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Myanmar suspend Myitsone Hydropower Project

2011-10-08 08:51    Ecns.cn     Web Editor: Li Jing

(Ecns.cn) -- On September 30, some media reported that the Myanmar side suddenly announced to suspend the construction of China-Myanmar cooperative Myitsone Hydropower Project. For this, Mr. LU Qizhou, President of China Power Investment Corporation (CPI), was interviewed by the Chinese media. He was very much astonished and puzzled to learn this and briefed on some issues related to the project and concerned by the outside.

LU Qizhou stated that as the major investor of the Myitsone Hydropower Project, CPI signed an MOU with the Myanmar Ministry of Electric Power No. 1 in 2006 and established a Joint Venture with the Myanmar government and company. In 2009, the Chinese and Myanmar governments signed the Framework Agreement on Joint Development of Hydropower Resources in Myanmar, explicitly supporting CPI in developing the upstream-Ayeyawady hydropower project, including Myitsone Hydropower Project. The Myitsone Hydropower Project has strictly performed all legal procedures of both China and Myanmar. In February this year, Myanmar's Prime Minister urged CPI to accelerate the construction while inspecting the project site. The sudden proposal of suspension now is very bewildering.

As for the project's contribution to Myanmar's economic and social development, LU Qizhou said that according to the BOT agreement, upon completion of the upstream-Ayeyawady hydropower project, CPI will be responsible for operation for 50 years and then transfer the project to the Myanmar government free of charge. During the concession period, the Myanmar government will gain direct economic benefits of USD 54 billion via taxation, free electricity and share dividends, far more than CPI's return on investment. After the project transfer, the Myanmar government will not only increase its fixed assets by tens of billions US dollars, but also gain hundreds of billions US dollars of operating income. Moreover, construction and operation of the project will help Myanmar cultivate a large group of technical and managerial power professionals, upgrade electric industry as well as improve downstream navigation, flood control and irrigation. The construction of 750km road, hydrological, meteorological and seismic observation network during the project implementation will also create favorable conditions for improving local people's livelihood. During the project construction peak, over 40,000 workers will be needed, which can considerably increase local job opportunities.

As for environment impact, LU Qizhou said that few NGOs criticize that the project will damage the environment, and disturb the Myanmar government to carry out economic project development to improve people's livelihood with the slogan of 'protecting the benefits of the Myanmar people'. He pointed out that during the 100 years of hydropower development, mankind's awareness of environmental protection has been deepening, and their ability in that has been improving continuously with technological progress. As a responsible super-large energy company, CPI attaches great importance to issues like environmental protection and has entrusted more than 100 Chinese and Myanmar experts to complete the basin environment impact assessment, the conclusion of which is that the project will have little impact on the environment.

Regarding resettlement, LU Qizhou stated that the Myanmar government attaches significant importance to resettlement and has effectively led and organized the planning, design and implementation of resettlement. According to the agreement, CPI assisted in the resettlement work and proactively fulfilled social responsibilities and obligations while fully respecting local religion, ethnic customs and the wish of migrants. During the resettlement, CPI provided 410 households in the Myitsone dam area to be relocated with 2-storey wood-and-brick houses, living subsidies, color TVs, rice, fertilizers and other living necessities, which improved the migrants' living conditions considerably.

LU Qizhou stated in conclusion: The Myitsone Hydropower Project fulfilled stringent legal procedures of both China and Myanmar, and both governments signed a framework agreement on this; Having undergone sufficient scientific research and proving, the project will contribute significantly to economic and social development in Myanmar; The project attached great importance to environment and strictly completed basin environment impact assessment; Relevant parties proactively fulfilled social responsibilities and carefully implemented resettlement. LU Qizhou said that this project is sure to withstand the test of history and hoped that with unremitting efforts of relevant parties, this project can smoothly move forward on schedule, and mutual benefit and win-win result will become a reality for China and Myanmar.