FINAL
THILAWA SPECIAL ECONOMIC ZONE (SEZ) Rapid Socio-Economic Review (Main Report)
August 2017
Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Table of Contents
ACRONYMS 5 CHAPTER 1. INTRODUCTION 7 1.1 Context 7 1.2 Project Proponent 8 1.3 Purpose and Objectives 8 1.4 Scope of Work 9 1.5 Approach and Methodology 9 1.5.1 Primary Data Collection 10 1.5.2 Secondary Sources of Information 10 1.6 Limitations 11 1.7 Assessment Team 11 1.8 Report Format 12 1.9 Other Social and Environmental Studies 12 CHAPTER 2. PROJECT DESCRIPTION 13 2.1 Components of the Thilawa SEZ Development 13 2.2 Chronology for overall Thilawa SEZ Development 13 2.3 Zone A Development 14 2.4 Zone B Development 14 2.5 Other Areas of the SEZ 15 2.6 Supporting Infrastructure 15 2.6.1 Electricity 15 2.6.2 Communications 15 2.6.3 Water Supply 15 2.6.4 Waste Management 15 2.6.5 Logistics 16 2.7 Businesses at the Thilawa SEZ 16 2.7.1 Approved and Prohibited Businesses at the SEZ 16 2.7.2 Businesses Currently at the SEZ 16 2.8 Land Acquisition and Resettlement 18 2.8.1 Zone A Displacement 18 2.8.2 Zone B Displacement 19
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CHAPTER 3. SOCIO-ECONOMIC AREA OF INFLUENCE 20 3.1 Overview 20 3.2 Purpose 20 3.3 Definition 20 3.4 Geographic Extent 21 3.5 Categories of Stakeholders 22 CHAPTER 4. SOCIO-ECONOMIC BASELINE 26 4.1 Yangon Region 26 4.2 Thanlyin and Kyauktan Townships 27 4.2.1 Demographics 27 4.2.2 Housing and Administration 28 4.2.3 Employment and Livelihoods 28 4.2.4 Land Use 30 4.2.5 Health and Education 30 4.2.6 Literacy 31 4.2.7 Major Infrastructure Developments within the Townships 31 4.3 Village Tracts and Wards 33 CHAPTER 5. RAPID SOCIO-ECONOMIC IMPACT ASSESSMENT 35 5.1 Overview 35 5.2 Summary of Issues, Impacts and Benefits 35 5.3 Rating of Socio-economic Issues 38 5.3.1 Exposure to the SEZ 38 5.3.2 Sensitivity to Issues/Impacts 38 5.3.3 Perceptions 39 5.3.4 Rating of Issues/Impacts by Community 39 5.4 Employment and Skills Development 41 5.4.1 National Employment 41 5.4.2 Local Employment 42 5.4.3 Training and Skills Development 45 5.5 Local Economic Development 46 5.5.1 Local Inflation 46 5.5.2 Local Supplier Opportunities 46 5.5.3 Other Business Opportunities 46 5.6 Community Engagement 48 5.6.1 Consultation and Disclosure 48 5.6.2 Community Protests 48
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5.6.3 Civil Society Engagement 50 5.7 Land and Livelihoods 51 5.7.1 Physical Resettlement & Economic Displacement 51 5.7.2 Host Communities 53 5.7.3 Food Security and Subsistence 54 5.8 Population and Social Change 55 5.8.1 Influx/In-migration (incl. foreigners) 55 5.8.2 Urbanisation and Community Development 56 5.8.3 Local Government Resources 57 5.9 Community Health, Safety and Security 58 5.9.1 Security & Crime 58 5.9.2 Community Safety 58 5.9.3 Traffic Accidents & Injuries 60 5.9.4 Community Health & Communicable Diseases 61 5.10 Social Infrastructure & Services 62 5.10.1 Pressure on Existing Infrastructure and Services 62 5.10.2 Improved Infrastructure and Services 64 5.10.3 Increased Traffic Congestion in Local Communities 65 CHAPTER 6. SOCIAL MANAGEMENT PLAN 67 6.1 Overview 67 6.2 Key Recommendations for Enhancement and Mitigation 67 6.3 Socio-Economic Indicators to Measure Progress 78
ANNEXES [Contained in two separate files].
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ACRONYMS
ACCSR Australian Centre for Corporate Social Responsibility FS Feasibility Study AfDB African Development Bank GAD General Administration Department AOI Area of Influence GN Guidance Note A-RAP Abbreviated – Resettlement Action Plan GoM Government of Myanmar B.E.H.S. Basic Education High School GTU Government Technological University B.E.M.S. Basic Education Middle School ha hectare B.E.P.S. Basic Education Primary School HH House Hold CBD Central Business District HSE Health Safety Environment CBO Community Based Organisation IEE Initial Environmental Examination CD Communicable Disease IFC International Finance Corporation CDD Community Driven Development ILO International Labour Organization CSO Civil Society Organisation Indirect AOI Indirect Area of Influence CSR Corporate Social Responsibility IPO Initial Public Offering DAOI Direct Area of Influence IPP Independent Power Plant DHSHD Department of Human Settlement and Housing IRP Income Restoration Plan Development JICA Japan International Cooperation Agency Direct AOI Direct Area of Influence JET JICA Expert Team EBRD European Bank for Reconstruction and Development k kyat ECPP Environmental Conservation and Prevention Plan Kilometres kms EHS Environmental Health & Safety kV Kilovolts EIA Environmental Impact Assessment m3 Cubic metre EPI Expanded Program of Immunisation MEC Myanmar Economic Cooperation ESAP Environmental and Social Action Plan MITT Myanmar International Terminals Thilawa ESHIA Environmental, Social and Health Impact Assessment MJTD Myanmar Japan Thilawa Development Limited ESIA Environmental and Social Impact Assessment MMST MMS Thilawa Development Company FDI Foreign Direct Investment MMU Myanmar Maritime University
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MoC Memorandum of Cooperation RS Resettlement Site MOC Ministry of Construction RWP Resettlement Work Plan MOECAF Ministry of Environmental Conservation and Forestry SEZ Special Economic Zone MONREC Ministry of Natural Resources and Environmental SIA Social Impact Assessment Conservation SME Small and Medium (sized) Enterprise MPT Myanmar Posts and Telecommunications TKDC Thanlyin-Kyauktan Development Company MSAG Multi-Stakeholder Advisory Group TSDG Thilawa Social Development Group MTSH Myanmar Thilawa SEZ Holdings Public Limited TSMC Thilawa SEZ Management Committee MW Megawatt TSP Total Suspended Particles NCD Non-Communicable Disease UAE United Arab Emirates NGO Non-Government Organisation VT Village Tract NRD National Registration Card WHO World Health Organization OHS Occupational Health & Safety YCDC Yangon City Development Committee OSSC One-Stop Service Center YESC Yangon Electricity Supply Corporation % Percentage YRG Yangon Region Government PAC Project Affected Communities YSX Yangon Stock Exchange PACs Project Affected Communities
PAH Project Affected Household PAHs Project Affected Households PAOI Project Area of Influence PAP Project Affected Person PAPs Project Affected Persons pax people PM10 Particular Matter (10 micrometers) PPP Public-Private Partnership PS Performance Standard QC Quality Control QC/QA Quality Control/Quality Assurance
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CHAPTER 1. INTRODUCTION Figure 1-1 Thilawa SEZ Location Map
1.1 Context The Thilawa Special Economic Zone (SEZ) covers approximately 2,400 hectares (ha) within Yangon South District, Yangon Region, Myanmar.
The site is 23 kilometres (kms) by road from downtown Yangon. The two townships most directly linked to the Thilawa SEZ development are Thanlyin and Kyauktan Townships (Figure 1-1).
Announced in January 2011, the Thilawa SEZ has been continuously developed since November 2014.
Phase 1 (Zone A) of the SEZ (the initial 400 ha) commenced operation in September 2015. Development of the remaining 2,000 ha of the SEZ is to be phased. The Phase 1 (Zone A) extension commenced in early 2016. Development of Zone B of the SEZ commenced in early 2017. `
The Thilawa SEZ incorporates the Myanmar International Terminals Thilawa (MITT), a deep-sea port facility built in the mid-1990s.
Development of the Thilawa SEZ aligns with the Government of Myanmar (GoM)’s focus on sustainable economic development and re-structuring of the Myanmar economy; from primary dependence on agriculture, forestry and fisheries to include labour-intensive industries such as manufacturing and services.
The Thilawa SEZ is the first SEZ to be developed in Myanmar. Other SEZs are planned in Dawei, Tanintharyi Region and Kyauk Phyu, Rakhine State.
