Myanmar : Third Greater Mekong Subregion Corridor Towns Development Project

Sovereign Project | 48175-002

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 Details

  • Project Officer
    Baird, Alan
    Sectors Group
    Request for information
  • Country/Economy
  • Modality
  • Sector
    • Water and other urban infrastructure and services
Project Name Third Greater Mekong Subregion Corridor Towns Development Project
Project Number 48175-002
Country / Economy Myanmar
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3663-MYA: Third GMS Corridor Towns Development Project
Concessional ordinary capital resources lending US$ 80.00 million
Loan: Third Greater Mekong Subregion Corridor Towns Development Project
Neighbouring Countries Economic Development Cooperation Agency US$ 23.40 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
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

Project Outcome
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.
Implementation Progress
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
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
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
Business Opportunities
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)
Executing Agencies
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

Loan 3663-MYA

Approval Signing Date Effectivity Date Closing
Original Revised Actual
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%
Counterpart 6.53 Cumulative Disbursements
Cofinancing 0.00 21 Jul 2023 1.23 0.00 2%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - 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.

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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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Tender Title Type Status Posting Date Deadline
Project implementation support consultant Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)

Procurement Plan

Title Document Type Document Date
Third Greater Mekong Subregion Corridor Towns Development Project: Procurement Plan Procurement Plans Oct 2020