AA pledges to protect foreign projects in Arakan State

By Admin 13 Aug 2025

DMG Newsroom

13 August 2025, Mrauk-U

The Arakan Army (AA) has said it will continue to support and protect foreign investment projects funded by India and China in Arakan State.

The AA announced in March 2024 that it would protect all foreign investments, promising to protect the safety and lives of those seeking to make mutually beneficial investments for the development of Arakan State.

There are large investments and projects from China and India in Arakan State, and currently most of the foreign projects in Arakan State are under the control of the AA.

AA spokesman U Khaing Thukha said the India-funded Kaladan Multi-Modal Transit Transport project, which has been stalled, will be jointly implemented.

"The AA will cooperate and assist in a positive manner and as much as possible to complete the Kaladan Multi-Modal Transit Transport project," U Khaing Thukha said at a press conference on August 11.

The Kaladan Multi-Modal Transit Transport Project was signed by the Myanmar and Indian Ministries of External Affairs in 2008.

The project route is intended to connect the Kaladan River from an India-funded port in Sittwe to Paletwa by waterway and from Paletwa to Mizoram by road.

With the exception of Sittwe, the AA controls the Pauktaw, Ponnagyun, Kyauktaw, and Paletwa regions where the Kaladan River flows, making the ethnic armed group play a crucial role in the Kaladan Multi-Modal Transit Transport Project.

Economic analysts say the Indian-funded Kaladan Multi-Modal Transit Transport project will be a major boost for Arakan State's economy once completed.

The AA also controls most of the project's assets in Kyaukphyu, where China's deep-sea port is being developed. This has led to further assurances from the AA that it will protect any foreign investment. "The Arakkha people's government has already announced that it will protect any investment. We are continuing to act on these statements," said U Khaing Thukha.

China is implementing a multi-billion dollar deep-sea port and special economic zone project in Arakan State's Kyaukphyu, as well as an oil pipeline project that will export millions of tons of crude oil to China annually.

Chinese projects such as the Kyaukphyu-Ann railway, Mandalay-Kyaukphyu railway, Ann wind power project, Mandalay-Kyaukphyu highway, Kyaukphyu natural gas-fired power project, and Thandwe wind power project are already fully or partially under the control of the AA.

"I see the AA protecting Chinese interests due to political connections. The Three Brotherhood Alliance is backed by China. Although the AA is not geographically linked to China, there may be some pressure. I think the Indian project is because of its potential for economic benefits in Arakan State," said an Arakan State observer.

The Chinese government, in large part due to its many projects in Arakan State, has strong political ties with the AA, and is also dependent on India for trade.

Political analysts believe that good relations with major countries such as China and India are a positive sign for the AA.

"China has consistently urged both the military regime and ethnic armed groups to protect their investment projects and Chinese citizens in Myanmar. If the AA is a responsible organisation, it should act in this manner," said an economic analyst who monitors China-Myanmar relations.

A report by the Institute for Strategy and Policy - Myanmar (ISP - Myanmar) released in January found that the AA had full control over eight of China's 11 major projects and only partial control over three.