OPINION / VIEWPOINT
Suu Kyi visit raises dam project hopes
Published: Aug 21, 2016 07:43 PM

Illustration: Liu Rui/GT



 

I still remember the terrible quietness before night fell at the construction camp of the Myitsone Dam. When I visited there three years ago, only 17 staff from the China investment company were left behind, responsible for PR work and assisting resettled villagers, uncertain about the murky prospect of whether the project would be restarted.

In September 2011, Myanmar's U Thein Sein government halted the Myitsone Dam project, a China-led hydroelectric mega-project with a total investment of $8 billion, for the duration of his term. The decision came abruptly without any consultations with or warnings provided to the Chinese side, causing considerable losses to the Chinese investors and jolting China-Myanmar relations.

It seems that the long-awaited turning point has finally arrived. During talks between Myanmar's State Counselor Aung San Suu Kyi and Chinese Prime Minister Li Keqiang in Beijing, Suu Kyi assured China that she is willing to look for a resolution that suits both sides' interests via both sides' energy administrations' cooperation. On the eve of Suu Kyi's five-day visit to China, a commission was established in Myanmar to review the suspended project so as to assess the likely benefits for Myanmar citizens and make recommendations on whether it should proceed or not.

This is the first step the Suu Kyi-chaired National League for Democracy (NLD) government has taken to respond to the Myitsone conundrum, offering an opportunity for the Myanmar public to get to know the facts of the deal, dispel misperceptions and develop a proper judgment of the project.

The reasons for the abrupt halt are hard to untangle. Besides local concerns about environmental protection, dam safety and cultural heritage preservation, some observers believed that the Myitsone project is a victim of Myanmar's political transition. Calling a halt to it was considered the best sign showing the will of the Thein Sein government to reform. In addition, to gain influence some NGOs and activists hyped the negative side of the dam project and instigated public opposition against it by portraying the project as a deal that only served the interests of the military government and China. 

Over the past few years, there have been calls from some environmental groups, anti-dam organizations and radical activists against the Myanmar government to cancel the Myitsone project, in defiance of the legal validity of past agreements.

A Myanmese environmental activist once told me that Myanmar should scrape the Myitsone deal that is "against the people's will" and offer compensation to China. But since the compensation will not be a large sum compared to China's GDP, China should offer an exemption to Myanmar to win the heart of Myanmar's people. The logic of this argument is absurd, making Myanmar develop a bad reputation as a nation which can unscrupulously breach contracts with foreign investors without paying any price.

Given the complicated public opinion surrounding the Myitsone Dam in Myanmar, it's unrealistic to expect an instant breakthrough from Suu Kyi's visit. But since Myanmar's commission has begun to review the project, it's time to openly discuss the possibility of resumption.

There is a possibility of restarting the project as long as it wins the people's support. To grasp the opportunity, the Chinese side should make more transparent the environmental impact assessment report on the Myitsone project and cooperate with the Myanmar government to take necessary measures to reduce the adverse impact of the project on local communities.

More importantly, it should give more consideration to the interests of Myanmar, especially ensuring that those most impacted gain benefits and witness real development.

Energy projects are vital for Myanmar's economy and the NLD government. The Myitsone project will boost local economic and social development and contribute to addressing the power shortage that has plagued 70 percent of Myanmar's cities, towns and villages.

Based on the current agreement, Myanmar will get 10 percent of the electricity produced for free and the dam will become the sole property of Myanmar decades later. As about 60.7 percent of the return on investment will go to Myanmar, it's estimated that Myanmar would receive roughly $17 billion from the project over the contracted 50-year period. This revenue, if properly used, will inject new impetus to vitalize the backward economy of northern Myanmar. 

Myanmar has more reasons to welcome the Myitsone Dam project rather than refusing it if it's proved to be beneficial. It's time to review the project with rationality and make a decision for the good of Myanmar's interests. 

The author is a reporter with the Global Times. opinion@globaltimes.com.cn Follow us on Twitter @GTopinion