In December 2016, the Yangon Region Chief Minister announced the intention to build a second SEZ in southern Yangon Region from 2018. Source: EIA report for Thilawa SEZ (Class A)
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1.2 Project Proponent 1.3 Purpose and Objectives In January 2014, Myanmar Japan Thilawa Development Limited (MJTD)1 The purpose of this Rapid Socio-Economic Review of the Thilawa SEZ is to was established. It is a joint venture between MMS Thilawa Development cast a strategic lens over the whole development in terms of potential Company (MMST), the Thilawa SEZ Management Committee (TSMC)2, socio-economic benefits, impacts and issues. It is also intended to help: and Myanmar Thilawa SEZ Holdings Public Limited (MTSH). It will operate • Inform MJTD and TSMC of the perceptions of affected and develop the Thilawa SEZ. communities and other stakeholders regarding the current and In summary, the SEZ is a Public-Private Partnership (“PPP”) between anticipated socio-economic impacts of the SEZ; several Japanese and Myanmar companies and the Myanmar and • MJTD and TSMC to quantify the benefits to date such as local Japanese governments. economic development, to support identification of initiatives to strengthen ‘backwards and forwards3 linkages.
The specific objectives of the review are to:
• Raise awareness of the current and anticipated future socio-economic issues and impacts of the SEZ (both positive and adverse);
• Identify mitigations and management controls to help minimise and manage socio-economic issues and impacts and maximise benefits;
• Provide a dataset and methodology to enable monitoring of the 1 The Operator and Developer of Zone A and Zone B of the SEZ. MJTD’s SEZ’s socio-economic situation. ownership structure is: 51% Myanmar; 49% Japan. Myanmar’s 51% comprises: 10% Thilawa SEZ Management Committee and 41% Myanmar Consortium (MTSH). The review process and findings should also assist with social risk MTSH’s subsidiary Thilawa Property Development is the developer of the Residential and Commercial Area Zone A. Japan’s 49% comprises: 39% Japan management for MJTD, TSMC and Locators (investors) of the SEZ by Consortium (MMST) representing Marubeni, Mitsubishi, Sumitomo and three presenting tangible actions to help manage socio-economic issues. Japanese banks; and 10% Japan International Cooperation Agency (JICA), as Japanese Government representative. 2 TSMC is the Representative of the Government of Myanmar. It is the Regulator of 3 the Thilawa SEZ and has a 10% equity share in MJTD. Otherwise known as upstream and downstream linkages.
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1.4 Scope of Work 1.5 Approach and Methodology The rapid review focuses on quantifying key known and potential The overall approach and methodology for the review was: socio-economic issues, impacts and benefits resulting from SEZ • Analysis of available primary and secondary data, collected construction and operation activities. through engagement with stakeholders including MJTD, TSMC, Because construction and operation of the SEZ is already well progressed, the One-Stop Service Center (OSSC)5, Thanlyin and Kyauktan the nature of the review is different from a pre-project exercise. Townships6 and the JICA Expert Team (JET);
Specifically, the rapid review focused on the following activities: • Initial research with Ward and Village Tract Leaders of identified 1. Defining the Project Area of Influence (PAOI) so that directly and Project Affected Communities (PACs) to identify and prioritise indirectly affected communities and other stakeholders can be perceived and actual socio-economic issues and impacts to date; appropriately identified; • Field visit to engage additional stakeholders including MJTD and 2. Establishing a basic social and economic ‘baseline’ (and data set) TSMC personnel, PACs, local authorities, civil society and other against which future monitoring can be implemented4; stakeholders as relevant, and collect additional primary data;
3. Rapidly characterising key social and economic issues and impacts • Site tour of the Thilawa SEZ including a visual inspection of the including those already ‘known’ due to construction and operation current and proposed development areas and activities; and any other potential future issues; and • Presentation and discussion of key preliminary findings with 4. Identifying and proposing mitigation and enhancement measures some key TSMC and MJTD personnel. that MJTD and TSMC can implement to maximise benefits and The main fieldwork including primary data collection for the review was minimise adverse socio-economic impacts and issues. conducted from September 2016 to March 2017.
The review process and findings are also intended to assist stakeholder A summary of activities undertaken is provided in Annex 1. identification and analysis to enable continuous improvement in the SEZ’s engagement with the affected population and other key stakeholders.
5 The OSSC is “the single window for investors in the Thilawa SEZ where they can get all necessary services and approvals that range from company incorporation to visa application, labor registration, exports and imports, etc”. See: 4 It is not possible to obtain a true pre-baseline data set but some before http://www.myanmarthilawa.gov.mm/one-stop-service 6 construction data may be available and able to be integrated. The General Administration Department (GAD).
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Figure 1-2: Stakeholders Engaged for the Rapid Review 1.5.1 Primary Data Collection
Primary sources of information were semi-structured interviews and small group meetings with a broad range of stakeholders including:
• MJTD, TSMC and OSSC personnel;
• Selected residents of PACs;
• SEZ Locators (factories) and workers;
• Owners of small shops established in proximity to the SEZ; and
• A limited number of other general stakeholders.
A full list of stakeholders who contributed to the assessment is provided in Annex 2. As shown in Figure 1-2, around 317 individual stakeholders were engaged during the conduct of this rapid review.
1.5.2 Secondary Sources of Information
Secondary sources of information included documentation provided by
Thanlyin and Kyauktan Townships, the PACs and JET. Thanlyin Township Kyauktan Township PAC’s Consultation PAC’s Consultation A summary list of documentation reviewed for this assessment is provided in Annex 3. Ah Lun Soke: 45 pax Nyaung Waing: 65 pax
Hpa Yar Kone: 28 pax Shwe Pyi Thar Yar: 24 pax
Kyaung Kone Seik Gyi:16 pax Thi Dar Myaing: 19 pax
Let Yat San: 8 pax Shwe Pyauk: 15 pax
Aye Mya Thi Dar: 16 pax
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1.6 Limitations 1.7 Assessment Team The review team has made best efforts to undertake the review process in a The assessment team comprised a group of three international and transparent and comprehensive manner. There are however a number of Myanmar specialists with extensive experience in land acquisition and limitations to note: resettlement, social risk analysis and impact assessment and assessing
• The Thilawa SEZ is being progressively developed. In some and evaluating large industrial projects against international social performance standards, including in Myanmar. areas, socio-economic impacts have already occurred while in other areas, such as Zone B, the site is a greenfield development The team comprised the following members:
with few apparent issues or impacts yet. This presents a • Mrs. Angela Reeman, Lead Assessor and Peer Review; limitation in identifying the significance of different issues and • Ms. Charlotte Bisley, Field Visit Lead and Primary Author; and impacts and developing enhancement or mitigation measures that can be uniformly applied across all affected areas. • Daw Wah Wah Han Su Yin, Environmental and Social Expert.
• The scope of work was specifically designed to allow for a rapid Members of the JET Income Restoration Program (IRP) team and assessment of socio-economic issues, rather than a detailed Resettlement Work Plan (RWP) team also provided significant support and assessment of all potential or actual impacts from the SEZ. assistance to the research process. In particular, IRP Team Leader Ms. This necessitated a rapid approach to the primary data collection Junko Kikuchi, Community Relations Officer Ko Eh Doh and Office and the stakeholder engagement conducted. Management Officer Ma Hnin Yi Aung provided significant assistance. The contributions of other JET team members U Zaw La and Ma Aye Aye Saw • The assessment was undertaken at a time when land acquisition are also greatly appreciated. and compensation discussions were underway for Zone B. Also a significant MJTD social investment had recently been made in A summary of the qualifications and experience of the core team members a clinic in Shwe Pyauk village tract. These activities may have is included in Annex 4. affected the views and perceptions of some stakeholders. • The assessment was undertaken at a time when positioning was underway for the April 2017 by-election in Kyauktan Township. This may have affected the contribution of some stakeholders.
