1

Myanmar EITI Annual Activity Report 

July 2015 ‐– June 2016 

    

2

 

Message of the Chairman of the MEITI-MSG

First of all, I would like to express my sincere appreciation to the MSG members for their

active participation throughout the process to delivering the functions of EITI

implementation in Myanmar in order to improve fiscal transparency and accountability, and

the revenue management system.

As an EITI candidate country, Myanmar has published its first Myanmar EITI report which

revealed findings related to the extractive sectors, especially revenue from the mining, oil

and gas sector. Even though the first report could not cover the whole sector’s revenue, it

was the first and significant achievement in such atmosphere where aforementioned

information had been never shared to the public. In fact, it was the step to move forward to

having transparency and accountability in the extractive sectors.

Implementation of EITI is a continuous process. As the standards require, we remain

committed to perform the tasks as planned in our country’s EITI work plan. This report

highlights the efforts of our MSG and coordination team in achieving important priorities

under the work plan. Currently, we have started drafting the 2nd MEITI report with the

selection of Independent Administrators to reconcile the Government’s revenue and the

extractive industries’ payment. No matter what challenges and difficulties prevailing, we

sincerely believe that Myanmar EITI-MSG will be able to submit the report to international

EITI within the stipulated time.

U Maung Maung Win

Interim-Chairman

3

1. General Assessment of Annual Performance

After Myanmar’s application was approved and accepted as an EITI candidate country, it has prepared and submitted the First Country EITI report on the reconciliation of the Government’s revenue and the extractive industries’ payments. The table below illustrates the process which MEITI undertook to deliver the first Myanmar EITI report.

Implementation Process

Steps Implemented Status

Select Independent Administrator and decide the scope of the report

The technical sub-committee, with the support of International EITI, selected Moore Steven Team as the independent administrator.

Develop reporting template and collect data

Developed and explained the template to relevant stakeholders through a workshop

Finalize draft report and receive feedback and recommendations from MSG and each constituency group

Data collection process was completed on time with the support of various government departments’ representatives and selected private companies. The drafted report was finalized after incorporating feedback from all stakeholders and MSG in December 2015.

Finalize and submit First Myanmar EITI report to International EITI

First Myanmar EITI report was submitted to International EITI in January 2016.

Launch of the Inaugural MEITI Report and Preparation for Broader Dissemination The implementation of EITI and fulfilling the EITI requirements is a continuous proess. The MEITI team launched the report with other stakeholder representatives in Yangon during mid-March 2016. The MSG representatives participated actively in the launch of the report, as well as panel sessions wehre they responded to questions from the audience, leading to greater clarity and understanding of the report. However, the implementation process faces uncertainty and challenges given the political transition, and that slowed down the implementation process stipulated by the work plan. Other challenges include the shortage of budget, and the team is stil awaiting the approval of the grant contract. The MSG sub-committee members are trying to maintain and define various possible ways to disseminate the report to the public through the media. At the same time, the coordination team is engaging with two regions where subnational coordination units are actively involved, to advocate and share information with new administrators and relevant key personnel to enhance the understanding of implementing EITI. Subnational units will also be assuming responsibilities such as disseminating information and recommendations from the report and initiating public discourse on the report. Preparation for 2nd MEITI Report It is the candidate country’s obligation to meet the EITI standards and Myanmar has to submit its 2nd EITI report by January 2017. The preparation for the 2nd report is one of the key activities under this year’s work plan. While waiting to sign the agreement for grant during the political

4

transition in April 2016, the MEITI coordination team moved forward through facilitating and coordinating with MSG representatives, especially subcommittee members, World Bank, and International EITI Secretariat office in preparing and developing the Terms of Reference (TOR) for IA and budget forecasting for procurement. It is still an ongoing process while MEITI is awaiting the Government’s commitment to fill the structural gaps of Leading authority- champion and MSG and sign the agreement as early in third quarter of 2016. MEITI National Secretariat The MEITI Coordination Team of CESD is currently the Secretariat, coordinating the implementation and information sharing amongst the MSG and constituency groups. Currently, it is handing over the function to the EITI unit under the Budget Department of Ministry of Finance (MOF). Both teams worked together in managing activities under the work plan during the period covered by this report. While the MOF team managed the MDTF fund of $290,000/-, it also worked on procurement and logistic for various events under the work plan in collaboration with MEITI Coordination team of CESD. Due to the difficulties in recruiting staff for the Secretariat team and the time needed to build required competency for key staff members of the MOF secretariat team, the handing over process has been longer than expected. Thus, it was extended to June 2016. Under such a situation, the combined team could manage and deliver the actions planned under the work plan up to December 2015 timely and tried to share human resource for managing those activities and preparation of first EITI report to be finished by timely by the end of December 2016. on the teams also organized regular team meetings among the MOF EITI Unit team, MEITI Coordination Team of CESD and World Bank up till February 2016. However, after facing uncertainties due to the political change and its impact on various Ministries’ functions, the meetings could not be conducted as usual. Therefore, both teams tried to maintain the momentum by organizing low cost subcommittee meetings. The Coordination Team also organized workshops on beneficial ownership, EITI implementation, and contract negotiation and transparency, with the respective support of partners – NRGI, Mongolia EITI, and GIZ. The Coordination team of CESD and the MOF secretariat discussed and prepared for the handover of administrative documents by the end of June 2016. As the coordination team of CESD depleted their own funds for managing day-to-day EITI coordination function, the CESD Team has committed to contribute their time on a voluntary basis as the MOF secretariat team still needs support for coordination and delivering the actions under the work plan Regular MSG Meetings There were a total of four MSG meetings during the reporting period. Through these MSG meetings, participants discussed on scoping study recommendation to be used for making decision for not only scope for first EITI report but also for the process implementation of preparation for first EITI report in working with Independent Administrator to deliver the actions and develop the report in timely. Even though the final product may not be as comprehensive as it is ideally expected, the commitment and support from the MSG and the Chairperson has enabled both members of the private and public sector to contribute the best possible information and data on revenue administration in the data template stipulated by the MSG. During the meetings, decisions were also made such that the budget and funds were use and managed effectively, particularly in the field of capacity building for various constituency groups. CSO representatives also actively participated and gave their feedback and inputs throughout the process of preparation for the first Myanmar EITI report. With the commitment and overwhelming support stemming from each constituency group, Myanmar achieved its milestone of implementing EITI by submitting its first EITI report timely. The MSG also discussed and delivered the subsequent steps of releasing the EITI report to the wider public, and tried conducting outreach and communication activities to initate public dialogue under the work plan of 2016 when they faced challenges stemming from the handover process and the committee change due to the outcomes of the 2015 election..

5

Regular MSG Sub-Committee Meetings From July 2015 to June 2016, there were more than 25 sub-committee meetings. The sub-committees are namely, Outreach and Communication sub-committee, Work plan and Governance sub-committee, and Technical sub-committee. Individual sub-committees effectively and actively discussed the relevant issues carried out their respective roles and responsibilities such that decisions can be made efficiently at MSG meetings and activities can be prioritized and implemented according to the work plan. . Working alongside one another has helped to build rapport and relationships that are extremely useful in facilitating cooperation between the constituency groups and consensus decision making. As there are numerous challenges for Myanmar to overcome in order to improve transparency and accountability, the MSG tries to manage the time constraint and existing limitations revolving the legal framework and , and promote and build better coordination and relationships among the three stakeholder groups. Such efforts were only possible given the open and flexible environment facilitated by the sub-committee meetings. Outreach, Communications and Capacity-Development Under this reporting period, the Sub-National Coordination Units (SNCU) was also initiated and started to implement as pilot project in Mandalay region where many gold mining projects are located, and Magway region where many small, medium and some major oil production projects are located. During the initial stage, the SNCU seems to be functioning well, but due to the representatives’ lack of understanding at the regional level, the functions were not carried out as quickly as expected. After key decision makers are changed after the November election in 2015, the CSO representatives who are selected as representatives for their respective regional sub-national coordination unit team tried to continue organizing meetings among SNCU members till today. For example, Magway SNCU group invited the National Coordination team representatives to present to the new Chief Minister of the region to help him understand the objectives of the SNCU and how it is related with the National MSG TOR, the work plan, and the existing problems and conflicts in their respective region’s extractive sector. And they also continuous in action of review and replace the three constituency groups representative with more committed and giving time for SNCU too. Mandalay SNCU is also trying to do the same and help the new Chief Minister of the region to better understand the role of SNCU through sharing the first EITI report and other relevant EITI documents and information with the new administrators. Individual constituency group’s capacity building was conducted through organizing specific trainings for Government, Private and CSOs using the findings from the training need assessment which was conducted by International EITI consultant during mid-2015. The topics covered under the capacity building trainings are: (1) Understanding EITI in broader context and the Importance of Reporting, (2) Facilitating and Communicating with Different Stakeholders, and (3) Basic Natural Resource Governance from the perspective of EITI. The SNCU also disseminated the first Myanmar EITI report broadly to other stakeholders from the three constituency groups and media to enhance their understanding on the report’s findings and recommendations that are to be implemented in the future as a continuous reform process. It also had the chance to share the EITI report with all Members of Parliament from Yangon Division and seek their actions to take on the recommended reform actions. The coordination team also followed up with the decision of the sub-committee to engage with the media. As it was discussed in May 2016, the coordination team hopes to share the first EITI report’s recommendations and finding with the public through platforms such as radio or TV programs, news outlet such as MRTV in August 2016. In order to continuously engage the International EITI, the MSG representatives and coordination team members, including the National Coordinator, participated in several International events organized by International EITI in collaboration with Philippines EITI, NRGI, and GIZ Mongolia, to enhance relationships and networks with regional countries that have implemented the EITI and possess relevant experiences to be applied in the context of Myanmar. Myanmar consequently also enjoys opportunities to learn from other countries’ experiences and thus, be

6

able to be better unleash the potential and manage existing risks through dialogue in these platforms. Participants in these events also had the chance to gain a deeper understanding of the EITI report, the reforms required, and the updated standards, which then can be communicated to respective constituency group members through the MSG meetings.

Long-Term Funding for EITI The implementation of EITI is a continuous action for the country and it needs to have enough budget to implement activities under its work plan for the next three years for Myanmar to reach the level of a compliant country. It has discussed with development partners like DFID, DFAD, EU, and the World Bank, and it has also prepared the budget forecast by reflecting its work plan for the subsequent three years which was agreed by Development Partners, supported through the World Bank. Although MEITI prepared and did up the budget plan by the end of November 2015, the political change affected the plan as political appointments and leadership structure were affected by the transition, causing delay in the signing of the agreement between MOF and WB. This is still awaiting the Cabinet’s decision. As such, the implementation process of EITI in Myanmar to deliver the prioritised activities under the work plan since March 2016 was also delayed. Under such circumstances, the coordination team has being trying to maintain some functions such as organize workshops on beneficial ownership and contract negotiation and transparency with the budgetary support from NRGI and GIZ Mongolia for Myanmar MSG representatives and Mongolia EITI representatives. Thus, the coordination team and the MSG are trying to maintain the momentum by incurring minimal cost while it waits for the signing of agreement between the government and the World Bank. MEITI MSG and Civil Society’s Concerns Additional Inputs from CSOs: Successes:

1. Sub-committee meetings are conducted regularly and effectively even when the national level MSG meeting has stopped.

2. Similarly, Sub-National Coordination Units meetings in MDY and Magway are conducted regularly while the government members have not been officially appointed.

3. Civil society has built good relationship with the Ministry of Natural Resources and Environmental Conservation. They have organized and participated in mining monitoring trip together with CSO, regional and local governments, Department of Mines, and the private sector in January 2016. They are also planning to conduct a similar trip again in June-July 2016 in the Sagaing region.

4. CSO representatives - MSG-MEITI has organized a press conference regarding its position and stance on the first Myanmar EITI report in January 2016.

5. Due to the formation of Sub National Coordination Units in the Mandalay region, the situation of illegal mining has slightly improved as there is a better monitoring process and local responsive mechanism by three constituencies, and the SNCU members.

6. CSO has facilitated community research in Lapadaung copper mine and advocated Members of Parliament, regional government and the media to respond to the findings in June 2016.

7. CSO conducted an advocacy meeting with Members of Parliament in Natural Resources Committees in Ahmyothar and Phythu Hluttaw, Ministry of Natural Resources and Environmental Conservation, and regional governments in May 2016, highlighting the importance of implementing EITI recommendations to enhance transparency and accountability in natural resources governance in Myanmar.

7

Challenges: 1. There were no capacity development activities for MEITI-MSG apart from the workshop

on beneficial ownership which was held in May 2016. 2. Although regular SNCU meetings were held at the regional level, there is a need for the

SNCU to be more functional so that they can effectively respond to local issues and improve resources management in the regions.

3. CSO has submitted its recommendations (13 in total) upon the final draft version of Myanmar EITI report in the 12th MSG meeting which was held in Dec 2015; however, the first Myanmar EITI report has not covered and reflected them in their entirety.

4. MEITI-MSG has yet to conduct public debates in the regions regarding the first Myanmar EITI report, and has only launched the report in March 2016.

5. MDTF fund has been delayed because it has yet to receive the government’s official approval to implement MEITI activities according to the work plan. This is because there exists much bureaucratic red tapes between MEITI Secretariat team from CESD (Former MDRI) and the MOPF.

6. CSO has changed its representatives in November and December internally. Myanmar Alliance ob Transparency and Accountability (MATA) and CSO representatives have informed MEITI Secretariat with an official change of appointment letter; however, MEITI-Secretariat has yet to recognize the changes and they are still using the old CSO representatives’ names meetings, workshops or training invitations. Thus, the CSO-MSG representative feels that they have been discriminated against amongst other constituencies within the MEITI-MSG.

7. The official announcement to continue implementing the Myanmar EITI process has not been released yet. Therefore, there exists uncertainty in the continuation of MEITI implementation process.

Recommendations to Improve Engagement and the Implementation of EITI in Myanmar from the Perspective of Relevant Constituencies First Myanmar EITI report is highly incomplete. However, the recommendations are strong. Nevertheless, there is little discussion on how to implement these recommendations amongst the MEITI-MSG members. CSO is also mainly concerned that the MEITI-MSG will produce the second Myanmar EITI report based on the weak points of the first report as mentioned below,

Approximately 50 percent of public money from oil, gas and mining are kept by state-owned economic enterprises (SEEs) in off-budget’s “Other Accounts.”

It is necessary to disseminate the information regarding the list of active oil, gas, gemstones and mineral licenses updated as of March 2014 so that these information can be publicly available.

The value of jade production and revenue generation should be disclosed as only 54 percent of the gemstone companies in the emporium,— a small fraction of the total industry -- was covered in the first Myanmar EITI report.

The revenues from the extractive industry should be reported on a project-by-project basis so that public can understand the sources of resource revenues and their respective owners, to monitor their performance in managing the projects in accordance with the standards.

Licensing procedures and allocation criteria has to be disclosed according to the EITI requirements to improve transparency and accountability.

Data on beneficial ownership has to be disclosed according to revised EITI standard in 2016.

8

Contracts and licenses’ terms should be disclosed despite the EITI guidelines ‘encourage’ disclosure. The lack of transparency and disclosure reduces stakeholders’ ability to monitor and enforce companies’ financial, operational and social obligation.

Thus, CSO urged all MEITI-MSG to place emphasis on implementing the above-mentioned points to improve the transparency mechanism for better natural resources governance in Myanmar. As a first step to implement Myanmar first EITI report’s recommendations, the CSO would like the MEITI-Secretariat to follow up the decision stemming from the Outreach and Communication, Governance and Work plan sub-committee meeting, which was held on 3rd June:

1. As an advocacy group of the MEITI-MSG, one representative from MEITI-MSG will meet with EITI-related ministries in July 2016 to discuss what the ministries are doing regarding the recommendations. This is to better understand the challenges, strengths, and opportunities to move forward with the recommendations on revenue management to enhance resource governance in Myanmar.

2. In order to meaningfully implement the EITI process in Myanmar, CSO would like to recommend that more capacity building opportunities be offered on top of workshops and trainings. This entails offering all MEITI-MSG members (3 constituencies) opportunities to act as the facilitator in the meetings, discussions, workshops, etc. According to the consensus decision making practices within MSG members of EITI process, it is required that 3 constituencies have a sense of equal participation and non-discrimination without any impeding information sharing.

3. Although MEITI communication strategy has been drafted since late 2015, there is no major attempt to implement this strategy. The strategy entails outreach activities to raise public awareness on Myanmar’s EITI implementation process. Moreover, the communication mechanism is not properly worked out when the information is shared internally or externally.

4. Myanmar EITI-MSG is required to agree and develop the strategy vs work plan in accordance with Myanmar’s context to implement the MEITI process effectively and efficiently.

5. Finally, CSO would like to recommend developing an action plan to carry out the implementation of the first Myanmar EITI report’s recommendations by MEITI-MSG.

Additional Input from Governments: (Still waiting while they are confusing and not clear their role) Additional Input from Privates: (Still waiting while they are preparing )

9

2. Assessment of performance against targets and activities set out in the workplan The MSG discussed and reviewed the Work plan’s objectives and activities after the MSG workshop for 2014-2015 Annual Activity Progress Report. It was revised with more clarification on the activities but it did not change the context of the work plan with the inputs of MSG member by the end of February 2016. The following is an assessment of progress against the activities in the Work plan, from July 2015 (when the Work plan was agreed by the MSG) until June 2016. Objective 1: Contribute to broader reform for resource governance

Number Activity Status Time in WP

Remark/ Summary of Progress from July 2014-July 2015

1.2.1 Carry out legal study to build on recommendations of legal review and the scope of the study

Not achieved

Mid 2017

This was discussed by the MSG at the time when the Work plan was finalized in April 2014, and was briefly discussed again at the MSG workshop in July 2015. It will be carried forward in the revised Work plan as an activity for the subsequent year.

1.2.2 Prepare for drafting of the EITI bill including consultation with legislators and other key stakeholders

Not achieved

Early 2017

This was discussed by the MSG at the time the Work plan was agreed to in April 2014 and was briefly discussed again by the MSG at the MSG workshop in July 2015. It will be included as an activity in the revised Work plan, based on the findings of the legal study.

1.2.3 Government EITI Coordination 1. Establish inter-departmental EITI working group under each key EITI-related ministry (EITI Special Units) 2. Review and strengthen existing governmental EITI coordination mechanism

Partially achieved/ Ongoing

Mid 2014 and onwards

Some ministries, e.g. Ministry of Mines, established an inter-departmental EITI working group. However, the Ministry of Energy, MOECAF and GAD have indicated that they may set up a working group. Ministry of Finance have not yet done so, but have established the EITI National Secretariat unit. However, the process is awaiting with the guidance and commitment of the new Government. The renewal of

10

commitment by the new Government can reduce the delay and confusion within the MSG structure, as it is currently fraught with uncertainty due to the change in government representatives.

1.2.4 MEITI Coordination Office/ Secretariat transition to Ministry of Finance (MDRI-MEITI team to work with Leading Authority to agree and implement step-by-step plan)

Partially achieved/ Ongoing

Mid 2016

A plan was agreed with the Government EITI Leading Authority that the MDRI-CESD MEITI Coordination Office would slowly hand over responsibility of the National Secretariat function to a designated team in the Ministry of Finance. This could not implemented as planned in the late 2015. Due to not having enough staff members and the turnover of the department head, the plan of the handover process was pushed back to early 2016, and then the end of June 2016. The CESD MEITI Coordination Office continues to work as closely as possible with this team, although the handover process is completed in June 2016. It is therefore expected that the CESD team will need to continue to work with the team in the Ministry of Finance for the foreseeable future.

1.2.5 Identify and plan the support required for the government (central and regional offices) to understand and calculate: 1. regional/local extractive industries’ contribution to national economy and 2. production and export volumes and pricing

Not achieved

Mid 2014- 2015

The Independent Administrator’s Terms of Reference included an assessment of these requirements. It is anticipated that the Independent Administrator will make recommendations for improving and strengthening the government’s management and collation of such data moving forward. This activity is therefore carried over into next year’s Work plan.

1.2.6 Establish a centralised government register of licenses which covers both the national and sub-national levels

Not achieved

Mid 2016- 2019

This activity has been included in the Work plan by the MSG with the caveat that it is not strictly or normally an EITI issue, but that it was included to ensure alignment with EITI Requirement 3.9.

11

Discussions about establishing a minerals cadastre are now in place with MOM. This activity will therefore remain in the Work plan for 2016-2017, and there will also be a workshop at the end of 2015/early 2016 to identify and decide on the best options for Myanmar.

1.2.7 Carry out review of the illegal and artisanal and small scale mining (ASM) sector to understand potential contribution to national economy and estimation of production data

Not achieved

Late 2014

This activity was included in Moore Stephens TOR, and will therefore be carried forwards into next year based on the Independent Administrator’s recommendations.

1.2.8 Carry out review of the jade and gemstone sectors for other potential inclusion in scope of second MEITI report (If not effectively covered and/or included in scoping study and first EITI report)

Achieved

Early 2016

In December 2014, the MSG agreed that the scope of the study would only include formal government data on jade and gemstones from the Gems Emporium. As such, the entire jade and gemstone sectors will not be wholly covered in the study or in the first MEITI report. There have been some discussion in the MSG regarding the options for producing this report and some preliminary data has been gathered. The MSG decided in June 2015 that the review should be carried out after the scoping study has been completed.

1.2.9 Government (including SOE) needs to identify its level of ownership in the sector

In progress

Mid 2014-2017

There has been initial discussion during the government’s working committee meetings, especially on the available data for the scoping study’s preparation. There exists a need for continuous discussion amongst key stakeholders. This was also included in the Independent Administrator’s TORs and will be carried forward based on their recommendations

12

accordingly.

1.2.10 Government to review availability of EITI-related data among SOEs for disclosure in EITI report

In progress

Mid 2014-2016

There has been initial discussion during the government working committee meetings, especially on the available data for the scoping study’s preparation. There exists a need for continuous discussion amongst key stakeholders. This was also included in the Independent Administrator’s TORs and will be carried forward based on their recommendations accordingly.

1.2.11 Government to review extractive industry-related sub-national practices, payments and revenues

Partially achieved/ on going

Mid 2014-2015

This was discussed in the MSG sub-committee and a representative of the Internal Revenue Department offered to organise a workshop to review extractive industry-related practices at the subnational level. It was organized in late 2015. This was included in the Independent Administrator’s TORs and will be carried forward based on their recommendations accordingly.

1.2.12 Carry out a study to map and identify levels of beneficial ownership in the extractive sectors in Myanmar (If not effectively covered and/or included in scoping study)

Under discussion

End 2016

The MSG discussed this when agreeing to include it in the Work plan in April 2014. In March, a government representative from the Myanmar Investment Commission participated in a beneficial ownership workshop organised by the EITI International Secretariat in the UK. The issue of beneficial ownership was discussed briefly at the MSG workshop in July 2015. The oil and gas companies present indicated that they would not have a problem making their beneficial owners public and for this to be included on a public

13

register in Myanmar. It was noted that the mining company representatives were less comfortable with this suggestion.

The Independent Administrator’s TOR for the scoping study requires them to propose a definition of beneficial ownership consistent with EITI requirement 3.11.d, and a mechanism for reporting and disclosure in accordance with EITI Requirements 3.11.a-b.

1.2.13 1. Government to agree procedure for disclosure of information related to the allocation of licenses 2. Disclose information about bidding process including list of applicants and the bid criteria (2013-2014) in line with EITI 2013 Standard Requirement 3.10

In Progress

Late 2014-2015

This activity, which focuses on MOGE and the disclosure of some data about the 2013-2014 bidding process, was briefly discussed in one or two MSG meetings and in some sub-committee meetings. The information was provided to the Independent Administrator for inclusion in their report.

1.2.14 MSG members will explore the methodology and the extent of contract disclosure and social expenditures

In Progress

2014-2015

Contract disclosure and social expenditures have been briefly discussed a few times, although not formally at a regular MSG meeting. At the MSG workshop in July 2015, there was some discussion about contract disclosure. The Independent Administrator’s TOR covers both of these issues in line with EITI Requirements 3.12 (b) and 4.1 (b). It is therefore expected that the MSG will address these issues more substantially once the Independent Administrator has completed their work.

Objective 2: Create enabling environment for EITI

Activity Activity Status Time in Remarks/Summary of Progress during 2014-2015

14

Number WP

2.1.1 1. Carry out Training Needs Assessment for MSG and key stakeholders 2. Design training plan, training manual materials etc. to include training of trainers (TOT)

Achieved

Mid 2015

The draft training plan has been produced and the accompanying report was finalised and approved in early September.

2.2.1 Two or 3 training activities per year depending on training needs identified/training plan - for MSG members

Achieved/ ongoing

End 2015- 2019

Several training activities were offered/delivered to MSG members throughout the year (although these took place before the training needs assessment had been carried out).

2.2.2 MSG Study Tour & Exchange visit to Mongolia

Achieved

Late 2014

A group of MSG representatives was invited to Mongolia in November 2014 by GIZ to participate in a conference and meet Mongolian EITI representatives to share, learn and discuss EITI implementation.

2.2.3 MSG Study Tour & Exchange visit to the Philippines

Achieved

Mid-late 2014

This took place later than originally anticipated, but was a very valuable experience for the MSG participants.

2.2.4 Government training and capacity development (as requested by government) 1. Basic natural resource governance training to EITI related (Union) ministries 2. Basic natural resource governance and EITI training to regional governments (especially from resource rich states and regions) 3. Advance Natural Resource Governance and Reporting Practice Training to MEITI Government, Working Group and Working Group/Focal Group from Each EITI Related

Achieved/Ongoing

Mid 2014-Onwards

A range of EITI related training has been offered to key government ministries, including: - Introduction to EITI

o Ministry of Mines o Various other ministries including GAD and some

parliamentarians - Natural Resource Governance

o Ministry of Mines - Preparation for EITI Reporting

o Ministry of Finance o Various government departments

15

Government Agencies 4. Fiscal regime in EI related training 5. International accounting standard and project financing and evaluation training

2.2.5 Civil Society Organisation (CSOs) training and capacity development Training activities to be developed as per Training Needs Assessment

Achieved / Ongoing

Mid 2014-2016

A number of CSO training activities took place during the year are including –

Introduction to EITI

TOT for EITI Awareness

Natural Resource Governance

Contract Transparency In particular, NRGI is working closely with Myanmar CSOs to support them and build capacity to participate effectively in the EITI process.

2.2.6 Private Sector training and capacity development Training activities to be developed as per Training Needs Assessment

Achieved/Ongoing

Mid 2014-2016

Prioritised training for the private sector will focus on supporting the reporting companies with the reporting process. However, some local level companies have participated in events related to outreach and raising awareness, especially in Mandalay and Magway where the two subnational coordination units have been established. There are plans to to organize two trainings for Private Sector with MFMA in Yangon and Mandalay by December 2015.

