Anagreement was signed on 24 July to build a friendship city between KyaukPhyu of Rakhine State and Qilin of China’s Qilin State.

KyaukPhyu is the second largest city of Rakhine State in Myanmar, where China'simportant oil & gas  investment projects are located. On theother hand, Qilin is the capital city of the industrially booming Qilin Stateof China.

Thepurpose of building a city of friendship is to promote China-Myanmar diplomaticrelations in accordance with the founding principles of the two countries'friendship and cooperation.

Itis written in the Chinese-Burmese bilingual contract of agreements that bothsides intend to build Qilin city and KyaukPhyu city as a city of friendship.

Theagreement also mentioned that on the basis of mutual equality and benefit, thepeople of two countries will jointly promote and actively cooperate in variousfields of friendship, trade & commerce, science & technology, culture,sports, education, human resources and other fields.

Agroup led by Mr Hubin, secretary of Qilin city committee of the Communist Partyof China, and another group led by U Nyein Chan Maung, chairman of Kyauk Phyu Districtlocal Ethnic Development Association (KDNEDA) attended and endorsed theagreement.

Thesigning ceremony was organized at the China-Myanmar economic cooperation anddevelopment promotion association conference hall in Yangon at 4 pm on Monday.

Hubin,also the mayor of Qilin, added that Kyauk Phyu is located in China's modernsilk road (under One Belt, One Road initiative) and hence many opportunitiesare expected to be gained through development activities.

“Sevenmain types of industries have flourished in Qilin, including iron smelting,chemical manufacturing, construction, manufacturing of modern appliances,agriculture, tourism, etc,” he added.

KyaukPhyu will be able to cooperate in all these industries very soon. KDNEDApresident Nyein Maung also said that both the cities have now become eternalfriends and will work more meaningfully.

"Expertshave opined that if a strong development initiative is taken engaging China,India and Middle Eastern countries, it would be an economic focal point.Moreover, the construction of a special economic zone in Kyauk Phyu region,which has many advantages in terms of geographical position, may pull up 80percent of Myanmar's GDP,” he added.

Thesigned contract will be valid for five years and after that with the consent ofboth parties, it will be extended.

KyaukPhyu hosts China's projects like the special economic zone and the deep seaport. Both the projects were initiated in 2015.

InDecember 2022 , a group of companies under the leadership of ChinaInternational Trust Investment Corporation (CITIC) won the tender to build adeep seaport and special economic zone.

KyaukPhyu deep sea port will be built with a 2,500-meter wide and 600-meter long inMaday island and a 1,500-meter wide and 600-meter long in Rambree island.

Theport will be able to deal with large cargo ships like Mother Vessels, Carriers,Supertankers (above1,000 feet) etc.

KyaukPhyu’s Shwe natural gas and produced from the Rakhine coastal oil blocks areexported to China. Moreover, shipped from other countries, the oil istransported to Kunming through the pipeline.

However,local residents are worried over China's economic projects which may lead toloss of existing livelihoods and will not change the employment opportunitiesof them.

Dueto the deep-sea port construction, local fishermen expressed apprehension thatit would destroy the natural ecosystem along the Kyauk Phyu coastal area andlocal fishermen's blocks to create problems in their survival strategies.