PowerPoint Presentation

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy AccessNay Pyi TawMarch 20, 2014

1Development of Myanmar National Electrification Plan Toward Universal Access

Xiaoping Wang

Senior Energy Specialist The World Bank

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access2Key Messages from the May 2013 WorkshopAccess to modern energy service has direct bearing on poverty reduction and rural development. Globally, 70% of the poor and 85% of those without access to electricity live in rural areasUniversal access to electricity by 2030 is achievable and affordable as proven in other countries, the goal can be achieved with sustained governments commitment, targeted sector policies, and significant financial support from donors The National Electrification Plan (NEP) should chart out a path towards universal access designed specifically for Myanmar, embrace both grid and off-grid solutions, and include appropriate policy and technical innovation to lower cost, improve reliability, and provide timely service to all households The World Bank Group will support NEP Development. Both financial support for investments, and technical assistance for institutional development will be available to Myanmar for the implementation of NEP

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A Bridge to Universal Energy Access3Key Messages from the November 2013 WorkshopComprehensive sector planning to address both long term and short term challenges and align individual projects againstBroad stakeholder engagements in process and nationwide geographic coverage of NEP Holistic approach to tackle supply shortage, high system losses, and expansion of energy servicesConsider all financing options to bridge funding gaps, including donor grants, concessional loans, private sector investment, and cross-subsidies, given tremendous investment needs. Is fundamental to define clear roles and responsibilities of key institutions at the national and regional/state levels, including planning, implementation, monitoring, and evaluation functions

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A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access4Myanmar National Electrification Plan (NEP) 2014-2030NEP is envisaged to be a comprehensive action plan for developing, financing, and implementing electricity access scale-up program nationwide, with the target of achieving universal access by 2030.

NEP aims to align support from different stakeholders with the implementation program for achieving national access targets and syndicates financing on a timely, ongoing and programmatic basis.

Key Elements:

Geospatial Least Cost Electrification Rollout plan (grid and off-grid)

Road Map and Investment Prospectus 4

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access5Geospatial Least Cost Electrification Rollout PlanA high level geospatial rollout plan comprising:

Systematic grid network rollout connection plan

Complementary spatial plans for mini-grids and individual systems5

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access6Scope of Work12345Project electricity demand and connections at a disaggregated levelCompare different technologies and electricity supply options, and estimate total costs of electrification at each sub-location Create GIS-based spatial least-cost electrification planning platform with geo-referenced data layers that cover both grid extension and off-grid applicationsExamine the sensitivity of select outputs of the least cost plan to key policy variablesGather data to support the spatial planning platformExamine the sensitivity of select outputs of the least cost plan to key policy variablessuch as connection charge, changes in grid supply cost per unit of electricity, deployment of proven low cost network designs, and equipment enables to reduce investment requirements6

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access7Road Map and Investment ProspectusLong-term and intermediate targets for 2014-2030

Investment financing framework for the first 5 years

Action plan to address enabling policy and institutional framework

Capacity strengthening initiatives for key institutions and agencies20152020?100%?201420202025203029%??100%Attract donor funding7

A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access8Scope of Work123Establish institutional framework for NEP implementation Carry out funding gap analysis and investment needs for the first 5 yearsElaborate road map and investment financing prospectus Establish institutional framework for NEP implementation Key roles and responsible agencies for planning, implementation, monitoring, and evaluationOversight, policy, regulatory, and legal framework

Carry out funding gap analysis and financing plan for prospectus Analyze sector-wide funding gap for the first time slice (2015-2020)Recommend policy platform and framework for syndicating annual financing requirements from different stakeholders

Elaborate road map and investment financing prospectus Roadmap, geospatial rollout plan summary, implementation plan, financing gap and policy platformInvestment financing prospectus 2015-2020Plan for update and approval of Geospatial Plan and Prospectus

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A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access9Implementation ArrangementsMOEP and MLFRD jointly lead the NEP preparation with participation from other member agencies of NEMC and REPWSC and assistance from the World Bank.MOEP and MLFRD co-manage consultants together with World Bank. This includes strategic guidance to data collection, review of key deliverables, organization of workshops and study tours. Consultants work closely with the government teams throughout the NEP preparation processClose coordination with ADB, JICA and other DPs on respective, related initiatives.

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A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access10Consultant Teams Two consulting firms were competitively selected to assist in NEP development:

Columbia University Geospatial least cost electrification rollout plan, with experience in Indonesia, Kenya, Nigeria, Tanzania, etc.

Castalia Roadmap and Investment Prospectus, with experience in Indonesia, Rwanda, Kenya, Vanuatu

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A Bridge to a Sustainable Energy FutureA Bridge to Universal Energy Access11Key Milestones and DeliverablesFollow-on WorkFirst Mission/WorkshopMay 2013- Establish dialogue with government and other stakeholders - Share international experience-Agree on the need of an NEP and key work areas -Develop scope of work-Hire consultants-Dev methodology and work planThird Mission/WorkshopMarch 2014-Present and discuss interim results

-Agree on institutional framework options- Feedback on geospatial plan and IP - Complete draft NEPSecond Mission/WorkshopNovember 2013-Discuss methodology and work plan-Continue dialogue with stakeholders- Agree on methodology, milestones, and working arrangementsContinue data collectionInterim results for Kayin and Chin States

Fourth Mission/WorkshopAugust 2014-Present draft NEP - Present investment opportunities-Agree on main revisions -Link potential financiers with investment opportunities

Finalize NEPTransfer data and trainingAdopt NEP by governmentActivitiesOutputs11