2.3.1 Legal Review Achieved

Late 2013-2014

A legal consultant (Baker & McKenzie) was contracted by the World Bank in 2013 to carry out the legal review. The final report was produced in 2014.

2.3.2 Political Economy Study (Pre-scoping Study)

Achieved

By mid 2014

Adam Smith International: ‘Institutional and Regulatory Assessment of the Extractive Industries in Myanmar’ was

16

finalised and published in 2015.

Objective 3: Prepare and facilitate the process for implementing EITI

Number Activity Status Time in WP

Remarks/ Summary of Progress during 2014-2015

3.1.1 Prepare and secure World Bank Multi Donor Trust Fund (MDTF) funding until end 2015

Achieved A USD 290,000 grant to the Ministry of Finance from the World Bank-managed EITI MDTF provides funding until the end of 2015. This is complemented by Bank-executed activities, including financing of a technical adviser, a communications consultant, and a public financial management consultant, and the financing of the Scoping Study. The Bank-executed activities are also financed by the EITI MDTF.

3.1.2 Prepare and Secure DFID and/or alternative development partner for short-medium-long term funding

In progress

In principle agreement has been reached with the World Bank to provide a grant from Myanmar Partnership MDTF, with funding from DFID and perhaps DFAT. Grant development is underway.

3.1.3 Prepare and secure government contribution to EITI

Under discussion

Onward Some preliminary discussion has been held with the government on the potential financial contribution to EITI.

3.1.4 Prepare and secure core funding for MEITI Coordination Office

Achieved Given the need for ongoing MDRI MEITI team support to the EITI process and the Ministry of Finance, funding is being factored in to the revised 2016 – 2019 Work plan.

3.2.1 Hold MSG Meeting every two months Achieved/ Ongoing

Candidate Onward

MSG meetings have been held regularly approximately every 2 months.

17

3.2.2 Establish MSG Sub-Committees, Taskforces, Supporting Committees or Monitoring Committees as necessary and hold Meetings accordingly

Achieved/ Ongoing

Candidate Onward

In July 2014 the MSG agreed to establish 3 sub-committees to support its work and with the mandate to work in more detail on key areas, on behalf of the MSG. The 3 sub-committees are:

Work plan and Governance

Technical and Reporting

Communications and Outreach

The 3 sub-committees have met regularly during the year.

3.2.3 Procure reconciler firm to carry out detailed scoping study and prepare first MEITI report

Achieved/ Ongoing

After MEITI Candidacy Application Approved

The Independent Administrator was procured in June 2015. The MSG established a ‘Selection Committee’ to oversee and lead the selection process.

3.2.4 Scoping Study Achieved Early 2015 This activity was delayed to mid-late 2015.

3.2.5

1. MSG to agree scope and definition of materiality threshold for the first report based on the results of the scoping study 2. Reconciler to develop reporting templates with MSG in line with agreed scope 3. MSG to approve the reporting templates

Achieved Based on scoping study, early 2015

This activity was delayed slightly. It is anticipated that the scoping study will be finalised in October 2015. The MSG has agreed on the scope and reporting templates accordingly.

3.2.6

Training on EITI reporting and templates for all Reporting Entities

Achieved After scope agreed (2015)

This was carried out by Moore Stephens, the Independent Administrator after the scope of the first report has been agreed.

3.2.7

Preparation and Production of MEITI report

Achieved Jan 2016 Moore Stephens produced the first MEITI report. This began in October 2015.

3.2.8 Approve and Launch Of MEITI Report by Achieved After Once the draft report was finalised, and the MSG and key

18

MSG -Ongoing completion of MEITI Report

stakeholders have had the opportunity to give any feedback, the MSG formally approved the report. Once the final version had been approved it was officially launched.

3.3.1

Prepare for the 2nd Report including procurement of Reconciler and possible second scoping study

Under process

Early 2016-End 2016

The MSG will make a decision on this during 2016.

3.3.2 Production of 2nd MEITI Report

Under discussion

2016-2017 This will take place during 2016 (possibly 2017).

3.4.1

Engage in validation, review and approval of validation report

Under discussion

By January 2017

Validation must take place by January 2017 (2.5 years after candidate status granted).

Objective 4: Increase the accessibility of data (Communication and Information Sharing)

Number Activity Status Time in WP

Remarks/ Summary of Progress during 2014-2015

4.1 Widespread communication and dissemination of MEITI report, ensuring contribution to public debate including e.g.: - Press Release - (Media) Including TV, Radio, Print, events and activities

Ongoing Early 2016-late 2106

It has been taking place once the EITI report is published and in line with the Communications Strategy.

4.2.1

MEITI Website (regular updating and maintenance)

Ongoing 2014 and Ongoing

A new Communications Officer was appointed in June 2015. The website is also now being revised and improved. It has been handed over to the MOF team by April 2015 and one staff who is assigned to undertake the role of

19

communications.

4.2.2

MEITI Secretariat to establish online and physical 'library' of EITI related information for EITI stakeholders (where the information is not publicly available, it should be approved by MSG)

Ongoing Late 2014 -Onwards

The MEITI office are collating numerous relevant and insightful documents/reports etc. which will be available for downloading from the MEITI website (in both Myanmar and English languages). This will also be covered in the Communications Strategy.

4.2.3

Develop MEITI communications plan/strategy

Achieved

Late 2015

This activity was slightly delayed but was produced by the end of 2015.

4.2.4

Implement communications plan/strategy including e.g. information, education and communication materials, outreach events, workshops, seminars etc.

Ongoing Late 2014 -Onwards

In line with the MEITI Communications Strategy, a range of communications and outreach events and activities will held each year, including e.g.:

- National EITI conference - Annual MSG workshop - Subnational coordination unit events - Outreach events and workshops

4.2.5

Possible Outreach Events to include: 1. Seminars and workshops (approx. 15) 2. National EITI Conference

Ongoing 2014-2016

Various outreach events were held during the year as follow

7 seminars with EITI introduction of regional level

8 trainings and workshops with Media and Government

4.2.6

Outreach events for each constituency group

Partially Achieved /Ongoing

Mid 2014-2016

Outreach events were held primarily for CSOs and government stakeholders during the year.

4.2.7

MSG to discuss and agree options for establishing regional CSO-government EITI

Partially Achieve

Late 2014

This activity became the MSG agreement, in December 2014, to establish the ‘pilot’ 4 subnational coordination

20

support groups - options for establishing groups followed up

d Onward units. The agreed 4 states and regions were: Mandalay, Magway, Shan and Rakhine. By July 2015, two of these-- Mandalay and Magway -- had been successfully established. It is intended that the remaining 2 will be established as per the MSG decision later this year.

4.3.1

MSG to establish internal monitoring and evaluation mechanism e.g. MSG Monitoring and Evaluation Sub-Committee

Not achieved

Late 2016 Onwards

The following activities all contribute to ongoing monitoring and evaluation of the EITI process: - CSOs as non-reporting entities, play monitoring and

oversight role - The Annual Activity Report process - Regular Workplan and Governance Sub-Committee

meetings i.e. the governance, institutions etc. of the EITI process.

- The Validation process (for Myanmar this will begin by January 2017).

Whether additional monitoring is still needed can be discussed by the MSG.

4.3.2

Post MEITI First Report Activities - - Evaluate and review first report process - Follow up MEITI Report recommendations - Carry out any research/ studies as necessary including CSO study using participatory action research methodology and PAME

2016 2016 Onwards

Not applicable during this year

4.3.3

1. Carry out review of government financial data management system needs for effective EITI implementation (Consultant) 2. Consultant to develop the system based on the needs identified, and provide training

Under process

2015-2016

This activity will be carried based on the IA’s recommendations in the first MEITI report.

21

accordingly

4.3.4

MSG to review and revise the Workplan

Achieve

d

March 2015

This was one of the key objectives of the MSG workshop in Pyin Oo Lwin in July 2015. The MSG Workplan and Governance Sub-Committee has met a few times to discuss the Workplan and budget. In particular, after the MSG workshop in July, there have been several meetings to review and revise the Workplan in time for the MSG’s approval in September.

4.3.5

MSG to review annual progress (Workplan), produce annual activity/progress report and send to International Secretariat

Partially Achieve

d

February

2016-July 2016

The main objective of the MSG Workshop in Pyin Oo Lwin in July 2015 was to review annual progress against the Work plan and prepare for the Annual Activity Report. However, as this was not possible, the process of preparing the Annual Activity Report was slightly delayed.

22

3. Assessment of performance against EITI requirements

During the course of the year (from July 2015 to June 2016), the MSG had 4 meetings, and there were meetings of each sub-committee at least once in between MSG meetings. In preparation for the Independent Administrator’s TORs for 2nd EITI report, which was substantially discussed by the MSG Technical and Reporting Sub-Committee, the committee ensured that each of the EITI Requirements would be covered in the scope of the IA’s work. Even though this is the second year of EITI implementation for Myanmar, progress in meeting specific requirements in the Standard has been limited given the time constraint and the changing Government structure. Thus, the second report would have its scope extended and additional sections. However, while the first report is completed timely and contains useful recommendations, it is difficult to hold regular meetings to enforce the implementation of reform measures due to the impact of political change and its consequent structural change in the Government’s Ministries. Even though the EITI Requirements per se were not formally discussed in MSG meetings in 2016, they are all included in the Work plan and also in the Independent Administrator’s TOR. The MSG will be able to discuss them more systematically during and after the Independent Administrator has designated their tasks for the second report. Beneficial ownership (3.11) Even the workshop on Understanding Beneficial Ownership was organized in early June, there is still the need for continuous discussion on of the definition of BO by Myanmar EITI. This component in the work plan is delayed and will be postponed to late 2016. Contracts (3.12) Due to the uncertainties within the MSG caused by the changes in political appointments within the Ministries, the component of contract transparency could not move forward as planned. It was also difficult to build a broader understanding on existing practices and cover topics under the contractdespite the drafts by both parties in the public and private sectors. are following the same legal framework.

23

4. Overview of the Multi-Stakeholder Group’s Responses to the Recommendations from Reconciliation and Validation, if applicable

Under the process of preparation by MSG sub-committee, it has been decided that separate meetings with respective Government departments’ key staff members will be conducted to allow them to have an understanding on the report’s recommendations and how they can be integrated in their existing development and reform plans. Due to the political change, Myanmar administrative structure are also relatively fluid given that some ministries are merging and Ministerial appointments are filled with new members. Advocacy on the report’s recommendation and the implementation will be prioritized in the next six months of 2016.

5. Any specific strengths or weaknesses identified in the EITI process

Strengths Coordination Under the reporting period, coordination among three constituency groups is continuously improved and having dialogue for better improvement of policy reform and issue management between Government and CSOs representatives like having meeting with Mining for some issues related mining in region. Participation of sub committee members is functioning well even there was some changes in focal for sub com member from the side of Government and CSOs, was not impact in the coordination for moving forward the action. It was also organized regular internal team meeting among CESD coordination team, MOF secretariat Team and WB focal persons monthly until early 2016. It’s also build the effective dialogue and making decision for delivering the activities under work plan and prioritise activity in line with requirements and time frame. Debate and Adaptation to Context As a continuous action of developing the TOR for IA and the preparation plan for the first EITI report, debates on the scope, reporting template, including the number of companies based on their revenue payment to Government took place and the follow sectors are decided by scoping study:

Oil and Gas

Mining (including jade and gemstones but only formal government’s Gem Emporium data)

Even though the MSG agreed that a separate feasibility study to determine the inclusion of the hydropower sector into the EITI process should also be carried out in time for the second MEITI report in its first annual progress report, the dialogue at sub-committee meetings also pushed for the inclusion of the fishery sector. While the MSG mechanism is slowed down, it is still maintaining dialogue and discussion through sub-committee meetings to discuss the preparation of the IA’s TOR. Increased Dialogue In terms of increasing engagement with stakeholders, the MEITI process led to civil society representatives entering into a regular, open dialogue and relationship with key ministries. For example, as a result of discussions in the MSG, CSOs and Ministry of Mines representatives are now meeting on a regular basis. It is also set up mechanism of having regular dialogue and meeting among three stakeholders representatives at two pilot regions where SNCU set up as pilot.

24

Outreach, Inclusion and Capacity Development There were considerable efforts to build awareness and capacity of MEITI stakeholders throughout the year. This includes numerous training sessions for all key stakeholder groups, including some not directly involved in the MEITI process such as the media and parliamentarians. There were also numerous outreach events at the subnational level in several states and regions. Most of them were organised collaboratively by MATA and CESD MEITI Coordination Office to raise awareness in communities. At times, MATA CSO coalition and some government support are involved. It was also organized trainings related technical knowledge building for three stakeholders and some skill required for constituency groups to do better coordination and delivering the action effectively in facilitative approach by the late 2015 in collaborate with NRGI and with some external International experts for facilitation and communication sill. By the end of 2015, some trainings were organized for the three types of stakeholders in terms of technical knowledge build up, and constituency groups were also offered opportunities to develop coordination, communication, and facilitation skills. These were conducted in collaboration with NRG and various external international experts. Positive Reflections The first Multi Donor Trust Fund for implementing EITI in Myanmar was depleted by the end of 2015 and due to the delay of signing the grant agreement caused by the political change, MSG members have been trying to maintain the momentum and contribute their time on low-cost deliverables while attempting to find the collective solution to meet the EITI requirements and standards. to support better reform of the accountability and transparency practice and mechanism in Myanmar under the critical change of political situation when Government representatives are unclear for their role and participation in EITI.

Weaknesses Myanmar tried to implement EITI and overcome some challenges to improve coordination among the three groups who lack trust in one another. After the first EITI report has been developed, Myanmar is preparing for the second report to be submitted timely in early 2017 while ensuring to carry out the recommendations from the first report. Limitation

. Build a balanced tripartite understanding and confidence towards the building of a developed nation while ensuring good governance and transparency;

· Regular verbal communication between different interest groups is necessary to improve more strategic communication through the MEITI communication channel.

· Have expectation of being a member of MSG, become a member after overcoming obstacles, need to gain benefits for the general public;

· Mixed results: While there is some improvement, there were unpleasant occurrences at the ground level., Some examples are the Lapadaung case in Sagaing Region ,Pin Pat Mining in Shan State, Ta Gaung Taung Nikle Mining in Sagaing Region, etc.

· Establish good relations with the government, companies, and CSO. However, CSO still

25

feels that there is a difference between champion and MSG member in reality.

· There are many challenges ahead in the action plan and the work plan for the next year to agree upon consensus practices.

- After political change takes place, new leaders are trying to manage and improve various sectors. As they place more focus on building peac , EITI was less prioritized.

- The change in leadership and ministerial appointments made existing MSG structure uncertain as Government representatives are unclear of their participation and state of involvement.

Poor Data Quality It was covered under the recommendation from the first EITI report. Ideal data collection could not be implemented as the key practitioners involved with the data management do not have a clear understanding on the importance ensuring good data quality. It could not link and collaborate between development of quality data in Ministry with the support of other development agency, have being implementing process and EITI data quality requirement. Institutional Culture and Paradigm Shift After the 2015 November election, the change in the country’s authority and resulting bureaucrati change often hamper progress in EITI implementation. This ranges from simple meeting requests (which often require various levels of authorisation, approval and procedure), to disclosing agreed data/information for the purpose of EITI reporting (which, in this first year of reporting, has presented a significant challenge). As the government reforms slowly continue, and people become increasingly familiar with the EITI process over time, we hope that these constraints will be reduced and the systems involved will improve. Therefore, the transition to greater transparency and open operating environment– in line with the spirit of EITI – is likely to necessitate a major paradigm shift that will probably need more time. Institutionalisation The National Secretariat in the Ministry of Finance was supposed to be firmly established during the course of the year, with the aim of being fully functional by the end of 2015. However, due to various challenges during the year, the MDRI-CESD MEITI Coordination Office team continues to play the lead role of the National Secretariat function, with some part-time participation from the MOF EITI team. The MDRI-CESD MEITI Coordination Office team has made clear the importance of assigning full time MOF staff to EITI activities. The aim is to have a fully functioning MEITI National Secretariat team based in the Ministry of Finance who effectively supports the MSG as required. In practice, it was difficult to collaborate between two teams as the CESD MEITI is based in Yangon while the MOF EITI is based in Nay Pyi Taw., The difference in locations also delayed the hand over process and thus, it was extended to the end of June 2016. Expectations Human rights-related concerns and grievances have been brought into EITI MSG discussions repeatedly during the year, even though EITI as a process is not equipped or intended to capture these issues. It is therefore very clear that there is a strong need in Myanmar for other fora in which human rights-related issues and concerns can be properly addressed. This could include, for example, corporate grievance mechanisms, a credible and responsive human rights commission, and the general strengthening and implementation of the Rule of Law.

26

5. Total Costs of Implementation Costs for implementation were divided during 2014-2015 as follows: Executing Agency Beneficiary Budget

DFID Accountable Grant ‘for Strategic Coordination of EITI in Myanmar’

CESD Effective EITI implementation for the benefit of the people and government of Myanmar

July 2014 - February 2016: USD 331,318 Extension up to June 2016- USD

DFID Externally Funded Output (EFO)

World Bank Overall support for effective EITI implementation

May 2013 – May 2015: USD 599,600

World Bank Global EITI Multi Donor Trust Fund (Global EITI MDTF)

Ministry of Finance MEITI Secretariat / World Bank

MEITI Work plan implementation

2014- December 2015: USD 290,000 plus Bank-executed technical assistance

World Bank Myanmar Partnership Multi Donor Trust Fund (MP-MDTF)

Ministry of Finance MEITI Secretariat / World Bank

MEITI Work plan implementation

From January 2016 until 2019 (4 years? subject to MSG decision)

‐ USD 3.5 million (approx. to fund entire Workplan) (under the process of signing agreement)

27

5. Any Additional Comments

6. Has this Activity Report been Discussed Beyond the MSG? Due to the limitation of a lack of budget, the coordination team has provided a general timeframe for individual constituency group representative to collect various information in order to prepare the annual report. At the same time, the coordination team prepared the draft annual report which is shared with MSG representatives for their inputs and recommendation, hoping to receive the inputs and concerns by 24th June. However, there was not enough time for each constituency group representatives to respond and Government representatives are not sure of their own involvement in the MSG. The representatives from the private sector is also concerned about the MSG structure and has been relatively slow in responding to the coordination team. Therefore, the coordination team is trying to submit this draft report to the International EITI and trying to get each constituency group’s recommendation and contribution in the meantime. After drafted the report to be shared to International EITI on 3rd July 2016, MEITI secretariat team continue to contribute this draft report among MSG and request their feedback and comments on it by giving time until by the 2nd week of August 2016. And then accepted no reply and comments from MSG, mean they all are agreed on it and then finalized this report to be shared to International EITI and share to wider public through MEITI Web site.

7. Details of Membership of the MSG During the Period

(including details of the number of meetings held and attendance record) Please see table in Annex 1

Approved by MSG: -------------------------------------------------------------------------------------------------------- Date: --------------------------------------------------------------------------------------------------------

28

Annex 1: List of MSG members, and attendance at MSG meetings

No Name Organization MSG Meetings in 2015/2016 Remark

Tenth Eleventh Twelfth Thirteen 1 Chair MoF √ √ 2 Vice-Chair MoE √

Government Representatives 1 U Tin Myint GAD/MoHA √ Become MSG Representative

on 12th MSG Meeting 2 Dr Nyi Nyi Kyaw MoECAF √ √ √ 3 U Myo Mynt Oo MOGE 4 U Win Htein MoM √ √ √ 5 U Min Htut MoF 6 Daw Khin Aye Swe AGO √ √ √

Government Alternates 7 U Ye Naing GAD/MoHA √ √ √ 8 Thura U Htin Kyaw

Moe MoF √ √ √ √

9 U Kyaw Thet MoM √ √ 10 U Than Htay Aung MOGE √ √ √ √ 11 U Nanda Win Aung MoECAF √ √ √ √

Private Sector Representatives 1 Mr Xiaver Preel Total E & P Myanmar 2 Mr Terence J. Howe MPRL E & P Myanmar 3 Mr Li Hongyuan CNMC Nickel Co. Ltd. √ √ √ 4 Mr Chen Kah Seong PC Hong Kong √ √ 5 Mr Song Huai Yin Goldpetrol Joint

Operation Company Inc. √

6 U Aye Lwin MFMA √ √ Private Sector Alternates

7 Mr Bertrand Brun Total E & P Myanmar √ √ √ √ 8 U Andy Tin Win PC Hong Kong √ √ √ √ 9 U Aye Thwin Goldpetrol Joint √ √ √ √

29

No Name Organization MSG Meetings in 2015/2016 Remark

Tenth Eleventh Twelfth Thirteen Operation Company Inc.

10 Daw Kyisin H Aung MPRL E & P Myanmar √ √ 11 U Khin Maung Han MFMA √ √ √ √

Civil Society Representatives 1 U ALex KESAN 2 U Win Myo Thu Eco/Dev √ 3 Dr Kyaw Thu Paung Ku √ √ √ √ 4 U Ye Thein Oo √ √ √ √ Become MSG Representative

on 12th MSG Meeting 5 Daw Su Hlaign

Myint GBP (Sagaing)

√ √ √ Become MSG Representative on 12th MSG Meeting

6 U Khaing Kaung San Wun Lat Development Foundation

√ √ √ √

7 U Mung Dan TANK (Kachin) √ Become MSG Representative on 13th MSG Meeting

8 U Thant Zin DDA √ √ 9 Moe Moe Tun Green Trust (Pyin Oo

Lwin) √ √ √ √

Civil Society Alternates 10 U Moe Myo Sat Thit (Shan) √ 11 U Naing Lin Htun Pyoe Khin Thit

(Ayeyarwaddy) √ √

12 U Andrew CNRWG (Chin) 13 U Saw Me Bway

Doh Htun Hoo Phoo Kapaw (Kayin)

√ √

14 U Myo Myint Oo Green Network (Magway)

√ √ √

15 U Zaw Lwin Public Network (Bago)

√ √ √

30

Annex 2: MATA

Background Information of MATA

Myanmar Alliance for Transparency and Accountability (MATA) is a nation-wide network, consisting of

over 400 local civil society groups, think tank groups and interested individuals. Since its inception in 2012,

it has worked on advocating improved management of natural resource sectors, including greater public

involvement in natural resource management. MATA is the representative coalition from which the nine

civil society members on the MEITI MSG are derived. MATA was established in early 2013, growing out

of the civil society organizations engaged on EITI and broader resource governance related issues. Prior to

the current reform process, initiated in 2011, Myanmar had very strict limitations on the freedom of speech

and freedom of assembly, offering very little space for discussion or public debate on natural resource

issues. In this context MATA has come together timely fashion in order to coordinate and provide a

representative structure for CSO engagement in EITI, and engage on other resource related issues, including

the FLEGT initiative. However, MATA and its CSO members are all engaged in a steep learning curve,

given the very recent nature of their ability to legal organize, conduct debate, engage with media, and hold

discussions with Government. Most of the new initiatives and new comers are started engaging with MATA

as a member.

MATA’s structure includes 14 regional working groups, which are spreading across the country. There is a

National Coordination Office in Yangon, plus a regional office in Mandalay. MATA has plans as well to

open offices in each of the 14 states and regions. The MATA National Coordination Office serves as the

secretariat for CSO participation in the Myanmar EITI MSG. This includes convening CSO meetings,

generating meeting minutes, distribution of EITI related information, including minutes and results of MSG

and sub-committee meetings, and coordinating technical inputs to EITI related matters.

MATA’s Mission

To advocate for transparency and accountability by government, elected representatives, companies,

donors and civil society.

To promote the freedom of public participation in, and scrutiny of, Myanmar’s legal frameworks and

guidelines relating to resources.

MATA’s Objectives

Advocate for transparency and accountability in the management of natural resources by Government,

private sector and civil society organizations.

Raise awareness of the importance of transparency through education and training sessions

Build partnerships with INGO, NGO, Government, CSOs and other stakeholders.

Strengthen the capacity of CSO and communities to improve Natural Resources Governance.

Increase freedom of information, monitoring mechanisms and the accessibility of data.

Promote the freedom of CSO participation in Myanmar.

