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Myanmar: Mandalay Urban Services Improvement Project

Sovereign (Public) Project | 47127-002 Status: Active

The Asian Development Bank is working with Myanmar to help Mandalay improve its water and sanitation services. The project is building a new water treatment plant and upgrading and extending the existing supply network. It is also building the city’s first centralized wastewater collection and treatment plant, which will produce biogas from sludge and help power the plant.

Project Details

Project Officer
Baird, Alan Southeast Asia Department Request for information
Country
  • Myanmar
Sector
  • Water and other urban infrastructure and services
 
Project Name Mandalay Urban Services Improvement Project
Project Number 47127-002
Country Myanmar
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0455-MYA: Mandalay Urban Services Improvement Project
Urban Climate Change Resilience Trust Fund under the Urban Financing Partnership Facility US$ 4.00 million
Loan 3316-MYA: Mandalay City Urban Services Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 60.00 million
Loan: Mandalay City Urban Services Improvement Project
Agence Francaise de Developpement US$ 46.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will help Mandalay further grow as the cultural, educational, and economic hub of Upper Myanmar and act as a national economic center. This approach will foster balanced national development by reducing the concentration of population and economic activities in Yangon and promoting economic growth in Mandalay Region and its surroundings. The project impact will be improved urban environment and public health in Mandalay. The outcome will be improved access to sustainable urban services in Mandalay. Project outputs are (i) improved water supply systems, (ii) improved wastewater and drainage management, and (iii) strengthened capacity for urban services management.
Project Rationale and Linkage to Country/Regional Strategy

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.

Impact Not applicable
Project Outcome
Description of Outcome Access to sustainable urban services in Mandalay improved
Progress Toward Outcome Progress under the Loan for the wastewater and drainage management improvement activities has been slow with one contract awarded out of four. Progress under the Grant for strengthening of capacity for urban service management activities has been satisfactory.
Implementation Progress
Description of Project Outputs

1. Water supply systems improved

2. Wastewater and drainage management improved

3. Capacity for urban service management strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

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).

Geographical Location Nation-wide, Mandalay Region
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

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).

Involuntary Resettlement

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).

Indigenous Peoples The safeguard category for indigenous peoples is C. Some 96.4% of the city population is Barmar by ethnicity. However, no communities of ethnic minorities or groups live separately in the urban area. As the project will benefit all residents in the project area equally, no adverse impact on indigenous peoples is anticipated. In accordance with ADB's Safeguard Policy Statement, no separate indigenous peoples plan is required.
Stakeholder Communication, Participation, and Consultation
During Project Design The social surveys, stakeholder consultations, and focus group discussions were conducted. The stakeholder communication strategy was developed to ensure a regular flow of project activities and timeline information to and from project beneficiaries and project affected persons.
During Project Implementation The stakeholder community strategy is being implemented. Stakeholders include (i) government agencies responsible for the design, management, and implementation of the project as well as disaster preparedness and response; (ii) government agencies who provide essential urban infrastructure services and facilities; (iii) civil society organizations who assist with community education activities, provide pro-poor support programs and are involved in disaster response measures; and (iv) private sector entities who provide employment through recycling.
Business Opportunities
Consulting Services

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.

Procurement The contract for the construction of Shwe Ge Pumping Station has been awarded to the Joint Venture of China Energy Engineering Group Hunan Electric Power Design Institute Co., Ltd. and CNOOD Asia Limited (CEEC-HEPDI&CNOOD) in October 2018. The contract for the Nankad Water Treatment Plant was bid out in 2018 and it is on hold pending re-bidding.
Responsible ADB Officer Baird, Alan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Mandalay Regional Government
[email protected]CITY.INFO
Corner of 31st Street and 72nd Street
Chan Aye Thar San Township
Mandalay, Myanmar
Timetable
Concept Clearance 20 Jan 2014
Fact Finding 16 Feb 2015 to 11 Apr 2015
MRM 28 Aug 2015
Approval 12 Nov 2015
Last Review Mission -
Last PDS Update 26 Apr 2021

