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Myanmar National Electrification Project Implementation Support Mission Aide Mémoire Key Project Data Project Number P152936 Credit Number IDA-57270 Closing Date 30 Sept 2021 Board Approval 16 Sept 2015 Effectiveness 09 Dec 2015 Last Mission 2-17 Feb 2017 IDA Financing US$ 400m Counterpart Financing US$ 60m Total Disbursements US$ 17.81m Project Development Objective: To help increase access to electricity in Myanmar. Introduction 1. This Aide Mémoire summarizes main findings and agreements reached during the implementation support mission during May 2 24, 2017 for the aforementioned Project. The objectives of the mission were to provide implementation support for the National Electrification Project (NEP) and undertake a preliminary scoping mission for the proposed Grid Solar Diagnostic Study. A field trip to Bago and Chin to visit electrified and unelectrified NEP villages and local governments took place on May 6- 10, 2017. Another field trip to the Kun hydro plant for a planned 100kW floating solar PV pilot took place on May 23, 2017. A technical workshop on Solar Power and Grid Integration on May 24, 2017 at MOEE was facilitated by the World Bank to introduce the start-of-art grid solar technologies and global trends and discuss potential opportunities for development of grid-connected solar photovoltaic (PV) power in Myanmar. 2. The Mission appreciates the hospitality extended by Ministry of Energy and Electricity (MOEE) and Ministry of Agriculture, Livestock and Irrigation (MOALI) Department of Rural Development (DRD). The lists of key government officials met and the Mission members are included in Annex 1. I. Main Findings 3. Overall Implementation Progress of NEP. Both Grid Extension and Off-Grid Components have made notable progress since the last implementation support mission in October/November 2016. The Grid Extension Component has picked up pace after a lull first year of implementation. Three packages (transformers, concrete poles and steel poles) with a total estimated cost of US$ 46 million are under bid evaluation; bidding documents for another three packages (conductors, insulators and steel parts) of a total estimated cost of US$ 60 million and RFP for the project implementation advisor consulting firm of an estimated cost of US$ 6.5 million have been finalized and are bid out. 4. Nonetheless, implementation remains hampered by cumbersome approval process in the government for consultancies and the limited leadership and manpower in the PMO. Recent establishment of Development Assistance Coordination Unit (DACU) chaired by State Councilor appears to have further centralized decision-making on consultants’ contracts with attendant delays. Bank adoption of simplified procedures for high-value contracts has not been effective because of the lack of corresponding actions on the government side for simplification of such contracts. As a result, the grid component is approximately one year behind original schedule. 5. On the Off-Grid Component, installation of 145,000 solar home/public systems and 2,100 street lights under the first supply and installation contract (ICB I) commenced in mid-May 2017 and are expected Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
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Page 1: Myanmar National Electrification Project Implementation ...documents.worldbank.org/curated/en/... · Key Project Data Project Number P152936 Credit Number IDA-57270 Closing Date 30

Myanmar National Electrification Project

Implementation Support Mission

Aide Mémoire

Key Project Data

Project Number P152936 Credit Number IDA-57270 Closing Date 30 Sept 2021

Board Approval 16 Sept 2015 Effectiveness 09 Dec 2015 Last Mission 2-17 Feb 2017

IDA Financing US$ 400m Counterpart Financing US$ 60m Total Disbursements US$ 17.81m

Project Development Objective: To help increase access to electricity in Myanmar.

Introduction

1. This Aide Mémoire summarizes main findings and agreements reached during the implementation

support mission during May 2 – 24, 2017 for the aforementioned Project. The objectives of the mission

were to provide implementation support for the National Electrification Project (NEP) and undertake

a preliminary scoping mission for the proposed Grid Solar Diagnostic Study. A field trip to Bago and

Chin to visit electrified and unelectrified NEP villages and local governments took place on May 6-

10, 2017. Another field trip to the Kun hydro plant for a planned 100kW floating solar PV pilot took

place on May 23, 2017. A technical workshop on Solar Power and Grid Integration on May 24, 2017

at MOEE was facilitated by the World Bank to introduce the start-of-art grid solar technologies and

global trends and discuss potential opportunities for development of grid-connected solar photovoltaic

(PV) power in Myanmar.

2. The Mission appreciates the hospitality extended by Ministry of Energy and Electricity (MOEE) and

Ministry of Agriculture, Livestock and Irrigation (MOALI) Department of Rural Development (DRD).

The lists of key government officials met and the Mission members are included in Annex 1.

I. Main Findings

3. Overall Implementation Progress of NEP. Both Grid Extension and Off-Grid Components have

made notable progress since the last implementation support mission in October/November 2016. The

Grid Extension Component has picked up pace after a lull first year of implementation. Three packages

(transformers, concrete poles and steel poles) with a total estimated cost of US$ 46 million are under

bid evaluation; bidding documents for another three packages (conductors, insulators and steel parts)

of a total estimated cost of US$ 60 million and RFP for the project implementation advisor consulting

firm of an estimated cost of US$ 6.5 million have been finalized and are bid out.

4. Nonetheless, implementation remains hampered by cumbersome approval process in the government

for consultancies and the limited leadership and manpower in the PMO. Recent establishment of

Development Assistance Coordination Unit (DACU) chaired by State Councilor appears to have

further centralized decision-making on consultants’ contracts with attendant delays. Bank adoption of

simplified procedures for high-value contracts has not been effective because of the lack of

corresponding actions on the government side for simplification of such contracts. As a result, the grid

component is approximately one year behind original schedule.

5. On the Off-Grid Component, installation of 145,000 solar home/public systems and 2,100 street lights

under the first supply and installation contract (ICB I) commenced in mid-May 2017 and are expected

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to complete in September 2017. The second SHS tender (ICB II) of approximately 95,000 solar home

and public systems and 5,000 street lights is under bid evaluation. Eight solar mini-grids serving about

1,500 households are under construction and expected to be commissioned in August 2017. It is

critically important for DRD to further strengthen project communications to beneficiaries and

stakeholders, and ensure that adequate training be provided to all recipients and township engineers

and an adequate grievance redress mechanism be put in place. It was agreed with DRD that a result-

based financing scheme would be piloted in select areas. IFC, under its Lighting Myanmar program,

would help with the design of this scheme and mobilization of grant financing for this effort. The pilot

will pave the way for a scale-up and transition of the solar program to a more commercially-based and

sustainableapproach.

6. Grid Solar. The mission had informative and productive discussions with MOEE on exploring

potential of grid-connected solar power in Myanmar. The topics covered during the discussions and

the half-day workshop included solar resource potentials, role of renewable energy in Myanmar

energy mix, solar photovoltaic technologies, global trends in solar energy, grid integration, as well

as other technical, environmental/social and policy considerations related to development of solar

power projects. In response to MOEE request, the World Bank Group will be pleased to support

technical studies related to load analysis and grid integration and project pilots, using grant funding

and IDA resources.

