Myanmar: Power Network Development Project

Sovereign Project | 50020-002

The project will construct (i) 16.6 km transmission line between Ahlone and Thida substations with a 230/66/11kV 150 MVA Ahlone substation and 230/66/11kV (3x150 MVA) GIS Thida substation; (ii) 286km Mawlamyine-Ye-Dawei transmission line with 230/66/11kV (2 x 50 MVA) Ye substation and 230/66/11kV (2 x 50 MVA) Dawei substation; and (iii) upgrade and construct 48 new 66/33/11kV substations with 843 km distribution lines in the following states and regions: Aeyawardy, Bago, Mon, Kayin and Rakhine. The project will also install a computerized transmission asset management systems (CAMS) and a computerized customer billing system (CCBS) to improve operational efficiency and reduce losses in the transmission and distribution systems.

Project Details

  • Project Officer
    Bui, Duy-Thanh
    Southeast Asia Department
    Request for information
  • Country/Economy
    Myanmar
  • Modality
    • Loan
  • Sector
    • Energy
Project Name Power Network Development Project
Project Number 50020-002
Country / Economy Myanmar
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3748-MYA: Power Network Development Project
Concessional ordinary capital resources lending US$ 298.90 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The project will construct (i) 16.6 km transmission line between Ahlone and Thida substations with a 230/66/11kV 150 MVA Ahlone substation and 230/66/11kV (3x150 MVA) GIS Thida substation; (ii) 286km Mawlamyine-Ye-Dawei transmission line with 230/66/11kV (2 x 50 MVA) Ye substation and 230/66/11kV (2 x 50 MVA) Dawei substation; and (iii) upgrade and construct 48 new 66/33/11kV substations with 843 km distribution lines in the following states and regions: Aeyawardy, Bago, Mon, Kayin and Rakhine. The project will also install a computerized transmission asset management systems (CAMS) and a computerized customer billing system (CCBS) to improve operational efficiency and reduce losses in the transmission and distribution systems.
Project Rationale and Linkage to Country/Regional Strategy The core developmental problem of Myanmar's power sector is insufficient and obsolete transmission and distribution infrastructure and lack of generating capacity to adequately supply electricity to support economic development and poverty reduction. With forecasted high economic growth, Myanmar's electricity demand is expected to rise fivefold from 3070 megawatt (MW) in 2017 to 14500 MW in 2030. The project will contribute to increasing electricity supply to support inclusive and sustainable development, and to achieving the country's plan of universal electricity access by 2030.
Impact Universal electricity access achieved
Project Outcome
Description of Outcome Capacity and operational efficiency of power transmission and distribution in central and southern Myanmar increased
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Myanmar''s 230 kV power transmission network expanded

New distribution facilities added to the distribution systems in Ayeyarwady and Bago regions and in Kayin, Mon, and Rakhine states

New computerized assets management systems (CAMS) and computerized customer billing system (CCBS) installed

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Under the Transmission Component, an environmental impact assessment report with environmental management plan was prepared. These reports were based on the results of site visits, discussions with local authorities and beneficiaries, and the use of secondary sources of information such as similar projects. The assessment provided that expected impacts will occur during the different phases of the project development. The project was initially categorized as A due to the long Mawlamyine-Ye-Dawei transmission line potentially encroaching a biodiversity area. However, the final alignment chosen as a result of due diligence completely avoided all environment sensitive areas, hence, the environment assessment confirmed that the project is not considered as highly complex and sensitive and is now re-categorized as B.
Involuntary Resettlement Land acquisition for the project will result in physical and economic displacement. A total of 39 hectares for land (38 hectares for distribution component and 1 hectare for transmission component) will be acquired permanently to be used for tower footings and substations. The project will have an impact on a total of 814 households. Of these, 18 households will be severely affected: nine households will lose their primary residential structures under the transmission component, and the other nine households will lose more than 10% of the total land holdings or income under the distribution component.
Indigenous Peoples Three of the five states, namely Mon, Kayin and Rakhine have ethnic groups residing in the project area. The project will not acquire lands that are traditionally used by the ethnic groups nor cause any adverse impact on their identity, social, culture, or spiritual importance or interfere with their socio-cultural beliefs and livelihood systems. Ethnic group communities will benefit from project activities through employment opportunities and household electrifications. However, the project also presents minor risks and challenges concerning ethnic groups, particularly in terms of ensuring that ethnic groups are not marginalized during the project implementation with regards to employment opportunities and access to electricity. The project will ensure adequate consultations and a comprehensive project management approach in project areas where there are already ethnic group organizations providing parallel social services and community infrastructure. REGDPs have been developed with the approaches and entries that ensure project design and implementation shall foster full respect of ethnic groups and full respect for all affected households and stakeholders and that the ethnic groups (i) do not suffer adverse impacts as a result of the project, (ii) have equitable access to benefits of the project, and (iii) can participate actively in the project.
Stakeholder Communication, Participation, and Consultation
During Project Design Analyses for the following will be conducted: participation and empowerment; social impacts assessment; employment opportunities; gender issues and Gender Action Plan; ethnic minority issues, if applicable; consultations with project affected peoples, project beneficiaries, stakeholders, civil society organizations to identify issues, propose measures for addressing them through consultations; conduct specific conflict- sensitive consultations in all relevant project areas.
During Project Implementation Continuous consultation and participation process will involve a stakeholder analysis followed by subsequent consultations with various groups. It is planned to conduct consultations at the household and community level, regional and national government officials, development partners, nongovernmental organizations, and commune- and village- level officials and beneficiaries. A series of focus group discussions will be undertaken as part of the socio-economic analysis.
Business Opportunities
Consulting Services The project implementation consultants for transmission and distribution components will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). An estimated 281 person-months of consulting services will be required for the transmission component and 300 person-months for the distribution component. The consultants will support the project implementation unit in project implementation, monitoring and reporting; and strengthen the institutional and operational capacity of the EA/IAs.
Procurement

