In the latest pushback against the ambitious Chinese One Belt One Road (OBOR) project, the Myanmar Government has announced a cutback in proposed Chinese investments in the key Kyaukpyu Deepwater Port project reports ANI.

As per the report, the project had an initial planned investment of $7.3 billion which has now been downsized to $1.3 billion. The move by the Myanmar Government to cut investments in the key port project is said to be prompted by fears of falling into a debt trap.

It would be pertinent to note that the Myanmar Government had earlier stated that no sovereign guarantees would be afforded for loans extended to the port project, whose strategic value can be gleaned from the fact that it is located at the entry point of the key China-Myanmar Oil and Gas Pipeline.

Further, the Myanmar Government has also stipulated that a third-party audit on the project would be a mandatory prerequisite highlighting the country’s aversion to risk.

While 10 berths for oil tankers had been planned in the initial project estimate, the same has been curtailed to just two at present which will have potential implications for the broader Oil and Gas Pipeline project.