Myanmar: Myingyan Natural Gas Power Project
The Project entails the construction and operation of a 225 MW combined cycle gas turbine power plant in Myingyan, approximately 500 km North of Yangon and 90 km West of Mandalay.
Pascual, Francis Mark A.
Private Sector Operations Department
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|Project Name||Myingyan Natural Gas Power Project|
|Borrower / Company||Myingyan Project Company
|Country / Economy||Myanmar
|Type or Modality of Assistance||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Partnerships
Private sector development
|Sector / Subsector||
Energy / Conventional energy generation
|Gender Equity and Mainstreaming||No gender elements|
|Responsible ADB Department||Private Sector Operations Department|
|Responsible ADB Division||Portfolio Management Division, PSOD|
|Responsible ADB Officer||Pascual, Francis Mark A.|
|Project Sponsor(s)||SEMBCORP UTILITIES PRIVATE LIMITED
|Description||The Project entails the construction and operation of a 225 MW combined cycle gas turbine power plant in Myingyan, approximately 500 km North of Yangon and 90 km West of Mandalay.|
|Objectives and Scope||
Securing long-term commercial bank financing necessary for large-scale infrastructure investments remains a challenge in Myanmar due to lack of track record and perceived high political risk. ADB has played a key catalytic role in addressing this challenge both from public sector and private sector sides. ADB public sector TA was instrumental in preparing the tender template documents and the template power purchase agreement. ADB private sector's early engagement in the bidding process with the shortlisted bidders also gave them the opportunity to optimize their proposals, and has resulted in the competitive tariff which benefits the country. Thus, the project illustrates the synergy of ADB''s public and private sector operations to undertake a PPP project from upstream to downstream seamlessly under a nascent legal and financial environment.
The project will improve the reliability and stability of Myanmar's power supply at a competitive tariff, while addressing power shortages and helping avoid future brownouts that hinder economic growth. As the first competitive tender for a gas-fired independent power producer project in Myanmar, the successful financial close and operation of this project is expected to mark a major milestone in the power sector. ADB''s substantial participation will help demonstrate the benefits of improving power supply through low-cost PPP arrangements, and signal to the government, multinationals, and international financiers that private sector-led infrastructure investments can be undertaken successfully within sectors with sound legal and regulatory frameworks.
|Status of Operation/Construction||Project Commercial Operations Date achieved on 02 October 2018.|
|Linkage to Country/Regional Strategy||The project is consistent with Asian Development Bank's (ADB) Midterm Review of Strategy 2020, which identifies inclusive growth and infrastructure development as two of the strategic priorities. The project is aligned with ADB''s interim country partnership strategy (CPS) for Myanmar, 2012- 2014. A needs assessment identified the energy sector as a critical development constraint.The summary energy sector assessment, as part of the CPS, identifies the following medium-term needs (i) tariff and structural reforms in the sector; (ii) assessment and promotion of renewable energy and energy efficiency; (iii) hydropower development policy and planning; (iv) rural electrification (expansion of transmission and distribution line projects and off-grid renewable energy options); and (v) rehabilitation and expansion of natural gas pipeline networks. The assistance is also closely aligned with the 2015- 2017 country operations business plan for Myanmar, which extends the validity of the interim CPS, and proposes focus on infrastructure investments in energy and PPP through ADB's private sector operations. ADB''s Energy Policy emphasizes energy efficient investments, least-cost supply, private sector participation, and wider access for the poor.|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The environmental and social impact assessment identifies the potential environmental and social impacts and risks of the project, and assesses the cumulative air quality impacts in the airshed. The project will minimize its contribution to background air quality through the use of gas turbines incorporating dry low nitrogen oxide burners. The project utilizes a closed-loop water-cooling system, which means that water extraction and thermal discharge impacts are minimized. Adequate mitigation measures are incorporated in the environmental management plan of the environmental impact assessment, which the borrower is committed to fully implement, with submission of semiannual progress reports to comply with ADB requirements. The due diligence assessed and confirmed adequacy of the institutional capacity and commitment of the borrower to manage the project's environmental and social impacts.|
|Involuntary Resettlement||The project site (11.6 hectares) is situated within a larger 280 hectares government-owned and operated steel mill site. While the project site will be constructed on government land, alignment of the transmission line, water supply and water waste pipeline, and gas pipeline are likely to involve some degree of involuntary resettlement including economic displacement. Myanma Electric Power Enterprise (MEPE) is leading the land acquisition process for the water pipeline and transmission lines. Preliminary surveys on the selection and finalization of the alignments are underway and the acquisition process is expected to be completed by MEPE by 2016. The involuntary resettlement impacts are not expected to be significant, based on the assessment of the preliminary alignments. A resettlement framework has been prepared to lay down the procedures to be adopted by Sembcorp to ensure compliance with ADB safeguard requirements, and bridge the gaps between the national requirements and the ADB safeguard requirements. Sembcorp will implement the provisions of the resettlement framework and report to ADB on its compliance to the safeguard requirements.|
|Indigenous Peoples||No indigenous communities live within the project influence area, and therefore no impacts on indigenous peoples are expected.|
|Stakeholder Communication, Participation, and Consultation||Consultations with identified affected people were conducted in accordance with ADB requirements.|
|Timetable for assistance design, processing and implementation|
|Concept Clearance||04 Aug 2015|
|Credit Committee Meeting||-|
|Approval||08 Dec 2015|
|Last PDS Update||05 May 2021|
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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|Title||Document Type||Document Date|
|Myingyan Natural Gas Power Project: Stakeholder Engagement Plan||Documents Produced Under Grant/Loans/TA||Aug 2018|
|Myingyan Natural Gas Power Project: Project Data Sheet (Myanmar Language Translation)||Translated PDS||Apr 2016|
|Myingyan Natural Gas Power Project: Report and Recommendation of the President||Reports and Recommendations of the President||Nov 2015|
|Myingyan Natural Gas Power Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||Nov 2015|
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.
None currently available.
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