In yet another setback for China’s expansionist plans, the Myitkyina Financial Growth Zone (MEDZ) – a part of China’s ambitious Belt and Road Initiative (BRI) – is behind schedule due to reservations from the Myanmar government and its residents.
China’s headache continues to multiply in its southern neighbor Myanmar with a series of BRI associated infrastructure projects that hopes to provide Beijing access of Bay of Bengal facing critical pushback.
After the Yangon mega city project where Beijing’s position has been minimized China funded Myitkyina Financial Growth Zone (MEDZ) – which was scheduled to be ready by 2021 – in Myanmar’s Kachin state is yet to take off due to serious differences between the Myanmar government and Chinese firm over land acquisition and compensation package.
It was also revealed that that the clauses in the project’s MoU – which was signed in 2018 – were later tweaked to favour the Chinese developer.
Recently, Tin Oo Yu, chairman of the Kachin parliament’s planning, finance and public accounts committee, told the local media that he has not been informed of the details of the project and is worried locals will lose their land. “China always monopolizes these ventures,” he alleged.
According to the MoU, the Chinese company allotted MEDZ will enjoy highly favourable terms at the expense of the public. “Other investment companies would not be able to operate even if the project was delayed or not implemented”, Khine Win, Sandhi Governance Institute’s executive director told local media.
“The project may lead to an increase in the illegal cross-border trade of jade and timber”, the Sandhi Governance Institute’s report warned adding that “the company’s reliability and expertise in developing economic zones are questionable”.
Recently, Myanmar decided to involve international partners in the Chinese funded mega Yangon City Project, a key pillar of BRI. The Myanmar government decided to open up the project for other foreign firms besides China Communications Construction Company (CCCC), as it is not keen that one single company dominates the mega project.
The project has been a source of controversy due to its flood-prone location as well as the CCCC’s involvement. Chinese state-owned CCCC has been accused of corruption relating to development deals in at least 10 countries in Africa and Asia.
The New Yangon City project is an element of the China-Myanmar Economic Corridor (CMEC), which is part of the BRI. The CMEC will connect Yunnan province in China to Mandalay in central Myanmar, Yangon New City in the south and the Kyaukphyu Special Economic Zone in the west.
While Myanmar has joined the BRI and signed up to certain projects that may give China access to the Bay of Bengal, implementation of projects has been slow. Myanmar remains wary of Chinese debt trap and has reduced Chinese footprints in some projects.