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1.8 Report Format 1.9 Other Social and Environmental Studies This report has been organised in the following sections: Resettlement Work Plans (RWPs) and Income Restoration Plans (IRPs) • Introduction – context, purpose, objectives and scope of the have been, or are being, developed separately to address land acquisition assessment, including any associated limitations; and resettlement impacts from the SEZ. A Supplemental Socio-Economic
• Project Description – key components of the Thilawa SEZ Survey and Inventory of Loss for the Thilawa SEZ were also prepared. development and brief chronology for different phases of the An RWP and IRP for Zone A (Phase 1) were developed and implemented SEZ development; between 2012 and 2016. In November 2015, an RWP was developed for the extended development area of Zone A. Its implementation was • Project Area of Influence – definition of the Project Area of integrated with Zone A (Phase 1) activities. Several RWPs for Zone B have Influence (PAOI) based on known socio-economic issues, recently been developed. An IRP will also be developed for Zone B. impacts and benefits. Environmental Impact Assessments (EIAs) were prepared for the different • Socio-Economic Baseline – documentation of a high-level phases of the SEZ prior to development. The first EIA was for Zone A socio-economic baseline for the Project. (Phase 1) in 2013. Other EIAs7 have recently been completed for Zone B, • Rapid Socio-Economic Review – summary of key in May and June 2016. In addition, Preparatory Studies on Thilawa SEZ socio-economic categories, themes and associated issues and Infrastructure Development were prepared in March 2014 and May 2016. impacts (positive and adverse) and their significance or level of EIAs have been prepared by specific SEZ Locators (factories) as required effect by community, as identified through the various tasks by SEZ Standard Operating Procedures; for example, by Dowa regarding undertaken. construction of Solid Waste Management Facilities in Thilawa SEZ Zone A. • Social Management Plan – key recommendations to maximise Initial Environmental Examinations (IEEs), EIAs and Preparatory Surveys, benefits and minimise adverse impacts, and proposed as required, have also been prepared for some infrastructure developed socio-economic indicators to measure social performance. wholly or in part to support the SEZ development (including access road • Annexes – detailed supporting documents regarding the widening, improvement of water supply, sewerage and drainage systems; approach of the rapid socio-economic review and distribution line development; gas pipeline development). socio-economic profiles of the townships and communities 7 (PACs) directly affected by the SEZ. EIAs were separately developed for Zone B Industrial Area (May 2016) and Zone B Logistic, Residence and Commercial Areas (June 2016).
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CHAPTER 2. PROJECT DESCRIPTION Figure 2-1 Zone A and Zone B in Thilawa SEZ
2.1 Components of the Thilawa SEZ Development The Thilawa SEZ is the first international SEZ in Myanmar and is located in the Southern District, Yangon Region. It is located across Thanlyin and
Kyauktan Townships, about 23 kilometres (kms) southeast of Yangon Central Business District (CBD) and about 30 kms from Yangon International Airport as shown in Figure 1-1.
The SEZ is adjacent to MITT, which is one of the main deep river ports in Myanmar; and can be accessed from Yangon via both the Thanlyin No. (1)
Bridge and Thanlyin No. (2) Bridge (the Dagon Bridge). If fully developed, the Thilawa SEZ will comprise a 2,400 ha site divided into different zones; currently two zones have been defined; Zone A and Zone B (Figure 2-1).
2.2 Chronology for overall Thilawa SEZ Development Since 2011, the GoM has given priority to Foreign Direct Investment (FDI) to support economic development. Key Thilawa SEZ milestones are:
• In March 2012, a Feasibility Study (FS) was completed.
• Since September 2012, a Myanmar-Japan Consortium has been developing the SEZ in phases.
• In December 2012, the Myanmar and Japanese governments signed a Memorandum of Cooperation (MoC) to develop the SEZ.
• In early 2013 an Environmental Impact Assessment (EIA) for Zone A was prepared. Source: EIA for Industrial Area of Thilawa SEZ Development (Zone B) • Construction of Zone A commenced in September 2013.
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• In January 2014, MJTD was established as a joint venture Phase 1A construction activities commenced in late 2015 and concluded in amongst four parties to operate and develop the Thilawa SEZ. August 2016. Zone A has now been largely developed (see Section 1.1).
• In March 2014, a Preparatory Study on Thilawa SEZ Figure 2-2 Thilawa SEZ Zone A: Phases 1 and 1A Infrastructure Development was undertaken to identify the required infrastructure to develop the first phase of Zone A.
• The construction of Phase I and Phase II (of Zone A) was completed in August 2015 and August 2016 respectively.
• In October 2015, a local initial public offering (IPO) for the Thilawa SEZ Public Company was held. The company sold 2.145 million shares, mainly to Myanmar citizens, at a unit cost of 10,000 kyats per share. At share offer completion, Myanmar Thilawa SEZ Holdings Public Limited (MTSH) had more than 17,000 shareholders.
• On 6 May 2016, MTSH became the second company to list on the Yangon Stock Exchange (YSX); shares commenced trading on 20 May 2016. On 9 June 2016, the stock price closed at K57,000 kyats after a high of K70,000 kyats on 24 May 2016.
2.3 Zone A Development Source: MJTD. Zone A comprises around 405 ha as shown in Figure 2-2 and is divided into 2.4 Zone B Development Phase 1 and Phase 1 Expansion (Phase 1A). Phase 1 construction Zone B comprises 700 ha and is planned for development from early 2017. activities commenced in September 2013 and concluded in August 2015. At It includes about 262 ha of industrial area, 267 ha of logistics area and 169 this time, Zone A of the SEZ commenced operations. The Grand Opening ha of residential and commercial areas. Figure 2-1 provides an overview of Ceremony was held on 23 September 2015. the composition of Zone B.
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The Zone B development is geographically spread throughout the SEZ; demand will be met through supply from the National Grid or other power some areas of Zone B are located in the northern part of the SEZ nearby to plants such as the Thaketa independent power producer (IPP) power plant. Zone A and some are located in the southern portion of the site. 2.6.2 Communications 2.5 Other Areas of the SEZ For internet and fixed-line telecommunications support, an underground The 2,000 ha Development Area (not including Zone A) is divided into Zone optical fibre cable has been installed from an exchange office of the B (Areas 1-4) and Areas 5 and 6. Myanmar Posts and Telecommunications (MPT) building in Thanlyin Remaining areas of the SEZ (outside Zones A and B) are earmarked for Township. This connects to the office of MJTD and then to factories in the potential future development however this will depend on a number of SEZ via overhead or underground lines. Mobile telecommunications are factors including the success of the development and operation of these provided through the same system using Myanmar’s public telephone initial zones. network by MPT. Two mobile telephone telecommunication towers have been constructed inside the SEZ, in Thanlyin Township. 2.6 Supporting Infrastructure Investors in the SEZ are provided with access to electricity, 2.6.3 Water Supply telecommunications (including internet) and purified water supply. MJTD as The Zarmani reservoir in Thanlyin Township is the primary water source for Developer of the SEZ has developed these services for the SEZ. the SEZ. Improvements to the reservoir have been undertaken including 2.6.1 Electricity improved intake facilities, pumping station and construction of a conveyance pipeline. After around 2019, the Langunbyn reservoir in Initially, a 33-kilovolt (kV) distribution line was constructed from Thanlyin Yangon (East) District is also intended to provide water to the SEZ. This will substation to Thilawa SEZ to service the construction and early operation require Langunbyn reservoir and canal improvement activities such as phase of Zone A of the SEZ. To address increasing electricity demand up to intake facilities and canals. In the long-term, it is expected the Nga Mo Yiek approximately 2020, a 50 MW power plant (the Thilawa Power Plant), reservoir in Yangon (North) District or Dawei new reservoir in Bago East substation and 230 kV transmission line have been constructed. The power Region may also be drawn on to supply water to the SEZ. plant includes two dual fuel gas turbines; to feed these, a gas pipeline from South Dagon to Thilawa has been constructed. The powerplant and 2.6.4 Waste Management sub-station are located in Kyauktan Township, within the SEZ. The Services for liquid, solid and industrial waste management are available to infrastructure is to provide power to the Thilawa SEZ and surrounding tenants at the SEZ. A centralised wastewater treatment facility has been areas; for example, the MITT. After 2020, it is expected additional power installed within the SEZ by Japanese company Kubota and is operated by
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MJTD. Treated water is discharged to the Yangon River through the Shwe Businesses not approved for location within the SEZ include: production, Pyauk Creek located in Kyauktan Township. For Zone B, industrial waste processing or services hazardous to the environment and ecology; generated from the industrial area will be re-used or recycled as much as importation or production, processing of poisonous chemicals, agriculture possible by collecting waste separately. Waste that cannot be re-used or pesticide, insecticide and other goods by using chemical substances, recycled may be managed by the waste treatment firm in SEZ Zone A prohibited by international regulations or by the World Health Organization (Golden Dowa Eco-System Myanmar) or through public services such as (WHO), that affect the public health and environment; businesses utilising the Pollution Control and Cleansing Department of Yangon City industrial waste imported from abroad; and production and processing of Development Committee (YCDC). polluted substances hazardous to the human health and environment.
2.6.5 Logistics A commercial and residential area is included within the SEZ. Villas and condominiums, office and residential apartments, banks, shopping centres, International logistic centres are located within the Thilawa SEZ to facilitate medical centre, school, recreation centres, green areas and workers' domestic and international logistic arrangements, imports and exports. dormitories are intended to be established. 2.7 Businesses at the Thilawa SEZ 2.7.2 Businesses Currently at the SEZ 2.7.1 Approved and Prohibited Businesses at the SEZ By January 2017, around 78 companies had been approved for investment Businesses that may be located in the Thilawa SEZ are defined on the into the SEZ.8 Figure 2-3 provides a summary of the Zone A development TSMC website (see: http://www.myanmarthilawa.gov.mm/types-business). and some of the operations present or under construction. They include: Their home countries span the Asia-Pacific region (Japan, China, Thailand, • Trading; Taiwan, Myanmar, Australia, Malaysia, South Korea, Singapore, Viet Nam), • Real estate development including housing; Europe (France), United States, United Arab Emirates (UAE).
