China agrees to lower stake in Myanmar port scheme
Chinese conglomerate to take 70 per cent stake in project, Myanmar official says, amid concerns over China’s economic clout in Southeast Asian nation
China has agreed to take a 70 per cent stake in a strategic seaport in Myanmar, the lower end of the proposed ownership range, amid concerns in the Southeast Asian nation about Beijing’s growing economic clout in the country.
Myanmar’s government had pushed for a better deal in negotiations with a consortium led by China’s Citic Group over the Kyauk Pyu deep seaport, a signature project in China’s “Belt and Road Initiative”, said Oo Maung, vice-chairman of the government-led committee for the project.
Both sides reached an agreement for the estimated US$7.2 billion project in September, although further negotiations are needed, Reuters reported.
State-owned Citic had earlier proposed a 70 per cent to 85 per cent stake in the Bay of Bengal port after rejecting Myanmar’s proposal late last year for a 50/50 joint venture.
“Locals from Rakhine and communities across Myanmar think that the previous 85/15 per cent agreement is unfair to Myanmar,” Oo Maung said. “People disagree with the plan and the government is now trying to make a better deal.”
Further discussions are under way over financing and the proposal has been submitted to Myanmar’s vice-president Henry Van Thio for approval.