by the Chinese Datang Group and is being built by the China Power Investment Corporationalong side a Burmese government contractor at a cost of $3.6 billion. The project will be the first-ever Dam on the culturally and ecologically significant Irrawaddy River and requires that several Kachin villages be relocated further away from the dam site. Like other projects, the Myitsone Dame has caused strong anti-Chinese and anti-Myanmar sentiment in Kachin. On April 16, 2010, three explosives were set off at the site of the dam, killing four Chinese workers and obstructing construction. The KIA claimed no responsibility for the attacks. In response, Burmese President Thein Sein declared that construction on the dam would be halted. However, in March 2012, local villagers were once again forcibly removed from the area by Burmese soldiers and construction was resumed. Dapein Dam 1 Dapein Dam 1 is one of two Chinese dam projects located on the N'Mai Kha River in southern Kachin State. Its construction began in 2007 and it began producing power in February 2011 at the cost of 108 million Yaun ($19 million USD). It produced an annual 1,081 Gwh, employed 300 Chinese workers and exported 90% of the electricity produced to China, mainly for use in the Yunnan Province. On June 9, 2011, a battle broke out between the KIA and Burmese national soldiers stationed to protect the dam. The battle represented the breaking of these forces previous cease-fire the power plant was seriously damaged during the incident. Oil and gas pipelines In addition to hydroelectric energy, China has also constructed two massive Sino-Burma pipelines designed to transport crude oil and natural gas to China via the Burmese port city of Kyaukpyu. As it flows into Ruili and central China, the pipeline passes through China near the Kachin-Shan border in a zone where much rebel fighting continues to take place. The project was constructed as a partnership between the Chinese National Petroleum Corporation and the Myanma Oil and Gas Enterprise in 2004 and reduces China's reliance on disputed waterways in the South Pacific to obtain and transport its oil. Illicit trade The Kachin Independence Army was funded chiefly by the illegal smuggling of illicit items across the border with China. Although the Chinese government does not condone any support of the KIA, there are many wealthy businessmen and black market dealers in China who prosper greatly from dealings with the KIA.