• Hotels; Business types include manufacturing/processing, services/trading and logistics businesses. • Shopping malls; As of January 2017, 24 factories were at operations stage and 30 factories • Engineering and design; were under construction. • Warehousing and logistics services; and
• Research, development and professional services. 8 http://www.myanmarthilawa.gov.mm/list-investors.
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Figure 2-3: Thilawa SEZ Zone A Development and Operations
Source: MJTD
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2.8 Land Acquisition and Resettlement During 2012-13, the GoM issued three official notices to persons residing and/or cultivating land inside the Thilawa SEZ area: 2.8.1 Zone A Displacement • The first, in August 2012, banned rice farming activities in the Land inside the Phase 1 (400 ha) area of the SEZ was acquired by the GoM Project area; in 199/61997 in accordance with the Land Acquisition Act 1894. At that time, • farmers and residents inside the proposed Thanlyin-Kyauktan Industrial The second, in December 2012, terminated supply of irrigation Zone Development received compensation for the farmland, resettlement water for summer cropping; and assistance and were provided relocation sites for their residences. • The third, in January 2013, was a notice of eviction from the area.
Land was acquired to be used for the development of the The final Phase 1 boundary for the SEZ was determined in early July 2013, Thanlyin-Kyauktan Industrial Zone Development (1,230 ha) which was informed by an aerial photograph undertaken in March 2013 that confirmed planned to be developed by the Thanlyn-Kyauktan Development Company the latest structure and land condition in the project area. (TKDC), a joint venture between the Department of Human Settlement and Prior to commencing any eviction activities, the GoM acknowledged people Housing Development (DHSHD) under the Ministry of Construction (MOC) were residing in and conducting income generating activities in the SEZ and SMD International Pte Ltd of Singapore. Although this development did area. With the support of JICA, it committed to preparation of a RWP in not proceed, the land was first transferred to DHSHD between 1998 and accordance with relevant JICA guidelines and other standards. 1999 and then to the TSMC in March 2013. In November 2013, a draft RWP for Zone A was prepared by the GoM and When the Thanlyin-Kyauktan Industrial Zone Development did not proceed, JICA Expert Team (JET). Implementation began the same month and 81 over time, some of the relocated farmers/residents migrated back to their households, comprising a total of 382 Project Affected Persons (PAPs) original areas and resumed cultivation and other income generating were physically and/or economically displaced. activities. Also, some households migrated into the previously acquired area. Relocated farmers/residents that migrated back to the land and Sixty-eight households were relocated from Ah Lun Soke Village and the 10 households that migrated into the area were scattered throughout the 1,230 former Thilawa Village to Myaing Thar Yar (3) ward in Kyauktan ha acquired.9 Township to enable the Phase 1 development to progress.
9 10 Nippon Koei Co., Ltd, June 2014, Technical Assistance for Preparation of Thilawa Village no longer exists in Thanlyin Township. It is now called Shwe Pyi Resettlement Work Plan in Myanmar Interim Report page III-2. Thar Yar ward and is located in Kyauktan Township.
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Compensation and other assistance was provided to eligible PAPs and a Figure 2-4 Provisional Areas for Preparation of Individual RWPs three-year Income Restoration Program (IRP), supported by JICA, commenced in December 2013.
As most of the land was previously already acquired, most compensation paid was for crop compensation and physical assets. Some farmers who still held land ownership rights in the Phase 1/Zone A area were provided with compensation for land.
2.8.2 Zone B Displacement
Land inside the 2,000 ha of the SEZ is now being progressively acquired.
Land transfers between the YRG and the TSMC have been made in 2013, 2015 and 2017 in order to facilitate the land acquisition process.
A Resettlement Framework has been developed for the 2,000 ha Development Area, which is divided into Zone B (Areas 1-4), Areas 5 and 6.
Figure 2-4 shows provisional areas for preparation of draft RWPs in consultation with PAPs.
As at April 2017, RWPs had been prepared for Area 2-1 and Area 2-2 East and negotiations for compensation were underway. Agreement had been reached with some PAHs who then moved temporarily to enable Zone B construction to progress while the Zone B Resettlement Site is under construction. The Zone B Site is next to the Zone A/Phase 1 Resettlement
Site constructed in 2013 in Myaing Thar Yar Village (Ward 2 & 3).
Source: RWP for Area 2-2 (East)
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CHAPTER 3. SOCIO-ECONOMIC AREA OF INFLUENCE
3.1 Overview • Study areas for current and future social and environmental Per international standards, a Project Area of Influence (PAOI) typically studies and monitoring activities; considers the area likely to be affected by the project, ancillary aspects and • Stakeholder engagement by defining the degree of engagement unplanned developments induced by the project. In defining a PAOI, factors effort that should be directed to the different stakeholder groups considered include: project activities and facilities; predictable direct and of the Thilawa SEZ, with a focus on affected communities; and indirect impacts; and cumulative impacts. • Benefits sharing including corporate social responsibility (CSR) The GoM Environmental Impact Assessment (EIA) Procedures (2016) activities by ensuring that the degree of benefit that stakeholders require the scoping of ‘EIA Type’ Projects, such as the Thilawa SEZ, to receive from the Thilawa SEZ is commensurate with the degree define the area of influence, time boundaries, project phases, and potential to which the Zone will adversely affect them. stakeholders. Regarding cumulative impacts, the Procedures require mapping of relevant existing and future private and public projects and 3.3 Definition developments, and determination of the leverage and influence the Project The PAOI for the Thilawa SEZ includes the immediate or Direct Area of may have over the significant and project-related cumulative impacts. Influence (Direct AOI), i.e. the footprint of the 2,400 ha of the development.
3.2 Purpose The Direct AOI includes resettlement sites to which physically displaced The purpose of defining a PAOI for the SEZ is to inform the following: households have been relocated as part of the SEZ development and the • Thilawa SEZ policy development on matters such as local communities and environment affected by these facilities and activities.
employment, business development and social investment by The PAOI also includes the Indirect Area of Influence (Indirect AOI), defining which stakeholders are prioritised for inclusion; which encompasses potential issues and impacts resulting from activities
• Issues identification, impact assessment and mitigation such as: development ensuring that mitigation and management • Land transport routes to and from the SEZ; for example on the measures are focused on those directly affected communities Thanlyin-Kyauktan Road, Phwint Phyo Yay Road etc (and and other stakeholders whilst also considering indirect and associated traffic accidents, community safety concerns etc). cumulative impacts; • Induced in-migration (and associated social implications such as the spread of communicable diseases and increased pressure
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on existing infrastructure and services such as schools, health Figure 3-1: Map of the Thilawa SEZ Project Area of Influence resources, waste management etc);
• Environmental implications such as changes in surrounding landscapes, hydrology, air quality, noise etc. due to the SEZ;
• Wealth distribution, (i.e., from wages and/or income generated from the Project on third-party goods and services);
• Wealth creation from third-party business development (supply of goods and services to industries supporting the SEZ);
• Implementation of CSR projects and social infrastructure and service improvements in host communities and townships.
It is recognised that the Indirect AOI extends beyond local and regional boundaries in terms of cumulative impacts within Myanmar, particularly related to distribution of taxes and benefits, indirect employment and business opportunities.
3.4 Geographic Extent A map showing the current PAOI for the Thilawa SEZ is provided in Figure 3-1. This shows both the Direct AOI (i.e., the footprint) and the Indirect AOI. It is noted however that the map focuses on the Direct AOI and the host region and national boundaries within the Indirect AOI are not shown.
It is noted that this report defines the PAOI based on the initial phases of SEZ development that have been undertaken (Zone A/Phase 1 and Zone A/Phase 1 Expansion) and/or are planned in the relatively near future (Zone B/ Phase 2-1 and Zone B/Phase 2-2). The area of influence will evolve as Source: JICA Expert Team the Thilawa SEZ continues to develop.
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3.5 Categories of Stakeholders Figure 3-2: Engagement with Project Affected Communities for the Within the PAOI, stakeholders are characterised based on an assessment Rapid Socio-Economic Review (December 2016) of the effect or influence of the Thilawa SEZ on them. This categorisation also indicates the level of priority for relevant studies, stakeholder engagement, local content and social investment.
