China trying to revive Myanmar rail project

Saibal Dasgupta,TNN | Jul 26, 2014,

 China is desperately trying to revive a railway project connecting it with Myanmar. The $20 billion project that would connect China to the Indian Ocean through Myanmar has been cancelled by Nay Pyi Taw, according to reports in the local media.

BEIJING: China is desperately trying to revive a railway project connecting it with Myanmar. The $20 billion project that would connect China to the Indian Ocean through Myanmar has been cancelled by Nay Pyi Taw, according to reports in the local media.

Chinese Ambassador in Myanmar, Yang Houlan, has also indicated the project has run into difficulties. But he denied reports that China has abandoned the project, the official Xinhua news agency said.

"We have also seen that at a time when China-Myanmar relations are experiencing more opportunities, there also emerge some challenges," Xinhua quoted him as saying.

Xinhua also quoted an unnamed "economic official" in Myanmar saying that the Kyaukpyu-Kunming railroad project is not cancelled. "I understand that it needs time to continue coordination," the official said.

China and Myanmar signed a memorandum of understanding on the project in 2011.

"We made a memorandum of understanding between the two parties. Now, we haven't made any new agreement to start operations, so what I can say is that we aren't working on this project," Myanmar's The Irrawaddy newspaper quoted a railway official as saying. The paper said Myanmar decided not to go ahead with the project as China had itself abandoned it.

"Actually, the cost proposed by China for the project was not sufficient to construct the long railroad, and, also, there are other environmental impact issues that we would have to consider along the railroad," the official told The Irrawaddy.

India has been worried about China's determined push to gain access to the Indian Ocean because it can have military implications. The Tibet railway has proved to be a useful asset to strengthen China's defenses on the Indian border, it is pointed out.

The Chinese ambassador told Xinhua that China is the biggest source of investment and trading partner for Myanmar. The two countries have established Comprehensive Strategic Cooperation Partnership, and have agreed to cooperate in the area of economic development.