Myanmar National Electrification Project for Grid Extension - Power Cable Supply

Project Information:

Owner: MINISTRY OF ELECTRICITY AND ENERGY (MOEE)

Project Name: Surge Arrester, Fuse, Transformer Accessories, Medium Voltage Cable & Low Voltage Cable (Accessories) for National Electrification Project

Fanancier: World Bank

Delivery Date: 2018.12

What We Supplied:

Bare Copper Conductor 95mm2

Project News:

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.

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).

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.

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.

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 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 resultbased 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.

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.