II. Implementation Progress

1. Grid Component

7. Implementation Progress. The grid component has made notable progress since the last

implementation support mission, particularly with regards to procurement of goods contracts and

hiring of the international procurement consultant. Three contracts (Distribution Transformers,

Concrete Poles and Steel Poles) have reached the bid evaluation stage with a total estimated value of

US$ 46 million, and the Bid Evaluation Reports for the first two have been submitted for Bank No-

Objection. The next contract of Conductors with a total value of US$ 29 million is in the proposal

stage. The bidding documents for Insulators and Steel Parts for a total value of US$ 20 million have

been finalized with Bank No-Objection and are to be launched soon. The Request for Proposal (RFP)

for the Project Management consulting service with an estimated cost of US$ 6.5 million has been

issued following Bank’s No-Objection. The other major consulting service for Update of the

Geospatial Least-cost Electrification Plan is at the initiation of Request for Expression of Interest stage.

8. However, procurement activities have been 10-12 months behind the schedule against the original

procurement plan at the negotiation stage. The planned outcome of providing 375,000 people with

electricity access by household connections by end of 2017 as laid out in the Results Framework is

unlikely to be achieved. The following issues are on the critical path for the success of the Grid

Component: (i) strengthening human resources and institutional arrangement for the Project

Management Office (PMO) to handle the increasing workload; (ii) developing a realistic plan for

installation including using IDA credits to cover the shortfall in government budget; and (iii) timely

execution of various technical assistance activities, in particularly hiring of the Project Management

Support Firm Consultant.

9. PMO staffing and project management. The PMO was somewhat boosted with a long-expected

international procurement consultant who arrived in NPT in March 2017. However, there is no specific

staff assigned to work full-time with the international procurement consultant for the benefits of on-

the-job training and capacity building. Although there was a large group of MOEE and three utilities’

staff that attend procurement meetings, it is critical to assign at least one full-time staff with English

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competency to get the procurement knowledge transfer within one year. Ten more engineers have

recently been assigned from three distribution utilities to the PMO, but had not arrived in NPT yet

during the mission. Insufficient staffing and ambiguous reporting structure in the PMO continue to

hamper the effectiveness of project management for the Grid Component and result in significant

delays. The PMO has one project manager and only 5 engineers, all working on NEP on a part-time

basis; whereas there should be at least 18 professional staff members in the PMO as per the Project’s

design agreed with MOEE.

10. The reporting structure of the PMO has become ambiguous since MOEE restructuring. The PMO was

designed to be under the direct supervision of the Deputy Minister of former MOEP and coordinate

closely with the three utilities concerned, as well as local governments. It is not clear where in MOEE

the PMO is institutionally anchored and the physical PMO office has been moved multiple times.

Procurement management have been split between the PMO and Department of Power Planning

(DEPP) staff – the former in charge of the preparation of bidding documents and technical matters,

and the latter in charge of quality control, bid evaluation and contract negotiations.

11. Low staff capacity in project management is further compounded by lengthy approvals and internal

bureaucracy. Recent establishment of DACU tends to further centralize decision-making with

attendant delays. Bank adoption of simplified procedures for high-value contracts has not been

effective because of the lack of corresponding actions on the government side for simplification of

such contracts and seemingly increased centralization of decision making.

12. The mission strongly recommended that clear definition of staffing, responsibilities and reporting

structure for procurement management is needed and should be reflected in the revised Project

Operations Manual. Additional staff to come on board in the PMO should be provided with necessary

training to quickly take up key functions. It will also be an opportunity for staff to learn with hands-on

experience and help build the long-term capacity of the utilities in implementing electrification works.

13. Installation. MOEE has indicated the need to have installation of the distribution systems financed

under IDA credits due to the shortfall in government budget. It is estimated that the installation of the

distribution systems to over 5,000 villages could cost about US$40 million. Installation is critical to

the success of the Project and requires careful planning and coordination with the delivery of goods

and materials. Market surveys of delivering capacity of local installation firms, site surveys and

construction design work is expected to take up to a year. A preliminary timeline incorporating the

schedule for installation, as illustrated in Annex 2, shows the urgency of starting the preparation and

procurement for the installation contracts. It was agreed that the PMO would carry out a questionnaire-

based market surveys as soon as possible and a draft questionnaire was prepared with Bank assistance.

A project restructuring would take place in order to consider using IDA credits to cover the installation

costs and amending the Financing Agreement as appropriate.

14. Consulting Service for Updating Geospatial Least-cost Electrification Plan. The geospatial plan has

provided an analytical basis for rolling out grid and off-grid electrification in a cost-effective,

systematic manner. Since the Plan was first completed in 2014 using source data up to 2012, the

electrification rate has increased and data availability is getting better, including GIS data from

Myanmar Information Management Unit (MIMU, http://themimu.info/), and population data from the

2015 National Population and Housing Census. The MOEE has agreed to lead this TA in coordination

with DRD and other agencies. The draft Expression of Interest and Terms of References for this TA

have been prepared (Annexes 3 and 4). The next step is for MOEE to secure internal approval and

issue the Request for Expression of Interest.

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15. Environmental and Social Safeguards Management. The component made limited progress since the

last mission in implementing safeguards arrangements (see more details in Annex 5). Dedicated staff

in the PMO, as laid out in the Environmental and Social Management Framework (ESMF), were

recently assigned to implement safeguards measures. The positions of Environmental and Social

Safeguards Advisors, which are key to the project’s safeguards management approach, remain vacant

despite preparation and sharing of TORs previously (Annexes 6 and 7). A Grievance Redress

Mechanism described in the ESMF is not yet in place.

16. The PMO safeguards staff will, among others, undertake environmental and social screening for the

proposed subprojects as per the ESMF, along with the site surveys needed for construction design, and

establish and implement a Grievance Redress Mechanism (GRM). The mission and PMO reviewed

the rationale and steps for the environmental and social safeguards screenings and provided a template

for the GRM (Annex 8) to guide the implementation of this process. A number of specific safeguards

capacity building activities for PMO staff, particularly face-to-face trainings, had been planned and

outlined in the ESMF. Continued safeguards capacity building at all levels is necessary as per the

ESMF capacity building and training plan. It is important the Project put these in place without further

delay to make good on its obligation under the legal agreement of maintaining a PMO with sufficient

resources and staffing required for project implementation.

