Hello everyone, Tharli Swa Par (a greeting in Arakanese). This week, clashes broke out in Kyauk Phyu Township, where Chinese investment projects are based. The residents are currently more concerned about how to escape the deadly harms than focusing on these projects. The military junta’s regime has not developed these projects transparently, similar to previous regimes. As a result, the majority of residents along the Rakhine coastal areas are unaware of the pros and cons of these projects.
“We are aware that we have natural resources, but we lack precise knowledge of what types of resources they are. This lack of knowledge could be due to the absence of discussions about these topics on social media. If such topics were more frequently shared on the social media pages, we would likely be better informed. However, since these subjects are not actively posted on social media and do not pique our interest, our understanding remains limited.”
“In our Rakhine State, Kyauk Phyu is known for providing petroleum oil, which China reportedly purchases. This is the extent of my knowledge. We are aware that Kyauk Phyu produces the natural resources, and both the Myanmar and Chinese governments are involved in the development of projects. However, I lack precise information on the scale and specifics of these projects.”
“Yes, Kyauk Phyu is renowned for Chinese projects. I am aware that Chinese entities are involved in resource extraction there. Specifically, they are constructing the Kyauk Phyu deep seaport and extracting petroleum oil. Additionally, power generation facilities operate in Kyauk Phyu, contributing to the national grid. Other projects, such as a hotel zone, are also being developed in Kyauk Phyu.”
The people in Rakhine State lack proper information about the natural resources available in their region and the ongoing development projects. Consequently, they place their hopes on the Arakan Army (AA), a Rakhine ethnic armed group that respects the natural resources of the people, human rights, and the other rights of indigenous residents. Lu Zaw, a reporter from Lay Waddy FM, interviewed Ko Htun Kyi, the director of the Peace and Development group, regarding the infrastructure projects in Kyauk Phyu.
Q: Kyauk Phyu is located at a crucial point, so what are the residents’ concerns regarding Kyauk Phyu?
A: Currently, residents are paying less attention to these projects. Instead, they are more focused on the ongoing conflict situation, and their concerns primarily revolve around that. I don’t see any other significant concerns related to other issues.
Q: How important is Kyauk Phyu for the economy and development of Rakhine State?
A: Kyauk Phyu is crucial not only for the investment and economy of Rakhine State but also for Myanmar as a whole. This area serves as the exit point into the Indian Ocean for the Silk Road project being implemented by China. Consequently, Kyauk Phyu holds strategic significance not only in terms of trade and economy but also for military affairs, which are vital for global dominance in the future. Our neighboring country, China, aims to utilize this location effectively, making it a critical point for both Rakhine State and the entire Myanmar.
Q: How transparent is the implementation of this project currently, and what impact does it have on the local population?
A: Since its inception during the junta’s military regime led by U Than Shwe, the residents of Rakhine State have not benefited significantly from this project. Additionally, the regime failed to conduct a proper Environmental Impact Assessment (EIA) for the project; instead, they implemented it without due process. At that time, there were no laws requiring comprehensive EIA/SIA processes before project development. Furthermore, the project did not adequately prepare for job opportunities for local residents. As a result, while the project extracts natural resources owned by the people of Rakhine State, it has not provided any substantial benefits or advantages to the entire Rakhine population.
Q: Are there any recent developments regarding the currently implemented deep seaport project?
A: The junta’s regime initiated an Environmental Impact Assessment (EIA) process for the deep seaport project in 2023. However, to the best of my knowledge, this EIA process remains unfinished due to the escalating conflict situation and the military’s closure of routes connecting to Rakhine State. Consequently, the process has been halted, and the EIA remains incomplete.
Q: Have Chinese diplomats recently visited Kyauk Phyu? Do you have any information about their visit?
A: It’s possible that Chinese regime officials visited Kyauk Phyu to assess the region and their significant investment project. Kyauk Phyu holds strategic importance for China, given its role in the large-scale Silk Road initiative. However, due to the ongoing conflict and tension in the Kyauk Phyu area, it’s unlikely that they can make further progress at this time. We’ve heard reports that they visited up to Maday Island, but the specific purpose of their visit remains unclear.
Q: Did the regime make the outcomes of the EIA process for this project public?
A: During the implementation of this process, those responsible for conducting it, along with regime officials, engaged with residents, civil society organizations (CSOs), and political parties. Such interactions are essential when conducting an Environmental Impact Assessment (EIA).
