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StrategicEnvironmentalAssessmentintheLowerMekong

SEAprocess,toolsandlessonsfromthelowerMekongregionenergysector

Bangkok,24-27May2016TheLandmarkBangkok138SukhumvitRoad

SEAinthehydropowersectorinMyanmar

IntroductionThis document provides background information on the SEA process in the hydropower sector inMyanmar.PleasereviewtheinformationinpreparationoftheWorkingGroupSessiononDay2oftheworkshop(Wednesday).BackgroundinformationonthesectorThe Government ofMyanmar (GOM) has identified 92 potential large hydropower projects (eachwithatleast10MWcapacity)withtotalpotentialinstalledcapacityof46,101MW(Figure1).Thesehydropowerprojectsareexpectedtoharnessupto50%ofthecountrieshydropowerpotential.Themajority of the development plans are targeted to the Thanlwin, Ayeyarwady and the Chindwinbasin.Mostoftheseprojectswillexportpowerto IndiaandBangladesh inthenorthwest,China inthenorthandeastandThailandinthesouthwest.

Figure1:Existingandplannedlarge-scalehydropowerprojectsinMyanmar

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Myanmarhasanestimated100,000MWof totalhydropower resourcepotential,with38%on theAyeyarwaddyRiver.Thetotalinstalledcapacityofexistinghydropowerplantsis2,660MW.Thereare6proposeddamsalongtheThanlwinRiver,whichwouldhaveacombinedcapacityofover18000MW.Tappingthecountry’sextensivehydropowerpotentialcouldprovideacriticalsourceofelectricityforthenationalgridandpowereconomicgrowth,whichisexpectedtoaverageatleast6.8%incomingyears. Myanmar also has one of the lowest electrification rates in Asia, less than a third of thepopulationhasaccesstotheelectricitygrid.ChallengesfacingthesectorThefollowingaresomeofthechallengesfacinghydropowerdevelopmentinMyanmar:

1. Balancingtheneedsofrural-urbanaccesstoenergyandexportingpowertoneighbouringcountries: 75 per cent of the population in major cities in Myanmar enjoys access toelectricity,howeverruralareasonlyhaveanelectrificationrateof16percent.

2. Dealing with operational challenges of existing hydropower projects: Degradedinfrastructure and seasonal variation from prolonged dry seasons are limiting hydropowerprojectsfromgeneratingpoweratfullcapacity

3. Limited capacity to prioritise hydropower developments and apply environmental andsocial safeguards: The 2014 Myanmar Water Policy and the Environmental ImpactAssessment(EIA)procedures2015arerecentdevelopmentstoenhancethelegalframeworkforSEAinthehydropowersector.

4. Mounting pressure from civil society and local communities concerning large scaleprojects: Environmental groups in Myanmar have called on the government to halthydropower projects on major rivers, citing potential negative environmental and socialimpacts.Forexample, the6000MWMyitsoneDamwassuspended in2011dueto intenseoppositionfromlocalcommunities.

5. Workingwithethnicminorities:Therearemorethan135ethnicitiesinMyanmar,thesevenlargestethnicminoritiesareKachin,Kayah,Kayin,Chin,Mon,RahkineandShaneachlinkedtoaState.TheThanlwinRiverflowsentirelythroughtheShan,Kayah,KayinandMonStateandtheChindwinandAyeyarwadyoriginateintheKachinState.

6. Limitedenvironmentalandsocio-economicdataavailable.ProposedSEAofthesectorAnSEAofhydropowerdevelopmentinMyanmarisplannedin2016-17.ThemainobjectivesofthisSEA is todevelopa sustainablehydropowerdevelopmentpathway inMyanmarover thenext 20years (2035)andbeyond,basedonenvironmental, socialandeconomicconsiderations, toachievelong-term economic development and sustainable use and protection of natural resources andecosystems.ThekeyexpectedoutcomesoftheSEAare:

• amoreinformedandimproveddialoguebetweenstakeholders;• enhanced understanding by decision makers and other stakeholders of the range of

stakeholder values and priorities that need to be taken into account in formulating thesustainablehydropowerdevelopmentpathway;

• anenvironmentalandsocio-economic(E&S)ratingofpipelineprojectproposals;• ashareddevelopmentpathwaythataccountsforstakeholderpriorities;and

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• recommendations on policies, procedures and plans required to plan hydropower, tradingoffdifferentvaluesandoutcomes.

WorkingSession2:SEAofhydropowersectorinMyanmar–consolidatedresponses

1.Whoarethekeystakeholders?•  Relevantministriesatna-onalandlocallevels•  CSOsandNGOs•  Localcommuni-es(includingethnicminori-es)

•  Neighbouringcountries

2.Howwillyouengagethestakeholders?•  Consulta-vemee-ngs•  Interviewsandsurveys•  Focusgroupdiscussions•  Dissemina-onofprojectinforma-onviamassmedia(newspapersandtelevision)

3.Whatarethekeyenvironmentalissues?•  Deforesta-onandforestdegrada-on•  Hydrologyimpacts•  Biodiversityloss•  Waterandairpollu-on•  Floods,droughtsandlandslides

4.HowwouldyouprioriEzethekeyenvironmentalissues?

•  Experts’judgement•  Scien-ficdata•  Consulta-onswithstakeholders•  Priori-esiden-fiedindevelopmentplans.

5.Whatarethekeysocio-economicissues?

•  Land-usechange•  Communitydisplacement•  Foodsecurity(par-cularlyforfisheries)•  Employmentopportuni-es•  Healthandpovertyimpacts•  Lossofculturalvalues

6.HowwouldyouprioriEzethekeysocio-economicissues?•  Experts’judgement•  Consulta-onswithstakeholders•  Priori-esiden-fiedindevelopmentplans•  Mone-za-onofimpacts

7.WhatkindsofcumulaEveimpactsneedtobeconsidered?•  Impactsofonehydropowerplantontheothers

•  Climatechange•  Fisheries•  Floodingandwaterlevels•  Impactsonminoritygroups

8.WhatareotheralternaEvestomedium/largehydro-powerandhowshouldtheybeconsidered?•  Energyefficiencymeasures(e.g.efficientstoves)•  Small-scalehydropower•  Otherrenewableenergysourceswhereappropriate(wind,solar,biomass),biogas,LNG

9.Anycomments/suggesEonsontheSEAprocess?•  Allocatesufficientbudgetand-meframeforconsulta-onsanddatacollec-on

•  Standardisedatacollec-on•  Runpilotprojects

10.WhattoolscanbeusedtoprioriEzestrategicissues?•  Mul-plecriteriaanalysis&cost-benefitanalysis•  Workshopsandconsulta-ons•  Trendanalysis•  GIS•  Long-termna-onaldevelopmentplans