As Myanmar works to build a hydropower sector, IFC experts say involving the private sector from the get-go and drawing from the experience of resource-rich neighboring countries such as Lao PDR will be the right move for the country.
Despite its rich natural and human resources, Myanmar is one of the poorest countries in Southeast Asia. After a long absence, the World Bank Group has begun re-engaging with the country, supporting reforms that will benefit all of its people.
In an op-ed in South China Morning Post, Vice Presidents Karin Finkelston, Axel van Trotsenburg, and Michel Wormser write that 3 out of 4 people in Myanmar are without reliable access to electricity. No power means that children can't study at night.
IFC fosters sustainable economic growth in Myanmar by financing and mobilizing capital for private sector projects. We help create jobs by supporting infrastructure projects with an initial focus on the power and telecommunications sectors. We advise the government on business reforms to improve the investment climate and access to finance so that businesses can grow.
Since IFC re-engaged with Myanmar in August 2012, our portfolio has grown to include numerous investment and advisory projects, mainly in the infrastructure and banking sectors. IFC looks for sustainable projects that yield financial returns for investors while paying development dividends for the people of Myanmar.
IFC promotes the private sector’s role in addressing Myanmar’s infrastructure needs in a financially, environmentally, and socially sustainable manner.
We support the transformation of the state-operated Yangon Electricity Supply Board into a commercially viable corporate entity, revitalizing Yangon’s electricity system and extending reliable and affordable power to millions of people in the country’s most populated city.
We advise the government on a competitive selection process for the 250-megawatt combined-cycle gas turbine of the Myingyan Independent Power Producer project, which helps create a public-private partnership framework to enable quality power developers to invest in Myanmar.
Expanding Access to Finance
IFC provides financing and builds the capacity of local banks and financial institutions to expand access to finance.
We work with Myanmar’s central bank to develop a credit reporting system that will make customers’ credit history available to banks, enabling lenders to make quicker loan decisions.
IFC provided a $5 million convertible loan to Yoma Bank, which aims to provide an additional 1,000 loans worth $370 million to small and medium enterprises by 2019.
We extended a $5 million trade finance credit line for Myanmar Oriental Bank to help facilitate international trade especially for local SMEs.
IFC provided a $2 million loan for Acelda MFI Myanmar as a founding investor in the microfinance operation of Cambodia-based Acleda Bank in Myanmar.
Supporting Reform, Attracting Investment
IFC is working to establish the Myanmar Business Forum, a public-private dialogue platform to facilitate reforms that help companies grow and create jobs. We do this in partnership with the government and Myanmar’s Federation of Chambers of Commerce and Industry.
IFC supports Myanmar in preparing a new investment law as well as regulations to create a level-playing field for both local and foreign investors.
Promoting Job Creation and Improved Productivity
IFC supports Myanmar’s agriculture and tourism sectors, two of the biggest job generators. Our investments in the hospitality sector aim to create jobs and improve the skills of local laborers as well as provide much-needed business-enabling infrastructure to attract more investors and travelers.
We provided an $80 million loan to Shangri-La to fund the expansion of its hotel and residential real-estate operations in Yangon.
Tailored advice – Adding Value Beyond Financing
IFC helps banks and other clients adopt environmental and social standards, best practices, and governance structures that will help them grow sustainably and attract international investors.
IFC advises financial institutions on small-and-medium-enterprise banking, microfinance, mobile banking, and energy-efficiency financing.