Myanmar : Second Greater Mekong Subregion Highway Modernization Project

Sovereign Project | 50381-006

The project will (i) develop a new four-lane arterial expressway between Bago (Bago region) and Kyaikto (Mon state) of about 64 kilometers (km), along the Greater Mekong Subregion (GMS) East-West Economic Corridor (EWEC); (ii) build the government's capacity to develop and manage expressways meeting international standards; and (iii) ensure road safety in the Bago-Kyaikto corridor.

Project Name
Second Greater Mekong Subregion Highway Modernization Project
Project Number
50381-006
Country / Economy
  • Myanmar
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 3994-MYA: Second Greater Mekong Subregion Highway Modernization Project
Source Amount
Concessional ordinary capital resources lending US$ 483.80 million
Loan: Second Greater Mekong Subregion Highway Modernization Project
Source Amount
Japan International Cooperation Agency US$ 254.80 million
Operational Priorities
  • OP1: Addressing remaining poverty and reducing inequalities
  • OP2: Accelerating progress in gender equality
  • OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
  • OP6: Strengthening governance and institutional capacity
  • OP7: Fostering regional cooperation and integration
Sector / Subsector
  • Transport / Road transport (non-urban)

Gender
Some gender elements
Description
The project will (i) develop a new four-lane arterial expressway between Bago (Bago region) and Kyaikto (Mon state) of about 64 kilometers (km), along the Greater Mekong Subregion (GMS) East-West Economic Corridor (EWEC); (ii) build the government's capacity to develop and manage expressways meeting international standards; and (iii) ensure road safety in the Bago-Kyaikto corridor.
Project Rationale and Linkage to Country/Regional Strategy

The GMS corridors are the backbone of Myanmar's transport system. The EWEC connects Da Nang with Yangon and its special economic zone of Thilawa, and then onwards to Pathein. The Thailand, Lao People's Democratic Republic, and Viet Nam sections of the corridor have been completed to international standards, with border facilities improved. Improvements to this EWEC corridor will reduce national transport costs and improve regional connectivity with Thailand, and onwards to the rest of the GMS region. However, most of the corridors in Myanmar, including EWEC, has only two lanes, with pavement condition ranging from poor to fair. Road safety is a serious sector issue with Myanmar's road crash fatality rate being among the highest in Southeast Asia region. The alignments are long and cross urban areas, and the low design standards with mixed road users (motorized and non-motorized vehicles, pedestrians, and animals) make it unsafe for speeds higher than 60 km per hour.

The project will address capacity issues of the road between Bago-Kyaikto along the EWEC, where the current two-lane road experiences high traffic. A pre-feasibility study prepared by the Japan International Cooperation Agency (JICA) showed that this section would reach capacity between 2020 and 2025. Upgrading the currently existing road is not the preferred solution, as its widening would involve large resettlement impacts, and because the alignment of the road is long and winding in several areas. The project proposes the construction of a new Bago-Kyaikto expressway with 4-lanes, shorter by 32 km than the current alignment, which will halve travel time. This expressway will be about 64 km long and include a 2.3 km long new bridge across the Sittaung river.

Impact

An arterial highway network established in support of economic development, regional economic growth, and international industrial competitiveness in a way that is safe, environmentally-friendly and efficient.

Project Outcome

Description of Outcome

More efficient and safer movement of goods and people between Bago and Kyaikto along the Greater Mekong Subregion East-West Economic Corridor

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

New Bago-Kyaikto expressway constructed

Capacity of Ministry of Construction for expressway management enhanced

Road safety of Bago-Kyaikto corridor improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Nation-wide

