Introduction

Recently, the Myanmar government announced that it has established a national project steering committee to accelerate the construction of the Muse-Mandalay railway. This railway is a key section of China’s “One Belt, One Road” initiative and the China-Myanmar Economic Corridor (CMEC). It is of great significance in promoting economic exchanges between China and Myanmar and opening up the Indian Ocean sea channel for China.

According to a Myanmar government announcement, the Muse-Mandalay Railway Project Steering Committee was established on August 30, when Myanmar’s Acting President Min Aung Hlaing attended the China-Myanmar Economic Cooperation Promotion Conference in Tianjin, China. The committee has a total of 19 members, including a number of ministers and deputy ministers, and is chaired by the Minister of Transport and Communications Myo Tun Oo. The main responsibilities of the committee include formulating an intergovernmental negotiation framework, attracting domestic and foreign investment, implementing preferential development financing, establishing a special purpose vehicle (SPV) for the project, and reviewing relevant agreements between the military government and the company. All major matters need to be reported to the Cabinet and Economic Committee for approval.

The Muse-Mandalay Railway will connect Muse, an important town on the China-Myanmar border, with Mandalay and connect with the Kunming-Ruili section in China. It is an important part of the China-Myanmar Railway and the Western Line of the Pan-Asia Railway. The project has progressed slowly since planning due to regional conflicts. Despite the obstacles it faces, the Muse-Mandalay railway is still considered one of the most strategic projects. Analysts pointed out that China will continue to promote the implementation of this project, reflecting its high priority in maintaining strategic access to the Indian Ocean.

The Myanmar section of the China-Myanmar Railway will be advanced in two phases. The first phase is the 431-kilometer Muse to Mandalay section, and the second phase is the 494-kilometer Mandalay to Kyaukpyu Port section. Among them, the Muse-Mandalay section has a design speed of 160 kilometers per hour. The project includes the construction of 124 bridges, 60 tunnels and 11 power stations, and is expected to cost US$8.9 billion. The China Railway Second Institute has conducted cost accounting and preliminary research on the project. According to reports, the Myanmar government has established a project financial review committee dedicated to obtaining low-interest loans from China.