For the Thilawa SEZ, stakeholders have been categorised as follows:
• Project Affected Persons (PAPs);
• Project Affected Communities (PACs) – Figure 3-2 example;
• Host Townships;
• Host Region (and the Districts and other townships within);
• Myanmar (e.g., national level government and general public).
These stakeholder groups are depicted in Figure 3-3 by increasing priority within the PAOI of the SEZ. Table 3-1 lists the specific Village Tracts and Wards in the Direct AOI. A summary of how each of the village tracts/wards is affected (i.e., why they are PACs) is also included.
Because of the urban/peri-urban nature of the area around the SEZ, many individual village boundaries are not clearly defined and/or are regularly Source: Social Clarity, December 2016. changing. Therefore PACs have been identified at village tract/ward level rather than at village level. Some details about socio-economic issues and impacts and which villages appear to be most affected are described in the report (see CHAPTER 5 and also the socio-economic profiles in Annex 5).
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Figure 3-3: Categories of Stakeholders by Prioritisation in the Project Area of Influence of the Thilawa SEZ
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Table 3-1: Stakeholders in the Project Area of Influence
Category Description Area / Component Details
Zone A / Phase 1 (Area 1) 81 PAH, 382 PAP All PAH/PAP from Ah Lun Soke Village Tract, Thanlyin Township Zone A / Phase 1 Zone A Expansion (Area 1) 2 PAH, 7 PAP All PAH/PAP from Ah Lun Soke Village Tract, Thanlyin Township Zone B / Area 2- 1 44 PAH, 214 PAP Individuals / families using All PAH/PAP from Aye Mya Thi Dar Ward, Kyauktan Township or owning physical or Zone B / Area 2- 2 productive assets in SEZ Project footprint/area 154 PAH, 581 PAP Affected See below for details on Area 2- 2 East PAH/PAP Persons Individuals / families / Zone B / Phase 2 Area 2- 2 West PAH/PAP are yet to be confirmed (PAPs) organisations with cultural assets or social Zone B / Area 2- 2 East infrastructure in the SEZ 99 PAH, 387 PAP footprint/area 37 PAH from Aye Mya Thi Dar Ward, Kyauktan Township 62 PAH from Shwe Pyauk Village Tract, Kyauktan Township [ Note: Area 2- 2 East is a subset of Area 2- 2 and is included herein as it is the first part of Area 2- 2 being d eveloped] . Other Zone B Areas Other Zones / Areas Not yet known. (yet to be confirmed) Areas 5 and 6 Not yet known. Other infrastructure Not defined.
# The number of affected individuals/families is determined through Detailed Measurement Surveys (DMS) undertaken as part of land acquisition and resettlement planning. Data included in the table aligns with data included in the related Resettlement Work Plans (RWPs).
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Details Category Description Area / Component (Wards / Village Tracts)* Thanlyin Township: 1. Ah Lun Soke Village Tract 2. Hpa Yar Kone Village Tract 3. Let Yat San Village Tract 4. Kyaung Kone Seik Gyi Village Tract Project Communities including W ards / Village Development Area of 5. Bo Gyoke Village Tract Affected Tracts directly or indirectly affected by the SEZ / Other Communities adverse impacts (environmental or social) Components / Kyauktan Township (PACs) from the SEZ. 11 Resettlement Site 1. Aye Mya Thi Dar 2. Shwe Pyi Tar Yar Ward 3. Thi D a r Myaing Ward 4. Shwe Pyauk Village Tract 5. Nyaung Waing Village Tract 6. West Ward, Kyauktan Urban Townships where the SEZ and related activities are located. Host Communities/residents in these Townships All Development Thanlyin Township 12 Townships may be directly and indirectly affected by Areas Kyauktan Township impacts (adversely or positively) from the SEZ. Region where the SEZ and related activities are located. All Development Host Region Yangon Region (and Yangon South District) The host region will have opportunities for Areas economic benefits including employment and business opportunities. Host country including government, population and any other interested member All Development Myanmar of the public of Myanmar. Economic benefits Country Areas including employment and business opportunities from the SEZ.
11 Positive impacts could include employment, skills development, social infrastructure enhancement such as upgrades to schools and health clinics etc. Adverse impacts could include environmental and social impacts such as access restrictions, noise, dust, traffic, etc.). 12 It is noted that there may be impacts to other townships, such as Thongwa and Khayan Townships that were identified by key informants as being affected by the SEZ. However, these impacts are considered to be significantly less than those experienced by Thanlyin and Kyauktan Townships. Therefore, these townships, and any other townships similarly affected, are captured in the Host Region category of stakeholders.
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CHAPTER 4. SOCIO-ECONOMIC BASELINE
4.1 Yangon Region Figure 4-1: Yangon Region Map Key demographic characteristics of Yangon Region, per the 2014 Census results, are shown in Table 4-1. Of Myanmar’s population of 51.5 million13,
14.3% live in Yangon Region. Yangon city, the former capital, is located in Yangon Region and is the most populous city in the country.
Table 4-1: Key Demographic Data for Yangon Region (2014) Population Data Description Total 7,360,703 The highest of all regions. 3,516,403 males By Gender _ 3,844,300 females ~9 times higher than national Density 716 persons/square km average. Classified as urban vs. 30 of Urbanisation 70 of 100 persons 100 in other regions. Growth ~85% from 1983-2014 Significant growth since 1973
As shown in Figure 4-1, Yangon Region comprises four Districts (East, West, North, and South). The Thilawa SEZ is in Yangon South District (also known as South Yangon). Yangon South District comprises 10 townships and one sub-township and spans a large area. In March 2014, its total population was 1,417,724, around 19.26% of Yangon Region’s total population.
13 The Republic of the Union of Myanmar, Ministry of Immigration and Population, Department of Population, May 2015, The 2014 Myanmar Population and Housing Census, Yangon Region, Census Report Volume 3-L pps 10-11.
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4.2 Thanlyin and Kyauktan Townships Table 4-2: Key Demographic Data for the Townships (March 2014) The two townships in South Yangon directly affected by the Thilawa SEZ Parameter Thanlyin Kyauktan are Thanlyin Township and Kyauktan Township, where the SEZ is located. Total Population As shown in Figure 3-1, the Thilawa SEZ footprint covers area in both Both Sexes 268,063 132,765 townships. Socio-Economic Profiles for both townships are provided in Male 130,537 64,378 Female 137,526 68,387 Annex 5. Key data and information is summarised in the following sections. Sex Ratio 94.9 94.1 In June 2015, the Yangon Division Parliament approved the Greater Population in Conventional Households Both Sexes 235,923 128,254 Yangon Strategic Development Plan 2040, to establish seven satellite Male 121,119 61,276 towns over the next 25 years to accommodate Yangon City’s projected Female 132,804 66,978 population increase from 5.2 to 10 million people14. Thanlyin Township is Conventional Households one of the nominated project areas. Number 61,597 32,976 Male-headed 47,125 26,299 4.2.1 Demographics Female-headed 14,472 6,677 Female-headed 23.5 20.2 Key census data for the two townships is shown in Table 4-2. households (%) Mean household size 4.1 3.9 In March 2014, Thanlyin comprised about 18.9% of Yangon South’s Urban Population population (268,063 people); Kyauktan comprised around 9.36% (132,765 Both sexes 86,065 42,778 Male 41,110 20,541 people). While Thanlyin Township’s population was more than double that Female 44,955 22,237 of Kyauktan, both townships had a large rural population of around 68%. Sex ratio 91.4 92.4 Urban population (%) 32.1 32.2 Rural Population Both sexes 181,998 89,987 Male 89,427 43,837 Female 92,571 46,150 Sex ratio 96.6 95.0 14 The Irrawaddy, 22 June 2015, Rangoon Parliament Endorses Plan for 7 New Satellite Towns. Accessed Monday 16 January 2017 at: http://www.irrawaddy.com/news/burma/rangoon-parliament-endorses-plan-for-7-ne w-satellite-towns.html
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4.2.2 Housing and Administration Table 4-4: Population Above 18 Years (March 2016) No Description Above 18 Age (No.) Total (No.) Thanlyin Township comprises 17 wards, 28 village tracts and 57 villages while Kyauktan Township comprises 9 wards, 32 village tracts and 64 Male Female Total Total villages. The composition of households is shown in Table 4-3. Thanlyin Township