EITI သည သဘာ၀သယဇာတတးေဖာေရးလပငနးမားမ ရရေသာ ၀ငေငြမားႏငပြငလငးျမငသာမႈက အားေပးေသာ ကမၻာလးဆငရာ စႏႈနးတစရပျဖစပါသည။

တကဆငစစေဆး

ပငဆငမႈ

ပကလငးျဖတသနးခေပးေခမႈမား **

အစရငခစာတြင ကမၸဏ မားမ ေပးေဆာငထားေသာအခြနအခမားႏင အစးရမ ေကာကခရရေသာ အခြနအခမားကထတျပနၿပး လြတလပေသာ တကဆကစစေဆးသ၏

ရလဒစစေဆးမႈက ေဖာျပေပးရသည။

(**) EITI စႏႈနးအရ မျဖစမေနထတေဖာျပသရမည သတမတခကမဟတေသာလညး ဤအခကအလကမားက EITI အစရငခစာတြင ထညသြငးေဖာျပႏငပါက EITI လပငနးစဥမားအား ပမေကာငးမြနေသာ အကးရလဒမား ျဖစေပၚေစသညအတြြက ထညသြငးရန တကတြနးသည။

စးပြားေရးလပငနးမား

EITI အဖြ႕၀ငေလာငးျဖစလလင ႏငငတစႏငငသည သတမတထားေသာ လအပခကေလးခကက ျပညမရမညျဖစသည။ ထ႔ေနာကတစႏစခြခန႔အခနယၿပး EITI အစရငခစာတစေစာငထတျပနရမည။ ထအစရငခစာတြင

သဘာ၀သယဇာတတးေဖာထတလပမႈအတြက ေပးရေသာအခြန၊ ခငေၾကး၊ စာခပဆေၾကးအစရေသာ အခြနအခမားႏင ပတသက၍ ကမၸဏ မား၏ ေျပာဆခကႏင ထအခြနအခမားက လကခရရသညမားႏင ပတသက၍ အစးရ

၏ေျပာဆခကတ႔က တကဆငစစေဆးျပရသည။ အဖြ႕၀ငေလာငးႏငငျဖစလာေသာ ႏငငတစႏငငသည စခနမတငးျပညအဖြ႕၀င (Compliant Country) ျဖစရန အဖြ႕၀ငေလာငး(Candidate Country)ျဖစၿပး ႏစႏစခြအတြငး

လအပခကခနစခကကလအပခကခနစခကက ျပညမေအာငျဖညဆညးထားရသည။ ထ႔ေနာက ယငးတငးျပညသည ႏငငတကာ EITI ဘတအဖြ႕က အသတအမတျပသည လြတလပေသာ စစေဆးသ (Validator) ၏ တးတကမႈအကျဖတခကႏင

EITI လပငနးတးတကေရးအတြက လအပေသာ အစအမမား ေဆာငရြကထားေၾကာငး ဆနးစစမႈက ခရမညျဖစသည။

࠳ࠐ࠰ߺࠒ࠰ࠏࠕ ߺࠤ࠱ࠓ࠰ࠄ߿ ߺࠕ࠰ߺࠊ�࠰߾࠳ࠊ,7,)� ࠰ �࠰߾ࠐ࠲ࠤߺ࠰ࠄ �࠰ࠤ߾ ࠰ࠎ࠵࠰߿ࠊࡡࠤࠓߺ �࠴ࠕ ࠓࠕ߿ ࠰ࠊ ࠤ��1*2�� ࠳ࠐ ߺࠤࠋ�ࡄ࠰ࠤ࠱ߺ�࠵࠵࠹�࠰߾ࠏ࠰ࠄ߿ ࠰ �ࠤ࠴ࠕࠕ�ࠓࠏ ࠤ� ³ ࠀࠏ࠰߾ �ࠏࠏ࠲࠰ࠤࠐ࠰ࠊࠋߺ࠳߾ࠕ࠰ࠤ߾�3XEOLVK�:KDW�<RX�3D\�� ߺ࠰ࠄ࠰߾ࠐ࠲ࠓࠤ࠴ࠕ࠰ࠏ ,7,)࠰ࠤ߾ࠀ࠰߾࠵ࠏ�࠰߾࠳ࠊ ߺ,7,)�ࡀ࠰ࠄߺࡤ࠰ߺ࠳ࠕ࠰ࠤ߾ ߺࠤࠋ �࠰ �ࠤࠏ ࠤߺࠊ߾࠰߾ࠤ� �࠳ࠐ ߺ�࠰߾࠳ࠊࠤ࠱ࠓ࠰ࠄ߿ �࠰ࠉࠒࡡࠤࠓߺࠊ߾࠰߾ ߺࠊ߾࠰߾࠰߾࠴࠳ࠐ࠳߾ࠏ࠰ࠎࠤࠕ �࠰߾࠴࠳ࠐ࠳߾ࠏ࠰ࠎࠤࠕ ࠌ �࠰߾࠵ࠏ�ࠤ࠱ࠓ࠰ࠉࠒ࠰߾࠳ࠊ�ࡀ࠰ࠄ ࠳ࠐ ࠤ࠱ࠓ࠰ࠄ߿ �࠰ࠄ ߺ �࠰ࠄࠋ࠰ࠤ߾ࠎ࠰ࠤࠐ ࠤ� ߺࠤ࠱ࠓ߾࠰߾ ߺࠤࠓ � (,7,� �ࠕࠤ࠳ࠏ࠰ࠎࠏ࠲ߺࠤ࠱ࠓ࠰ࠎ߾࠰ࠏ ߺࠤࠋࠨࠄߺ ࠕ߿�ࡀ࠰ࠄߺࡤࠏࠏ࠰ �ࠤ࠱ࠓࡤ��ࠤࠏ࠲ ࠊࡤ߿ ߺ�ࠔ࠱࠰࠰ࠔࠒ�࠱ �࠰ࠊࠓ࠰ࠎࠌ�ࠌࠎ�ࠉࠓࠤ࠱�࠰ࠎ࠰߾ࠐ ࠤ࠰ࠔࠎ�࠰ࠎࠏ࠱�ࠊ �࠰ࠎ �࠵࠰ࠤࠎ�࠰ࠎࠊࠑࡥ�࠰߾ࠌ࠳ࠀ�࠰ࠎࠏ߿ ߺࠕࠓ ࠋ࠰ࠄࠏ࠲࠰ࠎ ߿߿࠰ࠤ߾ �ࠊ࠰ࠄߺ,7,)࠰ࠄߺ ߺࠤࠋ ࠰ ߺ,7,)࠰ࠄߺࡀ࠰ࠄߺࡤࠏࠤ ߺࠤࠋ ࠰ �ࡀ࠰ࠄߺࡤࠏࠤ �ࠕ߿ࠤ࠱ࠓ ࠄࠏ࠰ࠄࠎ�ࠤࠕ࠰߾ࠀࠕ߾࠰߾�࠰ࠄ �ࠕࠤࠒ�࠰߾࠴ࠤࠕ࠰߾ࠤࠀࠤࠕ࠰߾ࠀ ߺࠤࠋ ߺࠤ࠱ࠓࠏ࠰ � ࠤߺࠊ߾࠰߾ �ࠕ࠰߾ࠀ ߺࠤࠓ ࠏࠕ࠰߾ࠀ࠰ࠄࠏ࠲࠰߾ࠊ ࠏ �ࡀ࠰ࠄ ߺ �࠰ࠤ߾ࠀ࠰ࠤࠐ�࠰ࠄࠋ ࠎ࠰ࠤ߾ ࠤ࠱ࠓ߾࠰߾ࠤ� �ࠕࠤࠒ�࠰ߺ࠳ࠊ ߺࠤࠋ ߺ�ࠤ࠱ࠓࠏ࠰ ߺࠐ࠰߿࠴࠰߿࠴�� �࠰ ࠒ �࠰ߺ࠱ࠨࠄࠤࠊ࠰߾ࠐ࠲ ߺ࠰࠰ࠄࠤ࠰ ࠓ߿�࠴ࠓ࠰ࠉࠒࡡࠤࠓߺ�࠰ࠤ߾ �࠰ࠄ࠰ࠏ࠱࠰ࠏ࠰߾࠵࠰ࠄࠋ߿࠰߾ࠏ࠰߾࠴ࠕ࠴ ࠰߾࠵࠰ࠄࠋ߿࠰߾ࠏ࠰߾࠴ࠕ࠴ࠤ ߺ࠰ࠄ࠰߾ࠐ࠲࠳߾ࠏ࠰ࠎࠕࠤ� ��࠰ࠤ߾ࠏ ࡀ࠰ࠄ

ࠔ ߾࠰߾ࡡࠤࠓߺ�ࡁ ߾࠰߾࠶࠸�࠰߾ࠏ �߾࠰߾࠰߾࠵࠳ࠐ࠰ࠄࠏ࠲࠰߾ࠊ�,7,)�࠰ࠄࠎ࠰߿ࠐ࠲ �࠰ࠔ�ࠤ࠴ࠓࠊ࠰߾࠹�ࡀ࠰ࠄ ࠔࠎࠒ�࠰ ߺࠤࠒ�ࠤ �࠰ࠎ࠳ࠕࠓ࠰߾ߺ�ࠀࠤࠐࠤࠎ࠰߾ࠏ࠰ࠔ ߺࠕࠤࠐ �߾࠰߾ࠊࡢࠓ �߾࠰߾࠰ࠌ࠰ߺ࠱ �ࠤ࠳ࠑࠌ࠰ࠊߺ � ߺࠕࠑ࠰߾ ��࠰߿࠰ࠎ࠳ߺ ࠤࠓࠊࠤ࠳�ࠤࠎ�߾࠰߾ࠊࡢࠓ �ࠎ�ࠤ ��߾࠰߾ࠀ��ࠤ࠴ࠕࠎࠌ࠰߾ �࠰ࠊࠕߺ ߺࠤࠁ ߺ�࠰ࠎࠊ߿࠰ ߺ��࠰ࠎࠊ߿࠰߿࠱ࠤ ��߾࠰߾ࠊࡢࠓ࠰߿࠱ࠤ ࠔࠕࠒ࠰ߺ �ࠤࠓ�ࠤࠔࠎࠊ࠰߿ࠕࠤࠓ ࠰ࠎ࠳ࠓ�ࠤ ࠔ ࠔࠕ࠱࠰߾�ࠤ࠱࠰߾�࠰߿ࠒ࠰ࠓࠁࠓ�ࠤ �ࠤ �࠵࠰ࠤࠎߺࠨࠕࠏ ࠰ࠎ࠳ ࠔࠎ࠰࠰ࠎࠁ࠰ࠎࠊ�࠰ࠎ࠳ࠔࠤࠕࠀ�߾࠰߾ࠊࡢࠓ ��࠰߿�࠰߿ࠊ߿࠰ߺࠤࠓࠊ�ࠤ� ��ࠤࠓࠊ࠴ࠕ ߺࠌࠎࠕࠋࠊ��ࠤࠓࠊ࠴ࠕ ࠒࠊ࠰߾࠴࠰ ࠔࠒ࠰ࠓࠁ࠰߾࠴�߾࠰߾ࠀ��࠰߾ࠓࠔࠤ �ࠊࠤࡀ࠰ࠄߺࡤ࠰߿ࠐ࠲ࠤ࠲ ߾࠰߾�࠽࠶ࠤ� ࠰߾࠵࠳ࠐ�,7,)�࠰ࠄ ࠰ࠤ߾ ࠋ࠴ࠕࠕ࠰ࠎࠊ࠰߾ࠀ �ࠏࡥࠤ�ࠤ࠴ࠓࠊ࠰߾࠹ ࠔࠒߺ�࠰ࠎ࠱࠰߾ࠒࠤࠁ�࠰ࠎࠊࡋ߿ࠎ࠰ࠎࠤࠐ ࠔࠏࠔ�ࠤ �ࠤߺ߿࠰ࠊࠌࠤࠓ�࠰߿࠰ࠏࠕࠨࠌ࠰ࠎ࠳ ࠤࠓ�ࠤ ࠐ�ࠎࠨࠔࠎ࠵ࠨࠏࠏ�ࠤࠓ࠰ࠎࠓ࠲�ࠤ࠵ �࠰߾ࠏ࠰߿ࠀ ࠊ࠰ࠤ߾ ࠎࠀ�ࠏ߿࠰߾ࠕࠏ࠰߾࠴ࠓ ࠀ�࠴ࠕࠀ� ࠊ�࠰ࠎ࠳ࠓࠤ࠰ ��߾࠰߾ࠀ��࠰ࠎࠊࡋ߿࠱ࠤ�࠰߾࠴࠰ࠎࠊࠑࡥ�࠰ࠎࠕߺࠨࠔ ߺࠕࠓ ࠋ࠰ࠄࠏ࠲࠰ࠎ �ࡀ࠰ࠄߺࡤ࠰߿ࠐ࠲�ࠊ߿࠰ࠤ߾ ࠤ࠱ࠓ߾࠰߾ ߺࠎ ߾࠰߾�࠾࠸�࠰ ,7,)�࠰ࠄ ࠀࠏ�࠰߾࠳ࠊࠤ߿࠰߾ࠕ߿ �࠰߾࠴ࠤ࠱ࠓ࠳߾ࠕ࠰ࠤ߾ߺࠤ࠱ࠓ࠳߾࠰߾࠵ �ࡀ࠰ࠄ࠰߿ࠐ࠲ࠏࡥ࠰ࠤࠐ࠰ࠊࠋ�ࡤ ࠊࡤ߿ �࠰߾࠴ࠤࠎࠤࠕ࠰߾�ࠎࠓࠤ࠱�࠰߿࠰߾ࠏ࠲�࠱ ࠏࠊ ߾࠰߾�࠰߾࠵ ࠤ࠱ࠓ �ࠤࠏ࠲ߺ,7,)ߺ ߺ �࠰ࠎࠕ࠰ࠤࠐ࠰ࠄࠋ࠰ࠤ߾ ߺࡤ࠴ࠕ࠰ߺ࠱࠰ࠔ࠳ࠕ࠰ࠄࠕ �ࠏࡥߺࡤࠏ࠲࠰ࠤࠐ࠰ࠤ߾ࠋ࠰ࠊ࠴ࠓ࠰ࠊ ࠤ ࠤ� �ࠤ࠱ࠓ࠰ߺ࠱࠰ࠏ ࠕࠓ࠰ࠄࠏ࠲ �࠰ߺ࠳ࠊ ࠀࠨࠕ࠴ࠕ �࠰ߺ࠳ࠕ࠰ࠤ߾ࡀ࠰ࠄߺࡤ࠴ࠕ࠰ߺ࠱

���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������

߾࠰߾� ࠀ࠰ࠏ�࠰ߺ ߺ࠰ࠄ࠰߾ࠐ࠲ࠤ࠱ࠓ࠰ߺ࠱࠰ࠤ߾ ࠤߺࠊ߾࠰߾�࠰ࠤ߾ ࠀ࠰ࠏ�࠰߾ࠀ �࠰ߺ࠱࠰ࠤ߾ߺ࠰ࠄ࠰߾ࠐ࠲ࠤ࠱ࠓ �࠰ࠤ߾ ࠳ࠐ࠰߾࠴ࠕ࠰ࠎ߾࠰ࠏ ߺ࠰ࠄ࠰߾ࠐ࠲ࠤ࠱ࠓ࠰ࠄ߿ ࠀ࠰߾࠵ࠏ�࠰ࠤ߾ �࠰߾࠲ߺࡤࠎ࠰ߺ࠳ࠕ࠰ࠤ߾ࠉࠤࠓࠏࠓ࠴࠰ࠏ࠴ࠓ࠲࠴࠰߾ࠕ�࠰߾ࠏ࠲ࠋ�ࡀ࠰ࠄ࠰߿ࠐ࠲ ࡅࠌ ࠕࠋ�࠾࠶ࠤ� ߺ࠱ ࠴ࠕ࠰ߺ࠱࠳࠰ࠎࠓ߿ߺ࠰ࠤ࠱ ࠤ�ߺࠊ߾࠰߾ �࠳ࠐࠓ࠴࠰ࠏ࠴ࠓ࠲�࠴࠰߾ࠕࠤ� ߺࠤࠋ�ࡄࠤ࠱ࠓ࠰ࠄ߿ �ࡀ࠰ࠄ࠴ࠕࠕ࠰ࠄߺࠓ࠰

ࡡࠤࠓߺ ߺࡦ �࠰߾࠴࠳߾࠰ࠊࠤࠍ�ࠎࠕࠀ ߺࠕ࠰ࠤࠐࠨࠊࡗࠊ �࠰ࠤ࠱ߺ࠵࠾�ࠉ࡞ࠓߺ�,7,)�ߺࠊ ߺࠤࠋ�ࠏࠤ ߺߺࡤ࠰ �,7,)ࠤ� �ࠤ࠳߿࠳ߺࡤ࠰ߺࠊ�࠰߾࠳ࠊ࠰ࠎ߾࠰ࠏࠀ࠰߾࠵ࠏ �ࡀ࠰ࠄߺࡤࠎ࠰࠰ߺ࠳ࠕ࠰ࠤ߾

ߺࠐ࠰ࠏࠕࠤ࠱ࠓࠕ߿ ࠳ࠐ࠰ �ࠤ࠱ࠓ࠰ࠄ߿ࠤߺࠊ߾࠰߾ ࠳ࠐ ߺࠤ࠱ࠓ�࠰ࠄ߿ �ߺ�,7,) ߺࠤࠋࠏࠤ ࡀ࠰ࠄߺࡤ࠰

߾࠰߾ࡡࠤࠓߺ ߾࠰߾�࠾࠹�࠰߾ࠏ ߺ�,7,)�࠰ࠄ �ߺ ࠏࡥߺࡤࠎ࠴ࠕ࠰ߺ࠱࠰ࠤࠐ࠰ࠄࠋ࠰ࠤ߾ࡀ࠰ࠄ࠰߿ࠐ࠲

ZZZ�P\DQPDUHLWL�RUJ࠰߾࠴��ZZZ�HLWL�RUJ�������ࠊ ࠏ࠰߾ࠕ࠰ࠄߺࠨࡤࠔ࠰ࠤ߾ ࡀ࠰ࠄ

In partnership with

႕

႕ 3

႕ ႕ ႕

Adam Smith International Adam Smith International ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ -

›

› ႕

› ႕

› ႕ ႕

›

›

›

http://www.adamsmithinternational.com/our-services/extractive-industries-governance/ ႕ extractives@adamsmithinternational.com ႕

႕ 4

႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ 5

ASM: Artisanal and Small-scale mining

AWC: Asia World Co. Ltd

BGF: Border Guard Force

BOT: Build Operate Transfer

CBO: Community Based Organisation

CDA: Community Development Agreement

CDOI: China Datang Overseas Investment Co Ltd.

CEP: Core Environment Programme

CPI: China Power Investment

CNMC: Chinese Nickle Mining Company

CNPC: China National Petroleum Corporation

CSO: Civil Society Organisation and Central Statistical Office

CSR: Corporate Social Responsibility

CTGC: China Three Gorges Corp.

DGSME: Department of Geological Service and Mineral Exploration

DHPP: Department of Hydropower Planning

DHPI: Department of Hydropower Implementation

DICA: Directorate of Investment and Company Administration

DUHD: Datang (Yunnan) United Hydropower Developing Co.

DKBA: Democratic Karen Buddhist Army

DRC: Democratic Republic of Congo

DSI: Defence Services Institute

EAG: Ethnic Armed Group

ECD: Environmental Conservation Department

EDC: Energy Development Committee

EGAT: EGAT International Ltd

EGTA: Export Gas Transport Agreement

EIA: Environmental Impact Assessment

EITI: Extractive Industries Transparency Initiative

ESIA: Environmental and Social Impact Assessment

ESMP: Environmental and Social Management Plan

FDI: Foreign Direct Investment

FESR: Framework for Economic and Social Reforms

FIL: Foreign Investment Law

FLEGT: Forest Law Enforcement, Governance and Trade

FPIR: Free, Prior and Informed Consent

GAAP: Generally Accepted Accounting Principles

GAD: General Administration Department

GAIL: Gas Authority of India Ltd

GIS: Geographical Information System

GMS: Greater Mekong Sub-Region

GOUM: Government of the Union of Myanmar

GPOA: Gas Pipeline Operations Agreement

GSA: Gas Supply Agreement

GWh: Gigawatt hour

HLRHC: Huaneng Lancang River Hydropower Co.

HPGE: Hydropower Generation Enterprise

HTMC: Htun Thwin Mining Co.

IATA: International Aid Transparency Initiative

႕ 6

IBA: Impacts and Benefits Agreement

ICG: International Crisis Group

IDP: Internally Displaced Persons

IFRS: International Financial Reporting Standards

IOC: International Oil Company

IOGEC: International Group of Entrepreneurs Co

INTOSAI: International Organisation of Supreme Audit Institutions

IPRC: Improved Petroleum Recovery Contracts

IRD: Internal Revenue Department

ITD: Italian-Thai Development Co. Ltd Thailand

JICA: The Japan International Cooperation Agency

JV: Joint Venture

JVA: Joint Venture Agreement

KOGAS: Korea Gas Corporation

KIO: Kachin Independence Organization

KSDC: Kayin State Development Company

KSDP: Kachin State Democracy Party

KNU: Karen National Union

LTO: Large Taxpayers Office

MoA: Memorandum of Agreement

MAC: Myanmar Accountancy Council

MATA: The Myanmar Alliance for Transparency and Accountability

MDCF: Myanmar Development Cooperation Forum

MDI: Myanmar Defence Industries

MDCF: Myanmar Development Cooperation Forum

MDRI: Myanmar Development Resource Institute

ME: Mining Enterprise

MEC: Myanmar Economic Corporation

MEITI: Myanmar EITI

MEPE: Myanmar Electric Power Enterprise

MFTB: Myanmar Foreign Trade Bank

MFMA: Myanmar Federation of Mining Association

MGTC: Moattama Gas Transportation Company

MIC: Myanmar Investment Commission

MNPED: Ministry of National Planning and Economic Development

MNRMC: Minerals and Natural Resources Management Committee

MoA: Memorandum of Agreement

MOD: Ministry of Defence

MOE: Ministry of Energy

MOECAF: Ministry of Environmental Conservation and Forestry

MOECO: Mitsui Oil Exploration Company

MOEP: Ministry of Electric Power

MOF: Ministry of Finance

MOGE: Myanma Oil & Gas Enterprise

MOHA: Ministry of Home Affairs

MOU: Memorandum of Understanding

MPC: Myanmar Peace Centre

MPE: Myanmar Petrochemical Enterprise

MPPE: Myanmar Petroleum Products Enterprise

MSG: Multi-Stakeholder Group

MSMCE: Myanmar Salt and Marine Chemical Enterprise

MGE: Myanmar Gems Enterprise

MICPA: Myanmar Institute of Certified Accountants

MSEZL: Myanmar Special Economic Zone Law

NCDP: National Comprehensive Development Plan

႕ 7

NEMC: National Energy Management Committee

NESAC: National Economic and Social Advisory Council

NLD: National League for Democracy

NPV: Net Present Value

NRGI: Natural Resource Governance Institute (formerly known as Revenue Watch Institute)

OAG: Office of the Auditor General

OECD: Organisation for Economic Cooperation and Development

PAPD: Project Appraisal and Progress Department

PCC: Performance Compensation Contract

PEFA: Public Expenditure and Financial Accountability

PFM: Public Financial Management

PPA: Power Purchase Agreement

PSC: Production Sharing Contract

RCDP: Regional Comprehensive Development Plans

RCSS: Restoration Council of Shan State

SDN: Specially Designated Nationals List

SEE: State Economic Enterprise

SESA: Strategic Environmental and Social Assessment

SEZ: Special Economic Zone

SIA: Social Impact Assessment

SIC: Standing Interpretations Commitee

SLORC: State Law and Order Restoration Council

SME: Small and Medium Enterprise

SNDP: Shan Nationalities Development Party

SOE: State-Owned Enterprise

SLORC: State Law and Order Restoration Council

SLP: Social and Labour Plan

SLRDP: Settlement and Land Records Department

SNDP: Shan Nationalities Development Party

SOEEL: State Owned Economic Enterprises Law

SPDC: State Peace and Development Council

STH: Shwe Taung Hydropower Co

TAC: Terms and Conditions

tcf: Trillion Cubic Feet

TNLA: Ta-ang National Liberation Army

TOR: Terms of Reference

TRG: Transcontinental Group

UMEHL: Union of Myanmar Economic Holdings Ltd.

UNDP: United Nations Development Programme

UNFC: United Nationalities Federation Council

USDP: Union Solidarity and Development Party

UWSA: United Wa State Army

YPIC: Yunnan Power International Energy Co. Ltd

႕ 8

5

8

11

( ) 20

(၂) ႕ 23

(၃) 53

( 65

(၅) 85

(၆ 103

(၇ ႑ 126

(၈) 141

(၉) EITI 153

( ) 160

(၂) 168

(၃) 174

( (၂ ၈) 183

(၅ 184

(၆ 186

(၇) 188

(၈ ႕ 195

(၉ ႑ ႕ 202

(1) 21

(2 ႕ 24

(3) ႕ 26

(4) 33

(5) 34

႕ 9

(6) ႕ 38

(7 ႕ 40

(8 ႕ 45

(9 ႕ 47

(10) ႑ 55

(11) ၉၈၉ 57

(12) ႑ 57

(13) ႔ 62

(14 / 65

(15 68

(16 / ႕ 70

(17) MATA ႕ ( ) 75

(18) MATA ႕ ႕ 76

(19) SEP (၃၃) 79

(20) 83

(21) ႕ 92

(22 104

(23) 107

(24 ႕ ႑ 112

(25) ႑ - 118

(26) ( ) 119

(27 - 120

(28 ႕ - 121

(29) ၂ ၃- 132

(30 ႑ ( ) 138

(31 143

(32) လက ႕ 147

(33) 150

(34) MEITI 158

(35 203

႕ 10

(1) 35

(2) ႕ 39

(3) ႕ 39

( ႕ 54

(5) ႕ 56

(6) 61

(7) 86

(8) 87

(9) ႕ 93

(10) 101

(11) UMEHL ( ) 102

(12) MEC ( ) 102

(13) 109

(14) 109

(15) PSC 113

(16) ၂ ၂ 127

(17) 133

(18) BOT 133

(19) 134

(20) 142

(21) - 144

(22) 148

႕ ႑ ႕ 151

႑ 202

႕ 11

႕ ႕ ႕ 1 (EITI) ႑ ႕ ႕ ႕ ႕ ႕

၅ ၂ ၌ ႕ ႕ ႕

1 ႑ MEITI MSG EITI

႕ ႕ ႕ ၂၅

႕ ႕ ႕ ၂ ႕ ၂ EITI ႕ ႕ ႕ ႕ ႑ ၃

႕ 12

႑

› ၆ ၂

› ၂ ၃-၂ ႕ ၅ ၂ 2

› ႕

›

› ၂ ၈ ႕ ႕

› ၂ ၃-၂ ၆ ႕ ၇ ၂၈၆ ၆ 3

› ၂ ၃

› ၃၉ ၃ ၅ ႕ ႕

2 Data for July 2013- June 2014 taken from the GOUM Central Statistics Office, Selected Monthly Economic Indicators (June 2014). https://www.csostat.gov.mm/sdetails01.asp.

3 Data for July 2013- June 2014 taken from the GOUM Central Statistics Office, Selected Monthly Economic Indicators (June 2014). https://www.csostat.gov.mm/s14MA02.htm

› ႕ ၂

› ႕ ႕ ႕

› (ESIAs) ES

›

› ၂ ႕ ႕ ႕

› ႕ ၅ ႕

›

› ႕

႕ 13

႕ ႑

› ၃ ႕ (MOGE) (MPPE) ႕ ႕

› ၂ ၃ ၂ ၆ ၂ ႕ ၅ ၉ 4.

