Fund crunch halts on going projects till 2010

by Mizzima News | Rangoon – Financial constraints have caught up with the Burmese military junta even as the 2010 general elections approach, forcing the regime to suspend many ongoing irrigation projects.

All projects on the anvil relating to building of dams and sluice gates being implemented under the Ministry of Agriculture will be suspended until 2010.

According to the Ministry, all ongoing projects which cannot be completed by 2010 will be suspended due to financial constraints.

"Yes, we had to stop these projects due to shortage of funds. They (junta) stopped the funding as the current resources have been exhausted," an official from the Irrigation Department told Mizzima.

The junta allocated funds for the dams but the money earmarked for the current fiscal year is exhausted. So these ongoing projects will be suspended until fresh funding is arranged.

The number of ongoing dams and sluice gate projects until 2014 is 33 and priority is to be given to six dams, weirs and sluice gates which were scheduled to be completed by the year 2008-09 fiscal year.

The projects which are scheduled to be completed by 2009 are Kataukkana sluice gate (Kyauktan, Rangoon Division), Nagarpauk sluice gate (Waw, Pegu Division), Kyichaung dam (Kyauktaw, Rakhine State), Linbann dam (Kantbalu, Sagaing Division). Ye Nwe wier (Kyauktagar, Pegu Division) and Myo Gyi wier (Ywangan, Shan State) projects will be completed during this year.

"We had advanced loans provided by the 'Public Works Department' so that these ongoing projects will not stop completely, " an official from this Ministry said.

However, all ongoing projects in joint ventures with China will not be suspended, he added.

The fund for building dams is being arranged by the government, but the building of canals are funded by OFID, while the fund for water and sanitation projects in developing countries, is being provided by the 'Organization of Petroleum Exporting Countries' (OPEC) oil cartel.

According to OFID statistics, the fund provided is USD 8.28 million until 8 October 2008 for the water and sanitation projects in Burma.

After 1988, the junta built dams and sluice gate projects by the hundreds. Of which 216 projects have been completed and 33 projects are still under construction.

Reporting by Mizzima correspondent in Rangoon, additional reporting and writing by Zarni .

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