Table 4-3: Houses and Households in the Townships (at March 2016) 1 Urban 12,047 13,754 25,801 72,687 (36%) 2 Rural 30,267 30,494 60,761 158,347 (38%) No Description House Household Ward Village Village Tract Kyauktan Township Thanlyin Township 1 Urban 11,684 13,405 25,089 33,854 (74%) 1 Urban 15,532 16,100 17 - - 2 Rural 32,523 33,965 66,488 93,891 (71%) 2 Rural 37,495 37,554 - 28 57 Total 53,027 53,654 17 28 57 The unemployment rate according to official data is approximately 4% for Kyauktan Township both Thanlyin and Kyauktan Townships as shown in Table 4-5. However 1 Urban 7,299 8,350 9 this is likely to underestimate unemployment and underemployment given 2 Rural 21,232 24,079 32 that around 68% of people in both townships still live in relatively rural Total 28,531 32,429 9 32 64 conditions and are participating, at least in part, in subsistence livelihood activities. 4.2.3 Employment and Livelihoods
The population over 18 years old is around 37% of the total population in Table 4-5: Unemployment Rate in the Townships (at March 2016) Thanlyin and 72% in Kyauktan as shown in Table 4-4. Township People Employed Unemployed Unemployment who can People people rate (%) work Thanlyin 137,291 131,758 5,533 4.03 Kyauktan 89,150 85,700 3,450 4.02
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Average annual income in the 2015/16 fiscal year was 1,511,461 Myanmar Table 4-6: Livelihood Activities in the Townships (at March 2016) Kyats in Thanlyin, up from 1,509,540 Myanmar Kyats in 2014-15. In Livelihood Type Thanlyin Kyauktan Kyauktan Township, average annual income increased by around 71% Government employee 3,843 4,400 during this period, from 984,297 Myanmar Kyats in 2014-15 to 1,393,167 Service 17,580 11,000 Myanmar Kyats in 2015-16. Agriculture 11,374 8,760 Main livelihood activities in Thanlyin Township are casual work followed by Livestock 526 8,706 sales/business and in Kyauktan Township they are “other” and service, as Sales Business 29,750 8,235 shown in Table 4-6. Industry 19,670 5,378 Livelihood data indicates Thanlyin Township is more urbanised than Fishery 0 200 Kyauktan; notable differences are the significance of sales business, Casual Labour 29,895 10,239 industry and casual labour as livelihoods in Thanlyin (totalling 60.2%) Other 19,120 28,782 compared with 27.8% in Kyauktan. Also the significance of livestock as a livelihood in Kyauktan (10.2%) compared with 0.4% in Thanlyin. TOTAL 131,758 85,700
Kyauktan Township is recognised as rural by the World Bank who, in 2016, The official township poverty percentage was 15.86% in Thanlyin and 16% selected it as 1 of 20 townships for inclusion in the 2017-2021 cycle of its in Kyauktan (Table 4-7). This figure is informed by Village Tract/Ward National Community Driven Development (CDD) Program. Criteria for Administrator estimates of family income versus expenses. selection includes poverty rates, as the main criteria, as well as factors such as peace and stability and the absence of other funding sources.15. Table 4-7: Poverty Index at Township Level (at March 2016) Township Poor People (No.) Poverty Percentage (%) Thanlyin 36,665 15.86 Kyauktan 20,540 16
15 Myanmar Times, 9 September 2016, Accessed Monday 12 September 2016 at: http://www.mmtimes.com/index.php/business/property-news/22425-townships-chos en-for-next-phase-of-community-led-infrastructure-project.html
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4.2.4 Land Use 4.2.5 Health and Education
Kyauktan Township is larger in area than Thanlyin Township (around 9%) Thanlyin Township has more public health infrastructure than Kyauktan and there is significantly more cultivable land available (around 74%) Township and also has private health infrastructure (hospital and compared with Thanlyin Township (around 33%). There is also more use of dispensary clinics), as shown in Table 4-9. land for industry in Thanlyin Township (around 3%) compared with At March 2016, Thanlyin Township had 98 doctors, 106 nurses and 7 health Kyauktan Township (around 1%). This suggests that Thanlyin Township is assistants compared with 9 doctors, 55 nurses and 8 health assistants in currently more urbanised than Kyauktan Township and has less land Kyauktan Township. available that could be used to accommodate influx workers. There is a significant difference in some healthcare ratios, most materially; Table 4-8: Land Use at Township Level (at March 2016) Thanlyin’s doctor-patient ratio was 1 doctor for every 2,357 people while Land Use Thanlyin Kyauktan Kyauktan’s ratio was 1 doctor for every 14,193 people. There is also a Net Total Cultivation Area (acre) 60,966 (33%) 149,645 (74%) considerable difference in the health assistant ratio: 1 health assistant for 33,004 people in Thanlyin Township vs. 25,968 in Kyauktan Township. Total Fallow Land (acre) 425 4,056 Grazing Land (acre) 1,397 3,779 Table 4-9: Health Infrastructure at Township Level (at March 2016)
Industry Land (acre) 5,262 1,978 Health Infrastructure Thanlyin Kyauktan Town Land (acre) 709 1,464 Hospitals 2 Government 1 Government Village Land (acre) 1,206 2,241 1 Private Total: 50 beds Total: 232 beds Others (acre) 22,054 4,354 Dispensary Clinics 48 Private 3 Government Reserved Forest, Protected - 1,859 Public Forest (acre) Rural Health Centres 4 9 Virgin Forest (acre) - - Sub-Rural Health Centres 22 9 Virgin (acre) 160 12,966 Thanlyin Township has less education infrastructure overall than Kyauktan Uncultivable Land (acre) 92,149 19,407 Township, as shown in Table 4-10, however has a higher level of middle TOTAL (acre) 184,328 201,749 and higher education institutions, including 4 tertiary institutions.
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Table 4-10: Education Infrastructure at Township Level (March 2016) 4.2.7 Major Infrastructure Developments within the Townships Over the last 15-20 years there have been significantly more major projects Education Infrastructure Thanlyin Kyauktan implemented in Kyauktan Township compared to Thanlyin Township. Universities 4 (19,842 students) 0 (0 students) As shown in a dam development and two universities are the Monastery Schools 14 (6,002 students) 5 (471 students) Table 4-12 only developments in Thanlyin compared to MITT, several factories, a dam, Basic Education High 9 (1,057 students) 6 (5,759 students) Schools (BEHS) power plant and port facility amongst other development in Kyauktan Basic Education Middle 14 (10,268 students) 11 (5,035 students) Township. Schools (BEMS) Many of these developments have required land acquisition and created Basic Education Primary 56 (12,159 students) 109 (12,869 environmental impacts, such as air quality impacts (dust) during Schools (BEPS) students) construction, and noise. Many have also precipitated an influx of workers, Nursery Schools 1 (5 students) 0 (0 students) some of which have then stayed on within the communities in proximity to Total 85 125 the developments. In some cases, this has contributed to the development of new wards within these communities. 4.2.6 Literacy These earlier, and ongoing, developments have contributed to the level of A total of 100% of the over 15-year old population in both Thanlyin and sensitivity to socio-economic issues and impacts that is present at Kyauktan Townships is recorded as literate, however, around 21% of the ward/village tract level. For example, the three major development projects total population in Thanlyin Township is not literate, and around 15% of the that are currently underway and/or are soon expected to take place in Shwe Kyauktan population is not literate (Table 4-11). Pyi Thar Yar Ward may have informed its views regarding the Thilawa SEZ.
Table 4-11: Literacy data at Township Level (March 2016) Township Total Over Literate Per cent of Population 15-years old persons literate persons Thanlyin 231,034 181,965 181,965 100 Kyauktan 127,745 108,900 108,900 100
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Table 4-12: Major Developments in the Townships
Major Development Construction Status Location
Thanlyin Township Zarmani Dam 1991-1993 Operational Hpa Yar Kone Village Tract Myanmar Maritime 2002 Operational Hpa Yar Kone University (MMU) Village Tract Government Technological 1986 Operational Let Yat San University (GTU) Village Tract Kyauktan Township Bambwegon Dam 1993-1994 Operational Nyaung Waing Village Tract Myanmar International 1993/4 - 1997 Operational Shwe Pyi Thar Terminals Thilawa (MITT) Yar Ward – a multi-purpose container facility Myanmar Economic 2000-2001 Operational Thi Dar Myaing Cooperation (MEC) Ship Ward (formerly Breaking Factory known as Ka Yar Village) Prawn/Soft Shell Crab From 2000 Operational Thi Dar Myaing Factory Ward Yangon Port Development Since 2015 Scheduled for Shwe Pyi Thar by Myanma Port Authority operation: 2018 Yar Ward Jetty at Yangon Port by From late 2017 under Shwe Pyi Thar Wilmar, a Construction Yar Ward Singapore-based until Nov, 2017 agribusiness firm Thilawa Power Plant 2015-2016 Operational Shwe Pyi Thar Yar Ward
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4.3 Village Tracts and Wards Detailed Socio-Economic Profiles have been developed of village tracts and wards in Thanlyin and Kyauktan Townships within the Direct Area of Influence. Table 4-13 summarises some key socio-economic parameters for each ward/village tract. Annex 5 contains the Profiles for each community.
