Chinese Ambassador to Myanmar Mr. Hong Lian said that China would renegotiate with Myanmar’s new government on Myitsone Dam, averting any call to seek damages for cancellation of the mega project.  
“We will resolve this issue patiently and hope there will be no need to pay damages for cancellation of the project. We will discuss with the new government on this issue to explore acceptable ways,” he told reporters at his residence on March 4.
The Chinese ambassador said that Myanmar has abundant water resources in monsoon season and water scarcity in dry season, so the country needs systematic management of their water resources. He further said that China could now enjoy the fruits of their systematic water resource management conducted since 1949 and he warned that Myanmar would face bad consequences unless there is such systematic management. 
By referring Myitsone Dam project, he went on to say that Myanmar should take the right decision. “We would like to resolve this issue patiently,” he said.
“The projects must be transparent for the people and they (China) would fulfill the needs and requirements of local people without failure,” the ambassador said.
He said that China was planning to build a hospital on the outskirts of Yangon with Chinese government assistance. “China will not do things which will damage the friendly relations between the two countries, though they can get income from them,” he said.
The major Myitsone Dam hydropower project, that once finished would export most of the power generated to China, was shelved by Myanmar President Thein Sein in 2011. Critics and local residents from the area where the set of dams are being built have warned of the social and environmental consequences of the project. Dam building projects are ongoing on several of Myanmar’s major rivers and tributaries.