Grant 0455-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Nov 2015 09 Sep 2016 19 Apr 2017 30 Sep 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 0.00 12 Nov 2015 0.00 3.29 82%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.00 12 Nov 2015 0.00 1.33 33%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Partly satisfactory

Loan 3316-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Nov 2015 09 Sep 2016 19 Apr 2017 30 Sep 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 119.10 Cumulative Contract Awards
ADB 60.00 12 Nov 2015 9.76 0.00 16%
Counterpart 13.10 Cumulative Disbursements
Cofinancing 46.00 12 Nov 2015 5.59 0.00 9%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Partly satisfactory

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 Access to Information Policy (AIP) 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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Mandalay Urban Services Improvement Project: Corrective Action Plan Environment and Social Compliance Audit Reports Dec 2020
Mandalay Urban Services Improvement Project: Corrective Action Plan Environment and Social Compliance Audit Reports Dec 2020
Mandalay Urban Services Improvement Project: Environmental and Social Monitoring Report (May-October 2019) Environmental and Social Monitoring Reports May 2020
Mandalay Urban Services Improvement Project: Environmental and Social Monitoring Report (October 2018-May 2019) Environmental and Social Monitoring Reports Feb 2020
Mandalay Urban Services Improvement Project: Environmental Management Plan Environmental Management Plans Nov 2019
Mandalay Urban Services Improvement Project: Updated Resettlement Plan and Due Diligence Report Resettlement Plans Apr 2019
Mandalay Urban Services Improvement Project: Environmental and Social Monitoring Report (April-September 2018) Environmental and Social Monitoring Reports Apr 2019
Mandalay Urban Services Improvement Project: Environmental and Social Monitoring Report (October 2017-March 2018) Environmental and Social Monitoring Reports Mar 2018
Mandalay Urban Services Improvement Project: Environmental and Social Monitoring Report (April-September 2017) Environmental and Social Monitoring Reports Jan 2018
Mandalay Urban Services Improvement Project: Resettlement Plan Resettlement Plans Aug 2015
Mandalay Urban Services Improvement Project: Initial Environmental Examination Initial Environmental Examination Aug 2015

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Fast Facts on the Mandalay Urban Services Improvement Project

2 September 2020

The Mandalay Urban Services Improvement Project aims to improve urban environment and public health through expanded access to sustainable urban services in Mandalay City. The project has three outputs: (i) improved water supply systems, with support from the Agence Française de Développement (AFD); (ii) improved wastewater and drainage management, with support from the Asian Development Bank (ADB); and (iii) strengthened capacity for urban services management, with grant support from both ADB and AFD.

ADB’s Board of Directors approved a $60 million loan for the project on 12 November 2015. It became effective on 19 April 2017 and the project is expected to be completed by September 2023.

The Executing Agency of the project is the Mandalay Region Government (MRG) and the Implementing Agency is the Mandalay City Development Committee (MCDC). The Project Management Office (PMO), under the MCDC, manages the day-to-day implementation of the project and is headed by a project manager and supported by professional staff.

The project implementation and supervision consulting firm (the project’s Engineer), which assists the PMO in project implementation, was mobilized in November 2016 and the contractor for the first civil works package (Shwe Ge pumping station) was mobilized in November 2018. The consulting firm was selected by the MCDC with ADB’s assistance following ADB’s Guidelines on the Use of Consultants (first published in 2013, which has been amended from time to time). The contractor for the Shwe Ge pumping station was selected by the MCDC following ADB’s Procurement Guidelines (first published in 2015, which has been amended from time to time).

All contractors for ADB-financed projects are required to strictly adhere to contract requirements and conditions, as well as ADB policies including the Safeguard Policy Statement, (SPS, 2009), which promotes the protection of people and the environment from potential adverse impacts of ADB-financed projects by avoiding such impacts 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 strengthen their safeguard systems and develop the capacity to manage environmental and social risks.

The MCDC prepared safeguards planning documents (Resettlement Plan, Initial Environment Examination report, and Environmental Management Plan) in consultation with the project’s stakeholders and communities residing in the project area in 2015. The reports were disclosed on ADB’s website in accordance with SPS 2009 disclosure requirements. Meaningful public consultation was conducted during project preparation. The public information booklet was distributed to the residents involved in the consultation of communities’ which was conducted by the PMO.

