Myanmar : Yangon City Water Resilience Project

Project Name

Yangon City Water Resilience Project

Project Number

52176-001

Country / Economy

• Myanmar

Project Status

Approved

Project Type / Modality of Assistance

• Loan

Source of Funding / Amount

Loan 3984-MYA: Yangon City Water Resilience Project

Source	Amount
Concessional ordinary capital resources lending	US$ 180.00 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
• OP4: Making cities more livable
• OP5: Promoting rural development and food security
• OP6: Strengthening governance and institutional capacity
• OP7: Fostering regional cooperation and integration

Sector / Subsector

• Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

Gender

No gender elements

Description

The project is aligned with the following impact: Yangon City''s urban resilience and liveability enhanced. The project will have the following outcome: Yangon City''s security of water supply reinforced. The project's output are (a) Bulk water transmission system constructed. The project will complement YCDC''s strategic plan by increasing its supply of raw water from Ngamoeyeik reservoir to Nyaungnhapin WTP by one-third from 613.5 MLD to 818 MLD. These interventions will secure and expand existing water services. As the majority of YCDC''s customers depend on this supply, it is important to secure this source against system vulnerability and to build deeper operational resilience. The project will finance construction of new facilities to transfer about 818 MLD of water including (i) an intake structure at Ngamoeyeik reservoir; (ii) an on-line pumping station 900 meters downstream of the intake structure; and (iii) a 34 km pipeline of 2.4 m diameter from Ngamoeyeik reservoir to the WTP; and (b) Institutional sustainability strengthened. The project will strengthen institutional sustainability of YCDC to deepen reliability of its water services by supporting establishment of YCDC's subsidiary water authority, WRWSA. It will support YCDC capacity building in critical areas, such as water systems operational management and climate change responsiveness. The project will support YCDC to optimize its operating efficiency by expanding its metered water service, improving its collection efficiency, and improving customer service. Also, as YCDC is considering options for a new tariff strategy, the project will provide targeted support to assist in the enhancement of the self-financing capacity of YCDC.

Project Rationale and Linkage to Country/Regional Strategy

The project will address urgent water infrastructure needs associated with bulk water supply in Yangon City. It will support the government's strategies to make its cities more livable through the provision of better and more widespread urban water services. As the first of a series of phased interventions, the project will deliver a water-secure future for Yangon City.

Impact

Yangon City''s urban resilience and livability enhanced

Project Outcome

Description of Outcome

Yangon City''s security of water supply reinforced

Progress Toward Outcome

Implementation Progress

Description of Project Outputs

Bulk water transmission system constructed

Institutional sustainability strengthened

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

Geographical Location

Yangon

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

The project has been classified as category B, requiring an Initial Environmental Examination (IEE). The IEE report has been prepared in accordance with requirements of the ADB SPS (2009) and the Myanmar Environmental Impact Assessment Procedure (2015). The IEE report has been prepared in accordance with requirements of the ADB SPS (2009) and the Myanmar Environmental Impact Assessment Procedure (2015). The IEE concludes that the project will have positive economic, environmental, and health benefits through a secure water pipeline which will deliver bulk water from the reservoir to the WTP with low water loss and improved water quality. During construction, there will be localized temporary direct adverse impacts caused by tunnelling and pipe laying works. These and other impacts will be mitigated and monitored through measures defined in the environmental management plan (EMP). YCDC, supported by the PMC, will supervise the implementation on the EMP. An environmental quality monitoring program has been designed to monitor impacts of noise, air pollution, and to assess changes in water quality during construction. Assuming that mitigation measures and monitoring requirements in the EMP are effectively implemented, the project is not expected to have a significant adverse environmental impact. No significant adverse impact is anticipated during operation phase.

Involuntary Resettlement

The project has been classified as category A. The project will not involve the acquisition of privately-owned lands, as the pipeline will be constructed using the existing right-of-way (ROW) held by MOC and YCDC. During project preparation, various encroachments were identified along the ROW, and these structures will be affected entirely and some of those will be affected partially. The total number of affected households is estimated to be 216 (with 918 affected persons) of which 142 are vulnerable affected households.

Indigenous Peoples

The project has been classified as category C. The low number of people from ethnic groups in the project area is considered insignificant, and they are not indigenous to the area. It is found that Mon/Kayin/Shan each represent only 2% of the surveyed population, with Rakine representing less than 1% (2 people). These ethnic households have immigrated to the area from other regions of Myanmar. The ethnic group households are not vulnerable as such. All these households have basic infrastructure facilities. Nonetheless, these ethnic households are considered to be vulnerable and provision for additional assistance has been made in the RP. Any unforeseen impacts on them will be mitigated during the detailed design.

Stakeholder Communication, Participation, and Consultation

During Project Design

During Project Implementation

Contact

Responsible ADB Officer

Baird, Alan

Responsible ADB Department

Sectors Group

Responsible ADB Division

Water and Urban Development Sector Office (SG-WUD)

Executing Agencies

Yangon City Development Committee

Yangon Region Government

Timetable

Concept Clearance

28 Aug 2018

Fact Finding

07 Jan 2020 to 10 Jan 2020

MRM

08 Apr 2020

Approval

29 Sep 2020

Last Review Mission

-

Last PDS Update

30 Sep 2020