The farmers’ struggles within the special economic zone of Kyaukphyu

I requested them to measure the full extent of my land, but they only provided estimates for the land area. In reality, they should have measured how many acres I actually own.

For instance, I inherited about 3 to 5 acres from my ancestors, and they only recognized that portion of the land. They did not measure the land I expanded during my lifetime, claiming it was unnecessary.

The Chinese and Myanmar governments are primarily collaborating on land for the Kyauk Phyu Special Economic Zone (SEZ) and the Deep-Sea Port project. However, local farmers, like me, still don’t know whether we will receive compensation for our fields.

Farmer U Than Soe from Pyar Thae village shared that official from the Land Registry Department merely estimated the size of land in Pyar Thae village, Kani Group, Kyauk Phyu township, without physically measuring it. When you think of Kyauk Phyu township on the Arakan coast, you probably picture not just China’s Shwe Natural Gas Project and Oil Pipelines, but also the Special Economic Zone (SEZ).

Since 2014, land reserved for the SEZ project has been in Kani village group and other nearby villages such as Kyan Tai, Chaung Wa, Tai Chang, Kat Tha Pyay, Sittaw, Doe Ma Taung, Min Pyin, and Maday Island, all within Kyauk Phyu township. The Land Registration Department measured land in these nine villages.

Despite these measurements, U Than Soe is concerned because he still has no accurate record of how many acres of his farmland will be confiscated, nor does he know if he will receive compensation that reflects the current value of his land.

He asked, ‘How will you determine the compensation price?’ They responded that they couldn’t tell him. ‘So, if you can’t tell me, why are coming to my land?’ he said.

U Than Soe has been working on his family’s land since childhood. 

Now over 60 years old, he has raised his five children through his farming business. He owns about 7 acres of land, including both farmland and fields, all of which fall within the Kyauk Phyu SEZ project area.

He said that he investigated information from authorities of Land Registry Department about the situation on his own way, but the authorities have yet to make an official announcement.

Similarly, a farmer from Zai Chaung village, part of the Tai Chaung group, had 6 acres of his land measured, but there has still been no public declaration regarding this issue.”

“Farmers have been asking for 90,000,000 kyats per acre of land. I would be willing to sell if they offer two-thirds of that price. However, what I heard is that the authorities are only offering 2,500,000 kyats per acre. I can’t sell my land for 2,500,000 kyats per acre, so I’ll let them confiscate it instead.

Officials from the Land Registration Department mentioned to some farmers that they would provide a brochure slip to each farmer with information about unclaimed land at the appropriate time.

In the nine village groups of Kani, Kyan Tai, Chaung Wa, and Tai Chaung, there are 35 villages, and at least 200 farmers in these areas still don’t know exactly how many acres of their farmland will be confiscated.

Between 2015 and 2018, farmers repeatedly petitioned township authorities to handle land confiscations transparently and to offer compensation in line with current land values.

Farmers have been requesting between 25,000,000 and 90,000,000 kyats per acre, but the authorities and the committee formed for the SEZ say the compensation ranges from 18,000,000 kyats to a maximum of 25,000,000 kyats. This offer amounts to only about 10 percent of what the farmers are asking for.

The farmers have asked for 90,000,000 kyats per acre, and they would agree to sell if two-thirds of that amount were offered. But the authorities informed them that they are only willing to pay 2,500,000 kyats per acre. One farmer said, ‘I won’t sell it for 2,500,000 kyats per acre. If they want to take it, they can just take it.’

I attempted to contact the Kyauk Pyu Township Administration and the Land Registry Department to get an official response to the farmers’ demands. However, I was unable to reach them because the military council had blocked access to the town and cut off the phone lines.”

Some of the farmers whose land lies within the Special Economic Zone (SEZ) are refusing to sell even they get a lot of compensation fees.

A woman farmer from Min Pyin Village in the Min Pyin Village Group said that even though her land is included in the project, she does not want to sell it.

“If possible, I’d prefer to rent it out rather than sell it. Those who wish to sell should be allowed to sell, but I want the government to make that process transparent. At that time, those who want to rent can rent, and those who wish to sell can sell. I don’t want to sell because the land has been passed down to my children. That’s why I haven’t dared to sell my own farm either. I want everything to be open about how many acres we own. I don’t want it to happen in secrecy.”

