Myanmar Junta Revives $3.6 Billion Chinese-Backed Dam Project

May 25, 2024

With help from China, Myanmar’s junta is starting up again the $3.6 billion Myitsone dam project that was put on hold before. This move is a big change in policy from when it was first put on hold in 2011 because of strong public opposition. The project is on the Ayeyarwady river in northern Kachin state. It includes plans for a 6,000-megawatt dam that will provide about 90% of the power needed by China.

Composition and Role of the New Leading Group

The project has been given to a new “leading group” with 11 members, one of whom is the deputy minister for energy. Their duties include study, technical solutions, and public relations. They were announced on April 24 and made public later. The Yunnan International Power Investment Company of the Chinese State Power Investment Corporation (SPIC) works with this group.

Environmental and Social Concerns

The dam’s construction has been criticized for potentially causing extensive environmental damage and providing minimal local benefits. A 2015 environmental study paid for by the Myanmar government said that the dam shouldn’t be built because it could change the flow of the river in big ways. In 2018, the World Wide Fund for Nature (WWF) pointed out that about two-thirds of Myanmar’s people live in the Ayeyarwady area, which shows how big the problem could be.

Geopolitical and Internal Conflict Dimensions

Tensions are still high between the Kachin Independence Army (KIA) and the Myanmar troops at the project site in Kachin state. The political arm of the KIA is going to talk about the junta’s choice to bring the dam back to life. The project is also very important from a global point of view because China has a strategic interest in the area as part of its Belt and Road Initiative. But since the military coup in 2021, the region’s security has been harmed, which slows down project progress.

China’s Role and the Peace Process

China is still a very important player in the peace process in northern Myanmar. It has helped make past agreements possible and will continue to do so. China recently helped set up talks between Myanmar’s military and ethnic armed groups, but there hasn’t been much progress recorded. China has said again that it wants to see peace in the area and emphasized that it has both military and humanitarian interests in the area. The return of the Myitsone dam project is a complicated mix of local opposition, environmental concerns, and major geopolitical interests. It shows how hard it is to balance growth with sustainability and security in the area.

More About Myitsone dam

Project Overview and Suspension: The Mali and Nmai rivers meet at the planned Myitsone Dam. This is the source of the Irrawaddy River in Myanmar, and the project is mostly paid for by Chinese money. It was built to make 6,000 MW of electricity, mostly for use in China. Despite this, the project was put on hold in 2011 because of strong resistance from many groups.
Environmental and Social Concerns: The dam put at risk the area’s wildlife and the rice-growing Irrawaddy Delta, which is very important for Myanmar’s food security. People were worried about the possibility of earthquakes because the dam was built close to the Sagaing fault line. Thousands of people would have had to move because of the project, which would have messed up their neighborhoods and ways of making a living.
Current Status and Controversies: In 2021, the Myanmar military suggested that the Myitsone Dam project might start up again, which caused more protests against the dam. The possible restart of the project has started new arguments about how it will affect the environment, society, and the economy, and many people are still strongly against it.

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