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Myanmar: Support for Strengthening Business Climate

Sovereign (Public) Project | 50173-001 Status: Active

Limited access to finance remains one of the biggest challenges for private sector-led growth in Myanmar.

The Government has requested ADB to support the development of the domestic capital markets to strengthen the business environment.

The TA is aligned with the government's economic policy of private sector growth in line with a market economy system.

Project Details

Project Officer
Nguyen, Duong T. Southeast Asia Department Request for information
Country
  • Myanmar
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Support for Strengthening Business Climate
Project Number 50173-001
Country Myanmar
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9324-MYA: Support for Strengthening Business Climate
Technical Assistance Special Fund US$ 800,000.00
TA 9324-MYA: Support for Strengthening Business Climate (Supplementary)
ATF - DFID-United Kingdom US$ 5.08 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Finance / Finance sector development - Inclusive finance - Money and capital markets

Public sector management / Decentralization - Public administration

Gender Equity and Mainstreaming No gender elements
Description

Limited access to finance remains one of the biggest challenges for private sector-led growth in Myanmar.

The Government has requested ADB to support the development of the domestic capital markets to strengthen the business environment.

The TA is aligned with the government's economic policy of private sector growth in line with a market economy system.

Project Rationale and Linkage to Country/Regional Strategy Capital market development is consistent with ADB's country partnership strategy, 2017 2021, which aims to support inclusive and sustainable growth through private sector development. The TA is also consistent with and also supports ADB's Strategy 2030. Capital market development and increasing access to finance will support the government's efforts to (i) reduce poverty and inequality; (ii) strengthen governance and institutional capacity; and (iii) foster regional cooperation and integration.
Impact Private sector growth in line with a market economy system enabled
Project Outcome
Description of Outcome Business environment improved
Progress Toward Outcome

Update as of Dec 2019:

The following activities have been conducted.

The consulting firm submitted the draft diagnostic report, which detailed the analysis on the current market status and existing impediments to market development. The law firm completed an inception report which outlined some key observations during their inception mission, including the legal and regulatory requirements for involvement by the Securities Exchange Commission of Myanmar and other financial regulators.

A conference on bond market development was organized to share international experience in bond market development and to promote investment in Myanmar government bond. A proposal for the first issuance of long-dated bonds through syndication was submitted to the MOPF for approval.

The bond market forum was convened to discuss the business model and future work plan to establish the first industry-led Bond Market Association.

The translator for the International Financial Report Standards (IFRS) has completed the translation of the glossary and submitted to the IFRS review committee. The translation software has been procured and installation is ongoing. The recruitment of the national financial literacy media firm is underway with expected commencement date in January 2020.

Implementation Progress
Description of Project Outputs

1. Tax administration strengthened

2. Investment approval process rationalized

3. Business access to financial services increased

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

Updates as of March 2020:

The first two outputs financed by ADB TASF have been completed. The activities under output three which is financed by DFID to support capital market development are on track. The diagnostic reports will be completed by the first quarter of 2020 and the draft capital market plan will be ready by the second quarter of 2020. The bond market forum was established and commenced work on the establishment of the first industry-led capital market association. A financial literacy campaign is being developed to strengthen stakeholders' understanding of capital market development and International Financial Reporting Standards are being translated to the local language to support a wider adoption. A website for the Bond Market Association is being created to promote capital market development and strengthen knowledge and information exchange.

A firm will be engaged to design a comprehensive training program on capacity market development targeting both the government and the private sector at all level of competency and to conduct those trainings. Translation of the SME IFRS Standards is ongoing and is scheduled to be completed in June 2020. The translation of the full IFRS Standards will commence after the satisfactory completion of the SME IFRS Standards. The TA supported the procurement of a translation software used in the translation process.

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Update as of 25 Sept 2019:

To date, three consulting firms, seven international individual consultants, and two national individual consultants were recruited to support the TA activities.

