China and Myanmar finally signed an agreement on Thursday to proceed with a slimmed down port project at Kyaukpyu on the Bay of Bengal. China’s Citic Group will develop the port with Beijing funding 70% of the development as Myanmar finds itself at the centre of a tussle for infrastructure projects between giant neighbours India and China.
The initial phase of the project will include two container berths with a total investment of $1.3bn, according to the agreement.
The Chinese consortium first won the bid to construct the port in December 2015 with an estimated investment of $7bn. Differences between the two sides however saw the project put on hold for a number of years.
Last month India and Myanmar agreed to move ahead with the development of Sittwe port, also on the Bay of Bengal.