17. Communication to the Public. Communications to the prospective beneficiary villages were mainly

carried out through township engineers. Field trips to Bago and Chin showed that township engineers

are in frequent contact with the village electrification committees (VECs) and trusted with technical

advice; however, themselves don’t have adequate information about the NEP plan and implementation

schedule. It was agreed that the PMO will assign dedicated staff for communications and prepare and

implement a communications plan with assistance of an external consultants as needed. The target

audience includes project beneficiaries, local governments, Parliament, private sector and the public.

2. Off-Grid Component

18. Implementation Progress. Implementation of the off-grid component is on track. DRD PMO is fully

staffed with 35 people and four international consultants. The mission highly recommended that the

staff is organized by key functions and provided with continued training and career development. The

disbursement has reached USD 17.81 million, exceeding the projection at the beginning of the year.

19. PMO assigned four staff to work with the International Procurement Consultant for on-the-job capacity

building. However, the International Procurement Specialist informed that he had conducted bid

evaluations mostly by himself with no support from DRD staff / evaluation committee. The mission

urged DRD to motivate assigned staff to work more closely the Consultant during bid evaluation of

the second Solar PV Package.

20. Solar Sub-component. Installation of 145,000 solar home and public systems under ICB II commenced

mid-May after pilot installations in all 12 lots were approved. The first shipment of equipment arrived

in Yangon port in April and the last shipment is expected to arrive in Yangon late June 2017. The full

installation schedule can be found in Annex 9. Two consulting firms (IVA or inspection and

verification agents) have been hired to carry out inspection and verification of installation, a key step

for payment.

21. Field visits to select pilot installations in Ayeryawaddy, Tanintharyi and Chin showed that the

equipment and installation is in general of good quality. However, users training and manuals are

deficient and local governments, township engineers and villagers want to know up-to-date

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information about equipment delivery and installation schedule. The main grievance redress

mechanism through DRD township offices is inadequate (more in Annex 10).

22. An innovative management information system has been developed to manage installation,

verification, and operation and maintenance of solar PV systems and payment authorization. Installers,

IVAs and DRD union and township officers have been trained and tasked with data collection in the

field using tablet-based applications and transmission of collected data to the data center managed by

the PMO. A customer database has been created to record, among others, customer identification,

system barcodes, GPS coordinates, suppliers’ information, system usage and maintenance record.

23. ICB II for procurement of 95,000 solar home and public systems had bid opening on April 27, 2017.

Competition remained strong and 123 bids from 19 companies for 12 lots were received. Bid evaluation

is expected to complete at the end of July.

24. IFC Lighting Myanmar Program. A preliminary market assessment was carried out in 2016 and a

program manager was hired in January 2017. As of May 2017, two companies signed associate

agreements with IFC to join the Lighting Myanmar Program and a few more are under negotiation;

one of them canceled the agreement within two months citing its termination of business engagement

in Myanmar. Its reported that 18,000 Lighting Global (LG) products have been imported to Myanmar

in the second half of 2016. One of the major concerns for the companies is that publicly-subsidized

systems negatively affect commercial sales of LG products, while DRD’s main concern is that the

companies have not managed to deliver expected results to the beneficiaries.

25. To resolve various concerns and adopting a plausible approach in line with the Myanmar context, the

WBG team agreed with DRD that a pilot for a semi-commercial, result-based financing (RBF)

mechanism for households would be carried out in select geographic areas, and if proven successful,

would be scaled up to substitute the public procurement approach. The RBF scheme is underpinned

by supply-side subsidy to companies based on sales, in lieu of demand-side subsidy to users to buy

down the cost of solar systems. DRD requested that IFC mobilize grant funding to support a more

detailed design and operational guidelines for RBF pilot implementation.

26. Mini-Grid Sub-component. Eight solar mini-grid projects in Magway, Mandalay and Tanintharyi were

selected out of 13 feasibility studies submitted by private developers. Construction for all pilots is

under way with completion set in August 2017. DRD has hired an inspection consultant with financial

support from GIZ to inspect the quality and readiness for commissioning of all projects.

27. DRD is planning to issue the next round of call for proposals upon completion of the ongoing review

of the subsidy scheme used in the pilot phase. This review is assisted by a newly developed financial

models and project cost data of the pilot and the findings will be used to optimize the subsidy scheme

for more effective service provision and inclusion of the poor.

28. Long gestation time of mini-hydro project proposals and distinct profiles of local mini-hydro

developers warrant tailored technical and financial support. As a result, DRD is open to supporting this

type of mini-grids under a separate funding and policy window and reviewing mini-hydro project

proposals on a case-by-case basis in order to kick-start the development of this subsector under NEP.

29. Environmental and Social Safeguards Management. The PMO performance on safeguard management

is mixed. Safeguards screening was included in the template of mini-grid proposals, which was

prepared and submitted by project developers of 8 pilots. Screening for the solar sub-component was

not done even though the installation was about to start in mid-May. Due to the similarity of individual

solar home and public systems, it was agreed that only one screening form would be filled out for the

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solar sub-component. The dedicated safeguards staff were newly assigned and would require pertinent

training. The positions of Environmental and Social Safeguards Advisors, which are key to safeguards

implementation, remain vacant despite previous Bank’s efforts to support PMO with draft TORs.

30. DRD started to collect down payment from some 140,000 households from February 2016 onwards

when ICB I was launched and delivery of the systems was expected within 14 months (at the end of

March 2017) given the time needed for ICB process. However, lack of understanding of the ICB

process and additional delays of 2-5 months in contract signing and installation has led to a large

number of complaints. The main feedback mechanism in place is communications between DRD

township engineers to villagers with limited information flow which alone are not adequate to address

the complaints. DRD has taken corrective measure by collecting down payment for an additional

95,000 systems under ICB II only upon contract signing. DRD has developed a one-page information

pamphlet describing the various SHS choices available to households, with attendant benefits and

costs. The information is only available in Myanmar language and is not available in local ethnic group

languages. It is recommended that DRD ensures that the information is accessible to all beneficiaries.

Per ESMF, project information needs to be made available in ethnic languages; the pamphlets should

be translated to local languages if the written form of such languages exists.

31. Communications. The PMO communications team has completed several important actions: (i)

preparation of FAQs to address community complaints regarding delays and clarification on the

systems; (ii) knowledge sharing with the CDD team on communication best practices; and (iii)

preparation of a monthly update email intended to improve internal communications.

32. PMO has agreed on the following next steps: (i) complete the selection of a national communication

consultant by June 2017; (ii) develop a new Facebook page to more efficiently communicate strategy

and plan; (iii) make communication materials more accessible to users by including more visuals,

translating to ethnic languages, and setting up of village boards to provide information on VEC

guidelines; (iv) undertake more field visits to clarify VEC’s role and address concerns; and (v) produce

a quarterly communications report to record details of complaints and responses starting in June 2017.

