Hello everyone, Tharli Swa Par (Greeting in Arakanese). It has already been over a decade that the natural gas produced from Rakhine offshore is sent to China, but the residents (of the state) haven’t benefited anything else from it yet. Today, you are going to listen to the report about it covered by Kay Zue, team member of our Lay Waddy FM. I’m the presenter Nay Nay.

Successive regimes have promised that Chinese investment projects would lead to improvements and development in the areas along Myanmar’s Rakhine coastal line. However, after a decade, the positive impacts of these projects remain elusive, while residents continue to face their disadvantages.

Kay Zue from our Lay Waddy FM will present when these Chinese mega projects of developing infrastructures have arrived into western coastal line areas of Myanmar, and what are these projects; what are the impacts on the local residents. 

Kyauk Phyu, a town located on the Rakhine coastline, has a population that traditionally relies on fishing. 

The coastal town produces natural gas. And large tanks for storing crude oil are still being built. Additionally, deep seaports are also still being constructed to accommodate oil tanker vessels. However, the residents, who have faced oppression over successive generations, have not been able to participate in discussions about the benefits and drawbacks of these projects.

When China and Myanmar signed the natural gas pipeline project, the people of Myanmar lacked a Hluttaw (parliament) where they could voice their opinions to the government. Indeed, during that time, then regime was still manipulating the resources according to its own desires. The discovery of natural gas off the Rakhine coast occurred in 2003 during the military junta regime led by U Than Shwe. Subsequently, this project was implemented under the regime led by U Thein Sein, which involved retired high-ranking military personnel.

“The Kyauk Phyu project, implemented during the regime led by U Thein Sein, failed to provide any benefits to the people of Rakhine State. Additionally, the project lacked a proper Environmental Impact Assessment (EIA) process, as relevant laws were not in place at that time. Besides, the job opportunities were not created for local residents, leaving them without any benefits or employment from the project. Consequently, the project utilized resources owned by the people of Rakhine State without offering any advantages back up to the present day.” 

It was said by Ko Htun Kyi, the director of Peace and Development, which is a local based group of activists which monitors the natural gas pipeline. 

In 2013, during the of U Thein Sein government, natural gas from the Rakhine offshore area began being sent to China. To facilitate production and transportation, extraction took place in the sea water area near Maday Island, close to Kyauk Phyu Town. Additionally, a pipeline was constructed, passing through Rakhine to Magwe, Mandalay Regions, and Shan State, ultimately crossing into China and reaching Kunming City.

The length of the pipeline is 771 kilometers (479 miles), and many residents along the route have lost portions of their farmland due to the natural gas pipeline.

“The project hired some local residents for doing as hard labors. And a few of the local residents were found in the construction sites of infrastructure buildings. But that’s it. Most of the workers in operating the oil and gas pipelines are Chinese.” 

The residents have suffered losses to their inherited farmlands and livelihoods due to this project. Additionally, incidents of sexual exploitation and other abuses have emerged against the residents.

A Kyauk Phyu resident explained about that situation – 

“They claimed that the entire population of Rakhine State would have access to the electricity and that job opportunities would be created. However, just our lands were confiscated. We didn’t get compensation. Only the highest ranked persons such as chairperson of the respective bodies were changed, but no one helps solving out our problems. We also don’t know where to ask it from.” 

At this moment, the conflict between the junta and Arakan Army (AA), an ethnic armed group, is intensified along the Rakhine coast. 

In response to the historical mistreatment of the people and the exploitation of resources in Rakhine State, the youth in the region took up arms and resisted the military regime. Despite ongoing clashes, the military council has entered into an agreement with the Chinese government to proceed with the deep seaport project.

“Without a doubt, the Arakan Army (AA) has already established control over these areas—they have seized them, and all territories now lie under AA’s complete authority. As a result, they oversee various sectors, including education, healthcare, social welfare, and the daily lives of the people, as well as foreign investments. However, when it comes to foreign investment, despite the AA’s existing control, ongoing discussions with the Burma regime remain necessary. These investments were initiated before the AA took control, and both parties have commitments. Therefore, while the AA holds military control, the investment sector still requires dialogue at the political negotiation tables. It is an unavoidable reality.

The residents have endured the oppression of successive military regimes and the exploitation by the Chinese government, which invested in this area. After enduring these hardships for an extended period, they have developed greater trust and reliance on the Rakhine ethnic armed group, the AA.”

At present, despite the existence of large projects, the people of Rakhine State have not yet reaped any benefits from these endeavors. However, following the AA’s assumption of control, the people should be able to enjoy the rightful benefits through dialogue with relevant parties. For instance, consider the gas pipeline project, from which the junta regime currently earns 1 billion USD annually. If the AA could access these benefits, all the state’s residents would also have the opportunity to enjoy them, leading to increased chances and more opportunities for their livelihoods.

Myanmar has been earning 1.5 billion USD annually from the sale of natural gas for over a decade. These revenues primarily come from Kyauk Phyu Township on the Rakhine coast. Additionally, there are offshore oil plots, including the (A-1 / A-3), (A-6), and (A-7) plots, which are currently under extraction. However, the people in Rakhine State still require a government that can adequately protect them and bring their righteous benefits. 

This program is supported by Earth Journalism Network (EJN), and Lay Waddy FM presents it. Other special reports from Rakhine State can also be viewed daily on Lay Waddy FM’s Facebook page, website, and YouTube channel.