Myanmar: Power Transmission Improvement Project

Sovereign Project | 46390-002

Summary

The project will (i) construct 8.4 kilometer (km) of 230 kilovolt (kV) transmission line between Thida and Thaketa substations, and 8.4 km of 230 kV transmission line between Thaketa and Kyaikasan substations; (ii) extend the switchyard of the existing 230 kV Thaketa substation to accommodate two new 230 kV transmission lines; (iii) upgrade the existing 66 kV Kyaikasan substation to 230 kV substation; (iv) build new 230 kV substations at South Okkalapa and West University; and (v) strengthen the capacity of the staff of Myanmar Electric Power Enterprise (MEPE). The project will help to complete the critically important 230 kV transmission ring supplying electricity for the Yangon region and ensure reliable electricity supply to support sustainable economic development for Myanmar.

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Project Name Power Transmission Improvement Project
Project Number 46390-002
Country Myanmar
Project Status Proposed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan: Power Transmission Improvement Project
Asian Development Fund US$ 80.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description The project will (i) construct 8.4 kilometer (km) of 230 kilovolt (kV) transmission line between Thida and Thaketa substations, and 8.4 km of 230 kV transmission line between Thaketa and Kyaikasan substations; (ii) extend the switchyard of the existing 230 kV Thaketa substation to accommodate two new 230 kV transmission lines; (iii) upgrade the existing 66 kV Kyaikasan substation to 230 kV substation; (iv) build new 230 kV substations at South Okkalapa and West University; and (v) strengthen the capacity of the staff of Myanmar Electric Power Enterprise (MEPE). The project will help to complete the critically important 230 kV transmission ring supplying electricity for the Yangon region and ensure reliable electricity supply to support sustainable economic development for Myanmar.
Project Rationale and Linkage to Country/Regional Strategy

Uninterruptible and reliable supply of electricity is critical for sustaining economic growth and meeting poverty reduction objective. Recently Myanmar has embarked on wide-ranging economic reforms resulting in a fast growing economy. Gross domestic product (GDP) grew on average at 7.5% per year during the period 2011 2013, reaching $55.8 billion in 2013. However, GDP per capita stood at $915, and per capita electricity consumption was only 165 kilowatt-hours (kWh) in 2013. The country's electrification ratio has almost doubled from 16% in 2006 to 31% in 2013 with Yangon City achieving the highest electrification ratio (78%), followed by Nay Pyi Taw (65%), Kayah (46%), and Mandalay (40%). The rural areas have electrification ratios averaging about 21%. This set of indicators for Myanmar is amongst the lowest within the Association of Southeast Asian Nations countries.

The Government of the Union of Myanmar is determined to maintain strong economic growth and to improve living standards for its population. According to the projection of the Ministry of National Economic Development, Myanmar's GDP will grow at an annual average rate of 7.1% from 2015 to 2030 under a medium growth scenario. To keep pace with the economic growth and accelerate poverty reduction, demand for electricity is expected to grow at 9.6%, increasing from 10,112 gigawatt-hours (GWh) in 2013 to 49,924 GWh in 2030. To meet the rising demand for electricity against the backdrop of continuous strong economic growth, Myanmar will need to expand the power sector including development of new generation sources and the expansion of transmission and distribution networks.

Reliable electricity supply is crucial for the Yangon region. Being the cultural and business hub of Myanmar, Yangon region has been and will be consuming around 50% of the country's electricity supply. To supply power to Yangon region, Myanmar plans to construct a 500 kilovolt (kV) backbone connecting various power stations in the north and the south of the country. Currently, Yangon's transmission system operates mainly at 66 kV. With growing demand, expected in years to come, the 66 kV risks overloading, and therefore more 230 kV transmission lines and substations will be needed to carry greater loads to provide reliable electricity supply. Upon completion of this project, the inner perimeter of the supply grid which currently operates at 66 kV will be upgraded to 230 kV, helping to reduce losses, and increasing reliability for Yangon transmission and distribution system.

Priority areas for power sector development. The government, with assistance from the Asian Development Bank (ADB) and other development partners, is formulating long-term development plans for the energy and power sectors. For the power sector, areas of priority have been identified, including (i) improvement and upgrading of the transmission and distribution systems, especially in Yangon and Mandalay regions; (ii) rehabilitating existing power generation plants and constructing new ones; (iii) reinforcing the transmission grid and substations; and (iv) expanding transmission and distribution networks to connect more consumers, particularly in rural areas.

Impact Economic and social benefits to residential, commercial and industrial consumers from reliable and sustainble electricity supply in the Yangon region
Outcome Improved reliability of Yangon's power transmission system
Outputs

A 230 kV power transmission ring including 230 kV transmission lines and substations

Capacity of MEPE staff implementing ADB financed projects strengthened.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Indicative classification for expansion work is Category B for environment. The due diligence will verify and confirm these classifications, and support the preparation of required initial environmental examination and environmental management plan, as required.
Involuntary Resettlement Indicative classification expansion work is Category B for involuntary resettlement impact. The due diligence will verify and confirm these classifications, and support the preparation of required land acquisition and resettlement plan, including assessment of social impact, as required.
Indigenous Peoples There are no indigenous peoples near the proposed project areas.
Stakeholder Communication, Participation, and Consultation
During Project Design It is envisioned that during the 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.
During Project Implementation
Business Opportunities
Procurement Advanced contracting will be required for project contract packages and project implementation schedule. Goods, equipment, and works to be financed under the project will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).
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 22 Mar 2013
Fact Finding 17 Jun 2014 to 26 Jun 2014
MRM 02 Jun 2015
Approval 11 Nov 2015
Last Review Mission -
Last PDS Update 19 Mar 2015

Evaluation Documents

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