Myanmar: Power Transmission and Distribution Improvement Project

Sovereign Project | 46390-001

Summary

Even though electricity consumption in Myanmar has doubled during the last 10 year, in 2011, total electricity consumption was 6,312 gigawatt-hour. With a population of about 60 million, Myanmar's per capita electricity consumption was only 100 kilowatt-hour (kWh) per year, which was the lowest among ASEAN 10 countries. The low national average per capita electricity consumption is due to the low electrification rate, low industrial development and lack of investment.

The country's average electrification (defined as the number of electrified household connected to the grid over the total number of household) grew from about 16% in 2006 to 26% in 2011. Yangon City has the highest electrification ratio (67%), followed by Nay Pyi Taw (54%), Kayar (37%) and Mandalay (31%). The remaining rural areas are still poorly electrified averaging at about 16%.

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Project Name Power Transmission and Distribution Improvement Project
Project Number 46390-001
Country Myanmar
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8342-MYA: Power Transmission and Distribution Improvement Project
Japan Fund for Poverty Reduction US$ 1.50 million
TA 8342-MYA: Power Transmission and Distribution Improvement Project (Supplementary)
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming
Description

Even though electricity consumption in Myanmar has doubled during the last 10 year, in 2011, total electricity consumption was 6,312 gigawatt-hour. With a population of about 60 million, Myanmar's per capita electricity consumption was only 100 kilowatt-hour (kWh) per year, which was the lowest among ASEAN 10 countries. The low national average per capita electricity consumption is due to the low electrification rate, low industrial development and lack of investment.

The country's average electrification (defined as the number of electrified household connected to the grid over the total number of household) grew from about 16% in 2006 to 26% in 2011. Yangon City has the highest electrification ratio (67%), followed by Nay Pyi Taw (54%), Kayar (37%) and Mandalay (31%). The remaining rural areas are still poorly electrified averaging at about 16%.

Currently, Myanma Electric Power Enterprise (MEPE) under the Ministry of Electric Power (MOPE) is responsible for the development and implementation of transmission network, covering the voltage levels of 66 kilovolt (kV), 132 kV and 230 kV. Distribution systems consist of lower voltage level, namely: 33 kV, 11 kV, 6.6 kV and 0.4 kV. Two distribution enterprises operate the distribution systems. The Yangon City Electric Supply Board (YESB) is responsible for the supply of electricity to consumers in Yangon City. The Electric Supply Enterprise (ESE) covers the rest of the country comprising 13 states and divisions, including off-grid generation and distribution. It was reported that technical and non-technical losses of the distribution system were as high as 30% in 2003 and reduced to 25% in 2011, which is the highest among Association of Southeast Asian Nations 10 countries.

These high losses and low electrification ratio will require a comprehensive study for improvement of transmission and distribution network in Myanmar. This project preparatory technical assistance (PPTA) will focus on the rehabilitation of existing transmission and distribution network and expansion in next 5 years to increase supply of electricity and electrification ratio in the country.

Project Rationale and Linkage to Country/Regional Strategy

The Government of the Republic of the Union of Myanmar has requested the Asian Development Bank (ADB) a project preparatory technical assistance (PPTA) to conduct due diligence and prepare the relevant project documents for an investment project prepare a feasibility study for rehabilitation and expansion of transmission and distribution networks in Myanmar.

The project will prepare a comprehensive investment plan for the improvement of the power transmission and distribution systems in Myanmar and prepare a feasibility study for rehabilitation and expansion of existing system. The PPTA would: (i) assess the power demand projections and suggest expansion plan with investment requirements; (ii) assess the losses of Yangon City Electricity Supply Board (YESB) and Electricity Supply Enterprise (ESE) and its loss reduction program, and identify measures for loss reduction; (iii) assess capacity and staff skills in the power sector, identify training needs, and prepare short and long term training plan; (iv) identify an urgent rehabilitation and expansion of transmission and distribution projects. For the identified projects, the PPTA will undertake a feasibility study to (i) propose the project scope; (ii) prepare detailed engineering design and bidding documents; (iii) undertake the procurement and implementation capacity assessment of executing agencies (EAs) and implementing agencies (IAs); (iv) prepare cost estimates; (v) undertake economic and financial analyses; and (vi) complete social and environmental safeguards requirements.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation During PPTA stage, the consultation and participation process will involve a stakeholder analysis followed by subsequent consultations with various groups. It is planned to conduct consultations at the household and community level, national level government officials, development partners, nongovernmental organizations, and commune- and village- level officials and beneficiaries. A series of focus group discussions will be undertaken as part of the socio-economic analysis.
Business Opportunities
Consulting Services

A consulting firm will be engaged to provide technical services for a total of 72 person-months of consulting services (34 person-months of international consulting inputs and 38 person-months of national consulting inputs) following the quality and cost-based selection method with 90% weight for quality and 10% weight for cost. The consultants will report to the ADB and to the MOEP. If the government wants to proceed with a project on rehabilitation and a project on expansion separately, necessary individual consultants may be engaged with concurrence of OSFMD.

The PPTA consultants have completed consulting services. Additional consulting services from individual consultants (financial specialist and transmission/substation specialist) either ongoing or to be undertaken.

Responsible ADB Officer Duy-Thanh Bui
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Ministry of Electric PowerNo. B-07, Yadana Shwe Pyi St., Zaya
Theidi Ward,Nay Pyi Taw
Republic of Union of Myanmar
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 22 Mar 2013
Last Review Mission -
Last PDS Update 12 Mar 2015

TA 8342-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Mar 2013 29 Aug 2013 29 Aug 2013 30 Jun 2014 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 1,500,000.00 0.00 0.00 0.00 0.00 1,725,000.00 22 Mar 2013 1,193,741.35

Safeguard Documents

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Evaluation Documents

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