All procurement of goods and works, and advance contracting will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

The project involves the procurement of three (3) plant-design, supply and installation and one (1) IT product contract under the transmission component; and seven goods and one (1) IT product contract under the distribution component. International competitive bidding with single-stage one-envelope method will be used for procurement of these contracts. ADB's prior review procedures will be followed. Line installation works, substation installation works, and supply of concrete poles will be undertaken through national competitive bidding using ADB's standard bidding documents for small works. Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines (2015, as amended from time to time).

Responsible ADB Officer Bui, Duy-Thanh
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Ministry of Electricity and Energy
No. B-07, Yadana Shwe Pyi St.,
Zaya Theidi Ward, Nay Pyi Taw
Timetable
Concept Clearance 26 Sep 2016
Fact Finding 22 Jan 2018 to 02 Feb 2018
MRM 04 Apr 2018
Approval 28 Nov 2018
Last Review Mission -
Last PDS Update 15 Jun 2019

Loan 3748-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2018 28 Dec 2018 25 Feb 2019 31 Dec 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 308.90 Cumulative Contract Awards
ADB 298.90 17 Jun 2022 72.03 0.00 24%
Counterpart 10.00 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 7.16 0.00 2%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory 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.

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.


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.

Tenders

Tender Title Type Status Posting Date Deadline
Loan 3748-MYA: Power Network Development Project [Package No. (2) – 47(T) DPTSC(PTP)/(2019-2020)] - CORRIGENDUM Invitation for Bids Closed 30 Mar 2020 02 Apr 2020
Loan 3748-MYA: Power Network Development Project [Package No. (2) – 47(T) DPTSC(PTP)/(2019-2020)] - ORIGINAL Invitation for Bids Closed 17 Feb 2020 02 Apr 2020
Loan 3748-MYA: Power Network Development Project [Package No (3)] Invitation for Bids Closed 18 Mar 2019 16 May 2019
Project Implementation Consultant (Transmission) Firm - Consulting Closed 11 Sep 2018 31 Oct 2018
Project Implementation Consultant (Distribution) Firm - Consulting Closed 08 Sep 2018 12 Oct 2018
50020-MYA: Power Network Development Project Advance Notice Active 11 May 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
PACKAGE 2. DESIGN, SUPPLY, INSTALLATION AND COMMISSIONING, 230 KV YE & DAWEI SUBSTATION, EXTENSION OF 230 KV MAWLAMYINE SUBSTATION Loan 3748 15 Sep 2020 XIAN ELECTRIC ENGINEERING CO. LTD | 7 TANGXING ROAD, XIAN, PRC CHINA,PEOPLE'SREP.OF Ministry of Electricity and Energy 20,299,388.29 20,299,388.29
PACKAGE 3. DESIGN, SUPPLY, INSTALLATION AND COMMISSIONING. 230 KV MAWLAMYINE-YE-DAWEI TRANSMISSION LINE Loan 3748 14 Aug 2020 KALPATARU POWER TRANSMISSION LIMITED | 101 KALPATARU SYNERGY OPP GRAND HYATT SANTACRUZ (E) MUMBAI INDIA Ministry of Electricity and Energy 47,285,740.78 47,285,740.78
PROJECT IMPLEMENTATION CONSULTANT (TRANSMISSION COMPONENT) PACKAGE 5. Loan 3748 28 Apr 2020 JV KOREA ELECTRIC ENGINEERING & CONSULTING | 1012-HO HYUNDAI VENTURE BLDG. GANGNAM-GU, SEOUL, KOREA KOREA, REPUBLIC OF Ministry of Electricity and Energy 4,442,904.25 4,442,904.25

Procurement Plan