The project received national environmental approval of the initial environmental examination on 27 December 2016 in accordance with the Environmental Law, the regulations (2012), and the EIA Procedure (2015).

The PMO is implementing and monitoring the measures and actions proposed in the safeguards documents and bi-annually reporting progress to ADB.

The ADB project team is monitoring project implementation through periodic review missions, including visits to the project sites along with the PMO, to provide guidance and ensure compliance with the SPS 2009 and timely action on any anticipated and unexpected events during implementation.

Tenders

Tender Title Type Status Posting Date Deadline
Loan No. 3316-MYA: Mandalay Urban Services Improvement Project [MYWW1.2/01] Invitation for Bids Closed 28 Nov 2017 12 Jan 2018
Loan 3316-MYA: Mandalay Urban Services Improvement Project [MYWW 3.0] Invitation for Bids Closed 13 Oct 2017 01 Dec 2017
Grant No. 0455-MYA: Mandalay Urban Services Improvement Project [MYWW 1.1/01] Invitation for Bids Closed 02 Oct 2017 07 Nov 2017
International Knowledge Specialist Individual - Consulting Closed 14 Sep 2017 20 Sep 2017
National Package Specialist Individual - Consulting Closed 14 Sep 2017 20 Sep 2017
Loan 3316/Grant 0455-MYA: Mandalay Urban Services Improvement Project [MYWW/4.0] Prequalified applicants Active 26 Jul 2017
Climate Change Resilience Urban Planning Capacity Building Firm - Consulting Closed 21 Apr 2017 20 May 2017
L3316-MYA:  Mandalay Urban Services Improvement Project[IPQ No.:  MYWW/4.0/01 Contract No: MYWW/4.0 Nankad Lake Wastewater Treatment Plant and associated facilities.] Invitation for Bids Closed 28 Feb 2017 29 Apr 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
MYWW/3.0:SHWEGE PUMPING STATION (STORMWATER) Loan 3316 20 Nov 2018 JV OF CHINA ENERGY ENGINEERING GROUP HUNAN EL D CNOOD ASIA LIMITED (CEEC-HEPDI & CNOOD CHINA,PEOPLE'SREP.OF Mandalay Regional Government CONSTRUCTION 5,559,193.00 5,559,193.00
MYWW/45.0: INTERNATIONAL KNOWLEDGE MANAGEMENT SPECIALIST Grant 0455 24 Oct 2018 STEVEN GRIFFITHS LOT 30 BLOCK 1 VILLE DE PALME GENERAL TRIAS CAVITE PHILIPPINES CANADA Mandalay Regional Government Consulting Services 121,400.00
COMMUNITY-BASED SOLID WASTE MANAGEMENT Grant 0455 17 Sep 2018 NIRAS A/S SORTEMOSEVEJ 19 3450 ALLEROD DENMARK Mandalay Regional Government Consulting Services 1,086,323.00
CONSULTING CONTRACT: MANDALAY URBAN SERVICES IMPRO VEMENT PROJECT-CAPACITY DEVELOPMENT IN CLIMATE CH Grant 0455 23 Apr 2018 PROJECT MANAGEMENT INTERNATIONAL LIMITED KILLAKEE HOUSE BELGARD SQUARE TALLAGHT DUBLIN 24 IRELAND IRELAND Mandalay Regional Government 1,999,406.00
MWWW/40.0: Project Implementation Consultant Loan 3316 18 May 2017 Safege (Suez Consulting), 15-27 Rue Du Port, Parc De I'Ile F-920022 Nanterre Cedex France Mandalay Regional Government Consultancy 3,280,000.00
MWWW/40.0: Project Implementation Consultant Loan 2961 18 May 2017 Safege (Suez Consulting), 15-27 Rue Du Port Parc De I'Ile F-920022, Nanterre Cedex, France Mandalay Regional Government Consulting Services 3,280,000.00 3,280,000.00

Procurement Plan