Safeguard Categories

Environment
A
Involuntary Resettlement
A
Indigenous Peoples
B

Summary of Environmental and Social Aspects

Environmental Aspects
This project is classified as a Category A for environment. An Environmental Impact Assessment (EIA) including environmental management plan (EMP) has been prepared in accordance with ADB's Safeguards Policy Statement 2009 (SPS 2009) requirements and Myanmar national standards and legislation. The EIA covers primarily the activities financed by ADB (i.e. the 62 km expressway between Bago and Kyaikto). The draft EIA, including EMP has been cleared by ADB and disclosed on ADB's website in July 2019. According to Myanmar Environmental Impact Assessment Procedure 2015, Environmental Scoping Report was approved by Environmental Conservation Department (ECD) in August 2018. The draft EIA was submitted by MOC to ECD in July 2019.
Involuntary Resettlement
The Project has been classified as Category 'A for Involuntary Resettlement in accordance with SPS 2009. During the feasibility study, land acquisition and involuntary resettlement impacts were assessed through inventory of losses (IOL) and socio-economic surveys of the affected households. A draft Resettlement Plan (RP) has been prepared in accordance with SPS 2009 and Government of Myanmar's (GOM's) laws and regulations. The project requires acquisition of a total of 511 hectares (ha) land of which 438 ha is private land and 73 ha is state land. A total of 445 households will be affected due to permanent land acquisition for the project, including 21 informal settlers who built their houses within the current right of way of the existing road. Among these 445 affected households, 346 households (1,936 persons) will lose at least 10% of their total production landholding and 55 households (275 persons) are required to be relocated. These households are considered as severely affected households and will be entitled to participate in the Income Restoration Program (IRP). A total of 171 affected households are considered as vulnerable affected households by the Project. Various kinds of trees will also be affected due to the land acquisition and there are public facilities which will be affected. The IRP will be implemented by the Project to (a) provide technical assistance for those who want to continue farming or raising livestock/cattle; (b) create career opportunities through vocational trainings and job creating activities; and (c) provide technical assistance or/and small business/service models for those who want to do business.
Indigenous Peoples
The Project has been classified as Category 'B for Indigenous Peoples in accordance with SPS 2009. A separate Ethnic Group Development Plan (EGDP) has been prepared to ensure that ethnic groups in the project areas participate equitably in consultations, mitigation programs and project benefits. There are 1,049 ethnic minority households residing in the project areas consisting of Karen (625 households); Shan (245 households); Mon (176 households); Paoh (2 households); and Chin (1 household). No ethnic group households will be affected by land acquisition nor experience other severe impacts. The GRM proposed in the RP will be used for ethnic group community members. The proposed GRM has been discussed with the local ethnic minority communities and local administrators.

Stakeholder Communication, Participation, and Consultation

During Project Design
Two rounds of stakeholder consultation were held with government and local district officials. Also, two rounds of public consultation with villagers were held as required for a Category A project. Five community consultations were held in March 2018 and four more in August 2018. Major inquiries were related to compensation for land resettlement. Overall, there was general support for the new expressway. PMU, with the support of CSIS consultant, will have the main responsibility to ensure meaningful public consultations during project implementation.Adequate consultation and disclosure of information have been conducted during the preparation of draft RP. There were 23 public consultation meetings held with local people, including displaced persons and villagers at large in AugustSeptember 2018.
During Project Implementation

Business Opportunities

Consulting Services

All consultants under the advance contracting will be recruited according to ADB's Procurement Policy (2017, as amended from time to time) and the Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

An estimated 1,236 person-months (486 internationals, 750 nationals) of consulting services are required for CSIS consulting services.

Procurement

All procurement of goods, works, non-consulting and consulting services will be undertaken in accordance with ADB Procurement Policy Goods, Works, Non-consulting and Consulting Services (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers Goods, Works, Non-consulting and Consulting Services (2017, as amended from time to time).

Open competitive bidding (OCB) procedures with international advertisement will be used for the procurement of civil works and consulting services. Strategic procurement planning was carried out to identify procurement risks, develop mitigating measures, review procurement options and agree on fit-for-purpose procurement arrangements. The procurement risk is rated high since DOH does not have much capability and will depend on international consultants for the preparation of detailed design, procurement and project implementation support. The capacity development in procurement will be provided by the consultant through day-to-day assistance and trainings. In parallel, ADB will strengthen DOH's capacity in safeguards, procurement and contract management. Value for money will be achieved by (i) selecting the CSIS consultant through advance action, under quality and cost based method with 90% weight assigned to quality; and (ii) procuring civil works package through OCB with international advertising to ensure better competition, where one civil works contract is split into 5 lots taking into account engineering considerations, size and complexity of road sections, and where bidders are permitted to bid for a single lot or combination of lots based on their technical capacity and availability of financial resources.

Contact

Responsible ADB Officer
Islam, Mohammad Nazrul
Responsible ADB Department
Sectors Group
Responsible ADB Division
Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Construction

Timetable

Concept Clearance
21 Apr 2017
Fact Finding
20 Aug 2019 to 10 Sep 2019
MRM
30 Apr 2020
Approval
29 Oct 2020
Last Review Mission
-
Last PDS Update
29 Oct 2020

Funding

Loan 3994-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Oct 2020 26 Nov 2020 11 Jan 2021 30 Sep 2027 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 526.34
ADB 483.80
Counterpart 42.54
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 18 Apr 2024 0.00 0.00 0%
Cumulative Disbursements 18 Apr 2024 0.00 0.00 0%
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.

  • 29 Oct 2020 | News Release

    $484 Million ADB Loan to Fund New GMS Expressway in Myanmar

    ADB has approved a $483.8 million loan to build a 64-km expressway connecting the capital of Bago region and the township of Kyaikto in Mon state in Myanmar and support economic development along the GMS East–West...

Tenders

Tender Title Type Status Posting Date Deadline
Second Greater Mekong Subregion Highway Modernization Project (formerly GMS East-West Economic Corridor Highway Development Project) Firm - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

Title Document Type Document Date
Second Greater Mekong Subregion Highway Modernization Project: Procurement Plan Procurement Plans Sep 2020