A WB communication specialist has been assigned to work with DRD PMO to guide the work of the

PMO communications team.

3. Cross-cutting issues

33. Suspension of National Electrification Executive Committee (NEEC). Since the suspension of NEEC

by the new government, the project is in non-compliance with Schedule 2 Section I.A.1 of the

Financing Agreement. One of the key success factors in neighboring countries that have reached high

rates of electrification, e.g. Lao PDR, Thailand and Vietnam, was strong government commitment to

electrification. There has been lack of high-level strategic oversight and coordination on national

electrification agenda since last year. Given that the electrification mandate is implemented by several

agencies, including MOEE, MOALI, and Ministry of Boarder Affairs as well as local governments, it

is important to establish an inter-ministerial coordination arrangement of a dedicated unit for national

electrification. This would support expeditious decision-making procedures and setting an

accountability mechanism in decision makers for efficient and timely delivery of results from

development assistance, and would bring the project in compliance with the Financing Agreement.

34. Procurement. The procurement plans in STEP show that a total of $294 million procurement activities

have been cleared in STEP as shown in the table below, as of May 9, 2017:

Grid:

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Type of

Procurement

Number of packages Est. Cost

(USD mil)

Number of Red Flags

(delays)

ICB 8 164 5

Shopping 6 10 6

QCBS 4 10 1

Individual

Consultant

3

(incl. 1 signed)

1 1

Off-grid: Type of

Procurement

Number of packages Est. cost

(USD mil)

Number of Red Flags

(delays)

ICB 2

(incl. 1 signed)

98.25 2

Shopping 6 0.37 6

QCBS 3

(incl. 1 signed)

8.60 2

Individual

Consultant

4

(incl. 1 signed)

0.65 2

SSS 1 0.15 1

35. The mission informed both components of the revised Procurement Market Approach Thresholds and

the revised Prior Review Thresholds which would be used for the revised Procurement Plan as follows.

Type of Procurement Market Approach Thresholds (USD million) Prior

Review

Threshold

Internati

onal

National-Open National RFQ

(Shopping)

Comments

Works (Including turn-

key supply and

installation of plant and

equipment and PPP)

≥ 3 < 3 < 1 Recommended to advertise

for 7 days for RFQ above 0.5

2

Goods, information

technology and non-

consulting services

≥ 1 < 1 < 0.5 Recommended to advertise

for 7 days for RFQ above

0.05

1

Consultants (Firms)* ≥ 0.1 < 0.1 Not

applicable

CQS method may be used up

to 0.5. Use of full RFP

mandatory for CQS above

0.3.

0.3

Individual Consultant 0.2

*Limits on market approaches do not apply to individual consultants.

36. Financial Management and Disbursement. Disbursement to the Project’s Designated Accounts (both

Grid and Off-Grid) is US$17.46 million as of June 8, 2017. Payments in US$ for consulting services

have been made via direct payment method, due to requirement of Ministry of Planning and Finance

for approval for any daily withdrawal larger than US$5,000. The mission clarified several matters

related to financial management. All consultants are required to submit receipts in claiming for

reimbursable expenses. All payments made after the date (February 23, 2017) of the TTL’s response

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email to the project director of Off Grid component for accommodation without receipts are deemed

ineligible, and shall be refunded to the Project Designated Account or deducted from the next

payments. It should also be noted that tax payment is the responsibility of the consultants/suppliers.

DRD/PMO has the responsibility to withhold applicable taxes from them and pay to the Internal

Revenue Department, unless the contract is exempted from taxes.

37. Activation of Component 4 Contingent Emergency Response. The Government of Myanmar formally

requested on May 8, 2017 that the amount of US$13.755 million be reallocated from NEP to the

Immediate Response Mechanism (IRM). The IRM has been activated to support Myanmar recovery

and reconstruction efforts following several disasters (cyclones, floods and landslides) that occurred

between July and September 2015. It was agreed with MOEE that the World Bank will proceed with

a project restructuring, which covers a Reallocation between Disbursement Categories from Category

1 (Goods for Component 1 – Grid Extension) to Category 3 (Component 4 (Emergency Expenditures

under Component 4 – Contingent Emergency Response) and corresponding changes in Component

costs and Results Framework. The restructuring will also include an addition of works to Disbursement

Category 1 to allow the use of IDA proceeds for installation of distribution networks.

38. Italian Support to National Electrification in Myanmar. The Italian Agency for Cooperation and

Development (AICS) plans to provide DRD with an investment support of 30 million Euro for off-grid

electrification in Myanmar and is seeking World Bank’s assistance in project implementation support.

AICS proposed to provide 1.05 million Euro for WB’s supervision support services to be formalized

through an agreement or memorandum of understanding between AICS and the World Bank. In

addition, AICS plans to provide a grant of 1.15 million Euro technical assistance for promoting gender

empowerment in electrification in Myanmar, which would be executed by the WB. The draft

investment project document and energy and gender proposal are attached (Annexes 11 and 12).

39. Social Inclusion Study. Fieldwork in five villages under grid component and five under off-grid

component has been completed. The field work and report serve as inputs for the forthcoming

Handbook for Inclusive Community Participation. The Handbook will provide a guide to DRD and

MOEE on ensuring inclusive community participation in the electrification process and grievance

redress mechanism in place and functional. It is expected to be finalized and shared with PMOs and

the utilities by August 2017.

40. Gender. DRD and MoEE have appointed the gender focal points at the department level, and that

brochures of each department would include the same requirement for a 30% quota for women’s

participation in the village electrification committee (VEC). In addition, gender dimensions have been

integrated in the aforementioned Handbook and will also be part of the overall project social inclusion

training. After the gender and energy proposal is approved by the AICS, more activities to enhance

the gender equality awareness and the energy access for the poor and vulnerable populations including

female headed households will be conducted.

41. Impact Evaluation (IE) baseline and Multi-tier Energy Access Tracking Framework (MTF) surveys.

In collaboration with the SE4ALL knowledge hub MTF team and financial support from ASTAE and

ESMAP, a household energy survey was initiated in May 2017 to collect data on socio-economic

characteristics as well as energy services and expenditures at the households and related mini-grid

service providers in the entire Myanmar. Survey data forms a baseline for impact evaluation of NEP,

and is expected to be followed with more surveys near the end project life of NEP. Data collection is

expected to complete by September 2017.

