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Myanmar dam project halted

Myanmar dam project halted

MYANMAR: Beijing has urged Myanmar to protect the rights of Chinese companies after the government halted construction of a $3.6 billion (B 108 billion) China-backed mega dam following public opposition to the project.

Friday 7 October 2011, 06:04PM

China is Myanmar’s second-largest trading partner and biggest foreign investor, and Beijing’s reaction is a rare public display of discord between the two countries.

Myanmar President Thein Sein on Friday ordered work on the Myitsone Dam on the Irrawaddy River to stop – a decision hailed by the United States as a sign the military-backed leadership was listening to its people.

But Chinese foreign ministry spokesman Hong Lei on Saturday urged “relevant countries to guarantee the lawful and legitimate rights and interests of Chinese companies”.

“The Myitsone power station is a jointly invested project between China and Myanmar” and it has been “rigorously examined by both sides”, Hong said in a statement.

Hong called for both sides to “properly handle” the matter through “friendly consultations”.

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Isolated by nearly half a century of military rule, Myanmar has long relied on its giant northern neighbour for both political and economic support.

Beijing has helped shield Myanmar from international opprobrium and the impact of western sanctions with trade ties, arms sales, and through its position as a veto-wielding permanent member of the UN Security Council.

Energy-hungry China has been pouring money into the isolated state’s sizeable natural resources, and the dam in northern Kachin state was backed by energy giant China Power Investment Corp.

The project has attracted opposition from pro-democracy groups and environmentalists testing the limits of freedom under Myanmar’s new nominally civilian regime – in March the junta handed power to a government whose ranks are filled with former generals.

Green groups have warned the dam would inundate an area about the size of Singapore, submerging dozens of villages, displacing at least 10,000 people and irreversibly damaging one of the world’s most biodiverse areas. –AFP

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