› ၉၃

› ၆ ၉ ႕ ႕ ႕ ၂ ၃ ၉၉၈ ၂ ႕

› ၂ ၃- ၃၆ Shell, Eni, Statoil, BG ႕

›

› ႕ ၂ ၂ ႕ ၂ ၃ ႕ ႕ ၇၉ ၆ ႕ ႕

4 Data for July 2013- June 2014 taken from the GOUM Central Statistics Office, Selected Monthly Economic Indicators (June 2014). https://www.csostat.gov.mm/S11MA0206.htm

› ႑ ႕ MOGE

› ႕

႑

› ႕ ႕ ႕

› ႕ ႕ ႕

› ႕ ႕

› ၃ ၆ ၂ ၉၉ ႕

› ၂ ၃ ၂ ၇၈ ၃၅

› ႕ ႑ ႕ ႕ ႕

› ၈ ႕ ႕ ႕

› ၂ ၃

႕ 14

› ၇ ႕ ႕ ႕ ႕

› ႕ ႕ ႕ ၂ ၂ ႕

› ႑ ၅ ႕

› Expor

› ႕

› ၂

› ႕ ႕ (the Multi-Stakeholder Group)

› ႕ (NEMC) ႕

› ႕ ႕

› International Aid Transparency Initiative (IATI)

› ႕ ႕ ႕ Public Financial Management (PFM) ႕

› PFM

› ႕ ႕

႑

› ႕ ႕ ၂ ႕ ႕ ၂ ႕

› ႕ ႕ (MSG) ႕ ႕ ႑

႕ 15

›

› ႑ ႕ ႕ ႕

› Corporate Social Responsibility (CSR) ႕

› ႕ ႕ ႕ ႕

› EITI ႕ ႕ Myanmar Alliance for Transparency and Accountability (MATA) ၂ ႕ ႕ ႕ ႕ ႕ ႕

› ႕ ႕

႕ ႕ ႕

› ႕ ႕ “ ” ႕ ႕

› ၂ ၈ ႕ ၆ ႕ ႕ ၈ ႕ ႕ ႕ ႕ ၂ ႕ ႕

› ၂ ၃ ႕ ႕

›

႕ 16

› ႕ ႕ ႕ ႕ Specially Designated Nationals (SDN) ႕ ႕ ႕ ႕

› ႕

› ႕

› ႕ ႕

› ႕

› ႑ ႕

› ႑ ႕ ႕ ႑ ႕ ႑ (IRD) ႕

›

› Generally Accepted Accounting Principles (GAAP) ႕

› International Financial Reporting Standards (IFRS) ၅

› “ ” ႑ ႕ ႕

› ၃ MOGE ႕ ႕ ႕

› ၂ - ၂ ႑ ၂ ၅ ႕

› ႕ ႕ ႑

› ႕

႕ 17

႕ ႕ ႕ ႕

› ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

› ႕ ႕ ႕

›

› ႕ ႕ ႕ ႕

႕ ႕

› ႕

ESIA

› ႕ ES

EITI

›

›

› (MIC) ႕

› ႕ ႕

႕ 18

› ၂ ႑

› IFRS ၉- ၃

› ႕ ႕ ႕ ႑ ႕ ႕

›

› ႑ ႕ ႑ ႕ ႑

› ႕ ၃ ႑

› ႕

› ႕ ႕ ႑ ႑

႕

› EITI

› MEITI ႕

›

႑

› EITI ႑

› ႕ ႕ ႕

႕ 19

႑

› ႑ ႕ ႕ ႕ ႕

႑

႑ ႕ ႕ ႑ ႕ ႕ ႕ ၂ ႕ ၃ ႑ ႕

MSG ႑ ႕ ႕ ႑

႑ - ႑ ႕

EITI ႑ -

› ၃

› ႑

› ႑

›

›

› ႑

›

›

›

› ႕ ႕ ၅

› CSR

› ႕

› ႕

›

႕ 20

၂ ၃ ႑ ႕ ႕ ၆ ၃ ၂ BG, Chevron, Woodside Energy, Shell Eni ႕ ၃ ၂ ႕ ၂ ၂ ႕ ႕ ႕ Multi-Stakeholder Group (MSG) ၂ ႕ ႕ ႕ ၂ ၇ ႕ ၂ ၂ ႕ ႕

႕ ႕ ႕ ႕ ႕ ၂ ၃- ႕ Global Witness report Global Witness 2014 Financial Times ႕ 5

႕ MEITI ၂ ၆ ႕ ႑ ႑ M ႕ ႕ ႕ ႕

5http://www.ft.com/cms/s/0/bb0e732c-fc6e-11e3-86dc-00144feab7de.html?siteedition=uk#axzz35lJ5CuX5

႕ 21

- ႕ ႕

႕ ႕ ႕

၂ ႕ ႕ ႕ ႑ ၂

1

႕ ႕ ႕ ႕ MEITI ႕ ႕ ၂ ႕ ႕ ၆ ႕ ႑ ႑ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႑ ၆ ႕ ၉

႕ 22

႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႑ ႕ ႕ Myanmar Development Resource Institute (MDRI) the Asia Foundation ႕ ႕

႕ 23

၂ ႕

၂ ႕ ႕ ႕ ႑ ႕ ႕ ႑ ႕ ၇ ႑ ႑ ႕

႕ ၃ ႕ ႑ ႕ ႕ ႕

႕ ႑ ႑ ႕ ၆

၂ ႕ ႕ ႕

၂ ၂ ႑ ႕

႕ ႕ ၉၉ ႕ ႑

႕ 24

2 ႕

ျပညေထာငစ စာရငးစစခပရး

စြမးအင၀နၾကးဌာန သတတြငး၀နၾကးဌာန လပစစစြမးအား၀နၾကးဌာန

အခြန / ၀ငေငြ

ဆကစပ ၀နၾကးဌာနမား

/ ထနးခပ ကြပကမႈ

ျပညေထာငစ ေရ႕ေနခပရး

အမးသားစမကနးႏင စးပြားေရးဖြ႕ျဖးတးတကမႈ ၀နၾကးဌာန မ၀ါ၊ စာရငးစစ

ႏင ဥပေဒ

ရငးႏးျမႇပႏမႈႏင ကမၸဏမား

ညႊနၾကားမႈဥးစးဌာန ျမနမာ ရငးႏးျမႇပႏမႈ

ေကာမရင ဗဟစာရငးအငးအဖြ႕

ဗဟဘဏ ဘ႑ာေရး၀နၾကးဌာန

(MEITI Secretariat)

ပတ၀နးကင ထနးသမးေရး ႏင သစေတာ၀နၾကးဌာန

ပတ၀နးကင ထနးသမးေရး

ဥးစးဌာန MOGE သတတြငးလပငနးမာ

း လပစစလပငနးမား

႕ 25

၆ ၂ ႕

(DGSME) ႕

၉၉ ႕

၉၉

› (ME1) ႕

› ၂ (ME2) molybdenum, niobium, columbium, heavy mineral ႕

› ၃ (ME3) , ႕

› ႕

› (MPE) ႕

› ၰ (MSMCE) ၰ ႕

႕ ႕

႕ 26

3) ႕

႕ 27

၆ ၉၈ ႕

၉၈၉ ႑ ၉၈၉ ႑

႕ ႕ ႕ ႕ ႕ ႕ ၂ ၂

႑ ႕ ႕

႑ -

၃

႕

႕ ႕ ႕ ႕ ႕

႕ 28

႕

႑ ႕ ႕

(DICA) ၉၉၃ ႕ ႑ ႕

႕ ႕ DICA ၂ DICA ႕ ႕ ႕

၉၈၈ ၂ ၂ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ - ႕ ႕ ႕ ႕ - ( ၂ ၃

MIC ၂ ၃- ႕ ႕ ႕ ႕

႕ 29

႑

႑ -

-

႕ ႕ “ ” ႑

႕

6

႔ ႕

႑

႔

၉၉ -

႕ ၂ ၂

၉၉၆ -

႕ ၉၉၆

၂ ၂ -

၅ ႕ ႕

႕ ႑

6 Ministry of Mines Presentation: Current Mining Activities in Myanmar, 2013

႕ 30

႕ ႕

၉၉၅ - ႕

၉၉ ၂ ၃

႕ ႕

၉၉၅ -

႕

၉၉၂ -

႕ ႕

၉ ၃

႕ ၂ ၃၉ ၂

႑ ႕ ႕ ႕ ႕ ႕ ႕ ႕

၆ ႕ ႕ ႕ ၂ ၃

-

႕ 31

› ႕

›

႕ ၅ ၆ ႕

႕ ႕ ႕ ႕

႕ ႕ ႕ ႕

႕

၂ ႕

(DGSE) ႕ ႕

-

႕

၃

႕ 32

DGSE

႕ ႕

႕ DGSE ႕

DGSE ႕ ႕ ႕

႕

႕

႕

႕

7

႕ -

›

›

›

› ႕

›

› ESIA ESMP

7 ၅ ၆ ၃ ႕ ႕ ၂ ၃ ႕

႕ 33

4

႑

႑

› ႕ ႕ ႕ ႕ ႕ ၈

၁။ ေလာကထားသမ DGSE ထ စတ၀ငစားသည ေဒသအား GPS

ညႊနးကနးမားႏင တငျပျခငး

၂။ DGSE မ သတၽတြငး၀နၾကးဌာနရ လပငနးမား အားလးထ ေဒသအား

လပကငခြင ရ-မရ စစစရန ေပးပ႕ျခငး

(တစလ)

၃။ DGSE ထ အေၾကာငးျပနၾကားျခငး ႏင သတတြငးဥးစးဌာနသ႕

၀နၾကးရးမတဆင အေၾကာငးၾကားျခငး

၄။ ၀နၾကးမ ျပညနယ/တငးေဒသၾကး အစးရမားထ နယေျမေဒသ

လြတလပမႈ ရ-မရ ေမးျမနးျခငး

၅။ ျပညနယ/တငးေဒသၾကးအစးရမ သကဆငရာ သစေတာ၊ သတ ႏင လယဆည ဌာနမားႏင ညႇႏႈငးျခငး

၆။ တငးေဒသၾကး ခရင၊ ျမ႕နယအထ စစစမႈမားျပလပျခငး

(ေထာကခစာမား ပးတြရန)

(သးလ)

၇။ ေၾကးတငႏငေျမစာရငးဥးစးဌာနထ ေျမေနရာႏငပတသက၍ စစစႏငရန

ေပးပ႕ျခငး

၈။ DGSE ထ ေျမပ ႏင အၾကျပခကမား ျပနလညေပးပ႕ျခငး

၉။ စးစမးရာေဖြမႈ လပကငခြင ေပးအပျခငး

႕ 34

5

› ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

› ၉၉၆ -

“ ႕ ၂ ”

› ႕ ႕ ႕ ႕ ႕ ႕ ႕

၁။ ေလာကထားသမ သတတြငး၀နၾကးဌာနထ

စတ၀ငစားေၾကာငး အေၾကာငးၾကားျခငး (ကမၸဏရာဇ၀င၊ ဘဏမတတမး ႏင

စတ၀ငစားသည ေဒသ)

၂။ မ၀ါဒပငး ေဆြးေႏြးျခငး (အေျခခ အခကမား၊ ကန႕သတခကမား၊

စညးမဥးမား)

၃။ နညးပညာပငးဆငရာ ေဆြးေႏြးမႈမား (အခကအလက၊ ကြငးဆငးေလလာျခငး၊

အဆျပခကမား ျပစျခငး)

၆။ အျခား၀နၾကးဌာန၏ ေထာကခခကမား ရယျခငး (ဘ႑ာေရး၊

သစေတာ၊ လယဆညစသည)

၅။ စာခပမၾကမးက ျပညေထာငစ ေရ႕ေနခပရးထ ေပးပ႕ျခငး

၄။ စာခပမၾကမးညႇႏႈငးျခငး (ESIA ႏင စညးကမးသတမတခကမား)

၇။ သတတြငး၀နၾကးဌာန၏ လပငနးမားႏင ေနာကဆးပတ

ေဆြးေႏြးမႈမား (စးပြားေရး၊ လမႈေရး ႏင အျခားစညးကမးခကမား)

၈။ ျမနမာ ရငးႏးျမႇပႏမႈေကာမရင ထတငျပ လမးညႊနမႈခယျခငး

၉။ MIC ႏင သတတြငး၀နၾကးဌာနတ႕မ ခြငျပမန႕ ႏင လပကငခြငမား

အသးသးထတေပးျခငး

႕ 35

1

Regulatory Instrument Recent Changes Regulatory Comments

Foreign Investment Law, 2012 Provides clarify around investment terms and conditions; includes an attractive fiscal regime; defines clear restrictions on types of foreign investment into the mining sector.

The law appears generally sound. However, the mandate and capacity of MIC charged with enforcing the FIL is not clear.

Mineral Resources Policy None The lack of a formal mineral policy that has been developed through broad stakeholder engagement has meant that the mining legislation cannot fully reflect the aspirations of the people as affected stakeholders of the mining sector.

Roles and Responsibilities of Mining Administration Regimes

The GOUM maintains its 2008 Constitutional right to own and manage all mineral resources in Myanmar. This principle has come into question in the last several years, however, especially in light of the decentralisation policy of the new government.

The presence of a formal Mines Ministers in States/Regions means that there is a lack of clarity over the responsibilities of the Regions/States in mining regulatory affairs.

Inter-Ministerial Coordination Regarding Permitting

The new National Environmental Conservation Committee is charged with approval of ESIAs; it is chaired by MOECAF and includes 25 Ministers; there are working committees that undertake the ESIA review (according to a number of issues related to water, transportation, competing land use, agriculture).

Although the establishment of an inter-ministerial body to approve ESIAs is positive, the Committee lacks influence and efficiency as it only meets several times per year and is not chaired at a sufficiently senior or neutral level. Further, there is limited technical capacity to provide sound advice v ’ The MOECAF has complained that the MOM issues permits for mining without consulting MOECAF regarding the national land cadastre. There are conflicts regarding the awarding of permits particularly in areas designated for forests.

› ႕ Geographical Information System (GIS)

႕ 36

႕ ႕ ႕

› ႑ - ႕

၂ ၃ ႕ ႕ ႕ ႑

႕ ႕ ၈၅ ၈၈၆ ၉၆၃ ႑ ၈၈၇ ၉ ၂ ႕ ႕ Burmah Oil Company ၂ ၉၆၂ ႕ ႑ ႕ ၇ ၂ ႕ ႕ ၂ ၃ (TOTAL, Chevron PTTEP) (Petronas, PTTEP) ႕ ၉၉၈ ၂ ႕ PTT ႕ ႕ Daewoo ၃ ႕ ႕ ၂ ၃ China National Petroleum Corporation ႕ (PTTEP) ၂ ႕ ၃ ၂၇ ၃ ႕

႕ ၂ US Energy Information Administration ၂ ၂ ႕ ၆

Irrawaddy–Andaman Indo-Burman ႕ ႕ - U v y’ Gas Assessment ႕

႕ 37

၂ ၃ ႕ ၇၉ ၆ ႕ ၂ ႕ ၂ ၂

၂ ၃ ၂ ႕ Mitsui Oil Exploration Company (MOECO) ၃ BG/Woodside, Eni, Statoil/Conoco Philips, Ophir Energy Total ႕ Reliance and the Oil India consortium, BG/Woodside, Chevron, ROC Oil/Tap Oil, Transcontinental Group (TRG) Berlanga ႕ (VDB-Loi, ၂ ). ၂ ၃ ၇

႕ ႑ ႕

႕ ႑ ႕ ၃ -

› ႕ (MOGE): ၉၆၃ ႕ ႕ ၂ ၈၈ ႕ ႕ ႕

› (MPE): ၃ ၅ ႕

› (MPPE): ႕ ႕

႕ 38

6 ႕

The MOE was reformed during 1985 and

is composed of the Minister’s Office, one

Department and three Enterprises

႕ 39

2 ႕ (MOGE Presentation, Jan 2014).

Operator Company Block

Total M-5, M-6 (Yadana Project)

Petronas M-12, M13, M-14 (Yetagun Project)

Daewoo International A-1, A3, AD7 (Shwe Project)

PTTEPI M-3, M-11, M-9 (Zawtika Project), MD7, MD8

CNOOC M-10

CNPC International AD-1, AD-6, AD-8

MPRL E&P A-6

Petrovietnam M-2

3 ႕ (MOGE Presentation, Jan 2014)

Operator Company Block

Nobel Oil PSC-A PSC-B 1

SIPC Myanmar (China) PSC-D

North Petro-Chem (China) PSC-F

GOLDPETROL

IOR-2 MOGE-1

MPRL E&P

MOGE-2 (N)

SNOG, UPR (Singapore) PSC-R

Geopetrol Intl RSF-9

Petronas RSF-2 RSF-3

Jubilant PSC-I

PTTEPI PSC-G EP-2

Istech Energy EP-5

Asia Orient PSC-E

႕ 40

7 ႕

႕ 41

႕ ႑

၂ ၃ ႕ ႑ ႕ ႕ ( ၂ ၃

› Oil-Fields Act 1918;

› Oil-Fields Rules 1918;

› Notifications under the Oil-Fields Act 1918;

› Petroleum Act 1934; and

› Petroleum Rules 1934.

႕

႕

႑ ႕ ႕

႕

Oil Fields Act, 1918 –

၂

The Essential Supplies and Services Act, 1947 – ၂ ၂

႕ 42

–

Performance Compensation Contracts ႕ v v y v ႕

၉၆၉ ႕ – ႕

၉၆၉ ႕ – ႕

၉၆၂ – ႕

၂ ၂ –

–

၂ ၉ ) ႕

–

႕

၂ ၂ –

႕ ESIA

၂ ၅ ၉ ၂ ၅ ၂၅ ႕

႕ 43

၂ ႕ ႕

(PSCs)

႕ ႑

-

› ႕ ႑ ႕

›

› ႕ ႕

› ႕ ႕

› ႕ ႕

-

› ႕

› ႕ ႕ ႕

›

›

›

႕ ႕ ႕

› ႕ ႕

› ႕ ႕ ႕ ႕ y ႕

႕ 44

႕ ႕ ႕ ႕ 8

› ႕ ႕ PSC - 9

႕

႕ MOGE ၅ ႕ ၅ ၅ ႕ 10

၂ ႕ ႕ ၂

႕ ႕ ၂

MOGE -

›

›

› ႕ -

›

› ႕

၉ ႕ 11 ႕ ႕

8 V L w y ’ ore oil and gas blocks, March 2014

9 See Myanmar Upstream Oil and Gas Sector, Albert Chandler Law Offices, Thailand, August 2013

10 Republic of the Union of Myanmar Procurement Assessment Report, the Electric Power Sector (Ministry of Electric Power and Ministry of Energy), The World Bank, 2013

11 The Oil and Gas Sector in Myanmar PP Presentation. Ministry of Energy, Myanmar Oil and Gas Enterprise.2013

႕ 45

၇။ စြမးအင၀နၾကးဌာနမ သေဘာတသည ျပညတြငး ကမၸဏ

ႏင ပးေပါငးလပေဆာငျခငး

၈။ စြမးအင၀နၾကးဌာနႏင TAC အျပးသတညႇႏႈငးျခငး

၉။ PSC စာခပ အတညျပျခငး ၁၀။ MOGE ႏင MIC တ႕ထ ခြငျပခကမား ရယျခငး

၁၁။ ESIA ႏင ESMP တ႕ေဆာငရြကျခငး ႏင MOECAF

အတညျပခကရယျခငး

၁၂။ လပငနးလပကငသအျဖစ မတပတငျခငး

8 ႕

၁. Letter of Expression ေပးပ႕ျခငး

(ကမၸဏအခကအလကမား ႏငအတ)

၂။ သကဆငရာ သရး၏ ေထာကခမားႏငအတ တငျပျခငး

၃။ တငဒါေလာကထားသမ ကနဥး အရညအခငးစစေဆးမႈခယျခငး (နညးပညာ/ေငြေရးေၾကးေရး ႏင

အေတြ႕အၾကပငး)

၄။ တငဒါေလာကထားမႈက စစစျခငး

၅။ Standard Terms and Conditions (TAC) က

တငဒါေလာကထားသမားအား ရငးျပျခငး ႏင TAC (၃) ခအထ

ေလာကထားခြငျပျခငး

၆။ တငဒါေအာငျမငသမား လပကြကမားက ေလလာခြငျပျခငး

႕ 46

႕ ႑

႕

႕ 12 NGO Global Witness ၂ ၅

႕ ႕ 13

႕ ႕ ႕ ႑ ႕ ႕

၂ ၉ ႕ ႕ ႕

႕

12 ႕ ႕

13 Arakan Oil Watch, 2012

႕ 47

9 ႕

Domestic Pipeline (not represented above):

- MOGE has been laying the pipes

throughout Myanmar to expand its national

pipeline network.

- Various size from 6” to 24” of pipeline were

constructed

- Total length is about 2,100 miles

Export Pipeline

Offshore Onland

Yadana (36”) 216 miles 39 miles

Yetagun (24”) 126 miles 43 miles

Zawtika (28”) 143 miles 42 miles

Shwe (32”) 65 miles 3 miles

China –

Myanmar (40”)

Gas

Nil 495 miles

China-Myanmar

(32”) Oil

Nil 481 miles

႕ 48

၂ ႕ ႕ ႕ ႕ ႕ ႕

႕ ႑

႕ ႕

႕ ႕ ႕ ႑ ႕ ႑ 14

႕ ES ႑

႕ ႑ ႕ ႕

႑ ႕ ၂ ၃ ႕ ႕ National Energy Management Committee (NEMC) ႕ Energy Development Committee (EDC) ႕

14 Attempts to obtain the draft Land Use Planning documents were not successful in the course of the research gathered for this report.

႕ 49

႕

NEMC ႑ ႕ ႕ -15

› -

› -

› ႕ ၉ - ႕ ႕

› -

› -

႕ -

›

› ႑ ႕ ႑

›

›

› ႑ ႑ ႑ ႕

›

႕

EDC ႕ ႕ -

› -

› ႕ ၂ - ႕ ႕

› -

႕ -

›

› ႑

› ႕

15 y ’ y y y 0

႕ 50

› ႑ ႕

›

› ႕

› ႕

› ႑ ႕

EITI

၂ ၂ ႕ ႕ ႑ ႕ ၂ ၃ ႕ ႕ -

› - ႑

›

›

› ႕

›

› ႕

›

› ႕ ႑

› ႕

› ႕

›

› ႕

႕

႕ ႕ ႕ ႕ ႕ ႕ ႕ ၃ ႕ ႕ ႕ ႕ ႕ ႕

႕ 51

႕ ႕ ႕ ႕ ၇ ၂ ၃ ႕ ႕ ႕ ႕ ႕ ႑ ၂ International Aid Transparency Initiative (IATI) ႕ 16

၃ ES ES ၃၉ ႕

၂ ၆ ႑ ႕ ႕ ႕ ႕ ႕ ၂ ၈ ႕ ႕ ႕ ႕ ၇ ႕ ႕ ၂ ႕ ႕ ႕ ႕ ၂၂ 17

႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ ႑ ႕ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႕ -

16 http://www.aidtransparency.net/news/myanmar-endorses-iati

17 See http://www.president-office.gov.mm/en/?q=hluttaw/pyithu-hluttaw

႕ 52

› ႕ ႕

› ႕ ႕ ႕

›

› ႕

›

› ႕

႕ ႕ ႕

႕ 53

၃

၃ (FID) FDI ႕ FDI ႑ FDI ႕

႕ ၉၈၈ ႕ ၂ ႑ ႕ ႕ Organisation for Economic Cooperation and Development (OECD)18 -

› ၂ ၂

› ႕ ႕

› New York Convention on Arbitration

› ႑ ႕ ႕ ႕

› (SME) ႕ ၂ ၂

› ႕ one-stop-shop

› Special Economic Zones (SEZ) ႕ ၂ ၅

18 Power Point Presentation, OECD Investment Policy Review of Myanmar Aung Naing Oo, Director General, DICA

15 October 2013

႕ 54

႑ -

› ႑ ႑ ႕ ႕

›

-

› ၂ ၂ ႕ ႑

›

›

›

၃ ၂ ႕

႑ ႕ ႑ ႕ (Bissinger, 2012) FDI ၂ (see table 4)

4 ႕ (World Bank)

Year Amount (US$)

2009 1,078,972,201

2010 901,133,535

2011 1,000,557,266

2012 2,242,980,000

႕ ႕ ႑ ႕ ႕ ၅ ႕ ႕ ႕ ႕ ႕

႕ 55

Real Estate 3%

Livestock and Fisheries

1%

Transport and Communication

1%

Power 51%

Oil and Gas 37%

Mining 7%

1) ႑ (DICA, GOUM, 2013)

႕ ႕ ႑ ၂ -

›

› ႕ ႕

႕ ႑ ႑ FDI ၇ ႕ ႕ ႑ ၂ ႕ 19 ႑ ႕ ႑

19http://www.elevenmyanmar.com/index.php?option=com_content&view=article&id=6629:myanmar-to-use-coal-energy-to-increase-power-supply&catid=44:national&Itemid=384

႕ 56

5) ႕ (DICA, 2013)

Particulars

Permitted Enterprises

No. Approved Amount (US$ Millions) %

Power 5 18,874 47.68

Oil and Gas 104 13,815 34.17

Mining 64 2,794 6.19

Manufacturing 164 1,761 4.35

Hotel and Tourism 45 1,065 2.65

Real Estate 19 1,056 2.61

Livestock and Fisheries 25 324 0.80

Transport & Communication

16 314 0.78

Industrial Estate 3 193 0.48

Agriculture 7 173 0.43

Construction 2 38 0.09

Other Services 6 24 0.06

Total 460 40,431 100.00

၂

၂ ႑ ၂ ၂ ၇ ႕ ႑ ႕ ၃ ၂ ၇၃၆ ႕ ၈ ၃ ၂ ႕ ႕

႕ 57

2) ၉၈၉ (DICA 2013)

၂ ႕ ၂ ႕ ၈ ႕ ၉၈၈ ၅

၈ ၇၃ ႕ ႑ ၂ ႕ ၂ ႕ ႕ ၂ ၂ ၅ ၃ ၂ ၆ ႕ ၉၉၇ ႕ 20

၂ ၂ ႕ ၂ ၂ -၂ ႕ ႑ Bissinger ၂ -၂ ႑ ႑ ႕ 21

၃ ႕ ႑ FDI

20 http://www.mmtimes.com/index.php/business/4759-fdi-jumps-by-more-than-half-in-july-says-cso.html

21 Bissinger, Jared. 2012. Foreign Investment in Myanmar: A Resource Boom but a Development Bust? Contemporary Southeast Asia Vol. 34, No. 1, pp. 23–52

0.000 5,000.000 10,000.000 15,000.000 20,000.000 25,000.000

1989-1990

1992-1993

1995-1996

1998-1999

2001-2002

2004-2005

2007-2008

2010-2011

3) ႑ (Bissinger

2012)

႕ 58

႑ ၉၈၈ ၆၈ (Bissinger, ၂ ၂)

႕ PSC ၇ ႕ ႕ ႕ ႕ ႕ 22 ႕ ႕ ႕

႕ ၂ ၂ ၃

၃ ၃ ႑

႕ ႕ ၂ ၃- ႕ ၂ - ၅ ႕ ၆ ၅ ၂ ႕ ႕ ၂ ႕ ႕ ၃ ၇ ႕ ႕ 23 ႕ ႕ ၅

22 The US State Department is funding support by the US Geological Survey to MOGE, beginning in August 2014.

23 IMF Staff Report For The 2013 Article IV Consultation, p17

႕ 59

႕ ႕ (IMF ၂ ၃).

႕ ႕

႕ ႕ ႕ ႕ ႕ ႕

၂ ၂ ႕ ႕ ႕ ႕ ႕ ႑ ႕ (IMF, ၂ ၃ ႕ ၂ ၃

၃ ႕ ႕ ႕ - ႕

၉၈၉ ႕ ႕ ႕ ၉၉ ႕ ႕

႕ 60

႑ ၂ ၂ - ႑ ႕ (Bissinger, 2012).

႕ ၈ ႕ ႕ ႕ ႕ - ႕ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ -

› -

› ႕ - ႕ ႕ ႕

› - L

›

› ႕

OECD ႕

႕ 61

၂ ၃ “ ႕ ႑ ႕ ၂ ၂- ၃ ၇၆ ” ၂ ၃

႕ ႕ ၃ ႕ ႕ ႕ ႕

႕ ၆ ႕

6) (MOGE Presentation, Jan 2014).