III. Grid Connected Solar

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42. Rapid development of solar power technologies, including near-cost parity between grid-connected

solar power and conventional power in certain markets, and rich solar resource endowment in

Myanmar has rendered an unprecedented opportunity for Myanmar to integrate solar power into its

energy mix and solve the near-term supply-demand imbalance. A total of 1,510 MW of ground

mounted solar generation is under planning or preparation by the private sector, and two large projects

already have a signed PPA (200 MW PV project at Mimbu project and a 300 MW project at Nabuai

and Nambi). The Minbu project is under construction and expected to come online in 2018. In

addition, MOEE holds interest in developing floating PV in the country. A private company, Norway

Power, has offered to donate a 100kW pilot in the reservoir of Kun Dam in Bago Region. However, in

order to test the technology at commercial scale, MOEE expressed interest in developing a larger 5-

10MW pilot with public finance.

43. To facilitate in-country discussions, the World Bank/ESMAP commissioned a Myanmar solar

resources mapping study and country report. Such meso-scale mapping, as shown on the left spatial

distribution of Global Horizontal Irradiation (GHI) and Photovoltaic Power Potential, is a useful tool

for identifying and evaluating most feasible areas countrywide for investment

(http://globalsolaratlas.info/downloads/myanmar).

44. The World Bank and MOEE organized a technical workshop1 on solar power and grid integration on

May 24, 2017 with participation of MOEE staff, WBG and other development partners. The workshop

covered solar photovoltaic technologies, including floating solar, global trends in solar energy, grid

integration, solar resource mapping, as well as other technical, environmental/social and policy

considerations related to development of solar power projects.

45. Going forward, there are a few critical steps needed for solar (RE) power integration in Myanmar:

Upgrade control, monitoring and protections systems and operational procedures.. MOEE is

already in the process of laying fiber optic cables to reach power

plants around the country and the dispatching center

counts with good monitoring equipment . However,

many plants are not under automatic generation and

some interoperability issues have been identified in

some cases. Dispatch is currently done by phone

based on historic data and expert judgment. In order

to improve the quality of supply and being able to

properly dispatch variable generation, such as solar

and wind, the country needs to invest further in

software and hardware in communications,

automatic control of power plants, load and

generation forecasting etc. It would be useful for the

country to perform a detailed gap assessment of the

needs for investments and software upgrades, as

well as capacity building in order to improve the

operation of the system.

Additional grid integration studies: Some

preliminary grid integration studies have been

1 Workshop agenda, presentations and related materials can be found:

https://energypedia.info/wiki/Achieving_Universal_Access_to_Electricity_in_Myanmar#Technical_Wor

kshop_on_Solar_Power_and_Grid_Integration.2C_Nay_Pyi.C2.A0Taw.C2.A0.28May_25.2C_2017.29

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already completed with support from USTDA and technical inputs by the World Bank. However,

in order to reflect more accurately the potential grid integration issues, additional constrains must

be modeled to evaluate the need for additional investments in transmission, curtailment and the

potential stability issues under some contingency circumstances.

Ensure renewable energy aligns with the least-cost power expansion plan. The global price

trend of solar technologies is highly favorable to Myanmar, making it a potentially competitive

option for new generation. However, it is important to evaluate the cost of solar power in the

Myanmar context. Non-capital costs such as land, associated infrastructure needs, financing costs,

ill project planning and site selection could significantly drive up the Levelized cost of electricity

(LCOE) of solar power.

Establish a competitive procurement framework irrespective of public sector financed or

IPPs: While the first solar plants in Myanmar are likely to be more expensive, a systematic

procurement framework (such as auctions) will regularize the process and capture economies of

scale. The country could benefit from technical support for the development of a suitable public

procurement system that takes advantage of low solar international prices, while keeping

transaction costs at a reasonable level. The operator could also set grid performance requirements

for generators and ensure that new PV PPAs include some requirements conducive to grid

integration.

46. MOEE has requested WBG assistance in grid integration analysis by introducing solar power,

including solar and hydro complementarity, support of a small floating PV pilot, and needs assessment

in strengthening system control and dispatch. WBG is positioned to support these activities with both

grants and under existing and new IDA projects.

IV. Progress of Action Plan from last AM

# Action By whom Due date as of

Feb 17, 2016

Current status

1. Submit Bidding Document (BD) for

Insulator and Related Fitting (C1-G5)

MOEE Mar 6, 2017 Completed

2. Submit BD for Surge Arrester, Fuse and

Transformer Accessories (C1-G6)

MOEE Mar 31, 2017 Completed

3. Submit BD for Channel, Angle for Line

and Transformer Accessories (C1-G7)

MOEE Mar 31, 2017 Completed

4. Finalize TOR for geospatial plan update MOEE Mar 3, 2017 Completed

5. RFP for Project Management and

Implementation Support

Consultant/Owner’s Engineer (C1-TA4)

WB to

respond

Mar 7, 2017 Completed

RFP finalized and

ready for tender

6. Enhance PMO human resource capacity MOEE ASAP

Incomplete,

Capacity inadequate

7. Include in the revised Procurement Plan

and hire a national communication

consultant

MOEE Mar 15, 2017

Incomplete

8. Appoint a gender focal point in PMO MOEE Mar 15, 2017 Completed

9. Appoint gender focal point in PMO DRD Nov 30, 2016 Completed

10. Shopping for Tablets for MIS DRD Dec 3, 2016 Completed

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# Action By whom Due date as of

Feb 17, 2016

Current status

11. Start MIS training DRD Dec 11, 2016 Completed

12. Hire national communications consultant DRD Dec 31, 2016

Incomplete, due end

June 2017

13. Start to implement public outreach and

information campaigns DRD Dec 31, 2016

Partially completed

14. Develop mini-grid tripartite agreement

(DRD, community and EPC2 contractor) DRD Jan 30, 2017

Completed

V. Next Steps

47. The tables below list key actions as agreed with MOEE and DRD respectively. The mission is expected

to take place in October 2017.

#

ACTIVITY NEXT STEP RESPON-

SIBLE

DUE DATE

1. Transformers (C1-G1) Send revised BER via

STEP

MOEE June 30, 2017

2.

Concrete Poles (C1-G2) Send revised BER via

STEP

MOEE June 30, 2017

3. Steel Poles (C1-G3) Send BER via STEP MOEE June 30, 2017

4. Conductor & Cable (C1-G4) Send BER via STEP MOEE September 30, 2017

5. Insulator and Related Fitting

(C1-G5)

Issue BD MOEE June 30, 2017

6.

Surge Arrester, Fuse and

Transformer Accessories (C1-

G6)

Issue BD MOEE June 30, 2017

7.

Channel, Angle for Line &

Transformer and other

accessories for Lines (C1-G7)

Submit BD via STEP MOEE June 30, 2017

8.

Geospatial Plan update and data

collection (C1&2-TA2)

Submit REOI via

STEP

MOEE in

coordination

with DRD

June 30, 2017

9.

Project Management and

Implementation Support

Consultant/ Owner’s Engineer

(C1-TA4)

Issue RFP MOEE June 30, 2017

10.

