Myanmar to restart controversial $3.6 billion dam project supported by China

Two sources familiar with the comments of Khet Htein, head of state administration, have confirmed that Myanmar's new Government aims to complete in eight years an infamous $3.6 billion project at Myitsone, located in northern Kachin State.

The comments were made after former junta leader and now president Min Aung Hlaing, returned from a trip to China?last week. China has been trying to build a massive hydropower plant in the northermost region of the war-torn nation.

Htet Paing Htoo is a Kachin State Parliament member. He said that construction work was suspended in 2011 due to rare public protests over a large hydropower project, which would have been Myanmar’s largest.

The official announcement will be made. "The president has stated that the process will be restarted."

China was angered by the halt, but its influence over Myanmar and the environmental concern about flooding an area the size of Singapore won out. Plans to export 90% the generated 6 gigawatts to China were abandoned.

This capacity would make Myitsone one of Southeast Asia's biggest hydropower projects. However, it is dwarfed by?China's Three Gorges Dam with its installed capacity of 22.25 GW.

A spokeswoman from the president's office said that Min Aung Hlaing discussed project resumption during his China visit. She added that it could provide more?than half of the 10 GW needed by a nation with a severe lack of electricity.

Khaing Khaing-Soe, a government spokeswoman, stated that the government weighs concerns raised by local communities about flooding and displacement.

She said that she was evaluating the extent of benefits and negative impacts to find a balance.

The office of Khet Htein Nan and the Chinese Foreign Ministry did not respond immediately to a comment request.

Two sources requested anonymity because the discussions with Khet Htein?Nan were private.

A REVIVED PROJECT CAN COST THREE TIMES MORE THAN ORIGINAL

According to the latest estimate by the International Renewable Energy Agency, construction costs for Asian hydropower outside China and India average $1,914 per kilowatt.

Three officials, including a Kachin State legislator, have confirmed that Min Aung Hlaing’s government is working on reviving the project. The government came to power in April following a heavily criticised election, won by a party with military ties.

The move is part of a civil conflict triggered by the coup that took place in 2021, when the military led by Min Aung Hlaing deposed Aung San Suu Kyi's government, which was also against the Myitsone Dam.

Two sources familiar with the talks said that Khet Htein N, the leader of the state in Myitkyina (the capital, located 37 km from the site), has emphasized the desire of the government to continue the project.

One source said that unlike in the past, China was now prepared to tackle environmental problems with new technology. The chief minister made this statement during a discussion about the dam on June 23, one of the sources reported.

The source quoted the Minister as saying, "They will use the technology to make sure it can withstand risks of this nature." "There's nothing to be concerned about."

The powerful 7.7-magnitude?earthquake which struck central Myanmar in March last year and killed thousands has fueled concerns over the dangers of a large dam in an earthquake-prone region.

The Myitsone dam would be 152m high (500ft), and 152m long (500ft). It is located at the confluence between the Mali River and the Nmai River.

Third source who was privy to internal discussions said that at a meeting on June 22, the chief minister stated the Myitsone Project would be remembered as an "historical achievement".

Source: "The chief Minister mentioned that China fully supported and encouraged the resumption the Myitsone Project."

Could not tell if the initial agreement between Myanmar and Myitsone to send the majority of Myitsone’s electricity across to China was reworked.

RESISTANCE CONTINUES

Khet Htein's comments coincide with government efforts to revitalize project support in a region now controlled by military.

Two members of the government-backed committee said that after former deputy military chief Soe Win toured Myitkyina for talks with local authorities in April, there were at least 26 meetings held across Kachin State to support the project.

Naw Khon, a member of the committee, said that they wanted to "provide accurate information to the public and let them make their own decision".

The opposition to the project continues. 49 civil society organizations have recently called for its total termination.

The groups stated in a statement released on May 5 that the plan "offers no benefit to the public, and will only lead to severe destruction and loss people's homes and property." (Reporting and editing by Devjyot Ghoshal, Clarence Fernandez, Sudarshan Varadhan in Singapore).

(source: Reuters)