Country % Blocks

Azerbaijan 6%

France 6%

Malaysia 14%

South Korea 9%

Thailand 20%

China 20%

Myanmar 6%

Vietnam 3%

Singapore 14%

India 3%

႕ 24 ၂ ၂ ႕ ႑

24 See for example http://www.doingbusiness.org/data/exploreeconomies/myanmar

႕ 62

4) ႔ (Buchanan 2012)

႕ 63

FDI

႕ ႕

၃ ၅ FDI ႕

႑ ႕ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ 25 ႕

25 Petronas ႕ ၂

႕ 64

႕ MPRL 26

The Chinese Nickel Mining Company (CNMC) MEITI ႕ ႕ MSG ႕ ႕

Myanmar Federation of Mining Association (MFMA) ႕ ႕ ႕ 27

႕ ႕

႕ - International Crisis Group (2012) ၅ ၂ ႕ ႕ “ ” ႕

႕ ႕ ႑ ႑

26 MPRL ႕ ၂

27 ႕ ႕ ၂

႕ 65

႑ ႕ ႕ ႕ 28 ႕ ႕

5) 29

28 “ v y ” y w J 0 “ y y ’ ” y J y 0

29 Visualisation of data supplied by MOM

0

5

10

15

20

25

30

35

40

45

50

႕ 66

႑ ႑ / / ႕ ႑ ႕ ႕ ႕ ႕

၂ ႕ ( ၈) ႕ ႕ ႕ ႕ / ႕ ႕ ႕ ႕ 30

႑ ၂ ၂၈ ႕ ႕ ၅ % ႕ ႕ ႕ ႕ 31 ၇ % 32

MEITI MEITI ႕

၂ ၂ ၈ ႕ ႕ ႕ (၂) ၂၅% (၂၅၂)

30 Ibid. p36.

31 Ibid. p38.

32 Interview with the Shan State government, May 2014.

႕ 67

( ၈၈) (၂) (၂) ( -

႕ ႕ ႕ ႕ ႕

႕

(၂၅ ) (၅) / ႕ ႕ -

႕ ႕

႕ ႕ ႑ ႑ ႕ ႕

႕

၃ ႕ ၂ ၈ ႕ (၇) (၇) ႕ (၆) ႕ ႕ ႕ ႕ ႕ ႕ ႕ / ႕ 33

33 ႕ State and Region Governments in Myanmar -၉

႕ 68

6)

႕ 69

႑ ႕ ႕ (၃) / ႕ / ႕ 34 ႕ ႕ ႕ / 35 MDRI/Asia Foundation 36 / ႕ ႕ ႕ ႑ ႕

႕ ႕ ႕ ႕ ၂ ၂ ႕ MDRI/Asia Foundation ႕ -

႑ ႑ 37

34 State and Region Governments in Myanmar, p14.

35 Natural Resources and Subnational Governments in Myanmar, p27-8

36 State and Region Governments in Myanmar, p33.

37 Ibid. p34.

႕ 70

7) ႕

႕ 71

၅ ၂ ၈ ႕ ( ) (၉၆) ( ) (၆) -

႑

႕

႕

(၉၆) ႕ ႕ ႕ (၂) ႕

႕ ႕ ႕ 38 / ( ႕ - ႕ - ) ႕ ႕ IGC / 39

၆ / ႕ ႕

႕ (၃

38 Natural Resources and Subnational Governments in Myanmar, p27

39 Ibid p29

႕ 72

- ႕ ႕ ႕ ႕ ႕ ႕ IGC ႕ ႕ ႕ 40

၇ ႕ ၂ ၈ ႕ (၅) ႕ ႑ / ၅၈% ၆၅% ၉၉% ႕ 41 ႑ EITI MSG / ႕ ( ( ) ႕ ႕ ( ႕) / ႕ ႕ ႕ ႕

႕ ၂ ၃- ႑ / ႕ ၃.၆% ၂ - ၅ ႑ .၈% 42 ႕ -

40 Ibid. p30.

41 State and Region Governments in Myanmar, p46-7.

42 Natural Resources and Subnational Governments in Myanmar, p24

႕ 73

၈ ၅

› ( ) ( ) ႕ ( ) ( ) ႕ ( )

› ( ) ႕

၆ ၂ ၈ ႕ ၅၆ ႕ ႕ ႕ ႕ ႕ ႕ ႕

၉ ႕ ႕ ESIA SIA ႕ (၅) ႕ -

› ( )

› (

› (

› (

› (

႕ (၅) -

› ( )

› (

› ( )

› ( )

› ( )

႕ 74

႕ ႕ ႕ ႕ ႑ (governance) ( ) ႕ ႑ ႕ ႕ ႑ ( ) ႑ (၃) EITI

႕ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ (၈)

႕ (MATA)

႕ Myanmar Alliance for Transparency and Accountability (MATA) ႑ ႕ ႕ ႕ ႕ ၈ ႕ ႑ ႕ ၂ ၃ ႕ ႕ ႕ MATA ႕ ၉ ႕ ႑ ႕ Forest Law Enforcement Governance and Trade (FLEGT) ႕

MATA ႕ ၂ ႕ ႕ MSG ႕ MATA -

› ႕ ႕ ႕

႕ 75

› ႕ ႕

› ႕ ႑ ႕ ႕ ႕

› ႕

› ႕ ႕

› ႕ ႕ ႕

›

› ႕ ႕

8) MATA ႕

Community & Civil Societies Awareness Raising Workshops at State and Division Level

Regional Working Group (15-25) members in each region

National Working Group (70) – 5 Representatives from each region

National Steering Group (23)

14 representatives of Sub-National level

9 Civil Society Representatives in MEITI - MSG

MEITI – CSO MSG

႕ 76

9) MATA ႕ ႕ (taken from the MATA Process Paper)

႕ ႕ ၉ ႕ ႕ ႕ ႕ ႕ MATA

႕ 77

႑ ႑ ႕ ၂ ၃ ႕ 43 ၂ ႕ ၈ ႕ ႕ M ႕

Total Exploration & Production Myanmar (၃ ၂ Chevron (၂၈ ၂၆ Petroleum Authority of Thailand Exploration & Production (၂၅ ၅ MOGE ( ၅ ႕ ၆ ႕ ႕ ႕ ၃ ၆ ၆၃ ႕ ႕ ၂ ႕ ႕ ႕ ႕ Yadana Socio-Economic Programme (SEP) ၉၉၅ ႕ ၃ ၆ ၉၉၈ ၂ ၃ ၃ ၇၈ ၆ ႕ ၃၉ V ႕ ႕ ႕

၈ ႕ - ႕ ႕ ၂ CNPC MOGE ႕ ႕ CNPC, MOGE, Daewoo International, KOGAS, Indian Oil GAIL ႕

43 See the EITI Standard, 4.1 (e)

႕ 78

႕ ႕ ႕ ႕ ႕ ၂ ၃ ႕ ႕ -

“ ( ) ႕ ( ) ႕ ႕ ႕ Environmental Impact Assessments ႕ ႕ ႕ ”44

႕ CNPC CSR ၂ ၂ ႕ ႕ ၂ 45 ႕ ၂ ၂၂ ၂ ၂ ၂ ၂ ၆ ၂ ၈ ၅ ၂ ႕ ႕ ၃ ၈ CNPC ၃ ၃ 46 ႕

44 Good Governance and the Extractive Industry in Burma, Shwe Gas Movement, pp5-6

45http://csr.cnpc.com.cn/en/press/Features/Caring_for_Myanmar_communities_along_the_pipeline.shtml?COLLCC=3706698166&COLLCC=2938205027&

46 Ibid.

႕ 79

19) ၃၃

႕ 80

၂ -

(၅) ႕ ( ) ( ၂) ႕ ႕ ႕ ႕ (၅) ႕ ႕ ႕ ႕ ႕ ႕ Shan State Army ) (Restoration Council of Shan State – RCSS ႕ ) ႕ Shan y ) Ta-ang National Liberation Army (TANL) United Wa State Army (UWSA) ႕

႕ -47

› ( ႕ )

› ႕ /

› /

› ႕ ( )48

› ႕ ( )

› ( ၆) ႕ ၂, ႕ 49

› ( ) –Robbing the Future

› ( ၂) ႕

႑

႑ ႕ ႕

47 Although not published in this report the authors have the beneficial ownership breakdown for these mineral assets

48 See http://www.ruby-sapphire.com/foreign-affairs.htm

49 http://www.sourcewatch.org/index.php/Tigyit_coal_mine

႕ 81

႑ ႑ ႕ ႑ ႕ - ႕ ႕ ႕ , ၅ , ၇ %

႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

၃ ၂ -

Karen National Union (KNU) ႕ ( ၂- -၂ ၂) ႕ ႕ ႕ KNU ႕ ႕ ႕ ႕

႕ 82

႑

႑ ႕ ၃ ႕ ၇ , ၉၂ ႕ ႕ ၅ ႕ ႕ ၂ ၂ ႕ ၂ ၂ ၆ 50 ႕ ႕ ႕ ႕ ႑ ႑ ႑ ၂ ႑ ၂၇ ၉ ႑ ၇ ၆ ႕ ႑ ႑ ႕ ႕ ႕ ႕

႕ ၂ ႕ ႕ ၂ ၆ ႕ ၈၇ ၂ ႕ ႕ ႕

၂ ၃ ၆ ၆ ႕ ၂ ႕ ႕ ႕ ႕ ၂ ၂ ၆ ၃ ႕

၂ ၆ ႕ ႕ ႕ ႕ ႕ ႕

50 See http://www.european-times.com/countries/union-minister-national-planning-economic-development/

႕ 83

႑ ႕ ႕ ႕

႕ ၂ ႕ ႑ ႕ ႕ ႕ ၂ - - ႕ ႕ ႕ ႕

႕ ႕ ၂ ႕ ႕

20)

႕ 84

႕ ၅ ႕ ႕ ႕ open pit underground ႕ ႕ ႕ ႕

႕ ႕ ၅ ၆ ႕ ႕ “ ” ႕ ႕ ႕

႕ ႕ Kayin State Development Company (KSDC) ႕ ႑ KSDC ႕ ႕

႑ ႕ ႕

႕ ၂ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ၇ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ 85

၅

၅ ၂ ၃ ၂ ၃ ႕ 51. ႕ ၂ ၃ ႕ 52

› ႕ Retained earnings)

›

› ႕ ႕

›

› ႕ ႕

›

› -

› ႕

›

၂ ၃ ႕ -

›

›

› ႕ ႕

›

႕ ႕ ႕ ႕

51 EITI Requirement 3, 3.2

52EITI Requirement 3.6

႕ 86

၅ ၂

႕

၂ ႕ ႕ ႕ ႕ ႕ ႑ Performance Compensation Contracts (PCCs), Improvement of Marginal Recovery Agreements Reactivation Agreements ႕ ႕ ႕ ၇ PSC ႕ ႕ ႕ ႕

-

›

›

›

၇

7)

Production Rate in Barrels per Day

MOGE Share (%)

CONTRACTOR Share (%)

0-10,000 60 40

10,001-20,000 65 35

20,001-50,000 70 30

50,001-100,000 80 20

100,001-150,000 85 15

>150,000 90 10

႕ 87

႕

8)

Production Rate in Million Cubic Feet per Day

MOGE Share (%)

CONTRACTOR Share (%)

Up to 60 60 40

61-120 65 35

121-300 70 30

301-600 80 20

601-900 85 15

>900 90 10

“ ” ႕

၉

႕

၉ ၇

႕ ႑ ၉ ႕ ႕ ၉

၂ ၅ MOGE ႕ ႕ ႑ ၃

႕ 88

၃ ႕ ႕ 53 ႕

႕ ၃ ၅

၉ ႕ ႕ ၃ ၅

၉ ႕ ၂ ႕ ၃ ၂

၉ ႕ ၅ ႕ ၃ ၃

၉ ႕ ႕ ၃

၉ ႕ ၅ ႕ ၃ ၆

႕

႕ ၃ ၅

၉ ႕ ႕ ၆ ႕ ၃ ၅

၉ ႕ ႕ ၂ ႕ ၃ ၂

၉ ႕ ႕ ၃ ႕ ၃ ၃

၉ ႕ ႕ ၆ ႕ ၃

၉ ႕ ႕ ၉ ႕ ၃ ၆

53 Chapter 6 also provides a summary of Non-Tax Revenues under Production Sharing Contracts.

႕ 89

၇

MOGE

႕

၇ ၂ 54 ၇ ၂ 55 ၉ 56 ႕ ႕ ႕ ႕

႕ ႕

႕ ႕

-

႕ ႕

႕ ႕

54 Withholding tax for the payments made for goods and services and for all Income Tax and other levies if any, for which expatriate personnel of Contractor.

55 Payment to appropriate authorities import duties, customs duties, sales tax and other duties levied on motor vehicles brought into Myanmar for personnel use and not for field use by Contractor.

56 Income Tax imposed upon Contractor under the Income Tax Laws of the Republic of the Union of Myanmar.

႕ 90

႕ ႕

၉ ၅ ၂၅

႕

႕

MOGE -

› ၃ ၉ ၃

› ၂ ၅

၈ ၇ ႕ ႕ ၂၃

႕ ႕ ႕

၂၃ ၃ ႕

၂၃ ၇ ႕ ႕

႕ ႕ ႑ ၆ ႑ ၂

႕ 91

႕ ႕

၅ -

› L ၃ ၂ ၂၈ ၂၆ ၂၅ ၅ ၅

› ႕ ႕ Export Gas Sales Agreement (EGSA) ႕

› ႕ ႕ Export Gas Transportation Agreement (EGTA) ႕ Moattama Gas Transportation Company (MGTC)

›

› ႕ Gas Pipeline Operating Agreement (GPOA)

႕ - ၉ ၂ - ၂ ႕ 57

57 Ministry of Energy, 2011-2012 Oil and Gas Companies Information, excel file 2011.

႕ 92

10) ႕

TOTAL

31.24%

UNOCAL

28.26%

PTTEP

25.50%

MOGE

15.00%

MGTC

(SHAREHOLDING)

BUYER

(PTTEP)

TOTAL

31.24%

UNOCAL

28.26%

PTTEP

25.50%

MOGE

15.00%

MOGE

(PSC)

TOTAL

(Operator)

Export Gas Sales Agreement

Export Gas Transportation

Agreement

Gas Pipeline Operating

Agreement

Production Operating

Agreement

႕ 93

9) ႕

Company Name Origin of Company

Location Initial Year Workplace Area (Square Miles)

Initial Capital (MMSU$) (MIC Permit)

Block

TEPM (Yadana Natural Gas Project) France Mottama Offshore 9.7.1992 5150/4988 455.00 M-5, M-6

PCML (Yetagun Natural Gas Project) Malaysia Tanintharyi Offshore 3.5.1990/ 29.9.1992 4834/2712/3205 338.50 M-12,M-13,M-14

Daewoo (Shwe Natural Gas Project) Korea Rakhine Offshore 4.8.2000/ 18.2.2004 1519/2618 58.40 A-1,A-3

PTTEPI (Zawtika Natural Gas Project) Thailand Mottama Offshore 12.11.2003/ 7.8.2004/ 25.7.2005

3000/4535/2810 22.00 M-3,M-9,M-11

CNOOC China Rakhine Offshore/ Mottama Offshore InnTaw/Monywar

14.12.2004 25.1.2005/4.1.2005

2888/5320 6.294/10.234

32.30 43.40 A-4,M-10 C-1,C-2

MPRL Myanmar Rakhine Offshore/ Man 18.1.2007/6.10.96 3795/ 31.52 27.60 A-6/MOGE-2

Goldpetrol Indonesia Chauk/ Yenanchaung 4.10.1996 389/306 21.00 IOR-2,MOGE-1

Rimbunan Petrogas Malaysia Mottama Offshore 9.3.2007 4013 35.00 M-1

Daewoo Korea Rakhine Offshore (Deep Site)

25.2.2007 650 13.00 AD-7

MGTC(Natural Gas Transportation) France Yadana Gas Pipeline 30.1.1995

TPC(Natural Gas Transportation) Malaysia Yetagun Gas Pipeline 10.3.1997

Geopetrol International Holding Inc Panama Pyalo, Pakhuku 11.3.2012 984 26.00 RSF-9

SINOPEC China Mahutaung 3.9.2004 D

Nobel Oil Russia OoRu 6.9.2008 A,B-1

North Petro Chemical Corporation China Ngahlaingtwin 16.6.2010 F

Chinnery Assets Limited China Rakhine Offshore 15.1.2007 AD-1,AD-6,AD-8

Petrovietnam Exploration Vietnam Mottama Offshore 2.10.2008 M-2

႕ 94

၂ ႑ ႕ ႕ ႕ ႑ ၂ ၂ ၃ ႕ ၃ ၅ ႕ 58 ၃၉ ၂

႕ ႕ ၂ ႕

၅ ၃ ၉၈၉ ႑ -

› ႕

› ႕

›

႕ ႕ 59

58Information provided by the MFMA.

59 z “ v y v y ” L v w

႕ 95

႕ ႕

၅ ၉-၇-၂ ၂ ႕ ၇ ႕ ႕ ႕ ၃ ႕

၂၂ ႕ ႕

႕ 60 ႕ ႕ 61 ႕ ႑ ၂ ၃

၅ ၅ EITI ႕ ၂ ၃ ၃ ၉ ႕ ႕ -

60 Ministry of Mines and Petroleum of Afghanistan, http://mom.gov.af/en/page/1384

61 Natural Resource Governance Institute, http://www.resourcegovernance.org/rgi/reporting

႕ 96

႕ ႕ ၂ ၃ ၃ ႕ ႕ ႕ ႕ ႑ ႕ ႕ ႑ 62 ႕

႕ ႕ “ ” ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႑ ႕ ႕ ႕ ႕ Myanmar Centre for Responsible Business ႕ ႕ 63 M ႕

႕ ႕ ႕

62EITI Requirement 3.6 (c)

63 Transparency in Myanmar Enterprises Report, July 2014, Myanmar Center for Responsible Business

႕ 97

Harvard Ash Report (2013) ႕ ၅

၂ “ ” ႕ ၇ ၂ “ ႕ ” Global Witness Report ၇ ႕ ႕ ႕

“ ႕ ” Global Witness ႕ ႕ Securities Exchange Commission (၂ ႕ ၂ ၅ ႕ ႕

၅ ၆ ႑ ၉ ၈ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕

၉၉ ႕

႕ 98

၂ ႕ ႕

၂ ၉၅ ႕ ႕ ႕

႕ ၉၈၉ ႕ ၉ ၈၉ ၉၈၈ ႑ ၉ ၈၉ ႑ ၉၉၇ ႕ ၉၇ ႕ ႕

၅ ၇ ၉၉ ႕ ႕ ၂ UMEHL MEC ႕ ႕ ႕ ႕ ၉၅ Defence Services Institute (DSI) ႕ ၉၆၂-၈၈ DSI ႕ ႕ ၃ ႕ (UMEHL) ႕

၂ ၉၉ UMEHL ၉၅ ႕ ႕ ႕ L ၉၉ ၂ ၇ UMEHL

႕ 99

၇၇ ႕

၉၉၇ ႕ (MEC) ၉၈၉ ၉၉၇ ႕ ႕ ႕ MEC ၉၈၉

EITI

႕ ႕ ႕ ႕ ႕ ႕ ႕ - - ႕

႕ ႕ ႕ ႕ ႕

၉၉ ၂ ႕ ၉၉ ၂ ႕ ႕ ႕ ႕

၅ ၈ UMEHL MEC ၂ UMEHL MEC ႕ ႑ ၂ ႕ ၂ ၈ ႕

႕ 100

႑ ႕ ႕

-

› ႕

› ႕ ႕

› ႕ ႑

၂ ႕ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႕ ၂ ႕ ႕ ၂ ၃ ႕ ၂ ၂ ၂

UMEHL

၉၉ ႕ ၂ ႕ ၂ ႕ ႕ ႑

L L ႕ ႕ ႕

၂ -

႕ 101

10)

Shareholder Category

2007 capital held by categories of stakeholders (in millions of kyat)

Distributions of profits 1990-2007 (in millions of kyat)

A

Directorate of Procurement 330 789.73

Ministry of Defence 808.33

B

35,444 Active duty military personnel

1,196.81

43,885.52 1,467 military units 33,745.31

6,069 retired military personnel

1,265.53

8 v ’ 427.96

L ႕ ႕ ႑ International Crisis Group (ICG) L ႕ ႕ L ႕ ႕ L ႕

UMEHL ၃ ႕ ၂ L ႕

UMEHL ႑ ႕ Myanmar Imperial Jade Company Myanmar Ruby Enterprise ႕ ႕ ႕

L ႕

UMEHL ႕ ႕ L ႕ L ႕

႕ 102

MEC

(MEC) ၉၉၇ L ႕ ႑ UMEHL MEC ႕

L ႕ ႕ ႕ ႕ L ႕ ႕ ႑ ႕ ၇ ႑

L L ႕

11) UMEHL

Region/State Area Type

Mandalay Kyaukpukhet Limestone

Mandalay Hsin Mountain Granite

Mon Mayangon Granite

Mon Kyauk Mae Mountain Granite

Mon Tin War Mountain Granite

Sagaing Kyay Sin Mountain Copper

Sagaing Kyauk An Che Coal

Sagaing Letpadaung Mountain Copper

12) MEC

Region/State Area Type

Kayin Than Dai Mountain Limestone

Mandalay Yathayt Mountain Marble

Shan (East) Mongku Coal

Tanintharyi Maw Taung Coal

Shan (North) Man Kaung Gypsum

႕ 103

၆

၆ 64

› ႕ ၈

› ႑

႕ ႕ ႕

႕ 65 ႕ ႑ ႕ -

“ ႕ ႕ ၂ ၃ ႕ ႕ ႕ 66

၂ “ ႕ ” ႕ ႕ ႕ ႕ ႕ ႕ ႑ ႕ ႕ ႕ ၂၃

64EITI 2013 Standards, Requirement 2

65 “Natural Resources and Subnational Governments y y ” MDRI & The Asia Foundation, June 2014

66 Ibid. p11.

႕ 104

22)

႕ 105

- ၂၂

႕ ႑ ႕ ၂၂ 67

႑ ႕ ႕

႕ ၂ ၃ ၰ ႕

႑ ႕ ႕ ႕ ႕ ႑ ႕ 68

႕ 69 ႕ ၃ ၃ ၉ ၅ ၇ 70 ႕ ၂ - ၂ ၂ ၅ ႕ ႕

67

68PFM World Bank 2014 report

69PFM World Bank 2014 report

70 See the World Bank PEFA report for Myanmar (2012), p26.

႕ 106

႕ ႕ ႕ ႕ ႕ ႑ ႕ ႕ ႕ ႑

႕ 107

11)

၂ ႕

႕ ႕ ႕

၂ ၈ ႕ ႕ ႕ ၂ ၃ ၂ ၃ ႕ ႕ ၅ ၃ ႕ ၅ ၅ ႕

၂ ၆ ႕ ၂ ၅ ၃-၆-၂ ႕ ႕

“၂ ၃ ၅ - - ၇ ”

႕ 108

၆ ၂ ႑ ႑ ႕ ႕ ၃ ႕ ႑ ၃ ႕ 71-

(CIT)

၂၅ ၃၅ ႕ ႔ ႕ ႕ ၃ ႕ ႑

၃ ႔ ႔ ႔ ႔ ႔ ႕ ( ႕ ႕ ႕ 72

႔ ၎တ႔၏

71 ႕

72E&Y Myanmar Tax Guide January 2014

႕ 109

႔ ႑ ၸ

13)

CIT Taxable Income or Taxpayer Tax Rates

Salaries received by foreigners under special permission in State-sponsored projects 20%

Salaries received by foreigners working for entities created under the Foreign

Investment Law (Progressive rates)

Resident 0% to 25% (Kyats)

Non-resident 35% (related currency)

Salaries received by foreigners working for non-Foreign Investment Law companies –

not approved by the MIC (Progressive rates)

Resident foreigners

Non-resident foreigners

0% - 25%

35%

14) 73

Tax Tax Rates for

Residents

Net profit on business activities 0%-25%

Net profits on business activities for foreign entities under Foreign Investment Law (5) Years of consecutive income tax

exemption from the beginning of business

on commercial scale and 25% from net

profit before deductibles in the later years.

