Myanmar : Mandalay Urban Services Improvement Project

Water and other urban infrastructure and services / Other urban services - Urban sanitation - Urban slum development - Urban water supply

Urban sector context. Although 70% of Myanmar's population resides in rural areas, the urban population has grown 2.3% per year, faster than the country's total population (1.8%per year). The urban population in Myanmar increased from 14.6 million or 29% of the total population in 2000 to 18.4 million or 31% of the total population in 2010. Currently, 10% of

Myanmar's population lives in two major cities, Yangon and Mandalay, contributing to 30% of gross domestic product (GDP), and this share is expected to rise rapidly. It is estimated that by 2030, 25% of Myanmar's population will live in urban areas, accounting for roughly 50% of Myanmar's GDP.4 Once ongoing and planned tax reform in Myanmar result in a functioning tax regime, the majority of tax revenue will also likely come from cities. However, to ensure that urbanization will be a driving force for economic growth and social evelopment, urban planning and management need to be modernized and investments in urban infrastructure need to be increased.

Climate change impacts. Myanmar was considered to be the second-hardest hit country (after Honduras) by climate-change-related extreme weather events during 1991 2010; its overall climate change vulnerability factor up to 2030 is classified as _acute._ The government's records confirm this trend in Mandalay Region, reflected in shorter monsoon periods, longer premonsoon droughts, and higher daily rainfall depths: the four highest peak annual daily rainfall depths during 1949 2013 were recorded after 2003. These changing climatic conditions, in tandem with the expanding urban area, are increasing the demand for reliable water resources, wastewater collection and treatment, and urban drainage improvements.

Mandalay city profile and issues in urban services delivery.6 Mandalay city, with a population of about 1.25 million, is the country's second-largest city and the capital of Mandalay

Region. The city's population is about 2% of the national population and its contribution to GDP is approximately 8%. It is located in the Greater Mekong Subregion Northern Economic Corridor linking the People's Republic of China and India. The Mandalay Regional Government (MRG) does not directly intervene in urban management matters in Mandalay City, but it has a significant role in approving infrastructure projects and urban service tariffs. The Mandalay City Development Committee (MCDC) is tasked with urban service delivery and infrastructure development. However, it does not effectively carry out its responsibilities because it lacks staff, skills, funds, and data. The piped-water supply system serves only 55% of the city population and only for 10 hours per day on average. The remaining residents use mainly private shallow wells. Nonrevenue water is estimated at 52%. Neither a piped sewerage system nor a centralized wastewater treatment plant exists. Sanitation provision consists of septic tanks draining largely into the roadside drains and of latrines of varying designs. Although Mandalay is located in the heart of the Central Dry Zone, rainstorms can be very intense during the wet season. Seasonal floods are caused mainly by a lack of maintenance of canals and storage ponds, and insufficient capacities of the existing pumping stations. Although MCDC collects about 780 tons of domestic solid waste per day, large amounts are disposed in the drains and canals. Primary collection uses the bell system and the waste is transported to the final disposal sites via transit stations.

1. Water supply systems improved

2. Wastewater and drainage management improved

3. Capacity for urban service management strengthened

1. Status of improving water supply systems with implementation under Agence Francaise de Developpement (AFD) - ongoing (and is reported separately by AFD).

2. Status of strengthening wastewater and drainage management - the construction of the Shwe Pumping Station (Package MYWW/3.0) was commenced in October 2018 and has been subject to delay due to slow progress of the contractor. The river dyke breach adjacent to the construction site in July 2020 and the impacts of COVID-19 (from February 2020 onwards) will further delay completion of Package MYWW/3.0. The detailed engineering design for the other wastewater and drainage management improvement packages have been subject to delay due to further consideration of design options. Government and the ADB project team are engaged in dialogue to address progress related issues.

3. Status of capacity building for urban service management both consulting teams under the Grant related activities are winding down for completion in 2020 (at the request of the Government).

The project is classified as category B. In compliance with ADB SPS (2009), an Initial Environmental Examination (IEE) was prepared and issued in April 2015. Based on the IEE, an EIA report, compliant with Myanmar EIA procedure (dated 28 December 2015) was prepared and submitted to MONREC/ECD mid-2016 for approval, a prerequisite for the implementation of the Project. The EIA approval of MONREC was issued on 27 December 2016.

The project was not expected to cause irreversible adverse environmental impacts. Mitigation measures and corrective actions for identified impacts, mainly during the construction activities, are included in the environmental management plan (EMP last update in 2019). In addition, potential impacts of climate change and natural hazards (mainly floods and earthquakes) have been recommended for integration into the detailed engineering design in terms of location and structure of the facilities.

At the detailed engineering design stage, the EMP was updated and disclosed (2019). In compliance with ADB's information disclosure and consultation requirements, the safeguard documents will continue to be posted on ADBs website.

As of Q3 2020, recommendations have been made to maintain compliance and the development of a corrective action plan has been requested to rectify outstanding issues. A river dyke breach adjacent to the construction site occurred in July 2020 and ADB is supporting the Executing Agency to ascertain the scope of environmental impacts. Should impacts be identified as project related, all corrective actions will be developed and implemented in accordance with ADB SPS (2009).

The project is classified as category B. The proposed acquisition of 5.253 hectares of land for the wastewater treatment plant will affect 17 households (58 persons), including 8 landowners, 3 tenants, and 6 seasonal workers. A resettlement plan was prepared and includes a review of local laws and regulations, gap analysis, and proposed gap-filling measures.

The resettlement plan is in compliance with ADB's Safeguard Policy Statement and takes into consideration provisions of local laws and regulations. The resettlement plan includes an internal and external monitoring framework. Consultations with the affected households were conducted during project preparation and should continue throughout resettlement planning and implementation.

The resettlement plan will be updated at the detailed engineering stage and cleared by ADB. In compliance with ADB's information disclosure and consultation requirements, the safeguard documents will continue to be posted on ADB's website.

A due diligence report and an updated resettlement plan was drafted for the Shwe Ge Pumping Station in 2017. Recommendations have been made to maintain compliance and the development of a corrective action plan has been requested to rectify outstanding issues. A river dyke breach adjacent to the construction site occurred in July 2020 and ADB is supporting the Executing Agency to ascertain the scope of social safeguard impacts. Should impacts be identified as project related, all corrective actions will be developed and implemented in accordance with ADB SPS (2009).

The following consulting services packages have been recruited under the project: (i) project implementation support: SAFEGE SAS (SUEZ Consulting) in association with Nippon Koei Co., Ltd. and Myanmar Koei International Ltd., (ii) capacity development in climate change resilient urban planning: PROJECT MANAGEMENT INTERNATIONAL Limited in association with (a) SAFEGE (SUEZ Consulting) (b) INTEGRATED TRANSPORT PLANNING Limited (c) MANDALA CONSORTIUM Co Ltd., and (iii) pilot community-based solid waste management: NIRAS A/S.

All consultants were recruited according to ADB's Guidelines on the Use of Consultants.