Brushing aside pressures from the international community, India is set to sign an agreement for an ambitious multi-modal transport project with Myanmar during the visit of the second most powerful man in the country’s ruling military junta here from Wednesday, reports PTI .

Economic cooperation, connectivity, security and energy are among the issues that are expected to dominate the talks that Vice Senior General Maung Aye will hold with Indian leaders, sources told PTI. Myanmar’s movement towards democracy will also come up for discussion.

The highlight of the visit is expected to be the signing of the USD 110 million Kaladan multi-modal transport project that will provide easier access to North East region besides alternate connectivity between India and Myanmar, bypassing Bangladesh.

The project envisages connectivity between Indian ports on the eastern seaboard and Sittwe Port in Myanmar and then through riverine transport and by road to Mizoram. India will contribute about USD 100 million as well as be liable for any cost overruns while Myanmar will contribute USD 10 million and free land for the project, sources said.

After six rounds of talks since 2003, the two sides have already initialed the Draft Framework Agreement on the Project, Draft Protocol on Facilitation of Transit Transport, Draft Protocol on Financial Arrangements and Draft Protocol on Joint Maintenance and Administration.

Government last week approved Rs 5.35 billion for the project under the ‘Aid to Myanmar’ programme for the upgradation of Sittwe Port and Kaladan Waterway. The money will also be used for construction of a road from Setpyitpyin (Kaletwa) to the India-Myanmar border.

The project, to be executed by the Inland Waterways Authority of India, also involves construction and improvement of 117 km road on the Indian side from India-Myanmar border.

India is going ahead with the project despite international pressure to apply UN sanctions imposed on Myanmar after the crackdown on pro-democracy rallies late last year.

Citing its multi-faceted interests in Myanmar, India has made it clear that it does not favour the use of coercion against Myanmar and wants a dialogue to address issues of democracy and human rights in that country.

In the economic field, India is keen to enhance cooperation. Measures in this direction, especially through border trade, are expected to figure in the discussions that Maung Aye will have with the leaders here. India is also keen on tapping the gas resources in Myanmar and the issue will also figure in the talks.