Capital gains tax 10%

Withholding tax on Interests -

Withholding tax on Royalties from patents, trademarks and know-how 15%

73 Source: PWC, Myanmar Business Guide February 2014

႕ 110

Withholding tax on payments made by State organizations, foreign companies, local

authorities, co-operatives, partnerships, entities formed under existing laws for

procurement and service rendered in Myanmar under agreements

2%

Advance income taxes on import and export of goods and services collected by the IRD 2%

႔ ႔ ၅ ၆

႕ ႔ V V V ႕ ႕ ႑ 74

႕

႕

74World Bank, PEFA, 2012

႕ 111

› ႕ ၅ ႕ ႕ ၂

› ၃

› ၂

› ႕ ၂

႔

႕

႕ ႕ ႕

၆ ၃ ႕ ႑ ၂ ၆ ၉ ႕ ႕ ႕ ႕ ၂ ၆ ႑ ႕ ၃ ႕ ႕ ႕ ႕

၂ ႕ ႕ ၂၅

႕ 112

24) ႕ ႑

National Currency EI Revenue

Foreign Currency

EI Revenue

Myanmar Economic Bank (MEB - State Owned Commercial Bank)

Myanmar Foreign Trade Bank (MFTB/

Yangon)

Foreign Investment Law

Central Bank controls National Bank Accounts

IRD

Corporate Income Tax Commercial Tax

Capital Gain Tax Stamp Duties

Excise Taxes

Royalties Production Split

Land Rent Signature Bonuses

Production Bonuses

Data Fee Training Fund

Research and D. Fund State Participation

Customs Customs Duties

Energy Planning

Department`

(EPD)

Myanmar Oil and Gas Enterprise (MOGE)

UPSTREAM SECTOR

Myanmar Petrochemical Enterprise (MPE)

DOWNSTREAM SECTOR

Myanmar Petroleum Products Enterprise (MPPE)

RETAIL AND WHOLE SALE DISTRIBUTION

Ministry of Finance

National Currency EI Revenue

Foreign Currency

EI Revenue

Oil & Gas PSC

Potential leakages • : % revenue

returns to the budget from

overseas

accounts • Exchange rates

႕ 113

15)

Non-Tax

Instruments PSC Onshore Blocks PSC Offshore Blocks PSC Deep Water Blocks IPRC Onshore Blocks

Data Fee None Amount not specified (3) None Amount not specified (6)

Signature

Bonus

Amount not specified

(2) Amount not specified (2) Amount not specified (5) Amount not specified (7)

Royalty 12.5% 12.5% 12.5% 12.5% (8)

Production

Split

Crude Oil:

Lowest threshold; up

to 10,000 BOPD 60%

MOGE and 40%

Contractor

Highest threshold;

Above 150,000 BOPD

90% MOGE and 10%

Contractor

Natural Gas:

Lowest threshold; up

to 60 MMCFD 60%

MOGE and 40%

Contractor

Highest threshold; above 900 MMCFD

Crude Oil:

600 feet or less of water depth Lowest threshold; up

to 25,000 BOPD 60%

MOGE and 40% Contractor

Highest threshold; Above

150,000 BOPD 90% MOGE

and 10% Contractor

More than 600 feet of water depth

Lowest threshold; up to

25,000 BOPD 60% MOGE

and 40% Contractor

Highest threshold; Above

150,000 BOPD 85% MOGE

and 15% Contractor

Natural Gas:

600 feet or less of water depth

Lowest threshold; up to

300 MMCFD 65% MOGE

Crude Oil:

2,000 feet or less of water depth Lowest threshold;

up to 25,000 BOPD 60%

MOGE and 40% Contractor

Highest threshold; Above

150,000 BOPD 90% MOGE

and 10% Contractor

More than 2,000 feet of water depth

Lowest threshold; up to

25,000 BOPD 60% MOGE

and 40% Contractor

Highest threshold; Above

150,000 BOPD 85% MOGE

and 15% Contractor

Natural Gas:

2,000 feet or less of water depth

Lowest threshold; up to

300 MMCFD 65% MOGE

and 35% Contractor

Highest threshold; above

900 MMCFD 90% MOGE

Incremental Crude Oil:

Lowest threshold; up to

5,000 BOPD 60% MOGE

and 40% Contractor

Highest threshold; Above

30,000 BOPD 85% MOGE

and 15% Contractor

Incremental Natural Gas:

All additional CFD 60%

MOGE and 40%

Contractor

႕ 114

90% MOGE and 10%

Contractor

and 35% Contractor

Highest threshold; above

900 MMCFD 90% MOGE

and 10% Contractor

More than 600 feet of water depth

Lowest threshold; up to

300 MMCFD 60% MOGE

and 40% Contractor

Highest threshold; above

900 MMCFD 90% MOGE

and 10% Contractor

and 10% Contractor

More than 2,000 feet of water depth

Lowest threshold; up to

300 MMCFD 55% MOGE

and 45% Contractor

Highest threshold; above

900 MMCFD 80% MOGE

and 20% Contractor

Non-Tax

Instruments PSC Onshore Blocks PSC Offshore Blocks PSC Deep Water Blocks IPRC Onshore Blocks

Commerciality

Bonus

None None None Amount not specified (9)

Production

Bonus

Crude Oil:

Upon approval of

Development Plan 0.50

MMUS$

Highest threshold;

Above 150,000 BOPD

for 90 consecutive

days of prod. 6.00

MMUS$

Natural Gas:

Upon approval of

Development Plan 0.50

MMUS$

Highest threshold; above 900 MMCFD for

Crude Oil:

Upon approval of

Development Plan 1.00

MMUS$

Highest threshold; Above

200,000 BOPD for 90

consecutive days of prod.

10.00 MMUS$

Natural Gas:

Upon approval of

Development Plan 1.00

MMUS$

Highest threshold; above

900 MMCFD for 90

consecutive days of prod.

Crude Oil:

Upon approval of

Development Plan 1.00

MMUS$

Highest threshold; Above

200,000 BOPD for 90

consecutive days of prod.

10.00 MMUS$

Natural Gas:

Upon approval of

Development Plan 1.00

MMUS$

Highest threshold; above

900 MMCFD for 90

consecutive days of prod.

Incremental Crude Oil:

Lowest threshold; up to

2,000 BOPD for 60

consecutive days of

production 0.20 MMUS$

Highest threshold; above

30,000 BOPD for 60

consecutive days of

production 3.00 MMUS$

Incremental Natural Gas:

Lowest threshold; up to

15 MMCFD for 60

consecutive days of

production 0.50 MMUS$

Highest threshold; above

150 MMCFD for 60

consecutive days of

႕ 115

90 consecutive days of

prod. 6.00 MMUS$

10.00 MMUS$ 10.00 MMUS$ production 2.00 MMUS$

Training Fund Exploration period:

25,000 US$ per year

Production period:

50,000 US$ per year

Exploration period: 50,000

US$ per year

Production period: 100,000

US$ per year

Exploration period: 50,000

US$ per year

Production period: 100,000

US$ per year

Initial joint study period:

10,000 US$

Pilot project period:

50,000 US$ per year

Production period; 50,000

US$ per year

Excess average production

over 30,000 BOPD:

100,000 US$ per year

Research and

Development

Fund

0 5 ’

share of Profit

Petroleum

0 5 ’

of Profit Petroleum

0 5 ’

of Profit Petroleum

0 5 ’

of Profit Petroleum

State

Participation

15% to MOGE with

extension up to 25%

’

Up to 20% after

commercial discovery and

up to 25% is the reserves

are greater than 5 TCF

Up to 20% after

commercial discovery and

up to 25% is the reserves

are greater than 5 TCF

15% undivided interest

Non-Tax

Instruments PSC Onshore Blocks PSC Offshore Blocks PSC Deep Water Blocks IPRC Onshore Blocks

Income Tax

(1) (4)

5 ’

Net Profit

5 ’

Profit

5 ’

Profit

According to the Myanmar

Income Tax Law

Sharing Profits

on sale or

transfer of

shares

40% of net profit up to

100 MMUS$

45% of net profit

between 100 MMUS$

and 150 MMUS$

50% of net profit

above 150 MMUS$

40% of net profit up to 100

MMUS$

45% of net profit between

100 MMUS$ and 150

MMUS$

50% of net profit above

150 MMUS$

40% of net profit up to

100 MMUS$

45% of net profit between

100 MMUS$ and 150

MMUS$

50% of net profit above

150 MMUS$

40% of net profit up to

100 MMUS$

45% of net profit between

100 MMUS$ and 150

MMUS$

50% of net profit above

150 MMUS$

1. ၃

႕ 116

2. ၃

3. ၃

4. ၃

5. ၃

6. ၃

7.

8. ၃

႕ ႕ ႕ ႕ ႕ - ႑

႕ ႕ ႕ ႕ ႕ ႕

၅ ၂၃ ၇ ႕ ႕ ႕ ႕ .75

႑ MF ႕ ႑ ႕

75 http://www.dw.de/is-money-from-gas-deals-fuelling-the-myanmar-junta/a-5212992 and page 43 of the ERI report on the Yadana Pipeline http://dg5vd3ocj3r4t.cloudfront.net/sites/default/files/publications/total-impact.pdf

႕ 117

၆ ႑ ႕ ႕ ႕ ႕

႑ ႕

-

› ၅ ၇ ၅

› ၃

› ၅

၃ PSC ၃ ၇

႕ ႑ ႕

၂၆ ႕ ႕ ႕

႕ ႑ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႑ ႕ ႑

႕ 118

27) ႑ -

Large-Scale Mining

Company

႕ 119

28)

႕ ႕ ၃၅ ၆၅ ၂၅ ၅ ႑ ႕

႕ 120

12) -

႑ ၂၈ ၂ ႕ ႕ .

႕ 121

13) ႕ -

၃ ၇ ႑ ႕

႕ ၉ “ ” ၂ -၂ ၂ ႑ ၃ ၈၅ ၃ ၃၉၈ ႕ ႕ ႕ ႕

႕ ၃

႕ 122

၆ ၅ ၸ ႔ y ႔

႕ 76

႕ ႕ ႕ ႕ ၅ ၂ -

႕ ႕

႕

Generally Accepted Accounting Principles (GAAP) ႕ Myanmar Accountancy Council (MAC) ႕ Myanmar Institute of Certified Accountants (MICPA) ၂ ၃ ၂ ၂ ၃ ၂၉ ၈ ႕ ၂ International Financial Reporting Standards (IFRS) - -၂ ႕

႕ -

76PFM World Bank 2014 report

႕ 123

IFRS 9: Financial Instruments;

IFRS 10: Consolidated Financial Statements;

IFRS 11: Joint Arrangements;

IFRS 12: Disclosure of Interests in Other Entities;

IFRS 13: Fair Value Measurement;

Standing Interpretations Committee (SICs) and International Financial Reporting Interpretations Committee (IFRICs) ႕

႕ ၈ ႑ ႕ ႑ ႕ ႕ ႕ ႕

႕

႑ -

၅

႕ ၅

႕

၃

-

၂ -၃-၂

၂ -၃-၂

၂ ၂၈-၃-၂

၂ ႕ ႕ ႕ ႑ ႕

႕ 124

၆ ၆ EITI ၂ ၂ Public Expenditure and Financial Accountability (PEFA) PEFA International Organisation of Supreme Audit Institutions (INTOSAI) ႕ ႕ L ႕ PEFA ၂ ၈ ႕ ႕ ႕ ႕ ႕ ႕ ႑ ႕ ၈ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ EITI

၂ ႕ ႕ ႕ ၂ ႕ ႕ ႕ ႕ ႕ ႕ ႕

႕ 125

႕ ႕ ႕

၆ ၇ ႕ ႑ ႕ ႕ ႕

႕ ႑ ႑ M ႕ ၂ ႕ ႕ ႕ ႕ ႕ ၂ ၃-

႕ ၈ ႑ ႕ ႕ ႕ ႕ “ y ”

႕ ႕ ႑ ႕ ႕ ႕ ႑

႕ 126

၇ ႑

၇ ႑ ႔

y 8 ၉၆၇

၉၈

၉၈၅

၂ ႕ ႑

(၂) ၂ ၃ ႔ y - ႕ ႕ ႕ ႕ y v - ႕ ႑ ႕ ႕ ႑ ႕ ႑ ႔

၃ ႔ ၂ ၈ ႕ ႔

႑ ႕ ႔ ႑ ႔

႔ ႔ ႔

႕ 127

၇ ၂ ႑ ၃ -

› (DHPP)

› (DHPP)

› (DHPI)

› (HPGE)

႔ -

›

›

›

၇ ႔ ႔

၇ ၃ ၉၆ ႔ ႕ -၂ ႕ ၂ ႔ ႕ ၈ ၉၆ ၅၉၅ -၂ ၉၇

႔ (၃ ) ၂၆ ၂ ၇၅ (၈) ၂ ၅ ၂၈ ႕ ၂ ႔ ၂ ၅ ၂ ,၉၃၅ (၈

႕ 128

၂ - ၆ ၇၉ ႔ ၂ ၈ ၂ ႔ - ႔ ႔ ၂ - ႔

- (၆) (၃) ႔ ႔ ၅ ၅ ႔

၂ ၂ ( ၆)

16) ၂ ၂ 77

Power plant Location Operational Rated capacity (MW) GWh/annum

Small

Baluchaung BHP 1 Kayah 1992 28 200

Y ’ w Bago 2007 25 123

Zaungtu Bago 2000 20 76

Sedawgyi Mandalay 1989 25 134

Zawgyi 1 Shan 1995 18 35

Zawgyi 2 Shan 1998 12 30

Large

Thaphanseik Sagaing 2002 30 117

Mone Magwe 2004 75 330

Paunglaung Mandalay 2005 280 911

Khabaung Bago 2008 30 120

KengTawn Shan 2008 54 378

Shweli 1 Shan 2008 600 4,022

Yeywa Mandalay 2010 790 3,550

Dapein 1 Kachin 2011 240 1,065

Shwegyin Bago 2011 75 262

77 Source ADB Energy Sector Initial Assessment: Context and Strategic Issues.

႕ 129

Power plant Location Operational Rated capacity (MW) GWh/annum

Kun Bago 2011 60 190

Kyee On Kyee Wa Magwe 2012 74 370

Baluchaung BHP 2 Kayah 1960 84 595

Baluchaung BHP 2 Kayah 1974 84 595

Kinda Mandalay 1985 56 165

Totals 2,635 13,268

၂ ၃ ၂,၇၈ ႔ ၂ ၃ ၉၈၆ ၃၅ ၃ - -

-78

› ၂ ၃

› - ၃ ၅၂ ၂ ၅

› ၃ ၂ ၅ ၆

› ၂၈ (Keng w ၅၂ ) ႔ ၅ ၆ ႔

› ၂ ၃ ၂ ႔

78 Note that the capacities of these stations quoted here are not fully consistent with those given in tables 17 and 18 below.

႕ 130

၂ ၃ ႕ -79

၅

႕ ၇

၃ ၅

၇ ႕ - ၂ ၉ - ၂ ႔ ႔ ၂ ႔ ၇၂၃ ႔ ႔ ၇ 80 ၂ ႔ ႔

၇ ၅ ၃ -

› ႔

›

›

႑ ႔ ႔

၇ ၈ ၉ ႔

၅ ႔ ႔

79 The National Energy Policy Chapter 4

80 Equation for tariff or charges per unit of energy consumed or produced

႕ 131

၇ ၆ 81 V - V ႔

( V NPV ႑

႕

› -

›

› ႕

› ႕

› ႔

၅ ၂ ၂ ၂ ႔ ႔ ႔ ႔ ႔

81 The present value of a time series of cash flows. It is a standard method for using the time value of money to appraise long-term projects.

႕ 132

29) ၂ ၃-

0

200

400

600

800

1,000

1,200

May June July August September October November December January February March April

MW

႕ 133

17)

Power Plant MW GWh

Upper Paunglaun 104 454

Nancho 40 152

Middle Paunglaun 100 500

Shweli 3 1,050 3,500

Kun 60 190

Phyu 40 120

Upper Yeywa 280 1,600

Bawgata 160 500

Manipur 380 1,903

Tha-htay 111 386

Ann 10 44

Upper Buywa 150 534

Upper Keng Tawng 51 267

Totals 2,536 10,150

18)

Power Plant MW GWh Local Implementing Companies

Thaukyegat-2 120 605 Gold Energy Co., Ltd

Baluchaung-3 52 334 Future Energy Co., Ltd

Middle Paunglaun 29 134

Shweli 3 9 38

Kun 64 236

Phyu 280 1512

Upper Yeywa 6 45

Upper Baluchaung 30.4 - New Energy Oasis Development Co, Ltd.

Bilin 280 - Asia World Co., Ltd.

Ngotechaung 16.6 - New Energy Oasis Development Co, Ltd.

Totals 887 2,904

႕ 134

19)

Power Plant Capacity Energy Implementing Companies

MW GWh International Local

Myitsone (suspended)

6,000 30,860 CPI Myitsone

Chipwi 3,400 17,770 CPI AWC

Wutsok 1,800 10,140 CPI Wutsok

Kaunglanhpu 2,700 14,730 CPI Kaunglanhpu

Renam (Yinang) 1,200 6,650 CPI Renam (Yinang)

Hpizaw (Phisaw) 2,000 11,080 CPI Hpizaw (Phisaw)

Laza 1,900 10,440 CPI Laza

Chipwinge 99 599 CPI Chipwinge

Dapein 2 (Tarpain)

168 775 DUHD Dapein 2 (Tarpain)

GawLan 100 552 YPIC GawLan

Wu Zhongze (Wukyongkye)

60 327 YPIC Wu Zhongze (Wukyongkye)

Hkan Kawn (Khetkan) 140 769

YPIC IGOEC

Tongxingqiao (Htonshinche) 320 1,746

YPIC IGOEC

Lawngdin (Laungdin) 435 2,401

YPIC IGOEC

Upper Thanlwin (Kunlong) 1,400 7,338

HHGL AWC

Naopha (Naungpha) 1,000 5,290

HYDROCHINA Corp. IGOEC

Mantong 200 924 HYDROCHINA Corp. IGOEC

Upper Thanlwin (Mongton) 7,110 35,446

CTGC + EGAT IGOEC

Hutgyi (Hatkyi) 1,360 7,325 Sinohydro Corp & EGAT IGOEC

Tamanthi 1,200 6,685

Shwezaye 660 2,908

Saingdin (Saidin) 76.5 236 CDOI STH

႕ 135

Lemro (Laymyo) 600 3,576 CDOI STH

Lemro 2 (Laymyo) 90 273

CDOI STH

Ywathit 4,000 21,789 CDOI STH

Nam Tamhpak (Nanttabat) 180 920

CDOI STH

Power Plant Capacity Energy Implementing Companies

MW GWh International Local

Htu Kyan (Htonkyang) 105 551

CDOI STH

Hseng Na (Hannu) 45 234 CDOI STH

Tha Hkwa (Thakwa) 150 776

CDOI STH

Palaung 105 536 CDOI STH

Bawlake (Bawlakhe) 180 918

CDOI STH

Taninthayi (Thaninthayi) 600 3,476 ITD

Shweli (2) 520 2,814 HLRHC AWC

Keng Tong (Kyaingtong) 96 536 YNPG

Wan Ta Pin (Wantaping) 25 138 YNPG

So Lue (Silu) 165 742 YNPG

Mong Wa (Maingwa) 50 274 YNPG

Keng Yang (Kyaingyang) 28 155 YNPG

He Kou (Hiku) 88 483 YNPG

Nam Kha (Nangkha) 200 937 YNPG

Mawlaik (Mawlite) 520 3,310 China Guodian Corp. HTMC

Nam Tamhpak (Nanttabet) 200 1,106

China Guodian Corp. HTMC

Totals 41,276 218,535

႕ 136

Abbreviations: CTGC - China Three Gorges Corp. CPI - China Power Investment Corp DUHD - Datang (Yunnan) United Hydropower Developing Co., Ltd. YNPG - Yunnan Power Grid Corp ITD - Italian-Thai Development Co., Ltd. Thai CDOI - China Datang Overseas Investment Co., Ltd. YPIC - Yunnan Power International Energy Corp. EGAT - EGAT International Co., Ltd. (Thai) AWC - Asia World Co., Ltd. IGOEC - International Group of Entrepreneurs Co., Ltd. STH - Shwe Taung Hydropower Co., Ltd. HLRHC - Huaneng Lancang River Hydropower Co., Ltd. HHGL - Hanergy Holding Group Ltd. HTMC - Htun Thwin Mining Co., Ltd.

႕ 137

၇ ၇ ႕ 82:

(MoU) ႕ ႕ ႑ ႔ MoU ႔ ၂ ၈ ( ၃ ) MoU

(MoA) ၈ ႕ ႑ MoA ႕ ႕ ႑ ႔

MoA (MIC) (EIA & ESIA) ႔ ႔

(JVA) ႕ ႕ ႑ ႔ ႔ JVA ႕ ႔

JVA ႔ ႔ ႔ ႔ ( ) ႕ (၂ ႕ (၃) ႔ ၃ ၆

႕ ၂ ႕ 83 ႕

82 Hydro projects with a capacity of less than 30MW are the responsibility of the State governments. The development procedures are the same and the Ministry of Power will provide assistance to the State as required.

83e.g. the CPI JVC has seven hydro projects

႕ 138

30) ႑

China EXIM ႕ ႕ ႕ ႕

႕ 139

၇ ၈ ႔ -

( % ၅% ) - (

၂၅ ) Commercial Tax ( ၅ ) ( ) - ၅% - ၃.၅%

႔ ၇ 84 ႔

႔ ( ) ႔ ႔ ႔ ႔

၃ ၅ ႔ 85

၃ ၅ ႔

84 Equation for tariff or charges per unit of energy consumed or produced

85 The International Energy Agency assumes a figure of 2.2% of capital cost for the O&M cost of large hydropower projects.

႕ 140

၇ ၂ ႑ ႑ ႕ ႔ ႔ ႔ ႑ ႔ ၂ - (၅) - ႔ ႔

႕ 141

၈

႔ ႔ ႕ ႔ ႕ (ESIA ႕ ႕ ႔

႔ ႔ ႕ ႔ ႔ ႕ ႔ ႑ ႕ ႕ ၇ ႕ ႑ ႔

၈ ၂ ၈ ႕ ႔ ၉၉ ၂ ၂

႕ 142

ၰ ႔ ႔ ႕ ႔ ႔ ႔ ႕

၅- ၂- ၉၉ ၂၆ ၉ ၂

20) 86

Legislation Status Key Objectives

Environmental Conservation Law, 2012

Promulgated Provides the overarching framework for environmental protection and conservation of natural resources in Myanmar. Specifically: To integrate environmental conservation values in the sustainable development process; to enable a healthy and clean environment, as well as cultural preservation; to reclaim disappearing ecosystems; to prevent or manage loss of natural resources; to promote public awareness; to enable international cooperation; to promote cooperation between government, international organisations, NGOs and individuals in matters of environmental conservation. (These objectives summarise Chapter II, Objectives, of the Environmental Conservation Management Law, 2012). Note that this law does not include provisions for MOECAF to conduct Strategic Environmental and Social Assessments (SESAs). Nonetheless, MOECAF is considering undertaking SESA and may require development partner support in this regard.

Environmental and Conservation Rules, 2013 (for the Environmental Conservation Law)

Approved in June 2014 These are regulations for the Environmental Conservation Law.

86 v w q y y “ ” “ v ”

႕ 143

ESIA Environmental Impact Assessment Procedures, 2013

Drafts have been completed and stakeholders consulted.

The Procedures are due to be submitted to the Minister of MOECAF at the time of writing.

Provide guidance on how to operationalise the requirements outlined in the Environmental Conservation and Foreign Investment Laws.

Environmental Quality Standards

Being drafted at the time of writing

To be used alongside ESIA procedures to specify the environmental thresholds that must be met by development projects and activities. These are proposed interim ambient air, noise and water quality standards, and industry emission standards referenced against those being applied internationally and by Greater Mekong Sub-region (GMS) countries.

ESIA Technical Guidelines Being drafted at the time of writing

To provide ESIA practitioners and third parties with a common framework for ESIA reporting.

Foreign Investment Law, 2013

Passed Sets out foreign investor ESIA requirements for identification and management of negative social and environmental impacts of development.

Foreign Investment Rules, 2013

Passed y v ’ social and environmental impact must be submitted with the proposal for investment and subjected to comment by the MOECAF.

႕ ႔ ႕ y v - - ႔ L - L ႔ ႔ ႕ ႔ (၂ ၂ ႕ ႔ ႔ ႕ ႔ ႔

႕ 144

31) (Thevelvetrock.com)

႔ L v y 5 5 y 50 ႔ ႕ ႕ ႕ ၂ ႔ ၂ ၂ ႔ (ILO, 2013)

႕ L ႕ ႔ ႔ ႔ ႔

21) -

Legislation Status Key Objectives

Settlement of Wage Dispute Law, 2012 Passed and being implemented. To provide guidance dealing with labour-

management issues and to recommend

mechanisms for dispute resolution.

Disagreements between employers and workers

are to be settled by an ascending system of

dispute resolution bodies (workplace

coordinating committee, conciliation body,

arbitration body, arbitration council). Only after

the dispute has gone through the arbitration

body may the union call a strike.

Foreign Workers Law and Rules The Ministry of Labour, Employment and Social Welfare is, at the time of writing drafting a foreign workers law and

The law will cover the appointment, dismissal, suspension, entitlements of the foreign workers working in Myanmar. It will also specify employer requirements regarding job site safety

႕ 145

accompanying rules. and occupational health.

Legislation Status Key Objectives

Labour Organisation Law, 2011 Passed and being implemented. To provide a framework for Unions in Myanmar. ILO has commented that although the law provides the right of workers to organise for the first time since military rule, protection against dismissal and discrimination are still weak. There are no effective penalties against employers who fail to comply with reinstatement orders from the arbitration bodies and the arbitration council.

၈ ၂ ႕ ႕ ႕ ၂ ၃ ႕ ၂

႕

(MOECAF)

႕ ႔ ႔ ႔ ႔ ၂ ႕ ၂ ႕ ႕ ၉ ႕ ၂ ႔ (ADB, 2013)

႕ 146

႕ (MNPED)

၂ ႕ ၃ ႕ ႕ (၃၉) ႕ ႕

(MIC)

႑ ႔ ၂ ၃ ႑

႑ ႔ ႔ ႑ ႔ ႔ ၂ ႔ ႔ ႑

႕

႔

87

၈ ၃ ႕ ႑ ႔

87 Our team did not meet with the Ministry of Labour, therefore this report contains no substantive information on the SIA framework under that ministry.

႕ 147

႔ ႕ ႔ ႕

႔ ႔ ႔

၉၉

႕ ႔ ၂ ႔

႔ ႔ ႕ ႕

႔ ႔

႔ ႔

32) လက ႕ (EarthFirstNews.org)

႕ 148

22) 88

Issue Description of Problem Relevant Regulatory Framework (formal or informal)

Compensation for Negative Impacts The community is seeking compensation for years of damages to houses and farmlands allegedly caused by wastewater from a large tin mine.

A lawsuit brought by local villagers in the Tanintharyi Region seeks judicial resolution to their complaints concerning a tin mine.

Even in the absence of approved environmental assessment rules, the Department of Mines and Mining Enterprise 2 are required to follow the existing environmental requirements in the Mining Law, The Environmental Conservation Law, 2012 also specifies requirements for environmental management plans that should mitigate negative environmental impacts of mining activity.

Conflicts over Minerals Two EAGs are fighting for the control of gold in Eastern Myanmar.

Fighting between the Shan State Army South and the United Wa State Army was reportedly taking place as recently as April 2014 with the fighting brought on by a dispute over Wa gold mining activities in southern Shan State.

Territories between the two ethnic rebel groups have been delineated via mutual agreement, and rules are in place that prohibits incursions into the other's area of control. Both EAGs provide security for affiliated gold mining enterprises in Shan State. See the case study on Shan state towards the end of Chapter Four above for more on mining in the area.

Labour Disputes Protests have been taking place at a major copper mine in central Myanmar over labour issues. The recent protests (April/May 2014) follow many others taking place over the past 12 months regarding various social and environmental problems related to the mine.

The most recent dispute involved 224 local trainees from 26 villages in the area staging a protest along the main road leading up to the y’ orkers are protesting for higher wages and better working conditions. Allegations of extremely poor wages and lack of proper safety equipment have been raised. Many of the trainees are the sons and daughters of parents whose land was confiscated to develop the mine.

The new Settlement of Wage Dispute Law should be implemented in these types of disputes, as well as the Organisation of Labour Law, (the former specifying conditions to be followed before strike action is considered to be legal). However, significant discrepancies in these legal frameworks have been noted by the ILO.

Destruction of Sacred Sites Local residents fear destruction of a pagoda on a mine site where significant development is

Rumour regarding the planned destruction of the religious buildings has fuelled local protests.

The ESIA for one of the major copper mines is the first of its kind of a large scale mining project in Myanmar. It has been the subject of much discussion and scrutiny and is still in draft form (and

88 It should be noted that the examples here have been reported in the media or in studies undertaken by CSO groups. It was beyond the scope of this study to investigate all sides of the issues to determine their veracity. www.minesandcommunities.org provided the source of much of the material unless otherwise stated.

႕ 149

occurring for copper mining. The structure was recently deconsecrated (March 2014).

is currently being reviewed by the ESIA Review Committee, as noted above). Community consultations were scheduled to be completed in a six-week period from the beginning of March 2014. It is expected that issues related to the preservation of sacred sites will be raised during this process and incorporated into the environmental and social management plan.