Being processed:

(i) the engagement of one professional translator to translate the International Financial Reporting Standards (IFRS) to Myanmar language, two IFRS experts (one international and one national) to provide capacity development on IFRS application to the relevant stakeholders;

(ii) the engagement of national consulting firm to support the financial literacy campaign in Myanmar

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Update as of 28 Mar 2019:

The following consultants have been engaged in March 2019: Debt Management Expert, Debt Management and IT Expert, Project Manager, and a Bond Market Association Advisor.

There is an ongoing recruitment for an Insolvency and Corporate Registry Expert, as well as firm recruitment for a (i) Capital Market Development Consulting Firm, and (ii) a Capital Market Development Law Firm.

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Update as of 28 Feb 2019:

A major change in implementation memo increasing the TA amount from $800,000 (TASF-6) to $5,800,000, with additional cofinancing from the United Kingdom Department for International Development (DFID), was approved on 7 December 2018. The TA completion date was extended from 31 July 2020 to 31 December 2022.

The following consultants have been engaged: an international investment policy firm, 2 national experts (finance expert and country coordinator), two international experts (international microfinance expert, international tax audit expert), and 2 resource persons for the Myanmar Investment Forum and Credit Guarantee Corporation.

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An international consulting firm, two international individual consultants and two national individual consultants have been recruited and have commenced their assignments. The international microfinance expert fielded his inception mission in October 2017 and the investment policy firm and internal audit expert conducted their inception missions in January 2018. A minor change in implementation arrangements was approved to engage an additional national finance expert to support the project team to implement the third output. Four resource-person contracts were issued to quickly respond to the government''s requests, including (i) one international investment expert to present at the Yangon Investment Forum and (ii) one legal expert to prepare the implementation roadmap for the proposed credit guarantee corporation, and (iii) two User Acceptance Training experts to test and provide feedback on the use of the online company registry. The recruitment of the international tax data expert has been deferred pending the availability of the identified expert.

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Several Review Missions were conducted in 2019. In these meetings, the Project Team met with development partners to discuss donor coordination in capital market in Myanmar. There was a meeting with the Securities and Exchange Commission of Myanmar where they requested support for financial literacy in capital market development. ADB agreed in principle as this is also aligned with the project's objectives. The Mission also met with experts from JICA and the Japan Embassy on the support for insurance companies.

In November 2019, a conference entitled Investing in Myanmar Government Bonds was hosted by ADB and the UK DFID. The conference had the presence of high-level government officials.

On the International Financial Reporting Standards, a mission was fielded to work with the stakeholders for the adoption and application of the reporting standards; and to identify issues and develop a time-bound action plan.

Business Opportunities
Consulting Services Consulting services will be delivered by a mix of individuals and a firm. ADB will hire consulting firms, according to its Guidelines on the Use of Consultants. Individual consultants will be recruited using Individual Consultant Selection (ICS). A total of 11 person-months will be allocated to individual international consultants and 23 person-months to an individual national consultant to act as a project coordinator for all activities under 3 outputs. 9 person-months of consulting inputs will be allocated to one consulting firm and will be split among 3 international experts. Procurement shall be conducted in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). Disbursements under the TA will conform to ADB's Technical Assistance Disbursement Handbook.
Procurement An amount will be budgeted for the purchase of equipment including 9 computers and office furniture for the new MIC offices and IAD of IRD. Procurement shall be conducted in accordance with ADB's Procurement Guidelines (2015, as amended from time to time). Disbursements under the TA will conform to ADB's Technical Assistance Disbursement Handbook.
Responsible ADB Officer Nguyen, Duong T.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Planning, Finance and Industry (formerly Ministry of Planning and Finance)
Building No 26. Nay Pyi Taw
Republic of the Union of Myanmar
Timetable
Concept Clearance 01 Mar 2017
Fact Finding 30 Jan 2017 to 03 Feb 2017
MRM -
Approval 31 May 2017
Last Review Mission -
Last PDS Update 31 Mar 2020

TA 9324-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 May 2017 07 Aug 2017 07 Aug 2017 31 Jul 2020 31 Dec 2022 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 5,080,000.00 0.00 0.00 0.00 0.00 5,880,000.00 31 May 2017 1,560,038.07

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.

