Deal #5814

Location #1

Spatial accuracy level
Exact location
Location
Kyaukpyu, Myanmar (Burma)

Latitude
19.4212029
Longitude
93.54584890000001
Target country
Myanmar

Land area

Intended size (in ha)
1736.0
Comment on land area
State media reported on 30 December 2015 that the Union Parliament approved an area of 4,289 acres (1,736 hectares) for development of the SEZ and related projects. SEZ parks total 990 ha, seaports at 246 ha and residential parks at 500 ha

Intention of investment

Intention of investment
Industry
Comment on intention of investment
Special Economic Zone

Nature of the deal

Nature of the deal
Lease

Negotiation status

Negotiation status
Intended (Under negotiation)
Comment on negotiation status
An MoU between China and Myanmar relating to a national-level framework for the Kyaukphyu Special Economic Zone (SEZ) is likely to be signed by August, a spokesperson of Kyaukphyu SEZ Management Committee told The Myanmar Times during an exclusive interview on August 4. https://www.mmtimes.com/business/27137-mou-on-kyauk-phyu-sez-likely-in-august.html

Implementation status

Implementation status
[2015-01-01] Startup phase (no production)
Comment on implementation status
The Kyaukphyu SEZ project started in 2015 with a 35-year project timeline. Construction is also due to start in 2018. https://www.mmtimes.com/business/27137-mou-on-kyauk-phyu-sez-likely-in-august.html https://www.mmtimes.com/business/27137-mou-on-kyauk-phyu-sez-likely-in-august.html

Contract #1

Duration of the agreement (in years)
50

Number of total jobs created

Jobs created (total)
Yes
Planned number of jobs (total)
103000
Comment on jobs created (total)
https://www.icj.org/wp-content/uploads/2017/02/Myanmar-SEZ-assessment-Publications-Reports-Thematic-reports-2017-ENG.pdf

Operating company

Name of investment project
Kyaukphyu Special Economic Zone (SEZ)

 

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Data source #1

Data source type
Research Paper / Policy Report
File
Publication title
Special Economic Zones in Myanmar and the State Duty to Protect Human Rights
Date
2017-02-01
Comment on data source
International Commission of Jurists. 2017. Special Economic Zones in Myanmar and the State Duty to Protect Human Rights (contains: area information)

Data source #2

Data source type
Media report
File
Publication title
The great land rush Myanmar: The dispossessed
Date
2016-01-03
Comment on data source
The financial times: The great land rush. Myanmar: The dispossessed. This reference contains specific experiences of local communities affected by the SEZ.

Data source #3

Data source type
Media report
File
Publication title
MoU on Kyaukphyu SEZ likely in August
Date
2017-08-07
Comment on data source
Myanmar Times: MoU on Kyaukphyu SEZ likely in August (contains: investor information as well status of investment)

Data source #4

Data source type
Media report
File
Publication title
Exclusive: China seeks up to 85 percent stake in strategic port in Myanmar
Date
2017-05-05
Comment on data source
Reuters: Exclusive: China seeks up to 85 percent stake in strategic port in Myanmar

Data source #5

Data source type
Media report
Publication title
China's $10 billion strategic project in Myanmar sparks local ire
Date
2017-06-09
Comment on data source
Article containing information of promised benefits to communities Lone, W. & Lee, Y. (2017). China's $10 billion strategic project in Myanmar sparks local ire. in Reuters.com. Accessed at https://www.reuters.com/article/us-china-silkroad-myanmar-sez/chinas-10-billion-strategic-project-in-myanmar-sparks-local-ire-idUSKBN18Z327

Data source #6

Data source type
Media report
Publication title
CITIC Myanmar Investment Tracker
Comment on data source
Contains specific data on promised benefits to local communities.

Names of communities / indigenous peoples affected

Comment on communities / indigenous peoples affected
The designated SEZ area covers 35 villages across nine village administrative tracts, with a population of around 20,000 people. These villages are located to the south of Kyauk Phyu Town on the island of Ramree . Information is not publically available regarding the number of people who will be directly affected by development of the SEZ. Project plans, undisclosed to the public, which were citied by the ICJ also do not include the projections of the total number of persons likely to be displaced. Population data, paired with the maps contained in the SEZ plans acquired during research for this report, indicates that up to 20,000 people live in the designated SEZ area and may be facing involuntary resettlement. One third of these [6,568] people reside in the village tracts included in Phase 1 development plans.

