Myanmar Deal Gives Northeast Access to Sea

Author: 
Nilofar Suhrawardy, Arab News
Publication Date: 
Fri, 2008-04-04 03:00

NEW DELHI, 4 April 2008 — India has signed a major transport agreement with Myanmar giving its northeastern states access to the sea and Southeast Asia, bypassing transit through Bangladesh.

Highlighting the project’s significance, India’s External Affairs Ministry said in a statement: “The project will greatly enhance connectivity between Myanmar and India, in particular with India’s northeastern states.” The project, at a cost of about $132 million, includes construction of a road from Setpyitpyin in Myanmar to the border with India as well as upgrading of Kaladan waterway and Sittwe port.

The agreement was signed in the presence of Vice Senior Gen. Maung Aye, vice chairman of the State Peace and Development Council of Myanmar, and Indian Vice President Hamid Ansari on Wednesday evening.

The agreements signed in their presence included two protocols on the Kaladan Multi Modal Transit Transport project and an accord on avoiding double taxation. At the head of a high-level delegation, Aye is visiting India at the invitation of Ansari.

While in Delhi, Aye called on President Pratibha Patil, Vice President Ansari and Prime Minister Manmohan Singh. He also met with External Affairs Minister Pranab Mukherjee, the chief of army staff and the leader of the opposition.

During their meeting, Prime Minister Manmohan Singh expressed happiness at the signing of the agreement on the Kaladan transport project and other accords. Manmohan Singh also laid stress on the importance of pursuing various cross-border projects to promote greater connectivity and economic engagement between the two countries.

The two leaders noted that more needed to be done to enhance trade between the two countries and, toward this end, agreed to take steps to open up the existing border points in the northeastern states for regular trade.

Both leaders recognized the need to cooperate closely in the hydrocarbon sector and Manmohan Singh reiterated India’s commitment to support Myanmar in the telecommunication and the information technology sectors, government sources said.

Yesterday, top industry organizations of Myanmar and India welcomed the transport agreement as they signed a memorandum of understanding (MoU) to “promote cooperation” in specific areas between the private sectors of the two countries. The Union of Myanmar Federation of Chambers of Commerce and Industry and the Confederation of Indian Industry signed the MoU aimed at enhancing trade between the two neighbors. The two chambers also agreed to organize a major event down the year by way of a “Made in India” trade fair in Myanmar.

As a follow up of MoUs signed earlier between the chambers, they are now keen to focus on enhancing cooperation and interaction in areas of information technology, pharmaceuticals, fertilizers, small and medium enterprises, oil and gas exploration, agriculture and food processing and transport, the MoU said.

The two sides also agreed to exchange industry delegations and task forces in the near future to enhance cooperation between India and Myanmar.

The two chambers signed an MoU in 2001, which was followed by an agreement to set up a joint task force in 2004 to identify key thrust areas of cooperation. An India Myanmar Joint Task Force report was brought out with suggestions and recommendations for enhancing trade and investment, cooperation in services, technology transfers and other areas of cooperation, the MoU said.

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