About 500 Chinese nationals have reportedly arrived in Kyaukphyu Township at a time when Rakhine State is gripped by fierce conflict between the AA army and the Junta, which is getting steadily closer to the strategic township of Kyaukphyu.
An anonymous source associated with a Chinese project, told Narinjara that “ on April 28th the Chinese disembarked directly from China onto Maday Island in Kyaukphyu Township,” where many Chinese investment projects are situated, including the implementation of the deep-sea port project in Kyaukphyu.
"The ship entered Maday Island directly from China, carrying around 20 construction machines. Later all the backhoes and machinery were moved from the port to the project area. After completing these tasks, the ship left. The Chinese workers were seen traveling between Maday Island and Kyaukphyu," the source said.
Kyaukphyu residents reported that the Chinese nationals are currently lodged at the Varanasi Hotel in Kyaukphyu.
On December 26 of last year, the Junta announced that China's CITIC Group and the Junta had signed an addendum for the Kyaukphyu deep-sea port project, involving an investment totaling billions of dollars.
The Junta also stated that both sides are working together to kickstart the implementation of the project as soon as possible, although they refrained from disclosing the specific agreements reached regarding the addendum.
A social activist from Kyaukphyu Township disclosed that around 500 Chinese nationals, including engineers are presently in Kyaukphyu, The tasked with expanding the road from Maday Island to the Kyaukphyu Special Economic Zone (SEZ) and are anticipated to engage in the construction of the deep-sea port.
The source elaborated, "They might be planning to construct more than one deep-sea port.. We have heard they are also planning to extend roads from the southern part of Kulabar village to the road's corner. China typically continues its projects even during times of conflict, as the clashes do not disrupt its operations.”
The 800-kilometer (500-mile) China-Myanmar Oil and Gas Pipeline, which began operations in 2009, runs from Kyaukphyu in Rakhine state through Mandalay and Magway regions, and northern Shan state to Yunnan Province in China. There are many Chinese nationals working along the oil and gas pipeline.
However all three ethnic armies the Three Brotherhood Alliance which includes the AA ( Arakan Army) whose forces are closing in on Kyaukphyu township, have pledged to respect Chinese investments. The AA army has recently repeated their guarantees to
China, that their assets in Rakhine State will be firmly protected.
On December 26 of last year, the Junta announced that China's CITIC Group and the Junta had signed an addendum for the Kyaukphyu deep-sea port project, involving an investment worth billions of dollars.
The Junta also stated that both sides are working together to kickstart the implementation of the project as soon as possible, although they refrained from disclosing the specific agreements reached regarding the addendum.
An activist familiar with the Chinese projects stated that the arriving Chinese nationals in Kyaukphyu are assigned to implement the addendum agreements concerning the deep-sea port project, potentially exacerbating the situation in Rakhine State, including Kyaukphyu, which is already grappling with ongoing conflicts between the Junta and the Arakha Army (AA).
The same activist commented "Even when things were more stable before, projects without clear benefits for locals caused resentment and were not generally welcomed. In these tough economic times, China expanding their projects might cause big losses for Rakhine."
The agreement for the Kyaukphyu SEZ project was first signed during the tenure of former president U Thein Sein, with China holding 85% ownership and Myanmar 15%. Under the National League for Democracy (NLD) government, the contract was amended in November 2018, adjusting ownership to 70% for the Chinese company and 30% for Myanmar.
As clashes intensified in Rakhine State, the Junta, facing setbacks in military operations, turned to China for assistance in achieving a ceasefire. Despite numerous negotiations between AA and the Junta facilitated by China, they have been unable to reach an agreement yet.
However as both sides have agreed not to target Chinese projects in Rakhine, China is eager to proceed with its project implementation in the region in spite of a looming battle in the next few months, between the AA and the Junta over who controls Kyaukphyu.