Enhance Project Management

Office human resource capacity

- additional 10

engineers working full

time in PMO

- assign a full time

procurement staff in

PMO

MOEE

June 30, 2017

June 30, 2017

11. Installation preparation Initiate market surveys July 5, 2017

2 EPC refers to Engineering, Procurement, Construction

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# ACTIVITY NEXT STEP

RESPON-

SIBLE

DUE DATE

12. Submit safeguards screening

report for grid subprojects

MOEE

September 30, 2017

13. Hire E&S Safeguards Advisors

-Send TORs for NOL

-Advertise

-Complete selection

-Sign contracts

MOEE and

DRD

- June 25, 2017

- July 5, 2017

- August 25, 2017

- September 30, 2017

14.

Half-yearly project progress

report including progress on

actions agreed in AM

Send it to Bank MOEE and

DRD Two weeks before Bank

mission

15. Finalize mini-grid subsidy

scheme and call for proposal

Submit it to Bank for

NOL

DRD July 1, 2017

16. Hire a national communications

consultant

DRD June 9, 2017

17. DRD new NEP Facebook Up running and

managed

DRD w/ WB

assistance June 30, 2017

18. Prepare detailed plan for RBF

pilot

Send draft TOR to

DRD IFC June 30, 2017

19. Submit screening report for

solar program

DRD

June 30, 2017

20. Solar ICB II Submit BER via STEP DRD August 1, 2017

21. Finalize Handbook for Inclusive

Community Participation and

share with MOEE and DRD

WB

August 1, 2017

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List of Annexes

Annex 1: Government officials and World Bank mission participants

Annex 2: Grid Installation Gantt Chart

Annex 3: Draft REOI for geospatial plan update TA (separate file)

Annex 4: Draft TOR for geospatial plan update TA (separate file)

Annex 5: Detailed mission finings—environmental and social safeguards

Annex 6: Template Terms of References for Environmental Safeguards Advisor (separate file)

Annex 7: Template Terms of References for Social Safeguards Advisors for Off-Grid Component

(separate file)

Annex 8: Template for Reporting on Grievance Redress Mechanism (separate file)

Annex 9: First Off-Grid Solar Systems Implementation Schedule

Annex 10: Observations from NEP Field Visits

Annex 11: Italian-funded NEP off-grid project: draft project document (separate file)

Annex 12: Italian-funded electrification and gender empowerment TA: draft proposal (separate file)

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Annex 1: Government officials and World Bank mission participants

Government of Myanmar

H.E. U Lian Luai, Chief Minister, Chin State

H.E.Dr. Tun Naing, Deputy Minister, MOEE

U Htein Lwin, Permanent Secretary, MOEE

U Kyi Moe Naing, Chairman, Electricity and Energy Development Committee

Daw Mi Mi Khaing, Director General, Department of Electric Power, MOEE

U Khin Maung Win, Managing Director, Electric Power Generation Enterprise, MOEE

U Myint Oo, Deputy Director General, Department of Electric Power Planning, MOEE

U XX, Director General, Department of Electric Power Transmission and System Control, MOEE

U Aye Kyaw, Deputy Director General, Department of Electric Power Transmission and System

Control, MOEE

U Khant Zaw, Director General, Department of Rural Development, MOALI

U Myint Oo, Deputy Director General, Department of Rural Development, MOALI

U Tin Maung Oo, Managing Director, Electricity Supply Enterprise, MOEE

U Thura Aung Bo, Deputy Chief Engineer, Electricity Supply Enterprise, MOEE

U Maung Win, Deputy Project Director, National Electrification Project Management Office,

Department of Rural Development, MOALI

Dr. Soe Soe Ohn, Director and NEP Project Manager, Department of Rural Development, MOALI

U Kyaw Swar Aung, Director, DRD, MOALI

Staff of respective agencies

World Bank Group

Xiaoping Wang, Senior Energy Specialist and Team Leader

Sunil Khosla, Lead Energy Specialist

Myoe Myint, Energy Specialist

Hung Tien Van, Senior Energy Specialist

Silvia Martinez Romero, Senior Renewable Energy Specialist

Huong Mai Nguyen, Energy Specialist

Bill Gallery, Operations Officer / IFC Lighting Myanmar Program Manager

Michael Wild, Statistician and Survey Expert

Martin Fodor, Senior Environmental Specialist

Warren Mayes, Senior Social Development Specialist

Zeynep Darendeliler, Senior Social Development Specialist

Pamornrat Tansanguanwong, Senior Social Development Specialist

Rani Robelus, Communication Specialist

Sirirat (Lek) Sirijaratwong, Procurement Specialist

Kyemon Soe, Financial Management Analyst

Nay Nwe Linn Maung, Operations Analyst

Chaw Su Devi, Program Assistant

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Annex 2: Illustrative schedule for the Installation Contract(s) to be procured

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Annex 4: Detailed Mission Findings – Environmental and Social Safeguards

Overall. The implementation of project safeguards arrangements has not progressed since the last

implementation support mission (ISM) in November 2016, and a number of important safeguards

measures discussed during the last mission are now outstanding. These include recruitment of

safeguards advisors, effective implementation of the training program described in the

Environmental and Social Management Framework (ESMF), establishment of an adequate

Grievance Redress Mechanism (GRM), screening of project activities as per the ESMF3, and

redressing complaints of a large number of beneficiaries over delayed delivery of solar home

systems. These are considered significant policy compliance shortcomings with resolution

uncertain in the foreseeable future.

Reporting. The Bank requested in advance of the mission a report in implementation of safeguards

measures and the overall safeguards status of the project. The progress reports sent for the on-grid

component has no reference to safeguards. The progress report sent for the off-grid component has

some information on safeguards, though it notes that “A Safeguards Compliance Report for the

semester under review is not being submitted as projects are still in the pipeline.” While for this

reporting period (ending March 31), there may not have been any infrastructure / foot print, the

project has been under implementation with VEC formation and payment collection for solar home

systems ongoing for some time. Safeguards aspects related to VEC formation (gender inclusion,

communication in ethnic local languages) and progress on setting up the grievance redress

mechanism outlined in the ESMF should be part of the progress reports. It was agreed that the

Project will report on safeguards implementation in the half-yearly project progress reports

including implementation of actions agreed and recorded in the Aide Memoirs, and

implementation of safeguards measures outlined in the project safeguards documents.

