46422-003: Greater Mekong Subregion East–West Economic Corridor Eindu to Kawkareik Road Improvement Project | Asian Development Bank

Myanmar: Greater Mekong Subregion East–West Economic Corridor Eindu to Kawkareik Road Improvement Project

Sovereign (Public) Project | 46422-003 Status: Active

The Asian Development is working with Myanmar to improve a road along the Greater Mekong Subregion East-West Economic Corridor, linking the country to Thailand. The project is upgrading a more than 66-kilometer section of the road between Eindu and Kawkareik in Kayin State, to provide year round access with design features that cut travel time, increase safety and boost climate resiliency.

 
Project Name Greater Mekong Subregion East–West Economic Corridor Eindu to Kawkareik Road Improvement Project
Project Number 46422-003
Country Myanmar
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3310-MYA: Greater Mekong Subregion East-West Economic Corridor Eindu to Kawkareik Road Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
Loan 8294-MYA: Greater Mekong Subregion East-West Economic Corridor Eindu to Kawkareik Road Improvement Project
ASEAN Infrastructure Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description

The Asian Development Bank (ADB), at the request of the Government of the Republic of the Union of Myanmar, provided financial assistance for the improvement of 66.4 kilometer (km) of road between Eindu and Kawkareik, in Kayin State. The project road will be improved to the Greater Mekong Subregion (GMS) road network standard of two lanes with appropriate width paved shoulders, suitable for all standard highway traffic. The section will require complete reconstruction, with some short sections of realignment for improved vehicle operating speed and road safety. The project also includes design features for climate resilience in this flood-prone area, including raising the road to a level that takes into account potentially higher future flood levels to provide year-round access.

As a project due diligence for ADB financial support to the project, a technical assistance grant was provided to assist the government in the preparation of the project, including engineering, economic, social and environmental safeguards and financing requirements of the project.

Project Rationale and Linkage to Country/Regional Strategy The project is located in Myanmar''s Kayin State, which borders Thailand. The state is isolated and has been affected by sectarian conflict since 1949. As a consequence, poverty levels are high, and social and economic infrastructure is rudimentary and in poor condition where it exists. Despite these factors, the state is traversed by Myanmar's principal road link to Thailand, along which about 30% of the country's land-based trade passes. This road link is part of the GMS EWEC, which is intended to connect Da Nang in Viet Nam with Mawlamyine and Yangon in Myanmar, through the Lao People's Democratic Republic and Thailand. The GMS EWEC road sections have been completed in the Lao People's Democratic Republic, Thailand, and Viet Nam; the Myanmar sections need to be completed and improved. The project is aligned with the development agenda of ADB's Midterm Review of Strategy 2020, which supports inclusive economic growth and regional cooperation and integration. Myanmar suffers from a lack of good quality transport connections nationally and with neighboring countries, which has constrained its economic growth and integration within Asia. After five decades of isolation, it is essential that regional connectivity is improved to stimulate and sustain economic development, and to normalize cross-border flow of goods and people. Improvement of the GMS EWEC within Myanmar will dramatically improve connectivity, reduce travel times, and support economic development within the corridor and beyond, lifting many in this poor state of Myanmar out of poverty. The project will (i) improve road access to and within Kayin State; (ii) facilitate trade between Myanmar and Thailand, and beyond to the wider GMS region; and (iii) support the peace process and demonstrate the government''s commitment to improving the well-being of people in areas that have long been affected by conflict. The GMS EWEC within Myanmar is a priority of the government, as highlighted in the national transport master plan.
Impact Improved trade between Myanmar and Thailand (Greater Mekong Subregion Regional Investment Framework Implementation Plan 2014-2018)
Project Outcome
Description of Outcome Improved connectivity within Kayin State and with Thailand
Progress Toward Outcome

As of Q3 2018, new quarry sites are being considered and undergoing due diligence. Implementation of the updated resettlement plan is still ongoing.

As of Q2 2018, approval of new quarry site was recommended by ADB. Processing of environmental permits may delay the project.

Implementation Progress
Description of Project Outputs 66.4km of road between Eindu and Kawkareik improved
Status of Implementation Progress (Outputs, Activities, and Issues)

As of Q3 2018, new quarry sites are being considered and undergoing due diligence. Implementation of the updated resettlement plan is still ongoing.

As of Q2 2018, approval of new quarry site was recommended by ADB. Processing of environmental permits may delay the project.

Status as of March 2018, pre-construction activities has commenced in Q1 2017. Updating of the Resettlement and Ethnic Groups Development Plan for realigned sections were finalized. Consultations with affected persons are ongoing. Construction on non-realigned sections is expected within the dry season from November 2017 to May 2018.