The Kyauk Phyu Special Economic Zone (SEZ) project is composed of three phases: the deep seaport, the industrial zone, and a high-end housing project. The deep seaport is planned for Maday Island and Ramree townships in Kyauk Phyu.

Among these three phases, more than 600 acres have been allocated for the deep seaport, 2,400 acres for the industrial zone, and over 1,200 acres for the housing project, totaling more than 4,300 acres. These plans were confirmed by the Central Committee of Myanmar Special Economic Zones in a statement on December 29, 2015.

Under the NLD government, some preliminary work had been done for the deep seaport and industrial zone projects, but construction was halted due to the Covid-19 pandemic.

The current military council, which took power after the coup, announced in December 2023 that the deep seaport project will be completed by the end of 2024, with pressure from China to accelerate the implementation. Despite these plans, U Than Soe stated that there is still no transparency regarding who will lose land and how many acres will be confiscated, which is causing increasing concern among farmers.

“I asked for 25,000,000 kyats. They could offer 23 or 22 million kyats—just give us fair value like that. You can’t confiscate our land without paying. Even if they gave us 10 million of the 25 million requested, we farmers wouldn’t agree. They may want to arrest us or kill us, but we won’t accept that.”

Meanwhile, the Military Council and Arakha Army (AA) are still engaged in fierce fighting in Rakhine State. The Dhanyawaddy Naval Headquarters and the 32nd Police Battalion, controlled by the Military Council, have been blocked by the AA in Kyaukphyu township, with fighting are ongoing on both sides.

Currently, the Military Council only controls about 20 villages near Kyaukphyu, with the rest of the area under ULA/AA control. This raises the possibility that the Kyauk Phyu SEZ could either be lost by the military council or the project could be halted altogether.

As a result, China may seek to hold more talks with ULA/AA regarding the Kyauk Phyu SEZ, and the AA is expected to protect previous investments in the region to attract further investment.

Ko Khin Oo, who is responsible for studying and monitoring investment projects in the Arakan region, said, “We welcome anyone working on the Kyauk Phyu SEZ for the benefit of the region, as long as victims receive fair compensation and jobs.”

If the government ensures that the Rakhine people benefit as they deserve, and if there is a guarantee of job opportunities and environmental protection, it will be a favorable situation. Currently, the ULA has not made its policy public, so farmers remain hopeful for the best outcome.”

The SEZ project was initially conceived in 2009, and in 2015, under the U Thein Sein government, the Chinese-owned CITIC company was awarded the right to operate it.

At first, the project’s cost was set at 7.3 billion US dollars. The share distribution was agreed upon with Myanmar receiving 15% and China 85%. Later, under the NLD government, the share allocation changed to 70% for China and 30% for Myanmar, with 1.3 billion US dollars set aside to start the initial phase of the project, aiming to avoid placing too much debt burden on Myanmar.

However, after the military council seized power in 2021, they held frequent meetings with China, culminating in a follow-up contract for the Kyauk Phyu Special Economic Zone at the end of 2023.

China and the military council re-signed the agreement, but no details regarding whether the NLD-era agreements had been revised or amended were made public. This lack of transparency has been a consistent issue under military rulers across different eras.

Regardless, the project continues under the current military council, which operates with the same lack of transparency from the start. There is growing concern about the potential consequences or violence that farmers and residents might face as this project progresses.

Farmer U Than Soe expressed concern over whether residents would receive fair compensation and job opportunities. He emphasized that unless he receives a guarantee of profit, he cannot surrender his farmland.

“They can catch me, they can kill me—no matter what happens, I won’t accept it. I don’t tell them to stop the project, just pay the proper price. If the compensation is fair, I will give up the land. The authorities should come directly to us, along with village elders, with a proper list. For instance, if it’s 20, then it’s 20. If it’s 30, then it’s 30 million kyats. Present the list directly to us farmers. By the time the money reaches us through intermediaries, we’ve already lost half of it. If you come directly, we’ll be satisfied. If not, we won’t be satisfied.”

Lay Waddy FM’s weekly news program from the Arakan coast is supported by Earth Journalism Network (EJN) and broadcasts every Thursday on Mizzima Radio. You can listen to it daily and follow Lay Waddy FM’s special news on Lay Waddy FM’s Facebook page, website, and YouTube channel.