As previously reported, one of the China-Myanmar Economic Corridor’s main components, the Kyaukphyu Economic Zone has inched one step closer this week to becoming reality.
Part of the global Belt and Road Initiative aiming to connect China to global supply chain hubs, the joint venture set up between a Chinese company and a government-backed committee to develop the Kyaukphyu deep-sea port in Rakhine State, received its registration from the Directorate of Investment and Company Administration (DICA) agency last week.
According to company registration documents the Kyaukphyu Special Economic Zone Deep Seaport Co. Ltd is made between Chinese consortium CITIC Myanmar Port Investment Limited and the Myanmar government-backed Kyauk Phyu Special Economic Zone Management Committee.
The Chinese company holds a 70% stake in the venture and the Myanmar committee 30%.
The share-ratio in the joint venture was successfully renegotiated in 2015 by the civilian government and the project’s budget considerably reduced after “debt-trap” critics pointed the imbalance in the initial terms.