Some businessmen have voiced concerns that Chinese companies may win the bid to develop Kyaukphyu deep-sea port and special economic zone in Rakhine State.

They cautioned that the government should not rush with such a significant project and that Chinese developers should not be given precedence over other international companies.

The government plans to select the developers for the projects late this month or early February.

As of August 25, 2014, 61 companies from 11 countries have submitted the Expression of Interest (EOI) for the Kyaukphyu Special Economic Zone (SEZ). Among them, 12 companies from seven countries took out documents worth US$1,000 each. At the end, only 7 from five countries submitted 12 EOI documents, according to the Kyaukphyu SEZ Management Committee.

An official from the committee insisted that Myanmar companies are also part of the consortia.

A businessperson who asked not to be named said that the project is designed for Chinese companies. The gas and oil pipelines from Kyaukphyu to China have already been laid down and oil tanks are also in place. This status makes Kyaukphyu SEZ a jewel to China.

Given the intensifying tensions over Letpaduangtuang copper-mine project, which is operated by China’s Wanbao Mining, he suggested the bidding for the SEZ be postponed.

“There’s no need to implement it in such a hurry. The bid results should not be announced at a time when the controversies on the copper mine project continue,” he said.

He said that transparency is the priority of the project. Then, the government should think about the benefits of the project to the country and local people.

“It needs to take local products and social life of local people into consideration. The country will benefit nothing if this project is 100 per cent controlled by Chinese companies. There should be mutual benefits. China is ready to offer us whatever we want, but Myanmar people don’t know how to make demands. There should be a win-win deal. It can’t be a win-win deal if China takes 99.5 per cent from the project and leaves 0.5 per cent to Myanmar. The suitable ratio should be 60:40,” he added.

Myanmar plans three major SEZ to boost the manufacturing sector and the economy. No deep-sea port is planned for Thilawa, but it is a major part of Dawei and Kyaukphyu. Kyaukphyu is designed mainly for petrochemical industries.

Pyae Wa Htun, chief executive of Parami Group of Energy, also noted that the development area in Kyaukphyu is three times bigger than Singapore. Economic development is believed to ease racial conflict in the state. Yet, as the port will strategically connects Myanmar with Bay of Bengal and the Indian Ocean, an individual country should not take control of the development.

His company was one of the bidders for the deep-sea port project.

“I heard there was no Indian or native Myanmar companies in the race. Only Chinese companies are among the bidders. That’s why our company submitted the tender to fill that space despite the project is not my realm of business.”

He urged Myanmar to follow Singapore’s approach in awarding contracts to world-class companies from several countries.

“Kyaukphyu deep-sea port and special economic zone are more precious than China’s Silk Road. Nothing will be left for the next generations. As a matter of fact, no need to hand over a 100 per cent stake to them. We would carry out the country’s many infrastructure developments if the government could better manage it. So Myanmar must involve in that project and so do international companies. It would amount to exchanging the project worth one million dollar for Ks 5-10 if all stakes go to China alone,” said Pyae Wa Tun.

Aside from the gas pipeline, China also plans a railway project to the area. The project is currently suspended but it could be revived if Chinese companies win the Kyaukphyu contract. This will connect to the Silk Road project that will encompass India, Pakistan and Europe’s Mediterranean Sea. China plans to spend US$16.3 billion on Silk Road which would include water routes and railways, according to Bloomberg.

Than Soe Naing, a writer, said recently that putting three deep-sea ports in the picture – one each in Myanmar, Sri Lanka and Pakistan, the Morasha peninsula near Arabia peninsula will be connected. China stands the benefit the most as 80 per cent of its petroleum is carried from Arabia peninsula.

Wall Street Journal also reported that investment from China in Kyaukphyu deep-sea port and special economic zone can be beneficial for the Silk Road implementation. It is building the Economic Belt that crosses Central Asia.

Source: THE NATION (A Nge Htwe, Nilar – Myanmar Eleven January 6, 2015 1:00 am)