India signs agreement to build two dams in Myanmar

The Associated Press
Published: September 19, 2008

YANGON, Myanmar: An Indian state enterprise has agreed to help build two hydroelectric dams in northwestern Myanmar, Myanmar state media reported Friday.
The New Light of Myanmar newspaper said that the country's Hydroelectric Power Department signed a memorandum of understanding with India's National Hydroelectric Power Corporation Ltd. to build the 1200-megawatt Htamanthi hydroelectric power project and the 600-megawatt Shwesaya project in northwestern Chin state.
The agreement was signed Tuesday in the Myanmar capital of Naypyitaw, said the report, which provided no further details.
India is Myanmar's western neighbor, and competes for influence with China, the ruling junta's closest ally and diplomatic supporter.
India, the world's largest democracy, was a harsh critic of the junta in the immediate aftermath of its suppression of a pro-democracy uprising in 1988. But concern that China was gaining too much influence over Myanmar contributed to a diplomatic about-face, and relations have improved significantly since 2000, with the country's leaders exchanging visits.

The second-highest ranking member of Myanmar's junta, Vice Senior Gen. Maung Aye, visited India in April to witness the signing of a US$120 million project to upgrade waterways and highways along Myanmar's Kaladan River and develop the port of Sittwe in western Myanmar.
During a visit to Myanmar by an India minister in June this year, India agreed to provide Myanmar with US$84 million in loans and credits to build power transmission lines and an aluminum plant.