Myanmar : Third Greater Mekong Subregion Corridor Towns Development Project
The proposed project will upgrade basic infrastructure and strengthen urban management capacities to develop the towns of Mawlamyine in Mon State, and Hpa-An and Myawaddy in Kayin State as competitive economic nodes along the Greater Mekong Subregion (GMS) East-West Economic Corridor (EWEC). Certain components, namely in Myawaddy are being financed (parallel co-financing) through a loan from Neighboring Countries Economic Development Cooperation Agency (NEDA) of Thailand.
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- Water and other urban infrastructure and services
|Project Name||Third Greater Mekong Subregion Corridor Towns Development Project|
|Country / Economy||Myanmar
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban solid waste management - Urban water supply
|Gender||Effective gender mainstreaming|
|Description||The proposed project will upgrade basic infrastructure and strengthen urban management capacities to develop the towns of Mawlamyine in Mon State, and Hpa-An and Myawaddy in Kayin State as competitive economic nodes along the Greater Mekong Subregion (GMS) East-West Economic Corridor (EWEC). Certain components, namely in Myawaddy are being financed (parallel co-financing) through a loan from Neighboring Countries Economic Development Cooperation Agency (NEDA) of Thailand.|
|Project Rationale and Linkage to Country/Regional Strategy||
Development of Greater Mekong Subregion corridor towns. The GMS EWEC has contributed to economic growth in the region since its launch in 1998 as a GMS flagship initiative.
The objective of developing the GMS corridor towns is to increase economic activities along these economic corridors by investing in urban infrastructure. Local economic development in Mawlamyine, Hpa-An, and Myawaddy is indispensable to transform Myanmar's portion of the EWEC into a full-fledged economic corridor. International tourist visits increased from about 50,000 in 2011 to 170,000 in 2016 in Mon State and from 5,000 in 2011 to 90,000 in 2016 in Kayin State.3 Border trade at Myawaddy in Myanmar and Mae Sot in Thailand increased from about $1billion in 2010 to $3 billion in 2016 accounting for about 12% of Myanmar's border trade.4 The project will be the third phase of the GMS corridor towns development initiative and will contribute to environmentally sustainable and inclusive growth of the region.
Country's urbanization and urban issues. Although 66.0% of Myanmar's population resides in rural areas, the urban population has grown by 2.5% per year, faster than the country's total population (0.8% per year). The percentage of the urban population in Myanmar increased from 27.0% of the total population in 2000 to 34.1% of the total population in 2015. It is expected to increase to 36.9% in 2020 and 42.8% in 2030.5 On the other hand, chronic underinvestment in urban infrastructure has resulted in seriously deficient municipal services throughout Myanmar. Lack of urban infrastructure and limited capacity to manage municipal services are major disincentives to external investments, which are critical to socioeconomic development and growth.
Regional context. Kayin State and Mon State have significant potential for development due to (i) an expected increase in trade with Thailand, (ii) better access to Yangon, (iii) its link to the Bay of Bengal, (iv) expected increases in tourist visits, and (v) connection with a new international airport in Bago. Upgrading urban infrastructure and developing urban management capacity are essential to strengthen Kayin and Mon states' competitiveness and tie-in with wider economic growth in the GMS.
