession of a seaport that can directly connect to international governments, job opportunities in various fields, including management positions for the Myanmar citizens, receiving of tax revenues in trading with China passing through Myanmar and attracting foreign investments for having industrial zone project.
“The whole project will contribute to the entire country and socioeconomic sector of the citizens,” U Aung Naing Oo reaffirmed.
The China-Myanmar Economic Corridor (CMEC), which the former governments agreed on, will reportedly be implemented along with this project. The CMEC features the China-Mandalay-Kyaukpyu of Myanmar express railway, connecting to the Kyaukpyu Deep Seaport project.
The project will be a four-phase operation and was signed by the former government. The project will be implemented phase by phase, in its stipulated time frame. — Hein Min Soe/TTA/KTZH
