The power plant will be built by the Daewoo International Corporation and the MCM Energy Company Limited.  Officials from the companies explained their plans to local people at an event on 6 May. The Chief Minister of Arakan State Government, U Maung Maung Own, also attended the event to deliver a speech about the plant.

He said: “The plan will not be built if the local people are against it, no plans will be carried out without the local people's approval. The people have to decide whether to accept it or not and decide if it is beneficial to them."

The plan will receive about 2.5 billion US dollars of investment and will be a cooperative venture between the Ministry of Electricity, the Daewoo International Corporation and the the MCM Energy Company  Limited.

The power plant will able to be produce 660 Megawatts after the first stage is built and another 660 Megawatts after the second stage has been completed, giving a total production capacity of 1320 megawatts. The project will require between 600 and 1000 acres of land.

The MCM Energy Company Limited project manager U Tin Soe explained at the 6 May event that the plan will help Arakan State to become fully electrified and any surplus electricity produced would go to other areas in Myanmar.

He also said that the environment would not be affected and there would be no danger to local people's health because of the modern technology used in the construction of the plant.

He said: “In Arakan State, only cities can receive electricity, most of the villages do not receive it yet. We would like even villages to receive it. Full electrification will help in the development of the educational, health and social sectors."

However local people discussed the plans and came out against the plant. They decided that it was not necessary to build a coal fired power plant in Arakan State.

Nay Oo Htin Lin a local activist said: "The gas extracted from Kyauk Phyu can supply the whole country, [but] they do not use gas [for the power plant], they use coal instead. We are facing problems and we request that the government support the Arakan people.

U Tun Kyi, the secretary of the Association for Rural Development in Kyauk Phyu said: “There is surplus gas in Arakan State. Do we need a coal fired power station? In other countries, they are planning to reduce coal fired power plants, but they are trying to use it [coal] in Kyauk Phyu. We do not need to use it in my opinion.”

The coal which will be used by the power plant will be imported from Indonesia, Malaysia, Australia and other countries. The Allay Dwin village in Kyauk Phyu Township was chosen as a site for the power plant because it is located in a deep sea area where large ships will be able to dock.

According to officials from the power companies the factory will use clean coal and will be built using the newest technology so it will have a minimal impact on the surrounding area.

422 people attended the 6 may event, which concluded at 6pm. They included local leaders from Kyauk Phyu, government officials, civil society organizations and villagers from Allay Dwin village.

Edited for BNI by Mark Inkey