Economic activities along the GMS EastWest Economic Corridor increased
|Description of Outcome||
Urban services in Mawlamyine, Hpa-An, and Myawaddy improved
|Progress Toward Outcome||Project is ongoing. Progress has been slow since the last review mission in Dec 2019, mainly due to (i) COVID-19 lockdowns and strict travel restrictions (in Mar 2020 as well as since Aug 2020) which have limited the site work of the project implementation and supervision consultants (PISC) as well as the coordination between EA and IA; (ii) major revision of procurement plan at the request of EA and IA to consider easier and faster procurement of certain urgent equipment; and (iii) discussions and review by EA/IA and ADB of various procurement methods (traditional or design-build) for the four major civil works contracts (two water treatment/supply and two sanitary landfill). A decision to opt for design-build (DB) was agreed in Jun 2020. Invitation for bids for these contracts are expected within Q1 2021 except for the sanitary landfill in Mawlamyine which is expected in Q2 2022. The technical scope of the subproject on heritage conservation in Mawlamyine is going through a major revision. A final decision by the IA on this is expected by end of 2021.|
|Description of Project Outputs||
Urban planning improved
Basic social infrastructure upgraded
Urban management capacity strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||Work on Output 1 is expected to commence in 2021. For Output 2, three of the four design-build contracts are expected to be tendered within Q1 2021 and awarded by Q4 2021. The design-build contract for work on landfill in Mawlamyine is expected to be tendered in Q2 2021 and awarded by Q1 2022. The contract for heritage conservation in Mawlamyine is expected to be tendered in 2022. Work on Output 3 is ongoing.|
|Geographical Location||Kayin State, Mon State|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The project team prepared an initial environmental examination (IEE) for both Kayin State and Mon State, in accordance with ADBs Safeguard Policy Statement (SPS 2009) and the applicable environment regulations of the government. The project is not expected to cause irreversible adverse environmental impacts. Environmental impacts will be predominantly positive; any negative impacts will be due to nuisances during construction. IEEs have identified impacts and mitigations with particular attention to (i) occupational health and safety in construction and operations, (ii) design of landfill sites to prevent leachate migration, and (iii) closure of the existing dump sites. The IEEs also analyzed the environment, health, and safety issues in terms of (i) capacity building for the PMOs and project implementation unit, (ii) detailed specifications in tender documents, and (iii) inspection and supervision during construction. The respective mitigation measures are reflected in the environmental management plans (EMPs) for each subproject, for uptake by the respective contractors under their construction EMPs (CEMPs). The project team recommended the integration of the potential impacts of climate change and natural hazards into the detailed engineering design. Domestic environmental compliance is ongoing (Q1 2021) with the submission of the two EIAs (one EIA per State, as domestically it is an EIA category) for review and approval and these documents will be disclosed on the ADB website. At the detailed engineering design (DED) stage, the IEEs and corresponding EMPs will need to be updated to uptake and reflect any changes due to the DED. Estimated costs to implement the EMPs were integrated into the project costs from the outset. PMOs will ensure effective environmental monitoring at all stages of subproject implementation. From March to October 2015, the project team conducted meaningful stakeholder consultations through meetings, key informant interviews, focused group discussions, and public consultations and information sharing and disclosure and the possibilities to voice grievances will be possible throughout project implementation. The IEEs also describe the grievance redress mechanism (GRM) for the project.|
|Involuntary Resettlement||In Kayin State, a total area of 24.79 hectares (ha) will be acquired and three households (17 persons) will be affected. The solid waste management subproject will have impacts on 25 waste-picker households (119 persons) that will be economically displaced, of which one household (four persons) requires relocation. In Mon State, a total area of 19.82 ha will be acquired and two households (10 persons) will be affected. The solid waste management subprojects will have impacts on 10 waste-picker households (40 persons) that will be economically displaced. All other impacts in both Kayin and Mon states are partial and temporary. The project team has established a cutoff date with extensive stakeholder consultation and participation. Counterpart funds will finance an estimated $485,105 for the land acquisition, compensation, and income restoration program. The project team prepared two resettlement plans for Kayin State and Mon State. The resettlement plans comply with ADBs Safeguard Policy Statement and consider relevant provisions of local laws and regulations. ADB will clear the resettlement plans at appraisal and the updated resettlement plans at the detailed engineering design. KSG and MSG have disclosed project information during project preparation, and PMOs will update and distribute a project information booklet during a detailed measurement survey. PMOs will ensure effective monitoring and public consultation with all stakeholders and affected people at all stages of project implementation. Stakeholder consultations will continue through formal and informal focus group discussions. KSG and MSG informed the affected people that a grievance redress mechanism will be established to help facilitate resolution of complaints regarding project performance. For the 2 solid waste management and 2 water treatment civil works contracts, the PMUs will update the RPs by Q2 2021. Nevertheless, these will be finalized at the DED stage, a few months after contract awarding (considering the Design-Build method selected) In case there are differences in the number of households, project location or type of impact, the relevant RP will have to re-updated.|
