The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development...

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Renewable Energy Roundtable 12 July 2017 Daw Thuzar Khin Nay Pyi Taw, Myanmar Director The Role ODA and FDI in Financing Myanmar’s Energy Needs [email protected] Ministry of Planning and Finance Foreign Economic Relations Department

Transcript of The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development...

Page 1: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

Renewable Energy Roundtable

12 July 2017

Daw Thuzar Khin

Nay Pyi Taw, MyanmarDirector

The Role ODA and FDI in Financing

Myanmar’s Energy Needs

[email protected]

Ministry of Planning and Finance

Foreign Economic Relations Department

Page 2: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

• Myanmar’s land area of 676,577 square kilometres

makes it the largest country on mainland Southeast

Asia, with a total coastline of 2832 km.

• We have the world’s 25th largest arable land area.

• We have the highest level of available renewable water

resources in Asia, with 95% of water resources

available for hydro-power.

• We have more than10 times the renewable freshwater

resources per-capita of India and over 15 times more

than China.

• We are a country rich in a diversity of renewable and

non-renewable natural resources.

2

Myanmar’s Renewable Energy Context

A Land of Promising Opportunity

Page 3: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

Source: https://www.thethirdpole.net/2017/03/29/chinas-climate-aid-flows-into-myanmar/

• 34% of of people have access to

electricity through the grid, falling to 16%

in rural areas.

• Almost entire rural population relies on

firewood for cooking, a major driver of

deforestation.

• Myanmar has third highest deforestation

rate in the world.

• Decreasing cost of renewable energy

could enable local production and link

rural areas to the grid.

• Myanmar looking to increase share of

renewable energy sources to attract FDI.

Page 4: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

• If used well, Myanmar’s large endowments of

renewable natural resources can support sustainable

and diversified development.

• However, we will require international partnerships (with

both the private sector and development partners) to

help define our environmental and social standards and

improve our capacity to manage these resources

sustainably.

• Without such support, we risk the adverse social

impacts and ecosystem degradation (including

deforestation and water and air pollution).

4

Myanmar’s Renewable Energy Context

A Land of Promising Opportunity

Page 5: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

Approved Foreign Investment to Myanmar

by Sector, 2005-06 - 2016-17

Source: Directorate of Investment and Company Administration - http://www.dica.gov.mm/en/topic/foreign-investment-sector

10.009,7

8.329,5

8.254,5

3.865,5

2.897,6

2.850,0

561,9

254,7

208,4

37,8

22.410,4

20.594,5

0 3000 6000 9000 12000 15000 18000 21000 24000

Oil and Gas

Power

Other Services

Manufacturing

Transport &…

Real Estate

Mining

Hotel and Tourism

Livestock & Fisheries

Agriculture

Industrial Estate

Construction

(US$ in Million)Chart 1. Yearly Approved Foreign Investment by Sector, 2005-06 - 2016-17

All Other Sectors Oil and Gas Power

27,9% 25,7% 46,4%

Page 6: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

Yearly Approved Foreign Investment to Myanmar

by Sector, 2005-06 - 2016-17

Source: Directorate of Investment and Company Administration - http://www.dica.gov.mm/en/topic/foreign-investment-sector

0

4.000

8.000

12.000

16.000

20.000

24.000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

(US

$ in M

illio

n)

Chart 2. Yearly Approved Foreign Investment by Sector, 2005-06 - 2016-17

Oil and Gas Power All Other Sectors

Page 7: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

Source: Directorate of Investment and Company Administration - http://www.dica.gov.mm/en/topic/foreign-investment-sector

0

2.400

4.800

7.200

9.600

12.000

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

(US

$ in M

illio

n)

Chart 3. Yearly Approved Foreign Investment to the Power and Oil and Gas Sectors (2005-06 - 2016-17)

Oil and Gas Power

Yearly Approved Foreign Investment to Myanmar

in the Power and Oil and Gas Sector, 2005-06 - 2016-17

Page 8: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

MoU, MoA & JVA/BOT in Myanmar’s

Renewable Energy Sector

Source: Directorate of Investment and Company Administration - http://www.dica.gov.mm/en/topic/foreign-investment-sector

24

4

3

12

1

3

7

0 10 20 30 40 50

Hydro-Power Projects

Wind Power Projects

Solar Power Projectts

US$ millionChart 4. MoU, MoA and JVA/BOT to Myanmar’s Renewable Energy Sector

MoA JVA/BOT MoU

Page 9: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

ODA Commitments to Myanmar, 1995-2015

Source:

$B

$1B

$3B

$4B

$6B

$7B

$8B

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US

dolla

r, 2

01

5,

Consta

nt

Chart 5. Official Development Assistance Commitments to Myanmar by Primary Sector, 1995-2015

