The Burmese military authorities have built an industrial zone in Sittwe, the capital of Arakan State, for private industries, but has not supplied it with power or water yet, said an owner of an auto garage.

"Private industries located in downtown Sittwe were forced by state authorities to move to the industrial zone starting 19 January, but we are facing problems because there are no facilities like power and water," he said.

On 19 January, the chairman of the Arakan State Peace and Development Council, General Thaung Aye, invited all owners of private industries in Sittwe to attend a meeting on the industrial zone. At the meeting, he ordered private industries to move out of downtown to the industrial zone.

The industrial zone is seven miles from downtown Sittwe and is located in a five-mile wide stretch at Setroo Kya Creek.

"The authorities told us all industries in our town, like auto garages, biscuit factories, drink factories, and ice factories must move to the industrial zone before 15 February. Some private owners have moved their business but have been facing many problems because there is no power and water," he said.

The authorities in Sittwe can only supply the city with three hours of electricity a day, but power has not yet reached the industrial zone.

"Private industry understands the industrial zone is not yet operating due to a shortage of power, but they have set up some small rooms on plots in the zone to avoid government action,"  another businessman from Sittwe said.

General Thaung Aye told private industrial unit owners in the meeting that the authorities are going to confiscate the plots in the zone if there is no building on it. After the threat, the owners began constructing buildings on their plots.

According to local sources, the junta has been claiming since it assumed power in 1988 that it would set up many business zones in Arakan like the industrial zone in Sittwe, the economic zones in Kyauk Pru and Maungdaw, and provide economic development to the state, but till now nothing has been implemented.

The junta was criticized by the public about the lack of development of such an industrial zone in Sittwe. It is believed that the current industrial zone was established in response to such criticism.

In Sittwe, there are no large mills or factories because of shortage of power, but the authorities nonetheless announced it would build an industrial zone in Sittwe in 2010.

"It is impossible to build the industrial zone in Sittwe  in the present condition because there is no power, capital, or other infrastructure or facilities, but the authorities are  still trying. I think it is only propaganda," the businessman said.