Powering a conflict: the Kachin Independence Organisation's hydropower business

Sub-title: 

While Tatmadaw and Kachin Independence Army soldiers face off in a long-running conflict, a company owned by the Kachin armed group has been profiting from the sale of power to government-controlled Myitkyina and Waingmaw townships.

Description: 

"This story was supported by the Pulitzer Center on Crisis Reporting. For nearly two decades following its 1994 ceasefire, the Kachin Independence Organisation built up a business empire that intertwined formally with the state. The vehicle for many of these businesses is Buga Co Ltd, which the KIO’s economic department registered with the Directorate of Investment and Company Administration in early 1995. But after the resumption of conflict in June 2011, many of Buga’s businesses unraveled or were forced into the black economy. A sugar factory in Namatee, Mogaung Township, was forced to stop operations later in 2011. A tourism office at Laiza, where the KIO is based, that sought to encourage visits by Chinese and Myanmar tourists has long ago shuttered. The company has also been forced to scale back its mining concessions, including at jade-rich Hpakant. But one Buga business has continued to prosper: electricity production and distribution. Since 2007, it has been selling electricity to government-controlled areas of the state under a 20-year agreement struck with the former military regime. While a cascade of China-backed megadams has been planned for Kachin State, the projects have been stalled by local opposition and the conflict between the Tatmadaw and KIO. As a result, the Ministry of Electricity and Energy produces only minimal amounts of electricity in Kachin State and there is little transmission capacity to import power produced elsewhere in Myanmar. Other regions are also facing their own supply shortages, particularly during hot season..."

Creator/author: 

Ye Mon

Source/publisher: 

"Frontier Myanmar"

Date of Publication: 

2019-08-26

Date of entry: 

2019-08-26

Grouping: 

  • Individual Documents

Category: 

Countries: 

Myanmar

Administrative areas of Burma/Myanmar: 

Kachin State

Language: 

English

Resource Type: 

text

Text quality: 

    • Good