|Indigenous Peoples||The population in the project area consists of Bamar (55.2%) followed by Kayin (15.7%) and Mon (11.3%). However, no communities of ethnic minorities or groups live separately in the urban area. As the project will benefit all residents equally, no adverse impact on indigenous peoples is anticipated. In accordance with ADBs Safeguard Policy Statement, no separate indigenous peoples plans are required.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||The stakeholder communication strategy (SCS) is based on the principles of transparency, timeliness, meaningful participation, and inclusiveness. The SCS ensures that the vulnerable groups, such as the poor and women whose risk being marginalized, are provided with opportunities for communication and feedback during project design and implementation. Key stakeholders, who are essential to engage to achieve project objectives and lessen project specific risks and challenges, have been identified. Stakeholders include: (i) affected people, (ii) project beneficiaries, (iii) government agencies responsible for the design, management and implementation of the project; (iv) government agencies responsible for the provision of essential urban infrastructure services and facilities; (v) civil society organizations covering a wide spectrum of interest and aptitudes, some of whom will facilitate community engagement activities to ensure appropriate consultation; (vii) international development partners and other agencies providing technical assistance and other supports for urban services improvements; and (viii) private sector entities who provide employment in their line of business. Given the history of conflict in Mon and Kayin States, there is a need for adequate consultation skills and community engagement methodologies to improve on the relation between the government and the residents. The SCS therefore is designed to ensure a regular flow of reliable project information and the inclusion of vulnerable groups in benefit distribution in project implementation. The SCS is built on three key elements: (i) developing appropriate methods to disseminate project information from design through implementation, seeking to increase public engagement and buy-in; (ii) with the support of CSO or NGO facilitators, creating a conduit for two-way flow of information between government and other stakeholders; and (iii) increasing public awareness of the reduce, reuse, and recycle (3Rs) and non-wasteful water use to encourage behavioral change leading to a better urban environment. The PMOs will establish webpages on the DUHD website as the primary portal for dissemination of project related information. Project benefits will be maximized when the population affected by project investments is informed and engaged. The SCS is designed to ensure a regular flow of project activity and timeline information to and from project beneficiaries and project affected persons.|
|During Project Implementation|
|Consulting Services||The executing agency requested ADB to assist in selecting the project implementation support consultant, provided that the executing agency will negotiate and sign the consulting service contract. The contract was eventually signed in October 2018 and consultants were mobilized in November 2018.|
|Procurement||All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).|
|Responsible ADB Officer||Baird, Alan|
|Responsible ADB Department||Sectors Group|
|Responsible ADB Division||Water and Urban Development Sector Office (SG-WUD)|
Ministry of Construction
|Concept Clearance||17 Nov 2014|
|Fact Finding||05 Jun 2016 to 10 Jun 2016|
|MRM||27 Apr 2017|
|Approval||31 May 2018|
|Last Review Mission||-|
|Last PDS Update||31 Jan 2021|
|Approval||Signing Date||Effectivity Date||Closing|
|31 May 2018||12 Sep 2018||10 Dec 2018||30 Sep 2025||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||86.53||Cumulative Contract Awards|
|ADB||80.00||21 Jul 2023||4.55||0.00||6%|
|Cofinancing||0.00||21 Jul 2023||1.23||0.00||2%|
|Status of Covenants|
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|
|Third Greater Mekong Subregion Corridor Towns Development Project: Environmental and Social Monitoring Report (October-December 2019)||Environmental and Social Monitoring Reports||Apr 2020|
|Third GMS Corridor Towns Development Project: Kayin State Initial Environmental Examination||Initial Environmental Examination||Apr 2017|
|Third GMS Corridor Towns Development Project: Mon State Initial Environmental Examination||Initial Environmental Examination||Apr 2017|
|Third GMS Corridor Towns Development Project: Kayin State Subprojects Resettlement Plan||Resettlement Plans||Mar 2017|
|Third GMS Corridor Towns Development Project: Mon State Subprojects Resettlement Plan||Resettlement Plans||Mar 2017|
Evaluation Documents See also: Independent Evaluation
None currently available.
|Title||Document Type||Document Date|
|Preparing the Third GMS Corridor Towns Development Project (Myanmar Language Translation)||Brochures and Flyers||May 2016|
|Preparing the Third GMS Corridor Towns Development Project||Brochures and Flyers||May 2016|
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.
|Tender Title||Type||Status||Posting Date||Deadline|
|Project implementation support consultant||Firm - Consulting||Closed|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|GMS-CONS-01: PROJECT IMPLEMENTATION SUPPORT||Loan 3663||30 Sep 2019||FCG INTERNATIONAL LTD IN JOINT VENTURE WITH S | TD FINLAND FINLAND||Ministry of Construction||4,275,300.00||4,275,300.00|
|Title||Document Type||Document Date|
|Third Greater Mekong Subregion Corridor Towns Development Project: Procurement Plan||Procurement Plans||Oct 2020|