Burma's government says it has decided to stop construction of a large coal-fired power plant because of environmental concerns.

Burma's electricity minister, Khin Maung Soe, told reporters Monday that the ministry will not move forward on the multi-billion-dollar project in the southern Dawei port because the plant could have a negative environmental impact.

The Dawei project is headed by Thailand's industrial giant Italthai, and was to be part of a massive industry zone in southern Burma.

The move by Burma's government is similar to a decision last year to stop construction of another major foreign investment project — a hydroelectric dam backed by China. In both cases, Burma's government made a rare gesture to environmentalists and political opponents.

Opposition leader Aung San Suu Kyi had said the hydroelectric dam in Kachin state would force the relocation of thousands of villagers and threaten the ecology of the Irrawaddy River region.