On-Grid Component

Background. The component implemented by the Electric Service Enterprise (ESE) supports

subprojects entailing (i) establishment of transformer substations, (ii) erection of low voltage

distribution lines (about 20,000 km total of which about 2,100 km in the first year of 2017) and

(iii) household connections and metering (about 750,000 in the first year). This component

involves installation of medium voltage lines and transformers to 5,080 villages in approximately

100 townships across the country. In the first year of implementation alone some 800 villages in

20 townships will be involved. The component is at the stage of procuring goods (transformers,

3 Subsequent to the mission’s scheduled safeguards meetings with the Project and the Task Team as per the mission

agenda, indication emerged that mini-grid systems were screened at proposal stage. The mission did not have the

opportunity to review this information and will do so at the next suitable opportunity.

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poles, wiring) for the construction of the substations, lines and household connections.

Construction has not started.

Safeguards Implementation Status. The grid component made limited progress since the last

ISM in implementing safeguards arrangements, and is yet to undertake environmental and social

screening for the proposed subprojects. The mission and PMO reviewed the rational for and the

steps for the screening as laid out in the project’s ESMF. The following particulars were agreed:

> How to screen. The large number of distribution lines to be constructed requires a large

number of screening exercises. It was agreed that to spread the screening workload, the screening

would be phased based on the annual work plan. ESE will also explore whether and how multiple

distribution lines that are geographically co-located and homogeneous with respect to

environmental and social screening (and management) can be lumped into a single sub-project.

> Who to screen. It is expected that screening will be carried out by field staff of ESE,

YESC and MESC as soon as possible in the project, at latest in coordination with site surveys,

and before any construction begins. To ensure these are adequately trained, ESE will organize a

cascading training from the national to the field level. The Bank is available to provide a trainer

for the first session(s) to train the trainers.

Safeguards Capacity. Two electrical engineering staff familiar with the existence of the ESMF,

other safeguards instruments, and project’s safeguards issues are in place. Staff are commended

for participating in a two day safeguards training organized in March by the World Bank in

cooperation with the Environmental Conservation Department of MONREC and the Asian

Development Bank. Finally, staff have some safeguards experience gained under an ADB

supported medium voltage substation project. However, these staff carry multiple duties in

addition to safeguards, and it is unclear up to what extent they can proactively lead on the

implementation of safeguards arrangements agreed for the project.

Safeguards capacity building activities outlined in the ESMF. A number of specific safeguards

capacity building activities for project staff, particularly face to face trainings, had been planned

and outlined in the ESMF. There has been no reporting on the progress of these trainings, and the

Project’s safeguards performance indicates limited effectiveness of capacity building effort to date.

The Bank requested that implementation of capacity building activities be reported on in the next

project progress report. Continued safeguards capacity building at all levels is necessary as per the

ESMF capacity building and training plan (p77).

Safeguards Advisors. The positions of Environmental and Social Safeguards Advisors, which are

key to the project’s safeguards management approach, remain vacant despite preparation of the

TORs following the previous ISM. Updated TORs are attached to this AM. It is important the

Project puts these in place without further delay to make good on its obligation under the legal

loan agreement to maintain a team required for project implementation. During the mission the

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PMO director expressed a reluctance to hire the advisors due to difficulty achieving high level

government clearance for international consultants.

Application of the Environmental Impact Assessment Procedures of Myanmar. PMO was

advised to check on the applicability of the Myanmar EIA Procedures (December 2015) to the on-

grid subprojects. Cursory review of the screening guidance of the regulations (Annex 1) suggests

that activities supported by the Component are below the threshold that require permitting /

approval actions under the regulations in form of the Environmental Impact Assessment (EIA) or

the Initial Environmental Examination (IEE).

GRM. A Grievance Redress Mechanism described in detail in the ESMF and presented at

workshops to both PMOs is not yet in place. Awareness of the need for a feedback response

process for ensuring beneficiaries concerns are identified and addressed and for reporting to the

Bank was considered to be a local area implementation issue (up to the township ESE) and not the

role of the Union PMO. World Bank task team members have been tasked to work directly with

the PMO to map out existing practice and develop a grievance redress reporting template in order

to assist the Union PMO to understand the need for a quarterly report and to prepare one. The task

team will also seek ways to integrate feedback response into the Management Information System

being developed to monitor project implementation.

Off-Grid Component (Solar Home Systems, Solar public systems, and Solar and mini-hydro

Mini-Grids)

Background. The component supports provision and installation of solar home and public system

packages of various sizes, mini-grid solar systems and micro-hydropower systems supporting low

voltage networks for remote communities.

Screening. The off-grid component, while already fully under implementation, is yet to carry out

the safeguards screening 4 that, as per the ESMF, was supposed to be done before its

commencement. For the solar home systems, it was agreed that considering the low risk,

homogeneous nature of component activities which are not site specific, the screening will be

carried out on the basis of the entire household solar program as a single subproject. DRD and the

mission jointly screened the subproject thus defined. On that basis, DRD will prepare the screening

report as per the ESMF and submit for Bank’s review by mid-June 2017. Safeguards screening

questions are already included in the template of mini-grid proposals and DRD should ensure that

appropriate proposal template with safeguards screening included will be used in the future calls

for proposals.

Safeguards capacity. While the component is low environmental safeguards risk, its safeguards

capacity is insufficient. Two staff – a civil and an electrical engineer without background in

4 Ref footnote 1.

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environmental and social management – have been assigned to safeguards duties but are yet to

become familiar with the ESMF or other project safeguards instruments and ensure their

implementation. The safeguards advisors are not in place. The mission recommended the

component team reads and implements the ESMF and other applicable safeguards instruments.

Safety. Previous mission in February 2017 observed a considerable variation in the installation

quality of various SHS visited. While the installation and use of household solar is low risk, are

generally carried out by certified electricians, and no accidents were reported in the visited

villages5, considering the large number of systems supported (about 140,000 in the first solar

tender), it was agreed that DRD with support of their safeguards consultants6 would develop a

simple, short and easily accessible (understandable) environmental code of practice (ECOP) to

guide SHS installations from the perspective of enhancing safety of installation and use. It would

cover aspects of installation and use of solar power and community health and safety including

code of conduct of installation crews and incorporated in the BD of future solar tenders; it would

be translated into the local language(s) if necessary and included in the contract of the SHS

suppliers / installers, and tailored to use by members of rural communities. This activity has not

been undertaken and will be completed by the next 6-montly implementation support mission.

SHS Delivery Delays and Unmet Beneficiary Expectations due to misunderstanding and

inadequate communication. Starting from March 2016 some 140,000 households signed up and

made down payments for solar home systems at the time of bid issuance under ICB 1. An

additional 95,000 signed up but down payment is not due until award of the contracts under ICB

II based on the lessons learned from ICB I. Due to the planned long lead time between collection

of down payment/bid issuance and installation and delays in procurement process and customs

processing for the solar home systems installation of these systems have been delayed by 2-5

months. Since the planned long lead time between collection of down payment and installation

was not communicated adequately to beneficiaries, the sense of delay is much longer than the 2-5

months delay for procurement.