Abuse of Workers Labour conditions and environmental management practices are acknowledged by many CSOs and media outlets to be extremely poor in the jade mining sites in Kachin State.

According to the Kachin Development Networking Group, jade miners are working in unsafe conditions, facing abusive managers, and are exposed to numerous additional risks. “ operate openly alongside some large jade mines. The common use of needles contributes to the high rates of HIV in the township of Hpakant in Kachin state. There are estimates that up to 40% of heroin-using jade miners are infected with HIV.

Issue Description of Problem Relevant Regulatory Framework (formal or informal)

Waste Water Damage The villages of Chaung, Hmawbi and Gyan Kap located in the Ayeyarwaddy Valley are reported to have been affected for many years from the significant environmental impacts of the nearby firms that are mining for pebbles, considered to be valuable construction materials.

It appears as though the farmland and houses of many families in the villages have been affected by poor discharge of waste water. Sludge is created by high pressure jets used to expose pebbles beneath the sand, creating a constant stream of muddy water that causes flooding.

The local township has stated that 13 mining firms received 1-year licences to mine an area of around 100 acres.

Relocation of Communities v y ’ second largest iron ore deposit in Shan State could result in additional relocation of communities

The Pa-O Youth Organisation has noted (Robbing the Future, 2009) “ v 2004, and work includes the conversion of around 11,000 acres of surrounding land for construction

An ESIA was completed but has not published. The Ministry of Industry now owns/manages the mine.

႕ 150

(NOTE: it has been alleged that those already relocated have not received adequate compensation for destroyed farmland although this has not been verified).

of a cement factory and iron processing plant. The steel factory is still under construction and due to 0 5 ” The Pa-O Youth Organisation has also reported that more than 25 v ’ 000 mainly ethnic Pa-O people could be destroyed by the mining project and that a number of people have already been forced to move and have not received adequate compensation.

႕ ႕ ႕ ႕ ၂ ၂ ESIA ႕

14) (wtaq.com)

႕ 151

23) ႕ ႑ ႕

Issue Description Relevant Regulatory Framework

Shwe Oil and Gas Pipeline

The controversial Shwe Gas Pipeline, a joint venture between the China National Petroleum Corporation (CNPC) and MOGE as well as three other foreign firms: Daewoo International Ltd. (51 percent stake) in consortium with the Korea Gas Corporation (KOGAS), ONGC Videsh Ltd. of India, and GAIL Ltd. of India.

The oil transport pipeline is constructed parallel to the gas pipeline and will enable oil to be imported to China from the Middle East and Africa. The 2,380 km crude oil pipeline will run from Maday Island in the Bay of Bengal off the coast of Arakan to Kunming, China. It is estimated to cost US$ 1.5 billion and although already operating, once a full operational capacity transport 12 billion cubic meters of crude oil per year to China.

y ’ ’ Y v cutting through many ethnic minority territories including those in Shan and Kachin States where conflicts are still ongoing. Human rights groups have protested the project, claiming that there have been farmland seizures without compensation or unfair compensation; forced labour; unfair working conditions, threats and intimidation against locals; increased militarisation of territories and other forms of human rights abuses. The pipeline may be responsible for increased fighting in Northern Shan state between rebels and the State Army.

An ESIA was completed by the project but has not been released for public information. Therefore, it is unclear as to the social and environmental impacts identified. It is also not clear whether an ESMP was ever drafted to deal with risks identified in the ESIA. Many concerned CSOs have called for the v “ ” ESIAs, particularly in the case of the Shwe Pipeline, a project that has far-reaching ramifications for large groups of people living along its pathway.

Maday Island Port

CNPC is heading up the Maday Island deep-sea port construction project. The construction of the facility has been the subject of CSO scrutiny and protests.

The construction has already taken its toll on y ’ environment and about 2,400 residents living in six villages. Locals have complained that farmlands are being confiscated on Maday Island in order to build the port and refinery and in Kyaukpru, for construction of an international airport, hotels, golf courses and hospitals. In addition, about 500 acres of farmland near Gangawtaw Pagoda in Kyaukpru were confiscated for the construction of a gas refinery.

Some CSO groups contend “ v mountains on Maday Island have already been demolished and many plots of garden

It is assumed that the ESIA for the entire pipeline project would have included the identification of social and environmental impacts of the construction of the deep sea port. However, as noted, this has been difficult to determine due to the secrecy surrounding the ESIA process.

႕ 152

land have already been confiscated and ”89 They further allege that operations for seaport construction in late October 2009 around Maday island killed hundreds of fish and destroyed important local fishing grounds where local people have been fishing for centuries.90

89 http://www.burmanet.org/news/2011/03/01/irrawaddy-maday-island-deep-sea-port-no-boon-to-locals-%E2%80%93-khin-oo-thar/

90 http://news.nationalgeographic.com/news/energy/2014/09/140905-myanmar-china-burma-drilling-oil-energy-asia-petroleum/

႕ 153

၉

႕ ႕ ၂ ၆ ႕ ၈ ႕ ႕ ႑ ႕ ႕ ႑ ႕ ႑ ႑ ႑

႕ ႑ ႑

၂ ၃ ႕ ၂ - ၅ ႑ ႕ ၃ ႕ ႕

႕ 154

၂ ၃ ႕

႕ ႕ ႕ ႕ ႕ ႕ ႑ ႕ ႕ ႕

႕ ႕ ႑ ႑ ႕

International Financial Reporting Standards (IFRS)

IFRS ၉- ၃ ႕ ႑

႕ ႕ ႕ ႑

“ ႕ ႕ ”

႕ 155

႕

႕ ႕ ႕ ႑ ႑ ႕ ႕ ႕ ႑ ၂ ၆ ၂ ၃- ႑ ႕ ၂ - ၅ ႕ ႕ ၂ ႑ ႕ ႕ ႕ ႕ ၂ ၆ ႕ ႑ ႕ ႕ ႕

႕ ၂ ၈ ႕ ႕ ႕

႕ ႑ ႑ MEITI MSG

႕ ႕ ႕ ႕ “ ” ႕ ႕ ႕ ႕ ႕ ႕ ႕ EITI

႕ 156

႕ ႕ ႕ MEITI ႕ ႕

႕ ႑

၂ ၅ ႕ ႑ ႕ ႕ ႑ ႕ ႕ ႕ ႕ ႕

႕ ႕ ႕ ႕ ႑ ႕ ႕ ႕

႕

႕ ႕ ႕ ႕ ႕ MAT ႕ ႕ ႕ ႕ ႕ ႕ ႕

႑

႑ ႕ ႕ ႕ ႑ (

႕ 157

႕ ႕ ႕ ၂ ႕ ၃ ႕ ႑ ႕ ႑

႕ ႕ ႑ ႑ ႕ -

› ႑

› ႑

›

›

› ႑

›

› “ ” ႕

›

› ၅ ႕ ႑ ၂ ၅

› ႕

› ႕

› ႕

›

›

› ႑ ၃

႕ 158

34) MEITI

႕ 159

.

႕ 160

Global Witness. 2014. Who y ’ L ? http://www.globalwitness.org/myanmaroilandgas/

၂ Albert Chandler Law Offices. Myanmar Upstream Oil and Gas Sector, PP Presentation. Thailand, August 2013

Aung, U Zaw. 2013. The Oil and Gas Sector in Myanmar PP Presentation. Ministry of Energy, Myanmar Oil and Gas Enterprise.

0 ’

Asian Development Bank. 2012. Energy Sector Initial Assessment.

0 y ’ w www.bnionline.net; www.mmpeacemonitor.org

Bullion Street Monthly Newsletter. www.Bullionstreet.com, April 2014

CIA World Fact Book. 2014. Annual Report on Myanmar, 2013 www.cia.gov/library

Davis, LLP. 2014. Economic Opportunities Continue to Grow in Myanmar, Bulletin, May 30, 2014

IHRPS. 2011. Education in Transition: A Preliminary Study of Capacity Development for Civil Society Actors in Burma/Myanmar. Institute for Human Rights and Peace Studies. Mahidol University. Study funded by SIDA

ICG. 2001: Myanmar, The Role of Civil Society. International Crisis Group Asia Report, No 27, 6 December, 2001.

Human Rights Watch. 2013 World Report on Burma

Kachin News Group, Burma Army Exhorts Money from miners in Hpakant, January, 2014

MEITI Candidacy Application. 2014. MEITI Secretariat, MDRI.

Ministry of Energy. 2014 Draft Energy Policy, Republic of the Union of Myanmar

Ministry of Mines, 2012. Policies and Regulations Toward a Sustainable Mining Development. Power Point presentation, Republic of Union of Myanmar

Ministry of Mines, 2013. Current Mineral Activities in Myanmar. Geological Survey PP Presentation. Department of Mines, Republic of the Union of Myanmar

MOGE, 2013. Myanmar Oil and Gas Enterprise. PP Presentation.

႕ 161

Myanmar Centre for Responsible Business. 2014. Draft for Distribution: Sector--‐Wide Impact Assessment (SWIA)of y ’ & 0

Myanmar Legal Services. 2012 Online PP Presentation on legal and regulatory framework in Myanmar.

Myanmar Times. Illegal Mining Takes its Toll, January 2014

OECD. 2013. Multi-dimensional Review of Myanmar, Volume 1, Initial Assessment

Pa-O. 2009. Robbing the Future. Pa-O Youth Organisation, Burma

Petrie, C., South, Ashley. 2012. Mapping of Myanmar Peace building Civil Society. PRIO Paper. Oslo: Peach Research Institute Oslo, 2012.

Proximity Designs. 2013. Creating a Future for Myanmar: Using Natural Resources for new Federalism and Unity. Harvard Ash Centre.

y 0 y y ’

Republic of the Union of Myanmar, Policies and Laws:

Mining Sector: The Foreign Investment Law, 2012 and Rules 2013; Gemstone Law, 1995; Mining Law 1995 and Rules, 1996; Pearl Law, 1995; Salt Enterprise Law, 1992

Petroleum Sector: Petroleum Law, 1937; Model PSC; Energy Policy (Draft), 2013.

v 0 w y ’ v y www.rwi.org.

Shwe Gas Movement. 2013. Good Governance and the Extractive Industry in Burma.

South China Post, Dragon on the Doorstep, May, 2014

0 y ’ w v 0

Thomas, J. 2012. New Era for Myan ’ y www

0 v y v ’ Borderlands.

USGS, 2013. 2011 Burma Minerals Year Book. United States Geological Survey

USGS, 0 0 ’ v v y

Vanderbruggen, Edwin. w y ’ ? V L Note, March 2014.

Wyn, Cho Cho. New FDI Law and new Opportunities fo v y ’ w v L w sector. Ministry of Investment and Company Registration, 2013

World Economic Forum. 2013. New Energy Architecture: Myanmar

႕ 162

၃ 0 ’ Curse: The Case for Revenue Transparency in the Oil and Gas Sector. Arakan Oil Watch

Bissinger, Jared. 2012. Foreign Investment in Myanmar: A Resource Boom but a Development Bust? Contemporary Southeast Asia Vol. 34, No. 1, pp. 23–52

Buchanan, John, Tom Kramer, and Kevin Woods.2013. Developing Disparity. Regional Investment in

’ y 0 .

Deed. Stuart. Foreign Direct Investment in Myanmar Climbs Again. Myanmar Times, September, 2010

Gaung, Juliet Shwe. FDI jumps by more than half in July, says CSO. Myanmar Times, Monday, 18 October, 2010

Eleven Media Group, Explosions Rock Shan State Town, May 2014

Eleven Media Group, Kachin Meeting on Violence and Displaced People, May 2014

Governor of the Bank for Myanmar. 2013. Statement by the Hon. U WIN SHEIN, WBG Annual Meeting

IMF. Country Report, 2013. International Monetary Fund.

International Crisis Group (ICG). 2012. Myanmar: The Politics of Economic Reform. Asia Report, International Crisis Group, July 27, 2012.

w 0 ’ v w w y J y 17, 2013.

MEITI Candidacy Application, MEITI Secretariat, May 2014

Oo Naing, Aung. 2013. Investment Policy Reform in Myanmar Power Point Presentation, Deputy Director General Directorate of Investment and Company Registration, May, 2013

Oo Naing, Aung. 2013. OECD Investment Policy Review of Myanmar, Director General, Department of Investment and Company Registration, Ministry of National Planning and Economic Development. October, 2013

y 0 y y ’ y J y 0 Spectrum. 2013. Pre-scoping study on implementation of EITI in Myanmar. Yangon: Spectrum

World Bank Group. 2012. Republic of the Union of Myanmar Public Financial Management Performance Report Executive Summary March 2012

’ L y 0

Losing Ground: Land Conflicts and collective action in Eastern Myanmar. Karen Human Rights Group. March 2013.

႕ 163

Robbing the Future: Russian-backed Mining Project Threatens Pa-O Communities in Shan State, Burma. By the Pa-O Youth Organisation, 2009.

Pipeline Nightmare: Shwe v w ’ y ’ Y v 0

Natural Resources and Subnational Governments in Myanmar, MDRI/The Asia Foundation, June 2014-06-27

w ’ y w 2012.

y ’ 0 y

Subnational Governments and Business in Myanmar: Feb 2014. MDRI/Asia Foundation

State and Region Governments in Myanmar: September 2013. MDRI/Asia Foundation

’ y 0

Burma: Insurgency and the Politics of Ethnicity, Martin Smith, 1991

w “ y v ’ Yadana Gas Pipeline in Military- ” 00

Total Impact: The Human Rights, v v ’ Y j Military-Ruled Burma, September 2009.

၅ y ’ w y y ’ omic reform (Chapter Title), Chapter written by Aung Min and Toshihiro Kudo, Book edited by Hank LIM and Yasuhiro YAMADA, Published in 2014 by Bangkok Research Center, IDE-JETRO, Bangkok, Thailand. (Web Link- http://www.ide.go.jp/English/Publish/Download/Brc/13.html)

The EITI 2013 Standard, EITI International Secretariat July 2013.

Myanmar Ministry of Energy website, http://www.energy.gov.mm. June 2014

z “ v y v y ” L v w 0 2013, Melinda Tun.

The Republic of the Union of Myanmar, Ministry of Mines, Department of Mines brochure.

Ministry of Mines website, http://www.mining.gov.mm. Accessed June, 2014

Myanmar Gems and Jewellery Entrepreneurs Association, http://www.mgjea.org. June, 2014

Ministry of Mines, Department of Mines brochure, Organization Chart of the Ministry, Legal Framework, Investment Information, Procedures for the Foreign Investment in Mining Sector.

Myanmar Foreign Investment Law promulgated on 30th November 1988 and 2nd November 2012.

႕ 164

Republic of the Union of Myanmar Procurement Assessment Report, the Electric Power Sector (Ministry of Electric Power and Ministry of Energy), The World Bank, 2013.

International Development Association Project Appraisal Document on a Proposed Credit to the Republic of the Union of Myanmar for a Modernization of Public Finance Management Project, the World Bank, February 2014.

US Energy Information Administration (EIA), Country Analysis Note, Myanmar website. Last visited June 14, 2014.

The Republic of the Union of Myanmar, Ministry of Mines, 11th International Conference on Mining at Chiang Mai Session “ L w” v 0 Z w

Chandler & Thong- L w L “ y & ” st 2013.

v y “ w y L w & v ” y -General, 2013.

y “ ” 0

Ministry of National Planning and Economic Development, Directorate of Investment and Company Administration, website.

y y ’ J y 0

European Union with the support from the Int “ v Cooperation Instrument, Strengthening Policy Development to meet MDGs in Burma/Myanmar, Environmental and Land Component, The Extractive Industries Transparency Initiative (EITI) Options Study, MEITI Guidebook (Draft Version), October, 2013.

v v “ y ” 2012.

v y v “ y ’ q w y w ” y Dyveke Rogan, 31 March 2014. EITI website.

“ y ”

The State Law and Order Restoration Council The Myanmar Mines Law (The State Law and Order Restoration Council Law No 8/94) The 2nd Waxing Day of Tawthalin, 1356 M.E. (6th September, 1994).

The Government of the Union of Myanmar, Ministry of Mines, The Myanmar Mines Rules, The 5th, Waning day of Nat taw 1358 M.E ( 30th, December, 1996 ).

The Government of the Unio y y “ v y ” w presentation, Presented by U Kyaw Thet Director of Department of Mines, June 2012.

v y y “ y L w ” w presentation, Presented by U Kyaw Thet Director of Department of Mines.

Ministry of Energy, 2011-2012 Oil and Gas Companies Information, excel file 2011.

႕ 165

၆ The EITI 2013 Standard, EITI International Secretariat July 2013.

Myanmar Ministry of Energy website, http://www.energy.gov.mm. June 2014.

Myanmar Gems & Jewellery Entrepreneurs Association brochure.

0 y ’ y y evelopment Research Institute (MDRI), May 2014.

Extractive Industries Transparency Initiative, Checklist for EITI Scoping & Feasibility Studies.

“ y y 0

Myanmar Gems and Jewellery Entrepreneurs Association, http://www.mgjea.org. June 2014

Ministry of Mines website, http://www.mining.gov.mm. June, 2014

PWC, Myanmar Business Guide, February 2014

Ministry of Mines, Department of Mines brochure, Organization Chart of the Ministry, Legal Framework, Investment Information, Procedures for the Foreign Investment in Mining Sector.

Ministry of Energy, Standard terms and Conditions of Production Sharing Contract for Offshore Blocks as of 09-07-2012.

Ministry of Energy, Standard terms and Conditions of Production Sharing Contract for Deep Water Blocks as of 09-07-2012.

Ministry of Energy, Standard terms and Conditions of Production Sharing Contract for Onshore Blocks as of 09-07-2012.

Standard Terms and Conditions of Improved Petroleum Recovery Contract for Onshore Blocks.

Production Sharing Contract between MOGE and Total Myanmar Exploration and Production (Yadana Project), January 1992.

Model Production Sharing Contract

Total Oil and Gas website, Burma-live-from-Yadana. Last visited on 22nd of May, 2014.

Production Sharing Contract for Appraisal, Development and Production of Petroleum in the Moattama area between Myanma Oil and Gas Enterprise and Total Myanmar Exploration and Production, 1992.

Ernst & Young, 2014 Worldwide Corporate Tax Guide Myanmar.

Ministry of Finance (MoF), Internal Revenue Department, Commercial Tax Law, 1990 (2011 updated), MoF webpage.

Ernst & Y “ y - y ” v 0

y “L - ” y -25, 2014.

y “J w w L w” 0 0 w ite.

IFRS Jurisdiction profile: Myanmar, last updated 5 June 2013.

v “ y y ” 0

႕ 166

y y y “ V tor in y ” w y w y y nd JCCP International Symposium, January 2014.

၇ w v ’ w 00 High and Dry: the cross- y ’ L j ” y “ w -torn Shan ” w v J y 00

Shan Sapawa Environmental Organisation. 2006. Warning Signs: An w ’ Shan State, 2006

Asian Development Bank Myanmar - Energy Sector Initial Assessment

Myanmar National Energy Policy 2013

Ledec and Quintero. 2003. Good Dams and Bad Dams: Environmental Criteria for Site Selection of Hydroelectric Projects Sustainable Hydropower – Information and Communication on Good Practice. Hydro Tasmania

၈ Asian Development Bank, 2012. Core Environmental Programme, ADB Thailand Regional Office.

Asian Development Bank, 2012. Myanmar in Transition.

Asian Times. Land Grabbing As Big Business in Myanmar, March 2012

v 0 ’ v J 0 www.bewg.org

Constitution of the Union of Myanmar, 2008, Republic of the Union of Myanmar.

Environment Conservation Law, 2012. Republic of the Union of Myanmar.

Environmental Conservation Rules, 2012. Republic of the Union of Myanmar

Environmental Impact Assessment Procedure, 2013. Republic of the Union of Myanmar, Dec., 2013

FESR-2012. Framework for Economic and Social Reforms, Republic of the Union of Myanmar

Foreign Investment Law, 2013. Republic of the Union of Myanmar.

Foreign Investment Rules, 2013. Republic for the Union of Myanmar.

Human Rights Watch. 2012. World Report Burma Chapter

International Labour Organisation. ILO in Myanmar, 2013. www.ilo.org

Invest in Myanmar. 2013, The Myanmar Investment Guide. www.investinmyanmar.org.

International Rivers. 2011. Environmental Impact Assessment of the Myitsone Dam. www. Internationalrivers.org

႕ 167

Irawwaddy, The. Maday Deep-Sea Port No Boon to Locals, March, 2011

Kachin Development Networking Group. 2007. Gold Mining and ’ w V y

Mines and Communities: Various Articles Relating to Community Issues in Myanmar regarding Negative Impacts of Mining. www.minesandcommunities.org

Mines Law, 1994. Republic of the Union of Myanmar

Myanmar Times, The. Failing Land Policy in Burma, November 2012

Pa-O Youth Movement. 2009. Robbing the Future.

PRI, Radio. 2013. Labour Laws Strengthened in Myanmar, but Workers Still Struggle, September 2013

Shwe Gas Movement. 2013. Drawing the Line – The Case Against China’ w j

UNESCO, 2013. Country Programming Document for Myanmar, 2013-2015, United Nations Educational, Scientific and Cultural Organisation, Bangkok UNESCO office.

World Bank Group, 2012. Human Development Indicators for Myanmar. data.worldbank.org/country/myanmar

႕ 168

၂

No. Organization Region/State Township Mineral Type 1 Myanmar Porcelain & Earthenware Enterprise Ayeyarwady Kyankin Limestone (industrial raw) 2 Myanmar Porcelain & Earthenware Enterprise Ayeyarwady Kyankin Limestone (industrial raw) 3 Myanmar Porcelain & Earthenware Enterprise Ayeyarwady Ngapudaw Glass Sand 4 Ayarwaddy Myit Phyar Co. Ltd Kachin Moe Mauk 5 Htoo International Industry Group Co., Ltd. Kachin Wai Maw Iron Ore 6 San Linn International Export, Import Co.Ltd Kachin Wai Maw Limestone (Industry) 7 Kayah State Mining Co. Ltd Kayah Hpasaung Tin + tungsten 8 Mayflower Mining Enterprise Ltd. Kayin Myawadi Zinc 9 Myanmar Economic Cooperation Kayin Hpa-an Limestone(Industrial Raw Material)

10 No.(1) Cement Factory (Myaing Kalay) Kayin Hpa-an Iron Ore 11 No.(1) Cement Factory (Myaing Kalay) Kayin Hpa-an Clay 12 No.(1) Cement Factory (Myaing Kalay) Kayin Hpa-an Clay 13 Tha Byu Mining Co. Ltd Kayin Kya-In-Seik-Kyi Antimony 14 Silver Lion Mining Co. Ltd. Kayin Hpa-an Granite 15 United Cement Co. Ltd Kayin Hpa-an Limestone(Industrial Raw Material) 16 Mayflower Mining Enterprise Ltd. Kayin Kya-In-Seik-Kyi Coal 17 Mayflower Mining Enterprise Ltd. Kayin Kya-In-Seik-Kyi Coal 18 Mayflower Mining Enterprise Ltd. Kayin Kya-In-Seik-Kyi Coal 19 Myanmar Porcelain & Earthenware Enterprise Magway Thayat Limestone(Industrial raw) 20 No (3) Heavy Industries Enterprise Mandalay Mattaya Marble 21 No (3) Heavy Industries Enterprise Mandalay Myitthar Marble 22 No (3) Heavy Industries Enterprise Mandalay Kyaukse Marble 23 Myanmar Golden Point Family Co. Ltd. Mandalay Patheingyi Gold

႕ 169

No. Organization Region/State Township Mineral Type 24 Union of Myanmar Economic Holdings Ltd. Mandalay Kyaukse Limestone 25 No(3) Heavy Industries Enterprise Mandalay Kyaukse Limestone 26 No(3) Heavy Industries Enterprise Mandalay Myitthar Seldspar 27 Myanmar Economic Cooperation Mandalay Mattaya Marble 28 U Taw Taw and Sons Co. Ltd Mandalay Mattaya Marble 29 No(3) Heavy Industries Enterprise Mandalay Pyin Oo Lwin Bauxite 30 No(3) Heavy Industries Enterprise Mandalay Thazi Seldspar 31 No(3) Heavy Industries Enterprise Mandalay Kyaukse Iron Ore 32 No(3) Heavy Industries Enterprise Mandalay Thazi Seldspar 33 Union of Myanmar Economic Holdings Ltd. Mandalay Sint Gaing Granite 34 UE Export and Import Co.Ltd. Mandalay Kyaukse Limstone 35 Max Myanmar Mandalay Lewe Limestone 36 Htoo International Industry Group Co., Ltd. Mandalay Thazi Limestone 37 Myanmar Naing Group Co. Ltd. Mandalay Thazi Limestone 38 Madalay Cement Industries Co. Ltd. Mandalay Kyaukse Limestone 39 Shwe Taung Mining Com.Ltd Mandalay Thazi Limestone 40 Myanmar Naing Group Co. Ltd. Mandalay Kyaukse Limestone 41 Triple A Cement International Co. Ltd. Mandalay Kyaukse Limestone 42 Green Asia LTD Mandalay Thazi Limestone 43 Tet Lu Investment Group Industry Company Mandalay Sint Gaing Limestone 44 Tet Lu Investment Group Industry Company Mandalay Thazi Limestone 45 Tet Lu Investment Group Industry Company Mandalay Thazi Limestone 46 Tet Lu Investment Group Industry Company Mandalay Thazi Limestone 47 Tet Lu Investment Group Industry Company Mandalay Thazi Limestone 48 Tet Lu Investment Group Industry Company Mandalay Thazi Limestone 49 Directorate of Defence Industries Mandalay Pyin Oo Lwin Iron Ore 50 Directorate of Defence Industries Mandalay Patheingyi Limestone 51 No(3) Heavy Industries Enterprise Mandalay Kyaukse Glass Sand

႕ 170

No. Organization Region/State Township Mineral Type 52 No(3) Heavy Industries Enterprise Mandalay Kyaukse Limestone 53 NayPyitaw City Development Committee Mandalay Lewe Limestone 54 Good Brothers Missionary Company Mandalay Pyin Oo Lwin Limestone 55 Triple A Cement International Co. Ltd. Mandalay Kyaukse Limestone

56 Edin Energy and Natural Resources Development Co. Mandalay Pyin Oo Lwin Barytes

57 Edin Energy and Natural Resources Development Co. Mandalay Pyin Oo Lwin Barytes

58 Edin Energy and Natural Resources Development Co. Mandalay Pyin Oo Lwin Barytes

59 Myanmar National Prosperity Public Co. Ltd Mandalay Yamethin Gold 60 Shwe Moe Yan Co. Ltd Mandalay Yamethin Gold 61 No(1) Heavy Industries Enterprise Mandalay Thazi Limestone 62 Mandalay Cement Industries Co. Ltd. Mandalay Kyaukse Limestone 63 Shwe Pauk Pauk Mining Co. Ltd. Mandalay Thazi Coal 64 Shwe Pauk Pauk Mining Co. Ltd. Mandalay Thazi Coal 65 Union of Myanmar Economic Holdings Ltd. Mon Bee Linn Granite (Decoration) 66 Union of Myanmar Economic Holdings Ltd. Mon Bee Linn Granite (Decoration) 67 Union of Myanmar Economic Holdings Ltd. Mon Kyaikhto Granite (Decoration)

