Questions remain over how and when the $400 million Mawlamyine Cement Limited (MCL) cement factory project in Mon State will contribute to an ongoing regional development fund.
Mon News Agency understands that MCL is contractually obligated to allocate two percent of its profit to regional development after the investment has broken even.
Deputy director and head of Mon State’s Investment Department U Myint Lwin said the project should break even in nine years and six months – triggering the funding.
“[But] it may take longer if [the factory] is halted for some reason,” U Myint Lwin said.
However, MP from Kyaikmaraw Constituency 2 Min Aung Mon said there are many unknowns.
“The company hasn’t specified the exact time for reaching the break-even point,” he said.
Min Aung Mon added that the Mon State government should manage the regional development fund rather than MCL.
The MCL project has already attracted significant opposition from local villagers including a protest of some 7,000 people near the site in February.
“Forget about rural development. They haven’t even repaired the road in our village that they are using,” said Nai Aung Thike from Kun Ngan Village, which is located near the MCL factory.
Mon State government representatives said MCL spent 62 million kyat in 2014, 1.6 billion kyat in 2015, 323 million kyat in 2016 and 338 million kyat in 2017 on corporate social responsibility works.
The MCL cement factory is a joint venture between Siam Cement Group (SCG) and Pacific Link Cement Industries. Since April 1, the cement factory has reportedly been producing 5,000 tonnes per day.