Table 4-13: Key Socio-economic Data and Information for Village Tracts / Wards in the Direct Area of Influence
Thanlyin Township Kyaung Kone Seik Gyi Village Parameter Ah Lun Soke Village Tract Hpa Yar Kone Village Tract Let Yat San Village Tract Tract
Area (acre) 3,754 acres 5,600 acres 4,265 acres 600 acre
Formally 1 village; informally 4 No. Villages 9 branches 8 branches 1 Village villages.
No. Households 1,780 HH 12,151 HH 6,351 HH 421 HH
Population 7,818 pax 52,413 pax 26,056 pax 1,723 pax
Casual Labour: Construction workers at Thilawa SEZ and Main Livelihood Casual Labour Casual Labour Casual Labour factories workers at Factories in Thilawa SEZ No schools; new primary school being constructed in 12 schools (incl. 1 high school) 6 schools (incl. 4 high schools) 1 school (primary school) 2017 by GoM. 1 rural health centre 2 rural health centres Infrastructure & Water supply: wells and tube No health facilities. Services Water supply: lake, wells, tube Water supply: wells and tube wells Water supply: ponds, wells, wells wells Fully electrified tube wells. Partially electrified Partially electrified Partially electrified
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Kyauktan Township Aye Mya Thi Dar Shwe Pyi Thar Yar Thi Dar Myaing Shwe Pyauk Village Nyaung Waing Parameter Ward Ward Ward Tract Village Tract
Area (m2) 83 acres 154.46 acres 214 acres 2,044 acres 2,709 acres
No. Villages Urban Ward (0 villages). Urban Ward (0 villages). Urban Ward (0 villages). 5 villages 3 villages
No. Households 324 HH 716 HH 563 HH 917 HH 1,927 HH
Population 1,170 pax 3,042 pax 2,086 pax 4,195 pax 7,338 pax
Main Livelihood Casual Labour Casual Labour Casual Labour Casual Labour Casual Labour
2 schools (both primary) 1 health clinic 2 schools (no high 3 schools school) No schools Water supply: getting 5 schools (incl. 1 high extension of water 1 rural health centre school) 1 health clinic No health facilities pipeline from the main Water supply: wells, Infrastructure & water pipeline from 1 clinic Water supply: Water supply: wells, tube-wells Services Bantbwekone Dam to ponds, wells, tube tube-wells 1 rural health centre Ship Breaking Factory wells. Partially electrified ( 10 fully electrified which belongs to or more houses are Partially electrified Fully electrified Myanmar Economic not electrified) Corporation (MEC) and ponds Partially electrified
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CHAPTER 5. RAPID SOCIO-ECONOMIC IMPACT ASSESSMENT
5.1 Overview Following definition the key issue and impact themes, a rating system was This rapid socio-economic review investigated the most significant aspects developed (see Section 5.3). This was used to ‘rate’ the different issues relevant to the development of the SEZ. To do this, the following key steps and impact categories for each of the PACs; to help determine the scale of were undertaken: socio-economic issues being experienced by each affected community.
• Relevant socio-economic issue/impact categories were defined; It is important to note that only 400 ha of the total 2,400 ha has been developed and the current operations workforce is less than 10% of the total • Key socio-economic ‘themes’ in each category were identified projected for Zone A. Also, construction-related impacts mostly occurred based on stakeholder feedback, field observations and review of during 2014/2015 and therefore in late 2016, the recall of these impacts and relevant documentation; associated issues was less strong. • A list of actual and possible issues and impacts was developed and 5.2 Summary of Issues, Impacts and Benefits then the most significant within each category were chosen for The socio-economic categories are defined as follows: more detailed review. Employment and skills development; Importantly, the review process considered both issues and impacts experienced as a result of the Zone A Development and those that Local economic development; concerned or were of interest to communities in relation to the forthcoming Community engagement; Zone B Development. Land & livelihoods; The focus of the rapid review was on the village tracts and wards directly affected by the SEZ (the “PACs”), followed by the Thanlyin and Kyauktan Population and social change; Townships, and then other categories of stakeholders (e.g., Community health, safety & security; and regional/national). Social infrastructure and services. The rapid review does not address all possible issues and impacts, but Table 5-1 summarises the issue/impact themes identified as being of rather concentrates on those that: i) are significant; ii) are currently being interest and relevance to the PACs and the Thanlyin and Kyauktan experienced by the community; and/or iii) require additional attention in Townships. terms of management and mitigation by the project proponent.
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Table 5-1: Summary of Socio-Economic Impacts
Category Key Themes Key Issues for Affected Communities
Employment & National employment Scale and nature of national employment opportunities. Skills Development Local employment Level of local employment at or associated with the SEZ.
Training and skills development Access to training and skills development opportunities.
Local Economic Local inflation Perceived and real linkages between the SEZ and local inflation. Development Local supplier opportunities Level of opportunity to supply goods and services to the SEZ.
Other business opportunities (e.g., small Support of other business opportunities directly or indirectly related to the SEZ. shops)
Community Consultation and disclosure Community satisfaction with SEZ engagement including: Engagement Community protests • regular provision of planning, employment & environmental and social issues data;
Civil society engagement • use of relevant & accessible communications channels (e.g. meetings, printed media etc);
• timeliness of responses to enquiries; and
• timely resolution of complaints.
Land & Livelihoods Physical resettlement and economic Physical resettlement and economic displacement of peoples due to the SEZ. displacement (incl. livelihoods) Social and economic dislocation of resettled peoples. Host communities Host communities and impacts due to presence and resource use by resettled peoples. Food security and subsistence Food security and subsistence as a by-product of a changed physical location and altered economic situation.
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Category Key Themes Key Issues for Affected Communities
Population & Influx/in-migration (incl. foreigners) Influx/in-migration of strangers into communities that compete for jobs and alter the social fabric of Social Change communities. Urbanisation and community development Local government resources and capacity to manage local employment and unplanned migration.
Local government resources Accelerated transition to urbanisation due to presence of industrial development.
Changes in nature and type of community development
Community Health, Security and crime Increased level of serious and petty crime linked to influx of strangers and transition to a workforce Safety & Security dominated by casual labour rather than farming. Community safety Increased level of traffic accidents and injuries due to increased traffic and different types of Traffic accidents & injuries vehicles travelling along major access routes to the SEZ. Community health & communicable Potential changes in quality of community health, in particular due to issues caused by influx e.g. diseases overcrowding, poor waste management etc.
Exposure to communicable diseases through influx of exposed peoples with possibly reduced levels of vaccination.
Social Pressure on existing infrastructure and Pressure experienced on existing infrastructure and services e.g. schools, groundwater usage. Infrastructure & services (e.g., health, education, water, Services Roads & bridges and potential impacts including both upgrades and damage. waste) Improvements to infrastructure and services including through community investment activities e.g. Improved infrastructure and services schools, potable water. Increased traffic in local communities Presence of increased traffic within local communities.
FINAL 37 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.3 Rating of Socio-economic Issues 5.3.2 Sensitivity to Issues/Impacts Three dimensions were identified to assess the current relationship Sensitivity to impacts is the degree to which each PAC is likely or known to between affected communities and the SEZ and thus rate the level, or be affected by changes due to the SEZ. Sensitivity has been assessed severity of, issues/impacts on these communities. These are: Exposure; considering scale of socio-economic issues in the following categories: Sensitivity; and Perceptions. Socio-Economic Profiles for each PAC and the two townships (Annex 5) include ratings against these dimensions. 1. Employment and skills development; 2. Local economic development; 5.3.1 Exposure to the SEZ 3. Community engagement; Exposure of each PAC to the SEZ has been assessed considering:
1. Land acquisition and resettlement as a result of the SEZ: e.g., the 4. Land and livelihoods; amount of land and number of people affected. It considers land 5. Population and social change; acquisition, physical resettlement and economic displacement. 6. Community health, safety and security; and 2. Physical proximity of the village tract or ward to the SEZ: e.g., whether whole or partial villages are included in the SEZ boundary, and 7. Social infrastructure and services. how close the PAC is to other infrastructure, services and/or activities. Sensitivity to issues/i mpacts rating Exposure rating None/minimal level of benefits to the community, e.g., through More than one village affected by land acquisition. employment, skills development, business opportunities and/or Affected multiple times by land acquisition for the SEZ.16 Very high social investment. Very high Whole village/ward included in the SEZ boundary. Very high level of adverse impacts currently or likely from SEZ Physical displacement. development. 17 Highly affected by close proximity to the SEZ boundary. Low level of benefits to the community, e.g., through employment, Partial village/ward included in the SEZ boundary. skills development, business opportunities and/or social investment. High High Economic displacement. High level of adverse impacts currently or likely from SEZ Affected by close proximity to the SEZ boundary. development. Not affected by physical or economical displacement. Some/reasonable level of benefits to the community, e.g., through Moderate Affected by close proximity to SEZ boundary. employment, skills development, business opportunities and/or Not affected by physical or economical displacement. Moderate social investment. Low Not in close proximity to infrastructure but affected by related Moderate level of adverse impacts currently or likely from SEZ services and/or activities. development. Good level of benefits to the community, e.g., through employment, 16 Low skills development, business opportunities and/or social investment. This includes the 1996/97 land acquisition for Thanlyin-Kyauktan Industrial Zone. 17 No adverse impacts currently or likely from SEZ development. This includes related infrastructure, services and/or activities inside and outside the boundary including traffic.
