Working in the Hydropower Sector in Myanmar - What We Learned from Our Launch
In early December, over 90 stakeholders joined Myanmar’s Ministry of Environmental Conservation and Forestry (MOECAF), Ministry of Electric Power (MOEP) and IFC for the launch of a new environmental and social advisory program for the hydropower sector in Myanmar.
“Hydropower cannot be developed in isolation,” said Vikram Kumar, IFC Country Manager for Myanmar. “IFC is taking into account the unique characteristics of Myanmar’s environment and its complex social landscape. Taking a basin-wide approach will help us better understand the risks and impacts and also bring stakeholders to the table for improved coordination.”
According to U Tint Lwin Oo, Deputy Director of the Department of Electric Power Planning at MOEP, 49 hydropower projects – totaling 41,239 megawatts - are due to be constructed. Myanmar has approximately 108 gigawatts of hydropower potential, and there is also great pressure to meet rising electricity demand. U Tint Lwin Oo described mitigating the environmental and social impact as one of the biggest challenges to hydropower development in Myanmar.
By strengthening policy and regulatory frameworks, and the capacity to identify, monitor and manage risks, MOEP and MOECAF, with the support of IFC, are addressing these challenges to build a more sustainable hydropower sector.
The three main takeaways of the launch included:
1) For hydropower to be sustainable, understanding Myanmar’s unique river systems and incorporating risk management from the outset is vital.
Myanmar has the chance to get it right and be selective in the choices it makes with regard to hydropower development. But environmental factors/concerns?, which have been identified as an increasingly important aspect, have to be integrated into Myanmar’s national development agenda, as U Sein Htoon Linn, Deputy Director General, Environmental Conservation Department, MOECAF mentioned.
Policies related to hydropower development need to be specific, and would benefit if new guidelines had a more regulatory approach.
Khin Ni Ni Thein, Secretary of Myanmar’s National Water Resources Committee, discussed the importance of state-of-the-basin planning for the Ayeyarwady Basin, which will be important as short-and long-term projects are identified for sustainable development.
2) Confidence among stakeholders needs to be rebuilt to ensure that meeting good international and industry practices is possible.
Past mistakes in hydropower development in Myanmar have resulted in a loss of stakeholder confidence. Tarek Ketelsen, from the Myanmar Healthy Rivers Initiative, remarked on the importance of piloting a project using good international industry practices to lead by example and regain stakeholder trust.
IFC presented plans for a country-wide strategic environmental assessment (SEA), with stakeholder engagement and analysis important aspects of the study’s proposed methodology. In-depth stakeholder analysis can help prevent a mismatch in stakeholder expectations, resulting in project delays or reputational risk.
“The SEA is an opportunity to build consensus and public trust,” said Kate Lazarus, IFC Senior Operations Officer. “Stakeholders’ perspectives will feed into the SEA, and as a result will support policy and plans that emerge from this study.
In Myanmar, IFC wants to lead by example and show how projects can be developed in an environmentally and socially sustainable manner. Stakeholder engagement and benefit sharing are integral parts of IFC’s commitment to sustainable development.
3) Stakeholders need to ramp up coordination efforts.
All the stakeholders agreed that they need to keep the momentum going. Following a trilateral agreement signed in September, MOECAF and MOEP, with the support of IFC, are working to amplify coordination efforts between the two ministries during the policy development phase.
The joint MOEP-MOECAF-IFC program will develop sector specific policy and guidelines for the hydropower sector. Parallel to policy development, there will be continuous capacity-building of officials from both ministries to boost their knowledge of environmental and social standards. IFC’s capacity-building process, using its globally recognized Performance Standards, began the day after the launch and will continue over the next two years.
“We have learned today that we all have a role to play,” said U Sein Htoon Linn. “It is essential that we continue communication and combine our efforts and resources to have the greatest impact possible.”
