Strategic Environmental Assessment in the Lower Mekong

SEA process, tools and lessons from the lower Mekong region energy sector Bangkok, 24-27 May 2016 The Landmark Bangkok 138 Sukhumvit Road

SEA in the hydropower sector in Myanmar

Introduction

This document provides background information on the SEA process in the hydropower sector in Myanmar. Please review the information in preparation of the Working Group Session on Day 2 of the workshop (Wednesday).

Background information on the sector

The Government of Myanmar (GOM) has identified 92 potential large hydropower projects (each with at least 10 MW capacity) with total potential installed capacity of 46,101 MW (Figure 1). These hydropower projects are expected to harness up to 50% of the countries hydropower potential. The majority of the development plans are targeted to the Thanlwin, Ayeyarwady and the Chindwin basin. Most of these projects will export power to India and Bangladesh in the northwest, China in the north and east and Thailand in the southwest.



Figure 1: Existing and planned large-scale hydropower projects in Myanmar

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Myanmar has an estimated 100,000 MW of total hydropower resource potential, with 38% on the Ayeyarwaddy River. The total installed capacity of existing hydropower plants is 2,660 MW. There are 6 proposed dams along the Thanlwin River, which would have a combined capacity of over 18 000 MW. Tapping the country’s extensive hydropower potential could provide a critical source of electricity for the national grid and power economic growth, which is expected to average at least 6.8% in coming years. Myanmar also has one of the lowest electrification rates in Asia, less than a third of the population has access to the electricity grid.

Challenges facing the sector

The following are some of the challenges facing hydropower development in Myanmar: 1. Balancing the needs of rural-urban access to energy and exporting power to neighbouring countries: 75 per cent of the population in major cities in Myanmar enjoys access to electricity, however rural areas only have an electrification rate of 16 per cent. 2. Dealing with operational challenges of existing hydropower projects: Degraded infrastructure and seasonal variation from prolonged dry seasons are limiting hydropower projects from generating power at full capacity 3. Limited capacity to prioritise hydropower developments and apply environmental and social safeguards: The 2014 Myanmar Water Policy and the Environmental Impact Assessment (EIA) procedures 2015 are recent developments to enhance the legal framework for SEA in the hydropower sector. 4. Mounting pressure from civil society and local communities concerning large scale projects: Environmental groups in Myanmar have called on the government to halt hydropower projects on major rivers, citing potential negative environmental and social impacts. For example, the 6000 MW Myitsone Dam was suspended in 2011 due to intense opposition from local communities. 5. Working with ethnic minorities: There are more than 135 ethnicities in Myanmar, the seven largest ethnic minorities are Kachin, Kayah, Kayin, Chin, Mon, Rahkine and Shan each linked to a State. The Thanlwin River flows entirely through the Shan, Kayah, Kayin and Mon State and the Chindwin and Ayeyarwady originate in the Kachin State. 6. Limited environmental and socio-economic data available.

Proposed SEA of the sector

An SEA of hydropower development in Myanmar is planned in 2016-17. The main objectives of this SEA is to develop a sustainable hydropower development pathway in Myanmar over the next 20 years (2035) and beyond, based on environmental, social and economic considerations, to achieve long-term economic development and sustainable use and protection of natural resources and ecosystems. The key expected outcomes of the SEA are: • a more informed and improved dialogue between stakeholders; • 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 the sustainable hydropower development pathway; • an environmental and socio-economic (E&S) rating of pipeline project proposals; • a shared development pathway that accounts for stakeholder priorities; and 2

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recommendations on policies, procedures and plans required to plan hydropower, trading off different values and outcomes.

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Working Session 2: SEA of hydropower sector in Myanmar – consolidated responses

1. Who are the key stakeholders? •  Relevant ministries at na-onal and local levels •  CSOs and NGOs •  Local communi-es (including ethnic minori-es) •  Neighbouring countries

2. How will you engage the stakeholders? •  •  •  • 

Consulta-ve mee-ngs Interviews and surveys Focus group discussions Dissemina-on of project informa-on via mass media (newspapers and television)

3. What are the key environmental issues? •  •  •  •  • 

Deforesta-on and forest degrada-on Hydrology impacts Biodiversity loss Water and air pollu-on Floods, droughts and landslides

4. How would you prioriEze the key environmental issues? •  •  •  • 

Experts’ judgement Scien-fic data Consulta-ons with stakeholders Priori-es iden-fied in development plans.

5. What are the key socio-economic issues? •  •  •  •  •  • 

Land-use change Community displacement Food security (par-cularly for fisheries) Employment opportuni-es Health and poverty impacts Loss of cultural values

6. How would you prioriEze the key socio-economic issues? •  •  •  • 

Experts’ judgement Consulta-ons with stakeholders Priori-es iden-fied in development plans Mone-za-on of impacts

7. What kinds of cumulaEve impacts need to be considered? •  Impacts of one hydropower plant on the others •  Climate change •  Fisheries •  Flooding and water levels •  Impacts on minority groups

8. What are other alternaEves to medium/large hydro-power and how should they be considered? •  Energy efficiency measures (e.g. efficient stoves) •  Small-scale hydropower •  Other renewable energy sources where appropriate (wind, solar, biomass), biogas, LNG

9. Any comments/suggesEons on the SEA process? •  Allocate sufficient budget and -meframe for consulta-ons and data collec-on •  Standardise data collec-on •  Run pilot projects

10. What tools can be used to prioriEze strategic issues? •  •  •  •  • 

Mul-ple criteria analysis & cost-benefit analysis Workshops and consulta-ons Trend analysis GIS Long-term na-onal development plans