Other Social Infrastructure & Services, Total Economic Infrastructure & Services, Total

Production Sectors, Total Multi-Sector / Cross-Cutting, Total

Organisation for Economic Cooperation and Development - http://stats.oecd.org

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Sector Allocable ODA Commitments to

Myanmar, 1995-2015

Source:

$B

$1B

$2B

$2B

$3B

$4B

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US

dolla

r, 2

01

5,

Consta

nt

Chart 6. Official Development Assistance Commitments to Myanmar by Allocable Sector, 1995-2015

All Other Sectors Energy

Organisation for Economic Cooperation and Development - http://stats.oecd.org

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Energy Policy, Total9,8%

Energy Generation, Renewable Sources, Total

8,5%

Energy Generation, Non-Renewable Sources, Total

8,5%Nuclear Energy Plants, Total0,1%

Energy Distribution, Total73,1%

Total

US$ 1.51b

ODA Commitments to Myanmar’s Energy Sector,

1995-2015

Source: Organisation for Economic Cooperation and Development - http://stats.oecd.org

Page 12: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

ODA to Myanmar’s Energy Generation Sub-Sector:

Renewable v. Non-Renewable, 2002-2015

$,M

$28,M

$56,M

$84,M

$112,M

$140,M

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

US

dolla

r, 2

01

5,

Consta

nt

Chart 8. Official Development Assistance Commitments to Myanmar’s Energy Generation Sub-Sector, 2002-2015

Energy Generation, Renewable Sources Energy Generation, Non-Renewable Sources

97,6%

2,4%

2002-2015

97,2%

2,8%

2015

US$127.86

M

US$128.32

M

US$0.47M

US$55.94M

Source: Organisation for Economic Cooperation and Development - http://stats.oecd.org

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$,M

$12,M

$24,M

$36,M

$48,M

$60,M

$72,M

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

US

dolla

r, 2

01

5,

Consta

nt

Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015

Energy Generation, Renewable Sources - Multiple Technologies Solar Energy Hydro-Electric Power Plants Biofuel-Fired Power Plants

ODA to Myanmar’s Renewable Energy

Sub-Sector, 2002-2015

Source: Organisation for Economic Cooperation and Development - http://stats.oecd.org

Page 14: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

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Enhance the promotion

of energy conservation

through access to

affordable and renewable

energy, particularly in off-

grid local communities.

Encourage Myanmar’s

small-to-medium

enterprises to engage in

renewable energy

production (e.g hydro-

power energy, tidal

energy, biomass, wind

energy and solar energy).

Development Assistance to Renewable

Energy in Myanmar

Key Priorities

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Development Assistance to Renewable Energy in

Myanmar

Latest Developments

• The Government of Myanmar has formed the Development Assistance Coordination Unit

(DACU) to ensure close and effective coordination of development assistance to all

sectors, including renewable energy.

• The Foreign Economic Relations Department within the Ministry of Planning and Finance

serves as the DACU Secretariat.

• The Government of Myanmar has also approved the creation of a new Energy and

Electric Power Sector Coordination Group to be chaired by H.E. the Union Minister of

Electricity & Energy.

Page 16: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

MYANMAR SECTOR COORDINATION GROUPS (SCG)

Transport and ICTH.E. U Thant Zin Aung, Union Minister of Transport

and Communication

Agriculture and Rural

DevelopmentH.E. Dr Aung Thu, Union Minister of Agriculture,

Livestock and Irrigation

Education and TVET

H.E. Dr. Myo Thein Gyi, Union Minister of Education

Energy and Electric Power

H.E. U Pe Zin Tun, Union Minister of Electricity and

Energy

Environmental ConservationH.E. U Ohn Win, Union Minister of Natural

Resources and Environmental Conservation

Nutrition

H.E. Dr Myint Htwe, Union Minister of Health

Social Protection & Disaster

ManagementH.E. Dr Win Myat Aye, Union Minister of Social

Welfare, Relief and Resettlement

Health

H.E. Dr Myint Htwe, Union Minister of Health

Job Creation

H.E. U Than Myint, Union Minister of Commerce

Macroeconomic Management

H.E. U Kyaw Win, Union Minister of Planning and

Finance

Page 17: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

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www.mohinga.info

For more information visit:

Page 18: The Role ODA and FDI in Financing - Myanmar · 2019-09-12 · Chart 9. Official Development Assistance Commitments to Myanmar’s Renewable Energy Sub-Sector, 2002-2015 Energy Generation,

12 July 2017

Daw Thuzar Khin

Nay Pyi Taw, MyanmarDirector

Thank you!

[email protected]

Ministry of Planning and Finance

Foreign Economic Relations Department