Maung Sar Ga, Narinjara News, 13 March 2025

Vice Senior General Soe Win, the deputy chairman of the junta, has urged the effective execution of the Chinese-supported Special Economic Zone (SEZ) deep-sea port project in Kyaukphyu Township, Arakan State, amid ongoing conflicts between the Arakan Army (AA) and junta troops.

The remark was delivered during a speech at the second coordination meeting of the Central Committee regarding Myanmar Special Economic Zones for the fiscal year 2024-2025, which took place at the Ministry of Commerce in Naypyidaw on March 11.

Vice Senior General Soe Win emphasized that the concession agreement for the deep-sea port project at Kyaukphyu SEZ was signed on November 5, 2020.

On December 26, 2023, the project company and the Kyaukphyu SEZ Management Committee signed an addendum that extended the Long Stop Date.

"The expansion phase will conclude on June 25, 2025, thus both parties need to finalize the work tasks within two months prior to the deadline." He stated, "The work committee, along with other pertinent committees, must offer the required support to guarantee completion."

He highlighted the economic and political significance of the Kyaukphyu SEZ, asserting that the initiative could provide considerable advantages for local communities and Myanmar, given the existing geopolitical context.

Vice Senior General Soe Win additionally remarked that the successful realization of the deep-sea port could enable Myanmar to take part in the Myanmar-China Economic Corridor and enhance bilateral collaboration within the Belt and Road Initiative.

The Arakan Army (AA) is currently engaging in attacks against the junta's Dhanyawadi naval base, which is the biggest naval installation in Kyaukphyu Township, and the 32nd Police Battalion located in Kyaukphyu Town, leading to intense clashes.

A past parliament member from Kyaukphyu Township proposed that the junta's effort to carry out the SEZ deep-sea port project during the ongoing conflict might be a strategy to attract Chinese investment.

"Currently, Myanmar's economy is facing a decline, and due to the continuing conflict, there is no revenue. In that scenario, they might request upfront financing by claiming to construct the SEZ deep-sea port. That's why I perceive the building of the SEZ deep-sea port as simply a performance," he stated.

The Kyaukphyu deep-sea port initiative is projected to have a cost of US$7.3 billion, as stated by the Institute for Strategy and Policy—Myanmar (ISP-Myanmar).

The deep-sea port will be built on 4,289.32 acres of land, covering 35 villages in nine village tracts within Kyaukphyu Township.

Among these 35 villages is Kat Tha Pyay village, where the junta carried out a drone bombing

Among these 35 villages is Kat Tha Pyay village, where a drone bombing by the junta occurred on March 10, injuring one civilian and destroying at least 20 homes. The village of U Gin, targeted by the junta's bombing on March 6, has experienced a significant number of its homes being destroyed by fire.

Additional villages affected include Kyet Tain, Doe Ma Taung, Kyan Chai, Saing Chon, Saing Chon Don, Shauk Chaung, Si Maw, Lan Kwae Lan Sone, Pyar Te, along with Daunt Chaung, Sit Taw, Kular Bar Taung, and Tha Phan Khar, which were hit by airstrikes on February 27, totaling 35 impacted villages.

The junta has additionally set landmines in these regions and carried out airstrikes and shelling from the Dhanyawadi naval base, rendering the project currently impractical, as stated by the former MP from Kyaukphyu Township.

"There is continuous conflict in the regions where the SEZ deep-sea port is intended to be constructed. Moreover, numerous landmines exist in these vital regions. Considering the ecological harm and safety threats to the villages, I think the development of the SEZ deep-sea port is unfeasible," he stated.

Vice Senior General Soe Win did not make any remarks regarding the conflict in Kyaukphyu Township while delivering his speech.

The Chinese state-owned enterprise CITIC has won the tender to build and develop the deep-sea port at Kyaukphyu SEZ.

The SEZ will consist of three key projects: the Kyaukphyu Deep Sea Port, an Industrial Zone, and a Residential Zone, with priority given to the development of the deep-sea port.

The deep-sea port will be constructed on 370 acres of land on Maday Island and 237 acres on Ramree Island, which are both located to the east of Kyaukphyu.