Hydro Sector Can Benefit from the Private Sector in Myanmar
In early December, some 40 representatives from IFC and Myanmar’s hydropower sector gathered in Yangon to discuss the creation of a private sector platform to address challenges and find solutions. The Hydropower Developers’ Working Group model, first launched in Lao PDR two years ago, offers developers a tool to improve policy and strengthen future projects.
“There is a role for the private sector to play in the development of Myanmar’s hydropower sector,” said Kate Lazarus, Senior Operations Officer for IFC’s environmental and social advisory program for the hydropower sector. “The earlier the private sector is engaged, the more likely policy will be crafted to consider their needs, contributing to the sustainability and growth of the sector.”
IFC is working with the government of Myanmar to build capacity on environmental and social risk management, and is in the early phases of helping the government identify policy and regulatory reforms needed to make the hydropower sector more sustainable. This could include drafting a policy on sustainable hydropower development, as IFC has supported in Lao PDR.
Robert Allen, Chair of Lao PDR’s Hydropower Developers’ Working Group, joined the roundtable discussion in Yangon, presenting the group’s contribution to the hydropower sector since its inception, including capacity building for developers and working closely with the government of Lao PDR.
“Our group is volunteer-driven,” said Allen. “We discuss the hot topics and how we can tackle the issues together. Working as a collective is much more effective than one company seeking information or providing feedback alone.”
Lao PDR’s Hydropower Developers’ Working Group includes sub-committees of volunteers that work closely on topics related to their expertise or need. In 2015, a small hydro sub-committee was established to provide feedback to the government of Lao PDR on the drafting of a small hydropower decree. Through a consultative process, the working group peer-reviewed the decree and submitted comments to the government for review. The working group’s feedback on the decree was the only input from the private sector.
The group has received training and attended seminars on a range of topics, including dialoging with local banks on access to finance, gender in hydropower development, concession agreements, and environmental and social risk management.
At the meeting, company representatives agreed that forming a Hydropower Developers’ Working Group could boost Myanmar’s hydropower sector, laying the groundwork for sustainable sector development. But the group’s agenda would need to be tailored to the local context.
Participants discussed the possibility of the group helping improve coordination and information sharing between hydropower companies and the government. The working group could be used as a platform to present to the government, receive feedback, and improve efficiency. Additionally, the group could facilitate interaction between hydropower companies and civil society organizations improving engagement. Attendees agreed to reconvene in early-2016 to discuss the group’s inception and terms of reference.
“The time is right to get companies around the table and start working together,” said Allen. “Hydropower companies in Myanmar need an opportunity to network, learn from each other’s experiences, and collaborate on how to overcome challenges. The Hydropower Developers’ Working Group offers this, and much more.”
