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The VPower power plant in Kyaukphyu Township, backed by China, is being dismantled and relocated due to intensified clashes involving the ethnic Arakan Army. Originally built to support the Kyaukphyu Special Economic Zone and the national grid, operations were suspended in late 2023.

The project, a joint venture between VPower Group and CNTIC, was designed for 150 megawatts but never reached full capacity. Relocation efforts are nearly complete, as fighting escalates nearby.