In a development likely to cause concern to New Delhi, Myanmar is expanding, with Chinese support, its naval facilities in Great Coco Island.

According to a report in the latest issue of the Jane's Defence Weekly, the project was launched on November 4, 2002.

It involves the construction of a jetty measuring 85m by 70m at a cost of 70 million kiyat (11 million dollars) for completion by next yearend. There is currently just a small pier to serve ships calling on the island.

Those present at the unpublicised ceremony included Myanmar's Transport Minister Major General Myint Swe and a number of unidentified Chinese officials.

According to the weekly, Beijing is to provide "funding and technical assistance" for the construction project, but it is unclear whether that involves a grant or a loan on favourable terms.

China built an intelligence facility on Great Coco Island in the early 1990s. It has yet to be conclusively shown whether this is controlled by Beijing or Yangon, or shared by both.

Preparatory work in anticipation of the arrival of construction material has already started, it said, but there are no indications that new buildings are planned.

The Andaman and Nicobar chain extends to the top of the strategically important Malacca Strait and is the farthest eastern point of the Indian territory. New Delhi last year established its first joint services command, the Joint Andaman and Nicobar Strategic Defence Command, in the Union territory capital of Port Blair.