Contracts were signed with China Road and Bridge Corporation on 25 October 2016. Pre-construction activities has commenced in Q1 2017. Finalization of resettlement plan still ongoing.

Geographical Location Eindu, Kawkareik District
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is not anticipated to cause significant adverse environmental impacts and has been classified as environment category B in accordance with ADB's Safeguard Policy Statement (SPS, 2009). The Government prepared an initial environmental examination (IEE) with an environmental management plan (EMP) consistent with the ADB SPS 2009 requirements. It was publicly disclosed in May 2015.

Contractor's Environment Management Plan, which proposed a quarry for supplying aggregates for project activities, has yet to be approved by MOC followed by ADB no objection, pending government's environmental compliance requirements.

The environmental safeguards compliance will be monitored throughout the construction stage. Public consultations with stakeholders will be held, and mitigation measures will be implemented, to comply with government regulations and SPS 2009. Sustained monitoring is recommended.

Involuntary Resettlement

The above shows the status during project design.

The Project has been classified as category B in accordance with ADB''s SPS 2009. The Combined Updated Resettlement and Ethnic Group Development Plan (REGDP) was prepared by the Government and was publicly disclosed in June 2015. The Project Management Unit updated the REGDP in August 2017 (https://www.adb.org/projects/documents/mya-46422-003-remdp), as disclosed in ADB web.

Consultations with affected persons are ongoing, with compensation completed in two out of three phases planned; out of 182 affected households, all but 25 have been compensated as of 9 March 2018. Remaining 25 is expected to be compensated by 31 July 2018.

Indigenous Peoples

The communities in the project areas comprise various ethnic groups. Impacts on these groups include involuntary resettlement impacts, risks of HIV and human trafficking along with the need to ensure meaningful consultation throughout project preparation and implementation. The Eindu Kawkeriek road improvement has been classified as B for Indigenous Peoples Safeguards in accordance with ADB's SPS, 2009.

During the preparation of the project, and as part of the project communication plan, a series of public consultations were conducted in April and March 2014, involving affected people (AP) consisting of village leaders/officials and residents. A total of 45 village leaders and 237 residents were consulted. The consultations showed strong support for the project road and those residents along the project road. Further consultation exercises are being held with a broad range of stakeholders, including a workshop in February 2015.

The project documentation includes a communication plan for ongoing dialogue with stakeholder during project implementation.

Stakeholder Communication, Participation, and Consultation
During Project Design

ADB conducted loan fact finding in early February 2015 with the Ministry of Construction (MOC), the executing agency of the project.

During the project preparation due diligence stakeholder consultations were held in March and April 2014, with further meetings held in February 2015.

During the preparation of the IEE and RP documents, a series of public consultations were conducted in April and March 2014 involving affected people (AP) consisting of village leaders/officials and residents. A total of 45 village leaders and 237 residents were consulted. The consultations showed strong support for the project road and that residents along the project road do not consider themselves particularly affected by environmental issues. Regarding concerns about the project road, consultations showed the following consistent concerns: (i) traffic crashes related to increased road speed; and (ii) loss of land or property. The APs were asked to consider mitigation measures for these issues and these clearly came across as (i) improving traffic rules awareness, road crossings and traffic safety signage; and (ii) ensure adequate compensation measures for loss of land.

During Project Implementation

The Project was approved by the Board of ADB on 10 November 2015. The communication plan for the project will ensure suitable dialogue is maintained with stakeholders throughout the project implementation.

All necessary consultation and approvals will be undertaken for the project implementation in line with Government requirements and ADB's SPS, 2009.

In May 2015, and on 22-27 May 2016, ADB and MOC conducted key Stakeholder meetings along the road alignment, up to the village level to update them about the Project's progress and implementation plan. On 5-6 October 2016, grievance redress mechanism orientation workshops were conducted in Kawkareik and Hpa-An. a follow-up workshop on GRM process was completed in March 2017. Further training was provided during July 2017.

In summary, in line with ADB Myanmar Resident Mission's conflict-sensitive approach which specifically designed for Kayin State, ADB proactively engaged with affected people in the project area. Prior to and during project implementation, a series of consultations with communities along the road and surveys were done.

Business Opportunities
Consulting Services

The civil works contracts will be supervised by a contract supervision consultant (CSC), who will be the Engineer for the contracts as defined in the contract documentation. CSC services will be provided through an association of international and national consultants (105 person months, international; 792 person months, national).

