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September 2014

Development of A Myanmar National Electrification Plan Towards Universal Access 2015-2030:

An Overview

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Objective of this workshop

Why universal access?

Is universal access by 2030 achievable in Myanmar? (Section 1)

How can universal access be achieved in Myanmar: Introduction of a strategic national electrification plan (NEP)? (Sections 2-4)

How can DPs contribute to NEP implementation? (Sections 5-8)

Discussions and Q&As

Workshop Agenda

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Electrification and Socioeconomic Development

1976 1986 1996 20060%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2.5%

61%

98%

87%

1986

1993

1997

2004

2011

10%14%

Electrification Rate Increased Rapidly in Vietnam Between 1993-2011

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Laos also Made Rapid Progress in Electrification Since 1995

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20110%

10%

20%

30%

40%

50%

60%

70%

80%

15%

1995

2014Access to Electricity

90%

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Asian Countries Saw Rapid Increase in Electrification Rate at Relatively Low GDP Level

Is universal access by 2030 achievable in Myanmar?

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Government of Myanmar is Strongly Committed to Achieving Universal Access to Electricity

• Goal to achieve > 50% coverage in 2016 - The Government is developing an implementation plan to increase electricity coverage in 2016.

• The President’s office has established a dedicated National Electrification Executive Committee under the patronage of the Vice President, and with union ministers of MOEP and MLFRD as chair and co-chair respectively.

• Renewable Energy for Rural Electrification - A Rural Electrification and Potable Water Resource Committee was established where one of the mandates is to promote renewable energy for rural electrification.

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Government Commitment to Universal Access Aligns with UN Sustainable Energy for ALL (SE4ALL) Objectives

• Myanmar and SE4LL - Myanmar endorsed the UN SE4ALL Initiative, a goal to ensure universal access to modern energy services by 2030, co-led by the UN Secretary General and the President of the World Bank.

• Myanmar an high impact country - Myanmar is identified as one of the high impact countries that offer the most potential to make rapid progress by SE4ALL.

• Myanmar is one of the first countries, and currently the only country in the East Asia and Pacific Region, to receive significant grant support (approximately $2 million) from the World Bank/ESMAP SE4ALL Technical Assistance Program.

2012 For universal electrification by 2030

59,000

440,000

130000

Source: MOEP (2011-2012), ESE, YESB data and Castalia estimationsAssumes 6.5 people in a household 10

ESE

YESB

Required189,000

New

hou

seho

ld c

onne

ction

s pe

r yea

r

Need to connect over 2x as many households per year to reach universal electrification by 2030…

But Myanmar’s electrification challenge is immense…

The electrification rate is estimated at 33%...

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Key Features :

It is impossible to meet this challenge without a programmatic, sector-wide approach…

Countries that have achieved rapid electrification have relied

on Programmatic, Sector-wide approach

Stakeholders

Government

Development Partners

Utility

Regulatory Authority

Local Governmen

t

Sector Ministries

Private Stakeholders

Consumers

Coordinated least-cost technical and investment planning

Sustainable financing policy

Stable flow of funds

Results focused

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Myanmar National Electrification Plan (NEP) 2015-30

• NEP should be a comprehensive action plan for developing, financing, and implementing electricity access scale-up program nationwide, with the target of achieving universal access by 2030.

• NEP would align support from different stakeholders with the implementation program for achieving national access targets and syndicates financing on a timely, ongoing and programmatic basis.

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Component I: Geospatial Least Cost Electrification Rollout Plan

A high level geospatial rollout plan comprising:

• Systematic grid network rollout connection plan

• Complementary spatial plans for mini-grids and individual systems

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Component II: Road Map and Investment Prospectus

• Long-term and intermediate targets for 2015-2030

• Investment financing framework for the first 5 years

• Action plan to address enabling policy and institutional framework

• Capacity strengthening initiatives for key institutions and agencies

2015

2020?

100%

?2014

2020

2025

2030

33%?

?

100%

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Processes and Milestones

Follow-on Work

First Mission/WorkshopMay 2013

- Establish dialogue with Govt & other stakeholders - Share international experience

- Agree on the need of an NEP and key work areas

- Develop scope of work- Hire consultants- Develop methodology and work plan

Third Mission/Workshop

March 2014

-Present and discuss interim results

-Agree on institutional framework options- Feedback on geospatial plan and IP

- Complete draft NEP

Second Mission/Workshop

November 2013

-Discuss methodology and work plan-Continue dialogue with stakeholders

- Agree on methodology, milestones, and working arrangements

- Continue data collection

- Interim results for Kayin and Chin States

Fourth Mission/WorkshopSep 2014

- Present draft final NEP - Present investment opportunities

- Govt commitment to NEP adoption & implementation- Link financiers w/ investment opportunities

- Finalize NEP- Transfer data and

training- Govt adopts NEP

Activities

Outputs

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Implementation Arrangements

• MOEP and MLFRD jointly lead the NEP preparation with participation from other member agencies of NEMC and REPWSC and assistance from the World Bank.

• MOEP and MLFRD co-manage consultants together with World Bank. This includes strategic guidance to data collection, review of key deliverables, organization of workshops and study tours.

• Consultants work closely with the government teams throughout the NEP preparation process

• Close coordination with ADB, JICA and other DPs on respective, related initiatives.

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Consultant Teams

Two consulting firms were competitively selected to assist in NEP development:

•Columbia University— Geospatial least cost electrification rollout plan, with experience in Indonesia, Kenya, Nigeria, Tanzania, etc.

•Castalia – Roadmap and Investment Prospectus, with experience in Indonesia, Rwanda, Kenya, Vanuatu

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Thank You