Q: Did this project employ local residents? If so, what roles were they hired for?
A: The project doesn’t heavily rely on local residents. Occasionally, they hire residents as general workers or for daily wage labor. When constructing the project’s infrastructure in Kyauk Phyu, some local residents are employed as manual laborers. However, they are not typically hired for permanent positions. The majority of workers in the oil and gas project are Chinese nationals.
Q: Do you think the daily lives of residents could be improved if AA took control of Kyauk Phyu’s entire area?
A: Improvement wouldn’t happen immediately after gaining control. We must build our country’s economy independently with our owned hands. However, even if AA managed to oversee this region, including education, healthcare, and foreign investment processes, discussions with the Burma Regime would still be necessary due to pre-existing foreign investments. Although military control might have been secured then, political dialogue is essential too. Currently, local Rakhine people see no benefits from ongoing projects. If AA assumes control and starts negotiations related bodies, rightful benefits should accrue to all Rakhine State residents. For instance, revenue from natural gas sales—currently at 1 billion USD annually by the regime—should belong to Rakhine people under AA’s governance. Securing such rights requires political discussions about what percentage of foreign investment should be allocated to Rakhine residents as a mean of clarifying these issues.
Q: On the second day of this month, the AA released a statement declaring its intention to continue seizing the remaining towns in Rakhine State. Following this announcement, the AA has indeed intensified its offensives. In light of these developments, what could be the implications for Chinese interests and benefits if conflicts arise in Kyauk Phyu?
A: Throughout this conflict, both the AA and the military council have made commitments. The AA has welcomed foreign investment and has taken measures to safeguard all such investments. This is evident when considering India’s investment in the Kaladan project, which spans from Paletwa to Sittwe – regions largely under AA control. The AA is actively providing protection for this project. Consequently, it is expected that ongoing Chinese projects will receive similar security assurances from both parties involved. The oil and gas project in Kyauk Phyu remains a vital source of foreign revenue for the military council; thus, it too will likely be defended vigorously. Although both sides have pledged protection, nothing can be assumed as certain in wartime conditions. Potential damage to these projects cannot be ruled out, particularly if Close Air Support (CAS) operations involving fighter jets escalate—if heavy ordinance like 500 lb bombs are repeatedly deployed over Ramree Island, there could be collateral damage to nearby projects due to their impact vibrations. At present time, preparations for further conflict seem to be underway by both sides; henceforth, hostilities may persist unabatedly. Nonetheless, China may continue efforts to mediate between the conflicting parties with vested interests at stake—making it challenging to forecast or comment definitively on future outcomes.
Q: Do you think China could intervene to prevent the conflict in Kyauk Phyu?
A: China would definitely intervene if fighting escalated in Kyauk Phyu. It might urge both sides to avoid escalating hostilities or express its concerns. When Chinese diplomats arrived in Kyauk Phyu, naval patrol boats slightly retreated toward the exit of the Than Zit River. This move suggests that the junta’s military aims to assure China of its non-aggressive stance. Reports indicate that all navy boats remained outside the river during the visit. Essentially, both sides are engaged in a strategic game.
Q: As a resident and activist, what message would you like to convey to the bodies and groups implementing these projects?
A: Currently, implementing new projects seems impossible, and we remain uncertain about existing ones. From the outset, these projects have failed to benefit us—offering no job opportunities for residents. On the other hand, we haven’t reaped any advantages from them. As residents, we wouldn’t suffer losses if these projects ceased to exist. Their presence hasn’t significantly improved our lives. Consequently, local people don’t engage in extensive discussions about these projects. However, our hope lies in future developments. If new projects emerge, Rakhine people desire tangible benefits—employment opportunities and contributions to the state’s development. Yet, if the Arakan Army (AA) gains control over the entire Rakhine State, these challenges may diminish. Under AA’s administration, people could rightfully access benefits. Ultimately, the situation hinges on the ongoing conflict, which will determine the outcome.
The situation in the Kyauk Phyu area, where numerous projects exist, has been discussed in this interview. This program is sponsored by the Earth Journalism Network (EJN). You can listen to the Rakhine news program on Lay Waddy FM every Thursday via Mizzima Radio. Additionally, it’s available on Lay Waddy FM’s Facebook page, website, and YouTube channel. I’m your presenter, Nay Nay.
