ASEAN-China Expo rekindles hopes for hydropower project (3)

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MASSIVE LOSSES TO BE STOPPED

Two years after the project was suspended, both Myanmar and China have suffered serious losses.

China Power Investment Corporation, the project's main investor, bears not only its initial investment of seven billion yuan, but also 300-million-yuan in annual expenses for financial interests, personnel and equipment maintenance, not to mention massive indemnities claimed by suppliers and contracted builders, according to Li Guanghua, General Manager of the Upstream Ayeyawady Confluence Basin Hydropower Co. Ltd.

The losses on the Myanmar side are also substantial.

If the project continues as planned, 30,000 locals will be employed.

The reality is, however, many of the 18,000 relocated remain jobless, said Li.

Worse still, the suspension has seriously discouraged the confidence of foreign investors in Myanmar.

Statistics show that the country's foreign investment dwindled from 20 billion U.S. dollars during the 2010-2011 fiscal year to 1.49 billion U.S. dollars for the 2012-2013 fiscal year.

According to Li, once put to use, the station is expected to contribute greatly to Myanmar's total GDP annually.

The adverse effects of the project's suspension have spread to the entire power industry. So far, nearly 50 foreign-invested hydropower stations in Myanmar have been put to a halt. A wait-and-see approach is pervasive in the market, Li said.

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