A company headed by a former Japanese minister has been pursuing a project to develop land owned by Myanmar's defense ministry through a joint venture with a military-affiliated firm, according to sources close to the matter, Kyodo News reported.

The company, Japan Myanmar Development Institution Inc., headed by Hideo Watanabe, a former minister of posts and telecommunications and the chairman of the Japan Myanmar Association, said it has only been supporting Japanese companies interested in the project, which is currently on hold with
its participants still undecided.

The company added that the lease contract for the land was signed and it has not begun paying rent, with the possibility of funds falling into the hands of the Myanmar military "unknown until we reach that stage."