The government of Myanmar has opposed the construction of Italian-Thai Development’s 800MW hydro project in Taninthayi region citing possible environmental hazards.

According to a study, the project located near Myeik Township creates risk of causing floods to the 61,000 acres of farms and lands in the area.

Following these revelations, Myanmar Presidency Office has ordered halting the development of the project, reported Eleven Myanmar.

Italian-Thai Development was planning to sell the power generated at the project to Thailand, besides using some share of it for Dawei Deep Sea Port project that the company undertook in Taninthayi.

A person familiar with the developments was quoted by the news agency as saying, "The area is rich in gold resources. The company has completed preliminary studies. The project hasn’t started. But roads have been built."

Further, the company was keen to increase the capacity of the plant by two fold to 1040MW.