Consultation of local community

Comment on consultation of local community
In some of the subprojects of the SEZ (two reservoirs), it was reported that there was no formal or prior notification of the state's intention to acquire farmland. https://www.icj.org/wp-content/uploads/2017/02/Myanmar-SEZ-assessment-Publications-Reports-Thematic-reports-2017-ENG.pdf

How did the community react?

Community reaction
Mixed reaction

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
During the conduct of the survey, disputes arose between the survey team and residents – mostly farmers – who were monitoring the process. Where the surveyors identified land they considered as being unutilized, it was documented according to the classifications of the 2012 Vacant, Virgin and Fallow Land Law. Farmers say they disputed a number of these classifications, for a variety of reasons: the area is pasture land used for grazing animals; the land is used to grow seasonal vegetables; or the land may not currently be in use but is nonetheless governed by customary tenure rights known as dama oo cha (ancestor’s property). https://www.icj.org/wp-content/uploads/2017/02/Myanmar-SEZ-assessment-Publications-Reports-Thematic-reports-2017-ENG.pdf

Displacement of people

Displacement of people
Yes
Comment on displacement of people
Seventy-seven farmers are identifed as being affected by the planned land acquisition for phase 1. In an online publication, only SEZ subprojects were studied, as such the impacts to all communities affected for the whole zone cannot yet be ascertained

Negative impacts for local communities

Negative impacts for local communities
Socio-economic
Cultural loss
Displacement

Promised or received compensation

Promised compensation (e.g. for damages or resettlements)
Cash compensation based on the damaged assets. There was also promised replacement farmland.
Received compensation (e.g. for damages or resettlements)
In some areas there were two categories of compensation payments - compensation and karuna kyay (or compassion money). However, some residents say that compensation was calculated below market prices and was insuffcient to purchase replacement land and assets.

Promised benefits for local communities

Promised benefits for local communities
Education
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Financial Support
Other
Comment on promised benefits for local communities
Management Committee members verbally promised that displaced residents would have access to upgraded local infrastructure, job opportunities and replacement farmland. CITIC says it will build a vocational school to provide training for skills needed by companies in the economic zone. It has given $1.5 million to local villages to develop businesses. The SEZ will create jobs for the local community, provide training, create new business opportunities, and improve the overall living standards. CITIC plans to establish the CITIC BN Vocational School and provides a one year vocational training program for students from local low-income families. Each year, 100 students of 16 to 20 years old will be trained to be skilled workers and then work for companies in KPSEZ after graduation. CITIC launched a “Village Fund Program” last year and provided the amount of $1.5million to 50 local villages to create business opportunities and aim for improving local villagers’ overall living standards. As soon as learning Myanmar flood disaster occurred in July 2015, CITIC dispatched a working group to Myanmar providing first aid services. CITIC delivered relief supplies valued at 300,000 USD to flood-affected areas for local communities. Meanwhile, CITIC deployed a helicopter to flood affected areas offering free air freight services, valued at 150,000 USD.

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)

Presence of organizations and actions taken (e.g. farmer organizations, NGOs, etc.)
International Commission of Jurists

Former land owner (not by constitution)

Former land owner
Private (smallholders)

Former land use

Former land use
Smallholder agriculture
Pastoralism
Other
Comment on former land use
Land may not currently be in use but is nonetheless governed by customary tenure rights known as dama oo cha (ancestor’s property)

Former land cover

Former land cover
Cropland
Pasture
Other land (e.g. developed land – specify in comment field)
Comment on former land cover
Residential areas

Overall comment

Overall comment
Share between Chinese investor and Myanmar company under discussion. The project is still on-going will last until at least 2038. Therefore there will be changing dynamics in the future. While there are communities, business and CSOs that are against the project, it is also Myanmar's attempt to boos the economy in one of its poorest regions. This project is part of China's One Belt Road initiative.

July 26, 2020, 10:58 a.m.

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Feb. 9, 2018, 12:01 p.m.

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