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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.

None currently available.

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
Bond Market Association Advisor Individual - Consulting Closed 10 Jan 2019 16 Jan 2019
Bond Market Association expert Individual - Consulting Closed 31 Oct 2019 06 Nov 2019
Capital Market Capcity Development Firm Firm - Consulting Closed 23 Jan 2020 06 Feb 2020
Capital Market Development, Phase 1 and 2 - International Consulting Firm Firm - Consulting Closed 17 Jan 2019 03 Mar 2019
Debt Management Expert Individual - Consulting Closed 10 Jan 2019 16 Jan 2019
Debt Management IT Implementation Expert Individual - Consulting Closed 10 Jan 2019 16 Jan 2019
Experts in Capital Markets (International law firm) Firm - Consulting Closed 01 Feb 2019 02 Mar 2019
Financial Literacy firm Firm - Consulting Closed 03 Oct 2019 09 Oct 2019
Financial Management Specialist Individual - Consulting Closed 04 Jul 2020 10 Jul 2020
IFRS Translation Coordinator Individual - Consulting Closed 11 Jul 2020 24 Jul 2020
Insolvency and Corporate Registry Expert Individual - Consulting Closed 23 Mar 2019 29 Mar 2019
Internal Audit Expert (Taxation) Individual - Consulting Closed 13 Sep 2017 19 Sep 2017
International Financial Management Specialist Individual - Consulting Closed 25 Oct 2019 31 Oct 2019
International Financial Reporting Standards (IFRS) Expert Individual - Consulting Closed 22 Jul 2020 04 Aug 2020
Investment Policy Consulting Firm Firm - Consulting Closed 22 Aug 2017 28 Aug 2017
Legal and Implementation Expert (Corporate and Capital Market Development) Individual - Consulting Closed 04 Jun 2019 06 Jun 2019
National Finance Expert Individual - Consulting Closed 24 Feb 2018 02 Mar 2018
National Financial Reporting Standards (IFRS) Consultant Individual - Consulting Active 04 Aug 2020 17 Aug 2020
National Project Coordinator Individual - Consulting Closed 20 Oct 2017 22 Oct 2017
Project Manager Individual - Consulting Closed 26 Jan 2019 01 Feb 2019
Project Manager Individual - Consulting Closed 17 Jan 2019 23 Jan 2019
Tax Data Expert Individual - Consulting Closed 13 Sep 2017 19 Sep 2017
Translation of IFRS for SMEs Standard into Myanmar Language Individual - Consulting Closed 23 Aug 2019 06 Sep 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 9324 26 Jan 2018 ADAM SMITH INTERNATIONAL LTD. (UNITED KINGDOM) 3 ALBERT EMBANKMENT LONDON SE1 7PS UNITED KINGDOM *** No Executing Agency for this TA *** Consulting Services 258,170.00
Capacity Development Technical Assistance 9324 16 Aug 2019 Norton Rose Fulbright Australia (AUSTRALIA) Level 18, Grosvenor Place, 225 George Street Sydney, NSW 2000O, Australia Ministry of Planning and Finance Consulting Services 250,000.00
Capacity Development Technical Assistance 9324 10 Jul 2019 INTERNATIONAL SECURITIES CONSULTANCY LTD. (THE) (HONG KONG, CHINA) 9A, CARFIELD COMMERCIAL BLDG.75-77 WYNDH NTRAL HONG KONG / Office 1601, 16th Flr. Wilmer Street, Hong Kong Ministry of Planning and Finance Consulting Services 500,000.00

Procurement Plan

None currently available.