By Mahmut Atanur
BEIJING (AA) - China and Myanmar have agreed to enhance cooperation to find a solution to a controversial multi-billion dollar hydropower project being built by China in the neighboring country.
The Myitsone dam project was halted by Myanmar's former president, Thein Sein, in 2011 following growing criticism from prominent statesmen in Myanmar, including then-main opposition leader Aung San Suu Kyi.
However, during a five-day visit to China by now State Counselor Suu Kyi -- the Nobel Peace laureate's National League for Democracy (NLD) has been in power since March after winning the 2015 election -- state media Xinhua reported Friday that agreement with Chinese Premier Li Keqiang had been reached.
Chinese Vice Foreign Minister Liu Zhenmin told reporters after talks between the two Thursday that Suu Kyi had said Myanmar's new government has decided to set up an investigation committee to find a solution to the issue that is in both countries' interests.
He added that the premier had called on the two sides to properly promote major projects, including the dam -- financed and led by a state-owned Chinese company -- and the China-Myanmar oil and gas pipeline, to improve infrastructure construction and connectivity.
Environmental groups have claimed the dam site -- at the confluence of the Mali and N'Mai rivers in the Ayeyawaddy river basin -- is around 100 kilometers (60 miles) from an earthquake fault line, and would cause tremendous environmental impact to communities downstream.
The area of outstanding natural beauty -- the birthplace of the Ayayawaddy River, the longest river in Myanmar -- is seen as a national heritage site.
Around 90 percent of the electricity generated from the project is expected to go to China, although the exact amount has never been publicized and most people believe that Myanmar has little to benefit from the project.
Media reports have suggested that Myanmar has three options for the $3.6 billion project -- it can cancel the dam and be liable to the tune of $800 million in compensation, resume work on the project and earn $500 million a year in revenue on completion, or do nothing and pay $50 million in interest per year during the term of suspension.
Activists, however, are up in arms at the very thought that the NLD could give the green light to a project which they see as having very little material gain for Myanmar, yet would cause tremendous problems to local communities.
On Thursday -- the second day of Suu Kyi's trip -- China and Myanmar vowed to further enhance political trust with mutual respect, to advance major investment projects and to realize peaceful settlement of hostilities in northern Myanmar.
"China is the first country you've visited outside the Association of Southeast Asia Nations [ASEAN] after taking office as state counselor, showing the importance the government of Myanmar and you yourself have attached to the bilateral relations," said Premier Li.
Suu Kyi is expected to discuss Myanmar's ongoing peace talks with ethnic rebels groups from the north with Chinese officials.
China is on Myanmar's northern border, and in 2015, shelling from neighboring Myanmar wounded five people in the southern Chinese province of Yunnan -- cross-border fire that strained ties between the neighbors.
Li also said China respects Myanmar's sovereignty and territorial integrity and will continue to play a constructive role in promoting peaceful settlement of hostilities between armed ethnic groups and the national government in the north.
He gave the peace talks his best wishes, and said he hopes the 21st Century Panglong Ethnic Conference, to be held Aug. 31 in Myanmar's capital, is "a success”.
"We are willing to work with Myanmar to consolidate political trust and strengthen communication and cooperation in various fields to promote bilateral ties in the new era," said the premier.
He added that the pragmatic cooperation between the two aimed to benefit both peoples "and gain win-win results", noting that China is ready to integrate development strategies with Myanmar and plan cooperation in key areas.
Li called on both countries to boost cooperation in the economy, trade and agriculture, and to expand exchanges in culture, education and health.
Following Thursday's talks, the two governments are reported to have signed an agreement on bilateral economic and technological cooperation and an exchange of feasibility research notes for the Kunlong Bridge in Myanmar.