Former UN Secretary-General Kofi Annan’s Commission on Rakhine has recommended that the Myanmar government conducts a a strategic environmental assessment( SEA) and labour market assessment on Kyaukphyu SEZ

6 Sep 2017

The Commission cautions that large-scale projects in Rakhine State have bred local resentment towards the central government and stresses that local communities should have a greater say in the state’s development.

AN advisory commission tasked with finding solutions to the ethnic conflict in Rakhine State has recommended that the government conducts a strategic environmental assessment and labour market assessment for Kyaukphyu Special Economic Zone (SEZ). It also questioned the land acquisition activities in the area.

The final report of former UN Secretary-General Kofi Annan’s commission on Rakhine issue was submitted to President U Htin Kyaw on August 23 and subsequently released.

SEA and labour market assessment

Among its recommendations, the Commission repeated its call for the Myanmar government to implement a strategic environmental assessment (SEA) on the planned Kyaukphyu SEZ. An SEA will examine how the SEZ will affect local communities and the economic implications on sectors and industries in the region.

“The Commission reiterates that the government of Myanmar should carry out a comprehensive assessment [or a so-called strategic environment assessment] for Kyawkpyuh [Kyaukphyu] and its environs to explore how the SEZ may affect local communities and map how other economic sectors in the state may benefit [or possibly suffer] from the SEZ,” the report noted.

Foreign firms involved in Kyaukphyu should have a mechanism to consult and share information with local communities and civil society. The government should conduct a labour market assessment and mapping of labour demand for the SEZ.

“Moreover, the government should require foreign companies involved in the development of the SEZ to develop robust mechanisms for information sharing and consultation with local communities and civil society, in accordance with principles of corporate social responsibility.

“The government should carry out labour market assessments – as well as a mapping of anticipated labour needs generated by planned industrial development in Rakhine, including the SEZ – in order to design targeted vocational training. If vocational training is not market-linked, it will simply present incentives for migration,” the report stated.

Land acquisition activities in question

The report’s findings regarding Rakhine’s socio-economic development covered the region’s large-scaled development projects, including “Kaladan Multi-Modal Transport Transit” project which is jointly developed by India and Myanmar, as well as Kyaukphyu SEZ, which is expected to cover dozens of villages, and contain designated industrial parks for various industries.

Kyaukphyu is the location of various on-going and planned industrial projects, including an oil and gas terminal at Madae Island, which already serves as the starting point for an oil and gas pipeline to Yunnan Province in southwest China. The terminal receives gas from the fields off the coast of Rakhine, and functions as an offloading site for international oil tankers. 

It is the site of a planned SEZ and deep-sea port, which are expected to be developed mainly by a China-backed consortium.

There are concerns that the SEZ’s land acquisition activities are not in line with the laws and past records suggest that a lot are at stake, according to the Annan-led Commission. Construction of the oil and gas pipeline led to land seizures which caused significant local tension.

“Over time, the SEZ may potentially become a dynamic economic engine, generating jobs, growth and renewed optimism for communities in Rakhine – by itself and through spin-off industries enabled by the SEZ. Yet, there are reasons for concern. 

“The history of previous investments in Kyawkpyuh [Kyaukphyu], as well as other SEZs in Myanmar, suggests that the risk of negative consequences will be significant and economic improvements for local communities limited. 

“For instance, the construction of the oil and gas pipeline caused significant local tension related to land seizures, insufficient compensation for damages, environmental degradation, and an influx of foreign workers instead of increased employment opportunities for local communities.

“While the government has publicly stated the SEZ will be undertaken in line with international standards on resettlements, there are concerns that it is already not following its own laws in cases of land acquisition,” the report said.

Large-scale projects fuelling resentment

Creating economic growth and sustainable development in Rakhine will partly depend on whether Nay Pyi Taw allows local communities to have a greater say in the state’s development, and allow Rakhine to harvest some of the benefits of large-scale projects, the Commission argued.

It added that local communities often view the central government as exploitative because the preparation and implementation of these projects have not included them. 

“Large-scale investment projects in Rakhine have also served to nurture local resentment towards the central government. 

“Local communities are largely excluded from the planning and execution of such projects. Profit tends to be shared between Naypyitaw [Nay Pyi Taw] and foreign companies, and as a consequence, local communities often perceive the government as exploitative.

“During its many consultations in Rakhine, the Commission met with numerous villagers, community leaders and civil society representatives who accused the government of exploiting the state’s natural resources without giving the local communities their fair share,” the Commission observed.

Latest development

A Memorandum of Understanding (MoU) between China and Myanmar relating to a national-level framework for the Kyaukphyu Special SEZ is expected to be signed soon, according to Dr Oo Maung, vice-chair of Kyaukphyu SEZ Management Committee. Dr Oo Maung told The Myanmar Times on August 4 that he expected the signing to take place within August but The Myanmar Times has been unable to provide updates so far.

No Environmental Impact Assessment (EIA) on Kyaukphyu SEZ has started. Article 83 of the EIA Procedure provides that an SEZ Permit can only be granted to a developer after the issuance of an Environmental Compliance Certificate by the environment ministry. 

In addition, the EIA Procedures requires developers to disclose timely project information with communities and civil society, according to the International Commission of Jurists. The procedure obliges developers to ensure that affected parties have opportunities to express their views and concerns before an EIA starts, as well as during and after the process.

Land acquisition in the SEZs should occur only after the completion of a resettlement plan in order to ensure compliance with the objectives of international standards on involuntary resettlement, which is recognised in Myanmar’s national law. 

Transparency needed before MoU signing

Sean Bain, legal consultant from the International Commission of Jurists in Myanmar, told The Myanmar Times that decisions on Kyaukphyu SEZ should not be “made behind closed doors”.

He stressed that the public has a right to know what has been planned before the government signs an MoU with developers. 

“Efforts to rush these projects, by setting unrealistic timelines for impact assessments or not properly investing in resettlement planning, would contravene national laws and result in human rights violations, thus diminishing any potential development benefits for locals.

“In any agreement, the government should require the investor to establish a robust mechanism for sharing information and consulting with communities. This is international best practice and it is a recommendation of the Rakhine Advisory Commission.

“For projects of this scale, the public has a right to know what has been planned before the government enters agreements. 

“This is why the ICJ, along with the Rakhine Advisory Commission chaired by Kofi Annan, has called for a strategic environmental assessment of the Kyaukphyu projects. This should inform any investment agreements.

“Greater transparency is needed here: decisions affecting human rights in Myanmar should no longer be made behind closed doors,” Mr Bain stated.

 

(The Myanmar Times: https://www.mmtimes.com/news/annan-commission-repeats-call-kyaukphyu-sez-assessment.html )