China CITIC Group announced on January 25, 2021 that it will build a bridge and highway to connect the Kyaukphyu Special Economic Zone in Rakhine State with two deep sea ports.

The Chinese company stated that the two projects are part of a joint venture agreement between the Kyaukphyu Special Economic Management Committee and CITIC.

Kyaukphyu Special Economic Zone

The road to Kyaukphyu Special Economic Zone is 15 kilometers long, and the bridge will connect the two deep sea ports on Mad Island and Riman Island. The project structure and design details between the management committee and the company have been announced, and an agreement has been reached on the operation and transfer of the business.

CITIC has obtained permission to execute these projects. CITIC said that companies interested in participating in the environmental impact assessment can submit an application for bidding for the environmental impact assessment before February 8.

The Kyaukphyu Special Economic Zone is one of the important projects of China's Belt and Road Initiative. It is divided into three parts: including a deep sea port, industrial zone and residential projects.

Ninety days before the end of the Thein Sein government, the Kyaukphyu Special Economic Zone was awarded the bid by CITIC Group. According to the results of the tender, the Myanmar government owns 15% of the project, and the Chinese company owns 85% of the project.

As a strategic economic project, after the NLD government came to power in 2016, the two governments, after two and a half years of negotiations, revised the terms of the agreement. According to the new agreement, Myanmar increased its shares to 30% and reduced it. The initial investment amount of the project. In the end, the NLD government agreed that a Chinese company would operate the deep-sea port and industrial zone project.

As Myanmar acquires more shares, more investment is needed. The first deep-sea port investment amount originally agreed to is US$7 billion, and based on a 15% stake, Myanmar’s investment will exceed US$1 billion.

On November 8, 2018, the Myanmar government reached an agreement with a Chinese company to build the first phase of this $1.3 billion deep-sea port. At this stage, two piers will be built on Mad Island and Riman Island. Editor/Sang Xiaomei