Naypyidaw: Myanmar is preparing to restart the controversial $3.6 billion Myitsone hydropower project in Kachin State, 14 years after construction was suspended following widespread public protests over its environmental and social impact.

The China-backed project could generate up to 6 gigawatts of electricity and create a reservoir roughly the size of Singapore. Myanmar’s military administration wants the project completed within eight years.

A project that divided Myanmar

The dam is planned at the confluence of the Mali and Nmai rivers, which form the headwaters of the Irrawaddy. Construction was halted in 2011 after strong opposition over flooding, displacement and damage to the river ecosystem.

The proposed reservoir would submerge a large area and could affect communities that depend on the river and surrounding land for their livelihoods.

Myanmar is now facing severe electricity shortages, with its power infrastructure weakened by years of conflict. The government views the project as a potential solution, as its proposed capacity could exceed half of the country’s current electricity demand.

Earthquake risk adds to concerns

Fresh questions have also emerged over the dam’s location in an earthquake-prone region. A magnitude 7.7 earthquake struck Myanmar in March, killing thousands and intensifying concerns about major infrastructure near active geological faults.

Officials say advanced engineering methods would be used to address the risks, but environmental groups and ethnic communities remain opposed.

Another unresolved issue is electricity distribution. Under the original agreement, 90% of the power was to be exported to China’s southern power grid, a provision that drew criticism in a country struggling with power shortages.

The proposed revival has therefore reopened a long-running debate over development, environmental protection, local livelihoods and China’s influence in Myanmar.