68 Myanma Swan Pakar Industrial Company Mon Kyaik Mayaw Limestone (Industrial Raw Material)

69 Zon Industrial and Production Ltd (?) Mon Kyaik Mayaw Limstone (Industrial Raw Material)

70 Pacific Link Cement Industry Ltd. Mon Kyaik Mayaw Limestone (Industrial Raw Material)

71 Farmer Pho Yarzar Mining Co. Ltd. Mon Kyaik Mayaw Limestone (Industrial Raw Material)

72 Max Myanmar Co. Ltd. Naypyidaw Lewe Limestone(Industry) 73 Naypyidaw Development Committee Naypyidaw Lewe Limestone(Industry)

႕ 171

No. Organization Region/State Township Mineral Type 74 SumcoSong Da Joint Stock Company Rakhine Taung Koke Marble 75 Union of Myanmar Economic Holdings Ltd. Sagaing Sar Lin Gyi Copper 76 Htoo International Industry Group Co., Ltd. Sagaing Kalaywa Coal 77 Tun Twin Mining Co. Ltd. Sagaing Kalaywa Coal 78 Union of Myanmar Economic Holdings Ltd. Sagaing Kalaywa Coal 79 Asia World Industries and Mining Co. Ltd Sagaing Maw lite Coal 80 Yangon City Development Committee Sagaing Maw Lite Coal 81 Union of Myanmar Economic Holdings Ltd. Sagaing Sar Lin Gyi Copper Mineral 82 Myanmar CNMC Nickel Co,LTD Mandalay/Sagaing Thabeikkyin/Htee Chike Nickel 83 Dagon Mining Co. Ltd Sagaing Maw Lite Coal 84 Shwe Taung Mining Co. Ltd. Sagaing Kalaywa Coal 85 Lay Oo Group Mining Co. Ltd. Sagaing Maw lite Coal 86 Max Myanmar Co. Ltd. Sagaing Kalaywa Coal 87 Htoo International Industry Group Co., Ltd. Sagaing Kalaywa Coal 88 Tet Lu Investment Group Industry Company Sagaing Maw Lite Coal 89 Asia World Industries and Mining Co. Ltd Sagaing Maw Lite Coal 90 Mandalay Distribution and Mining Co. Ltd Sagaing Maw lite Coal 91 Asia Phyo Mining Co. Ltd Sagaing Kanbalu Limestone 92 Htarwara Mining Company Sagaing Kawlin Gold 93 Myanmar Economic Cooperation Shan (East) Mongsat Coal 94 Triple A Cement International Company Ltd Shan (North) Thi Paw Coal 95 Myanmar Economic Corporation Shan (North) Lashio Gypsum 96 UE Export Import Company Ltd Shan (North) Thi Paw Coal 97 Win Myint Mo Industry Company Ltd Shan (North) Namatu and Lashio Lead-Zinc Mixed Mineral 98 Linn Pyae Mining Company Ltd Shan (North) Naung Cho Lead-Zinc Mixed Mineral 99 Ngwe Yi Pa Le' Mining Company Shan (North) Thi Paw Coal

100 Asein Yaung Byuu Har Mining Company Shan (North) Namn Kham/Kut Khaing Quartz 101 Tet Lu Investment Group Industry Company Shan (North) Naung Cho Iron Rich Bauxite

႕ 172

No. Organization Region/State Township Mineral Type 102 Mine Htet Company Shan (North) Tant Yan Coal 103 Mine Htet Company Shan (North) Lashio Coal 104 Padamya Ooyin Mining Company Shan (North) Lashio Coal 105 Ngwe Yi Pa Le' Mining Company Shan (North) Kyauk Mae Iron Rich Bauxite 106 Ngwe Yi Pa Le' Mining Company Shan (North) Naung Cho Limestone (Industry) 107 Ngwe Yi Pa Le' Mining Company Shan (North) Tant Yan Coal 108 Ngwe Yi Pa Le' Mining Company Shan (North) Thi Paw Gypsum 109 Ngwe Yi Pa Le' Mining Company Shan (North) Lashio Coal 110 Defense Industry Shan (North) Lashio Coal 111 First Resource Co. Ltd Shan (North) Thi Paw Gypsum 112 Htun Khwe Paw Industrial Company Shan (North) Kyauk Mae Coal 113 Dragon Cement Co., Ltd. Shan (South) Panglong Industrial Limestone 114 Cornerstone Resources (Myanmar) Ltd. Shan (South) Mine Pon zinc 115 Shan Yoma Nagar Co., Ltd. Shan (South) Panglong Coal 116 No (3) Heavy Industries Enterprise Shan (South) Mauk Mai Gypsum 117 Lay Oo Group Mining Co. Ltd. Shan (South) Ywangan Coal 118 Top Ten Star Production Co. Ltd. Shan (South) Kalaw Lead Enriching 119 Ngwe Yi Pa Le' Mining Company Shan (South) Yat Sauk Coal

120 KBZ Industries Ltd. Shan (South) Taunggyi Industrial Limestone 121 San Pya Industry Co., Ltd. Shan (South) Ywangan Barytes 122 Asia World Co. Ltd Shan (South) Kalaw Gold 123 GPS Joint Venture Shan (South) Kalaw Lead mixture 124 Dragon Cement Co., Ltd Shan (South) Nam Sam Coal 125 Myanmar Economic Corporation Tanintharyi Tanintharyi Coal 126 Myanmar Pongpipat Company Tanintharyi Dawei Tin + Tungsten 127 Myanma Tin - Tungsten Company Tanintharyi Tanyintharyi Tin + Tungsten 128 Ngwe Kabar Myanmar Company Ltd Tanintharyi Pa Law Tin + Tungsten

႕ 173

No. Organization Region/State Township Mineral Type 129 ANA Tanintharyi Ye Phyu Tin + Tungsten 130 Myanmar Porceline & Earthenware Enterprise Tanintharyi Bote Pyin Maganese 131 Ngwe Tun Taut Company Tanintharyi Dawei Tin + Tungsten 132 Production Development Creating Limited (?) Tanintharyi Ye Phyu Tin + Tungsten 133 Mayflower Mining Enterprise Ltd. Tanintharyi Dawei Coal 134 Mayflower Mining Enterprise Ltd. Tanintharyi Dawei Coal 135 Mayflower Mining Enterprise Ltd. Tanintharyi Dawei Coal 136 Than Phyo Thu Mining Co. Ltd Tanintharyi Bokpyin Coal 137 Mayflower Mining Enterprise Ltd. Tanintharyi Dawei Coal 138 Mayflower Mining Enterprise Ltd. Tanintharyi Hta Wei Coal 139 Mayflower Mining Enterprise Ltd. Tanintharyi Dawei Coal 140 Sein Nga Man Mining Company Ltd. Tanintharyi Tanyintharyi Tin + Tungsten 141 Ngwe Kabar Myanmar Company Ltd Tanintharyi Kyun Su Tin + Tungsten 142 24 Hour Mining Co. Ltd. Tanintharyi Tanyintharyi Limestone

႕ 174

၃

Terms of Reference Institutional and regulatory assessment of the extractive industries in Myanmar

January, 2014

Analytical Context Studies have shown that when governance is good natural resources can be an important engine for growth and sustainable development. On the other hand, when governance is poor, countries dependent on these resources are disproportionately susceptible to poverty, corruption and conflict. For countries with extractive industries, a central developmental challenge is how to turn the resource curse into a resource blessing. Broad agreement exists on the appropriate macroeconomic and technical policies and institutional mechanisms to put in place to manage the resource paradox successfully. But it is also recognized that the key determinants of success for countries rich in extractive industries are the overall governance framework and the political economy of rent extraction and natural resource management. The Extractive Industries Transparency Initiative (EITI) is a global reporting standard which promotes greater transparency and accountability in extractive industries through reporting of government revenue collection, analysis of industry structures and facilitation of stakeholder consultation. Thirty-nine countries are members of EITI, of these 23 are fully compliant while 16 are candidate countries. Initiated in 2001, EITI has grown in reach and importance as a measure for improving extractive industries governance and helping countries manage the resource paradox. Several developed economies, including Australia, Germany, and the US are piloting or working toward EITI candidacy. In 2013 the reporting requirements were expanded. y ’ In less than two years, Myanmar has undergone unprecedented political and economic reforms. Elections were held in December 2010 and a mostly civilian government took office in March 2011. The new Government has embarked on a range of political and economic reforms aimed at attaining national reconciliation, improving political and economic governance, re-integration of Myanmar with the global economy, and economic development. Key reforms include agreements with non-state armed opposition groups, release of political prisoners, free by-elections, the first ever open parliamentary discussions of the budget, near elimination of the previously very stringent controls on

႕ 175

media and public expression, and a general push for enhanced transparency and accountability of government. These changes are dramatic but there is much to be done. Myanmar has suffered from decades of authoritarian military rule, the longest running civil wars in the world, entrenched rural poverty, and mistrustful state – society relations. The country has among the worst social indicators in Asia, GDP per capita is between $800 and $1,000, and perceptions of corruption surveys rank the country as the second most corrupt in the world. The reform is still fragile and has yet to translate into improved well-being for citizens, amid high expectations. Improved economic governance will play an essential role in securing the success of the reform process, credibility for the government, and translating reform into socio-economic gains for the j y y ’ w including oil, gas, mining, and gemstones. Currently these sectors officially account for an estimated 35% of total exports, most of which attributed to gas. With the commencement of new gas operations during 2013, the contribution from extractives to total export is expected to exceed 50%. This does not account for large, unreported earnings from the gem trade. Current off-shore gas production is estimated at 1,200 million cubic feet (MCF) per day, of which 900 MCF is exported. Central Statistical Office reported total sales figures in an amount of US$ 3.5 billion in 2011-12. 2013 is expected to see new gas fields coming into production at a rate of 800 MCF per day. The bulk of earnings come from the Yadana and Yetagun off-shore gas fields which export gas directly to Thailand. A newly constructed gas and crude oil pipeline from near Sittwe to Yunnan was inaugurated in July, 2013, to export gas from the Shwe fields. All operations are guided by standard Production Sharing Contracts in which government revenue is to be collected from (a) sign-on bonus, (b) royalty, (c) production split, and (d) taxes. These contracts are managed by Myanmar Oil and Gas Enterprises, a state owned company. Gemstone sales are considered to be the second-most important revenue stream for government although exact figures are not available. Presently, mining activities are conducted in a limited scale with reported export figures in 2011-12 of some US$ 70 million. Notwithstanding, the number of operators is large with an estimated 2,500 gemstone licenses plus an additional 1,500 active mining licenses. At the same time, investor interest indicates that a strong surge in activity can be expected over the coming years.

႕ 176

Although an important source of government revenue, impacts from the extractive sector on the local economy are less notable since employment creation in the industry is limited and supply of oil and gas for the domestic market does not meet the actual and potential demand (e.g. national electrification rate is less than 25%). Further, oil, gas, and mining have been frequently subject of allegations of lack of transparency and accountability, due to the lack of publicly available information about contracting arrangements, payments made by companies, volumes of revenues received, and destination of revenues and extent to which revenues are included in budget. In addition, joint venture companies owned by the Myanmar military have participating interests, y y y y ’ es are concentrated in y w ’ v w v fuelled generations of conflict. Government Commitment In December 2012, the Myanmar Government announced its intention to implement the EITI. This constitutes a welcome step in improving governance in Myanmar. Not only will compliance with EITI provide an unprecedented level of transparency with regard to revenues, it will provide a platform for discussion of larger policy goals with regard to accountable development of mineral and hydrocarbon resources and the use of the revenues earned from their extraction. As investment increases and mineral and hydrocarbon exploitation rises, it is of great importance that the extractive industries in Myanmar are subject to an accounting process which transparently records the licensing procedures and reports the flow of funds from companies to central or local authorities. Such a system would v y ’ v collection, support the national dialogue on development of natural resources, and enhance the credibility of the reform process. Since the public announcement, there has been substantial progress toward EITI candidacy, and the President and leading Cabinet ministers continue to make strong statements of support the EITI. A cabinet-level Leading Authority has been established to oversee the implementation of the EITI, ’ ead L y ’ y Finance and Revenue, (iii) the Ministry of Energy, (iv) the Ministry of Mines, and (v) the Ministry of Environmental Conservation and Forestry. The Center for Economic and Social Development under Myanmar Development Resources Institute (MDRI-CESD) was asked by the President to take on the role as Coordinator to implement all the necessary tasks required to form the MSG and accomplish other EITI-related objectives. MDRI-CESD has established a Myanmar EITI office and appointed/recruited an EITI team. Capacity and knowledge of EITI within the MDRI team has

႕ 177

deepened significantly. MDRI has undertaken a continuous stream of meetings, formal and informal, with Government, civil society, and operators in order to build awareness, maintain support, and complete the steps necessary for Myanmar to become a candidate. In addition civil society, with support from Pyoe Bin and Revenue Watch Institute, has undertaken a wide range of outreach and w v v y ’ y v media. It is anticipated that the MSG will hold its first meeting in early January2014. Civil society has created a representative national structure for the purposes of selecting MSG representatives. In July 2013 Government appointed a Working Committee of high level officials to progress EITI candidacy and it is anticipated that this will form the basis of Government representation on the MSG. The Working w y ’ Deputy Minister of Finance, Dr. U Maung Maung Thein is chair of the Working Committee. Operators have selected their representatives to the MSG. Work has started on a TOR for the MSG. It is anticipated that Myanmar will prepare its candidacy application to target the March or June 2014 EITI Board meeting, and that the October Board meeting will be held in Myanmar. The World Bank, together with DfID, is the lead source of international support to EITI in Myanmar, providing advice on task planning, sequencing, and technical matters to MDRI, as well as coordinating overall donor support to EITI through informal monthly donor meetings. With funding from DfID, the World Bank is also recruiting high-level technical expertise to carry out a series of studies, including Scoping Study, Legal Review, and technical training. Purpose of the Assignment It is proposed to conduct an institutional and regulatory analysis of the extractive industries in Myanmar including hydrocarbon, mining, gemstone and hydropower. The outcome of the study is expected to be an improved understanding of the political economy context and the value chain of moving mineral deposits to the market, including the various drivers that stand to influence EITI implementation and extractive sector governance in general. The analysis will be designed and conducted jointly with MDRI and draw on a recent political economy analysis conducted by the Pyoe Bin, a civil society strengthening project funded by DfID. The output will be a report.

1. Scope of work The consultant will undertake a political economy analysis, focused particularly on institutional and regulatory v y “ v

႕ 178

V ” y y y w v “ - ” y full scoping study once the MSG has been established and taken decisions on the scope of EITI in Myanmar, based on the Options Study. The EI value chain is focusing on:

1. Transparent, non-discretionary award of extractive contracts, including assessment of land issues related to extractive contracts;

2. Good practices in legal, contractual, regulatory, and institutional frameworks, including continuous capacity building for monitoring and regulatory compliance;

3. Sound and fair fiscal practices for the collection of taxes and royalties, including adequate administrative and audit capacity, internationally accepted accounting and reporting standards, and regular public reporting;

4. Fair and transparent allocation of revenue, including a macro/fiscal framework adapted to volatile and finite resources and a transparent savings mechanism;

5. Sustainable policies to safeguard the environment and maintain social priorities in the development of mineral resources to ensure they were used for the public good.

. The study will focus on institutional structures, revenue flows and reporting, award of licenses, monitoring of operations, redress and grievance mechanisms, domestic operators and ownership structures, informal as well as formal trade in gems and minerals, regulatory structures among non-state armed groups, and interactions of operators, government, and civil society. The study will encompass hydrocarbons, minerals, gems, and hydropower as the areas proposed for EITI in Myanmar, and will look at the oper y ’ w y L MEC together with other domestic operators. For each area the consultant will provide an institutional and a stakeholder analysis as well as identifying the entry points and the existing reform space for an effective and fair revenue management of the sector. The consultant will work under the guidance of the World Bank task team and the MDRI EITI team.

႕ 179

The consultant(s) specifically will examine:

Baseline description of hydrocarbons, minerals, gems, and hydro-power sectors, with reference to approximate number of operators/license holders and planned operations. This will also document what the ownership structures are for operations in different sectors.

Institutional analysis for each of the three industries – this include the formal regulatory, v w v ; ‘ ’ w regulations, institutional mandates) and informal (social norms, de facto practices), that shape the behaviour, interactions, incentive and power of the stakeholders in the sector. The analyses must consider award (and suspension) of licenses, negotiation and approval of contracts, monitoring and oversight of operations, tax administration, and community/ public relations.

The institutional analysis will document the decision-making, both official and de facto, for each sub-sector and regulatory functions. What are the official procedures? Are they clear and known from the different stakeholders? Is there a clear chain of responsibility between the different public institutions? Who benefits from discretionary powers? How has sector governance changed since the start of the reform process in 2011? In this regard the assessment will also document ownership structures of both private sector operators and related SEEs, such as Myanmar Oil and Gas Enterprises and the SEEs under the Ministry of Mines. The assessment should also look institutional capacities and gap analysis in light of an expected rapid increase in investor interest and sector operations.

Revenue flow – how do payments of taxes, fees, royalties, and production shares move from operators to the Ministry of Finance/Treasury. This will include a review of contract arrangements, identify major points of leakage or underpayment and who benefits from these, and identify which payments stay within relevant ministries, authorized under which legal frameworks.

Provide an overview of MEC and UMEHL . These are military-owned holding companies, but treated as private enterprises by Government. This overview will include the scope of their investments in the extractive sectors, decision-making, governance structures, use of revenues (i.e. military pension funds), and accountabilities. Analysis will also include assessment of links formal and informal between companies, Ministry of Defense, and key decision-makers . Analysis of role of Ministry of Finance. Parliament, and the Office of the Auditor General and the Accountant General, with respect to the audit function. The study will look at existing capacities for tax administration and revenue collection. Moreover, the Consultant must assess

႕ 180

the performance of audit, by whom, how frequently, and how used. The study will also examine the role of Parliamentary committees in providing oversight for extractive sectors and also interaction of voters, members of Parliament and state politicians vis-à-vis extractive sector, including the increasing demand for constituency services.

Analysis will encompass the findings of the recent political economy study conducted by Pyoe Bin and discuss how the interests, views, and pressures brought to the EITI process by civil society will interact with those of other stakeholders. Review governance and regulatory arrangements at sub-national level and in the conflict affected areas. This will also include examining institutional, legal, and constitutional issues which may affect EITI and extractive industries at the sub-national level. It will further include how non-state armed groups have licensed, taxed, or overseen extractive industries, largely but not exclusively mining. At a minimum this should look at how two groups, preferably including the Kachin Independence Organization h interact with the extractive operations. This portion of the study should be well-coordinated with the conflict analysis conducted by MDRI in conjunction with International Alert.

Based on the above, the consultants will provide an analysis of implications for EITI and selected entry points for improved governance in the extractive sectors. This analysis will also include a review of how EITI fits into and strengthens the overall reform agenda. The analysis will assess whether institutional structures and regulatory agencies are in possession of sufficient capacity and information to answer the needs and questions of the EITI. The analysis should also consider prevailing incentive structures (formal and informal) in order to assess whether regulation and requirements are likely to be implemented. The consultant will take into account the potential political opposition related to each entry points, and include strategies for (i) navigating stakeholder opposition and shaping political constituencies of support; (ii) addressing the challenges associated with weak institutional capacity, and (iii) enhancing the participation of non-government stakeholders. The consultant will work closely with the World Bank task team and MDRI in developing methodology and carrying out study. In addition to the analysis and study report, the consultant must conduct two one-day seminars targeted the members of the National EITI Committee (and possibly other representatives with strong engagement in the Myanmar EITI). The agenda of the seminars will be agreed in consultation with MDRI and representatives from the EITI Committee. Topics to be covered may include: 1) Natural Resource Management, 2) Fundamentals of the EITI, 3) Regional and international

႕ 181

experience of implementing the EITI, 4) Case stories of outcomes from EITI implementation, 5) Good practice of EITI communication strategies. The dates of the seminars will agreed as part of the initial planning, but tentative timing would be for the first seminar to take place as part of the first country visit, whilst the second would be conducted immediately before or after the workshop presenting the final report.

1. Methodology TBD in consultant technical proposal.

2. Skills and Experience Required The assignment will be undertaken by a team of specialists which comprise the following areas of expertise and experience:

Oil and gas sector expertise Mining sector expertise Hydropower sector expertise Advanced (masters) degree in political science, public policy or equivalent and not less than 8

years of proven experience in political economy analysis in natural resource-rich developing countries.

Extensive knowledge of relevant political economy literature with particular relevance to the political/institutional setting, legal, fiscal regimes, revenue management and governance in extractive resource-rich developing countries.

Proven knowledge of Myanmar, preferably with previous experience of political economy analysis

Strong knowledge and, experience, and network in extractive industries and preferably the EITI.

Ability to synthesize and organize complex information from various written and oral sources into a comprehensive, policy oriented document.

Understanding and commitment to ensure that the recommendations are operationally driven and meet the needs of EITI implementation and improved extractive industry governance in Myanmar.

Strong interpersonal and diplomatic skills, as well as proven ability to communicate orally and in writing effectively and credibly with senior government officials in developing countries.

Excellent written and spoken English are required.

႕ 182

3. Organization of work and Bank supervision .

4. The contract will be administered directly by the World Bank, but will be carried out together with MDRI. The location w ’ premises of MDRI-CESD in Yangon with travel to Naypyitaw, as deemed necessary. The Consultant will provide updates and report to MDRI-CESD with copies to the World Bank and DFID, which may be shared with other development partners supporting EITI in Myanmar.

Deliverables and Timing

First draft to be completed by – TBD Full-day workshop presenting draft final report by TBD Final report is to be available by TBD

5. Payment Schedule (covering fees and expenses)

10% upon signing contract 40% upon receiving the first draft report 50% upon completion

႕ 183

၂ ၈

႕ 184

၅ 91

Mineral Occurrences/deposits Total Reserves (P2-P4) – Millions

Tonnes

Columbine Tantalite 5 0.0036

Coal 495 491.84

Gemstones 68 1.25

Copper 115 1997.3

Feldspar 24 0.865

Antimony 132 1.0

Chromite 43 0.08

Lead 291 44.09

Graphite 35 2.62

Tin/Tungsten 483 39.39/0.14

Gypsum 37 35.99

Zircon sand 11 31.48

Limestone 452 58818

Dolomite 41 37

Nickel 10 162.86

Fluorite 19 0.006

Phosphate rock 17 10.88

Baryte 72 1.70

Bauxite 26 274.9

Porzolan 6 651

Molybdenum 19 0.025

Manganese 52 10.9

91 Data from the Department of Geological Survey and Mineral Exploration, March 2012

႕ 185

Mineral Occurrences/deposits Total Reserves (P2-P4) – Millions

Tonnes

Kaolin 67 36.97

Bentonite 22 24.1

Glass Sand 39 131.14

Gold 341 66.11 (primary) 1240.2 (alluvial)

Platinum 19 32.52

Mica 30 0.0036

Quartz 47 83.05

Iron 393 495.42

Zinc 29 19.95

Heavy Mineral 14 0.026

Decorative Stone 93 52924

႕ 186

၆

႕ 187

႕ 188

၇

႕ 189

႕ 190

႕ 191

႕ 192

႕ 193

႕ 194

႕ 195

၈ ႕

႕ ၂ ၂ ၃ ႕ “ w ’ - ” “ w L ’ w j v ” ႕ ႕ “ v v y J 0 ”

႕

႕ ႕ ႕ -

“ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ”

႕ 196

႕ ႕ ႕

၂ ၃

“ ႕ ႕ ႕ ” 92

၂ ႕ ႕ ႕ ES ႕ ႕

႕ ႕

႕

႕

႕ ႕ ႕ ႕ ႕

92 Drawing the Line, p2.

႕ 197

႕ ႕ ႕ ႕ ႕ ၂ ၂ ၂ ၈ ၉ ၆ ႕

႕ ၈၃ ႕ ႕ ႕ ႕ (၂ L ႕ ႕ ႕ L (၂ ၃ ႕ ၅, ႕ ႕ ႕ ႕

႕ 198

႕ ႕ (၆) ႕ (၅ ) “ ႕ ” ႕ ( )

“ ႕ ႕ ႕ ” 93

႕ ႕ ( ) ႕ (၅၅ ) ႕ ႕ ႕ ( ႕ ႕ ES L ႕ L ႕

93 Pipeline Nightmare, page 6

႕ 199

႕ ႕

႕ ႕ ၂ ၆ ၂ ၉ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ႕ ၅၆ ၂ ၆ ႕ ၆ ၇ ၃

၉၅ ၉၆

, ၇ ႕ ႕ ၂၅ ၉၉

႕ ႕ ႕ ၈ ႕ ၂ ၆၅ -

- y z -

-

-

- ႕

- & -

y z ၅ ႕ ၆

(၅) (၅) ႕ ႕ ႕

႕ 200

႕ ႕ ႕ ႕ 94

၃၅ ႕ ႕ ႕ ႕

႕ ႕

၂ ၇ ႕ ႕ ႕

၂ ၂ ၆ ႕

၉၉ ႕ ၂ ၂ ၈ ၉၉ ၂ ၆ ၃

႕

႕ ႕

94 Robbing the Future p15.

႕ 201

95

႑ ၃၅-၅ ႕

႕ ႕ ၉၉ ၉၉၅ ႕ ES ႕ ႕ ၈ ႕

႕

႕ ႕ 96 Total v ႕

95 Valley of Darkness, page 15.

96 http://www.earthrights.org/campaigns/burma-project

႕ 202

၉ ႑ ႕

၂ ၃ (၂ ၃ ၈၃ ၃ ႕ ,၉၃ ,၆၅၅ ,၅၅၂ ,၃ ၅

-

၂ ၅ ၃ ၅ ၃ )

၈၆ )

၅၂၅ )

၂၃ )

၅ )

၆

၅ )

24) ႑ ၂ ၃

Fuel Installed capacity (MW)

Firm capacity (MW) Energy (GWh)

Hydropower 2,780 986 13,872

Coal 120 27 600

Gas- MOEP 715 427 3,946

Gas- BOT 216.5 215 1,457

Totals 3,831.50 1,655 19,875

႕ 203

35) (from the ADB Energy Sector Initial Assessment Report, 2012)

႕ 204

႑ ၂ ႕ ႕ ၃

႕

႑ ႕

၂

႕ 205