Sunday, March 30, 2008

India set to sign transport project agreement with Myanmar

The Economic Time

NEW DELHI: Brushing aside pressures from the international community, India is set to sign an agreement for an ambitious multi-modal transport project with Myanmar during the visit of the second most powerful man in the country's ruling military junta here from Wednesday.

Economic cooperation, connectivity, security and energy are among the issues that are expected to dominate the talks that Vice Senior General Maung Aye will hold with Indian leaders, sources told PTI.

Myanmar's movement towards democracy will also come up for discussion.

The highlight of the visit is expected to be the signing of the USD 110 million Kaladan multi-modal transport project that will provide easier access to North East region besides alternate connectivity between India and Myanmar, bypassing Bangladesh.

The project envisages connectivity between Indian ports on the eastern seaboard and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram.

India will contribute about USD 100 million as well as be liable for any cost overruns while Myanmar will contribute USD 10 million and free land for the project, sources said.

After six rounds of talks since 2003, the two sides have already initialed the Draft Framework Agreement on the Project, Draft Protocol on Facilitation of Transit Transport, Draft Protocol on Financial Arrangements and Draft Protocol on Joint Maintenance and Administration.

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