The consultants has been selected in accordance with ADB's Guidelines on the Use of Consultants (2013, as mended from time to time), using the Quality-and cost-based selection (QCBS) method. CSC Contract was signed with Pyunghwa Engineering Consultants Ltd. JV Korea Expressway Corp. on 23 August 2016.

The procurement plan was updated in February 2018 (https://www.adb.org/sites/default/files/project-documents//46422-003-pp-en.pdf). Two individual social safeguards external monitoring consultants (one international , one national) will be engaged in Q2 2018.

Procurement

The project's road rehabilitation work will be implemented through two civil works contracts, one covering the section of the project road from Eindu to Gyaing Bridge (km 0.00 to km 40.4), and the other from Gyaing Bridge to Kawkareik (km 42.2 to km. 66.5). Advance action has been requested by the Government and agreed by ADB.

All civil works contracts has been procured following procedures set out in ADB's Procurement Guidelines (2013, as mended from time-to-time). Two contracts were signed with China Road and Bridge Corporation on 25 October 2016.

All contracts awarded by December 2016; no more future business opportunities expected as of 9 March 2018.

Responsible ADB Officer Date, Shihiru
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Construction
Department of Highways Office Building No. 11 Naypyitaw, Myanmar
Timetable
Concept Clearance 25 Feb 2013
Fact Finding 02 Feb 2015 to 12 Feb 2015
MRM 21 Jul 2015
Approval 10 Nov 2015
Last Review Mission -
Last PDS Update 28 Sep 2018

Loan 3310-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2015 08 Apr 2016 04 Jul 2016 31 Mar 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 101.80 Cumulative Contract Awards
ADB 100.00 10 Nov 2015 40.44 0.00 41%
Counterpart 1.80 Cumulative Disbursements
Cofinancing 0.00 10 Nov 2015 11.23 0.00 11%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

Loan 8294-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Nov 2015 08 Apr 2016 04 Jul 2016 31 Mar 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 0.00 10 Nov 2015 0.00 8.11 41%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 20.00 10 Nov 2015 0.00 2.31 12%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

The Greater Mekong Subregion (GMS) East-West Economic Corridor Eindu to Kawkareik Road Improvement Project is to improve about 66 km of the existing national highway as a part of the GMS East-West Economic Corridor.

The Asian Development Bank (ADB) Board of Directors approved the loan for the project on 10 November 2015. It became effective on 4 July 2016 and the project is expected to be completed in 2019.

The Executing Agency of the project is the Ministry of Construction represented by the Department of Highways, which implements the project on a day-to-day basis as the Project Management Unit (PMU).

The construction supervision consultants, who assist the PMU in project implementation, were mobilized in September 2016 and the contractor was mobilized in December 2016.

In line with ADB Myanmar Resident Mission’s conflict-sensitive approach, which is specifically designed for Kayin State, ADB proactively engaged with affected people in the project area. Prior to and during project implementation, a series of consultations with communities along the road and surveys were done. All affected households have or will shortly be properly compensated by the PMU. As of 9 March 2018, of a total of 182 affected households, only 25 households remain to be compensated and they are scheduled to receive the compensation by July 2018.

The ADB’s Safeguard Policy Statement promotes protection of the environment and people from potential adverse impacts by avoiding adverse impacts of projects on the environment and affected people where possible; minimizing, mitigating, and/or compensating for adverse project impacts on the environment and affected people when avoidance is not possible; and helping borrowers/clients to strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

The safeguards planning documents (Resettlement Plan and Initial Environment Examination report) were prepared and disclosed to ADB website, in accordance with ADB’s Safeguard Policy Statement. The mitigation measures and actions proposed in safeguard planning documents are being implemented and monitored.

Further, to raise awareness of the project, the project management unit has put up signboards displaying the project name with reachable telephone numbers, and project-related information has been placed at public places and posted on social media. In parallel, ADB established a Grievance Redress Mechanism with members from village to state levels so that communities can raise any issues regarding the project.

The ADB project team is closely monitoring project implementation through quarterly visits to the project sites together with the PMU in order to provide guidance and ensure timely action on any implementation-related matters.

Contact: Shihiru Date, Request for information

Tenders

Tender Title Type Status Posting Date Deadline
External Monitoring Expert for Social Safeguards - International Individual - Consulting Closed 10 Mar 2018 24 Mar 2018
External Monitoring Expert for Social Safeguards - National Individual - Consulting Closed 10 Mar 2018 24 Mar 2018
46422-003-MYA: Greater Mekong Subregion East West Economic Corridor Eindu to Kawkareik Road Improvement Project Advance Notice Archived 18 Jul 2015

Contracts Awarded

No contracts awarded for this project were found