This has led to a number of complaints but it is currently not possible to verify how many people

have made complaints or what feedback has been provided to them because the only feedback

response mechanism in place seems to be through DRD township officers who are overstretched

given the sheer number of villages and households under their jurisdiction. Complaints have been

5 The mission noted that members of some communities visited requested training on safe use of electricity,

which DRD should provide.

6 Alternatively, the Project may request SHS supplier to develop this as evidence that the supplier is aware

of and implements the safety measures outlined in the ECOPs attached to the ESMF, and ensures proper

conduct by its installation crews. The Project can then review it, approve it, and ensure its usage by SHS

suppliers, installers, and community members.

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made verbally to township engineers and also to members of parliament of respective regions, and

further assessment will be made as to how DRD currently handless grievances. During the mission

the Union PMO stated that pilot programmes had been undertaken with a limited number of

townships but that some of these systems had been found to be faulty and steps were being taken

to ensure that these faults were resolved prior to full roll out. Installation of the first 140,000 solar

home systems is expected to complete by September 2017. A second batch of 95,000 solar home

systems is under procurement. In order to ensure that communications and feedback issues are

resolved a communication specialist is working with the Union PMO on a communications

roadmap and will distribute a FAQ sheet explaining the reason for the delays and clarifying

expectations. Union PMO staff have also received initial training on the establishment of a

feedback response mechanism. World Bank task team members are to work closely with them to

chart out the existing process for feedback and response and develop a quarterly grievance report.

Access to information regarding SHSs. DRD has developed a one-page information pamphlet

describing the various SHS choices available to households, with attendant benefits and costs. A

site visit by the project team to Tozaang village in Chin State, where the pilot installation of SHSs

has begun, found that the information was not being provided to all households in an accessible

manner, but only distributed to the VEC chair. In addition, the information was only available in

Myanmar language and was not available in local ethnic group languages. This is likely to have a

disproportionate negative impact on women-headed and vulnerable ethnic households less likely

to speak Myanmar language, even though in this village 250 out of a total of 295 HHs signed up

for SHS under NEP another 30 or so households have their own diesel generators or SHS It is

recommended that DRD ensures that the information is accessible to all beneficiaries, by

distributing the pamphlets to all households or putting up the pamphlet for viewing at a location

in the village. World Bank safeguards policy requires that information is available in ethnic

languages; the pamphlets should be translated to local languages.

Batteries. The mission understands that solutions to one of the key environmental management

issues associated with solar power – battery disposal – are being studied under a technical

assistance program by Norway. More than 80% of the systems contain lithium-ion batteries. the

disposal of which has fewer environmental impacts than disposal of lead based batteries. While

the issue will become prominent only 2 – 3 years from now when the first generation of the

provided batteries reaches their useful life, the mission recommends that the component team

follows up with Norway and prepares to implement a solution for battery collection, disposal,

and/or recycling well in advance, and that it includes this aspect in its regular progress reporting

to the Bank.

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Annex 9: First Off-Grid Solar Systems Implementation Schedule

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Annex 10: Observations from Field Visit

The Mission visited villages Lat Pyin Ma and Oakpo villages (Taung Ngoo and Yedashe townships

respectively, Bago West Region); The-al, Taung-kone and Min Kone villages (Yangon); and La-Thi, Nay

Pyi and Bwar Tat and Zozan villages (Falam, Hakka and Kalay townships respectively, Chin State).

In Lay Pyin Ma and Oakpo villages under the grid extension component, some households already self-

electrified with either diesel gen-set or solar home system. The District Engineer also informed that all

connections will be solely for basic services such as cooking rice, pumping water, watching TV and

charging phones; and any households/villages intending to use electricity for productive use need to ask

for permission to not overload the grid. On average, they pay about 90,000-150,000 kyat/households for

connection, plus monthly tariff and additional costs associated with repair and maintenance. Half or

three-fifths of the villages can afford to pay. Community relationships appear to play a huge part in

helping those left behind to eventually get connected.

Discussions with the villagers reflected varied community relationships (including gender dynamics

within household and within the community at large) in shaping collective decision-making with regards

to getting electricity connection through grid extension. While the villages were of different income

levels, they generally have collaborative relationships and eagerness to receive electricity services.

Nonetheless, they were so eager that they couldn’t wait to submit payments, for example until after the

harvest, even if it would mean that more households could afford the participate in the scheme. The

households that would be connected later would face higher charges for service drops.

All villages visited have each elected a village electrification committee (VEC). There was a general

level of trust between the community members and the elected VEC members, although effectiveness of

communication between VEC members and township engineers varied. The district engineer has a

broader view on all villages in line for getting electricity connection and suggested that the VECs that

have successfully convinced the most number of community members to participate in the scheme to

share their lessons with nearby villages.

There seems to be varying degree of access to information with regards to how the National

Electrification Plan – and World Bank Project – works, communities’ responsibilities for maintenance,

and safety measures. The Electricity Service Enterprise (ESE) prepared pamphlets for instruction, but

these didn’t seem to be systematically distributed to the villagers.

Field trip also included:

Visit to hybrid solar-diesel grid with 500kV installed capacity, which powers 83 households and a

clinic in the village for consumption between 6-10pm.

Visit to mini-hydro mini-grid site with 2 units with a total installed capacity of 1 MW. However, the

mini-grid appeared to be poorly designed penstock and insufficient water cause the generator to run

below capacity.

Visit to grid extension site: 11kV lines using 2x5m steel poles. Village is powered by mini-hydro

mini-grid but will soon receive grid connection. Tariffs from mini-grid is the same as the national

grid. Village will continue to use mini-grid, but if short will use national grid.

Key points from meeting with Chin State Chief Minister:

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Chin State is one of the priority areas for NEP. Approximately 17,000 solar home systems are to be

installed in FY16-17 and FY17-18 in Chin alone. It will require concerted efforts from the Union and

local governments and development partners as well as the communities to electrify the remaining

34,000 households.

It would be more effective to align the union and regional budgets as well as donor resources with the

comprehensive, least-cost national electrification plan to realize the important electrification goal.

It was also agreed that the State Government will coordinate with MOEE/ESE to accelerate the

implementation of the grid extension component under NEP so that more villages in Chin will be

connected to the national grid.

Special consideration would be needed to ensure that the poorest of the poor will also be connected

along with the rest of the communities.

It was also explained that the technical support and equipment guarantees available under NEP,

should be widely explained to ensure long-term sustainability of solar home/public systems, which

use latest available technology for batteries and power controllers, for longer life of the systems.

Some images from the field visits

Community discussions

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Recipient of pilot solar system Home light

Inspection of pilot installations

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Barcodes on pilot systems

Pilot installation of community system