The stalemate between Myanmar and China over the controversial Myitsone Dam may soon come to end as China has signaled a willingness to drop the $3.6 billion project in exchange for other economic and strategic opportunities in Myanmar.
President Htin Kyaw will try to make a deal to replace the mega-project during his visit to China, which began yesterday.
China had previously pushed hard for the resumption of the Myitsone Dam project in Kachin State after it was suspended in 2011 under Myanmar’s previous government. Then-president Thein Sein cited “the will of the people” when announcing the suspension. Construction had begun in December 2009.
Government and other sources told Reuters this week that China may settle for a series of smaller hydropower projects and preferential access to the Kyaukpyu deep-sea port in Rakhine State instead of pushing for the 6,000 megawatt dam.
The dam courted opposition by locals and activists who were concerned about the dam’s social and environmental impact. The completion of the dam would require the relocation of thousands of people to an earthquake-prone area and the destruction of Kachin heritage sites. Moreover, it would disrupt aquatic ecosystems and the flow of enriching sediment into farmland downstream, according to opponents of the project.
The dam would have sent 90 percent of the electricity it generated to China’s Yunnan Province, which also angered many people in Myanmar.
China has grown less eager to complete the project over the last six months because Yunnan, which is switching to less energy-intensive industries, now has an oversupply of electricity, Reuters reported.
China has already poured $800 million into the stalled project and is likely to demand some form of compensation from Myanmar in any future compromise.
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