FINAL 38 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.3.3 Perceptions Figure 5-1: Example Socio-Economic Profile Template Perceptions of the SEZ have been captured to inform an assessment of the current orientation of each PAC to the SEZ. General perceptions as well as those about specific issues and impacts have been collected.
Perception rating
Disagreement with positive oriented perception statements. Negative Negative perceptions of impacts/issues experienced. Neutral or unsure of positive oriented perception statements. Neutral Neutral or unsure perceptions of impacts/issues experienced. Positive perceptions about the SEZ in general and of the Positive impacts/issues experienced.
5.3.4 Rating of Issues/Impacts by Community
Table 5-2 summarises the level of socio-economic issues/impacts experienced by each PAC. The communities most affected appear to be: Ah Lun Soke; Shwe Pyi Thar Yar; Hpa Yar Kone; Thi Dar Myaing; and Let Yat San.
The remainder of CHAPTER 5 describes each socio-economic category and related issues across the Direct AOI. Examples are given to illustrate the different socio-economic issues experienced by different PACs.
The Socio-Economic Profiles (Annex 5) provide further details about the rating of each of the PACs in terms of sensitivity, exposure and perception to socio-economic issues (see Figure 5-1).
FINAL 39 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Table 5-2: Rating of Issue/Impact Categories for each Directly Affected Community (village tracts/wards/townships)
Village Tract or Ward Employment & & Employment Skills Development Economic Local Development Community Engagement & Land Livelihoods & Population Change Social Community Health,Safety & Security Social Infrastructure& Services Exposure Ratting Sensitivity to Impacts Perceptions
Thanlyin Township
Ah Lun Soke ✔ ✔ ✔ ✔ ✔ ✔ ✔
Hpa Yar Kone ✔ ✔ ✔ ✔ ✔ ✔ ✔
Let Yat San ✔ ✔ ✔ ✔ ✔ ✔ ✔
Kyaung Kone Seik Gyi ✔ ✔ ✔ ✔ - - ✔
Kyauktan Township
Shwe Pyi Thar Yar ✔ ✔ ✔ ✔ ✔ ✔ ✔
Aye Mya Thi Dar ✔ ✔ ✔ ✔ ✔ ✔
Thi Dar Myaing ✔ ✔ ✔ ✔ ✔ ✔ ✔
Shwe Pyauk ✔ ✔ ✔ ✔ ✔ ✔
Nyaung Waing ✔ ✔ ✔ ✔ ✔ ✔ ✔
FINAL 40 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.4 Employment and Skills Development Figure 5-2: Largest Employers Current at the SEZ Employment opportunities are the primary interest of neighbouring communities. Particularly important is the level of local jobs and training and skills development opportunities, including for future generations.
5.4.1 National Employment
There is a strong level of national employment at the Thilawa SEZ. As at the end of January 2017, 3,090 Myanmar workers were employed at
24 factories: 829 Male (27%); 2,261 Female (73%). The largest employers are shown in Figure 5-2.
Around 40,000 operations jobs are projected at the various factories
and facilities when Zone A is fully operational.
There was strong growth in operations employment during 2016. Around 700 National Registration Cards (NRCs) were issued 18 for operations roles during 29 March – 6 December 2016; more than 95% Notes: 1. Lu Thai is a garment factory. were for women. 2. Foster Electric is an electronics factory.
It is difficult to obtain accurate data on total construction jobs generated to date. Construction worker data is not yet systematically captured or tracked by the developer or locators.
Many of the sub-contracts for construction appear to be ‘informal’ with work crews sourced from various locations in the country. In addition there is a high level of sub-contracting of construction activities.
Data about foreign workers at the SEZ is not currently collected; however, it is assumed that Myanmar workers undertake most roles.
18 Labour Department NRCs are required for operations phase roles.
FINAL 41 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.4.2 Local Employment Many roles at the factories are for skilled workers, while the unskilled positions are often sourced through contractors e.g., a Singaporean There are some good success stories of local employment and capacity company has the cleaning contract for the Ball Corp Asia metal development due to the SEZ, however, the SEZ does not currently have beverage packaging facility but is not specifically required to hire locally. a structured system whereby local communities 19 are prioritised for employment. There are also no SEZ requirements for Locators to hire Local residents report “our education is low so it is difficult to get a job at locally, although TSMC, OSSC and MJTD have encouraged Locators to the SEZ”. Others report discrimination on the basis of age and do so. Figure 5-3 shows the level of local employment 20 at SEZ appearance. 21 factories by village tract/ward within the Direct AOI for each township. There are limited employment opportunities for PAPs. As at 16 Construction jobs were mainly undertaken by non-local workers. There February 2017, only 15 PAPs were employed at the SEZ. 22 was around 17% local employment by Suntac at Zone A peak Some people report that there are more jobs locally because of the SEZ, construction. Some workers who came for construction jobs have e.g., some used to work at garment factories in South Dagon and other stayed and secured jobs at the SEZ e.g. security guards. locations but can now work at the SEZ. Around 43% of workers in operations roles were living in Thanlyin Communities report issues with construction jobs: i) lack of/delayed Township and around 52% were living in Kyauktan Township. However, payment; ii) low salaries; iii) Labour Lead ‘skimming’ of payments e.g. per National Registration Card (NRC) data held by OSSC, up to 10% of from 8,000 down to 6,500 Myanmar Kyats per day; and iv) opportunities SEZ workers living in Thanlyin Township were not original residents. only available via contacts (i.e. lack of transparency in recruitment). Similarly, up to 17% of SEZ workers living in Kyauktan Township were The work environment at the SEZ is seen as “stricter” than communities not original residents. These are likely to be influx workers who have 23 are accustomed to e.g., the requirement to turn up to work daily. moved into the host townships to seek work at the SEZ. Some workers reported that cultural differences between foreign managers and Myanmar workers create misunderstandings/challenges. 19 Local means communities in the Direct Area of Influence (DAOI). 20 Note: statistics derived from a sample of OSSC Labour Dept Registrations undertaken b/w 29 March – 6 December 2016. 21 The total figures in each chart only reflect data for local communities and the remaining percentage of employment (up to 100%) relates to those employed from elsewhere. 22 Suntac is the Myanmar construction contractor that regularly partners with Pentaocean Construction Co. Ltd. 23 Influx workers in this context refers to workers that are not originally from the directly affected townships.
FINAL 42 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-3: Current Local Employment Levels at SEZ Factories
Source: OSSC Database, December 2016. Source: OSSC Database, December 2016.
FINAL 43 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Locators use Standard Labour Department contracts that are provided Figure 5-4: Example of Foster Job Advertisement for Female Operator by OSSC Labour Dept representatives based at the SEZ. In line with
Myanmar legislation, the basic salary for workers is usually the minimum wage, which is often achieved after a 3-month training/probation period during which training wages are paid. The minimum monthly wage for SEZ workers is 108,000 Myanmar Kyats per
month, which equates to 30 days paid time at the official minimum daily wage of 3,600 Myanmar kyats per day.
Figure 5-4 shows a job advertisement for a female operator that demonstrates how payment is phased over the 3-month training/probation period; in this case, from 85% of the basic minimum wage within one month of starting work to 100% within three months of starting work. Some SEZ Locators’ starting wage is 75% of the basic minimum wage.
Employment benefits provided by some Locators include ferry service, uniform and meals. Some Locators pay more if leave is not taken.
During consultation discussions, Kyauktan ward and village tract leaders mentioned that the requirement to provide recommendation letters for workers applying for operations roles at the SEZ is increasingly taking a lot of their time. It is affecting their ability to fulfill their other local government responsibilities.
Source: OSSC Labour Department, 2016.
FINAL 44 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.4.3 Training and Skills Development Figure 5-5: Some Workers at the Cute Myanmar Factory in the SEZ
Some training and skills development is being provided by Locators e.g. Operator and Health, Safety & Environment (HSE) Training, Technical Training, Fire Safety Training, Heavy Machinery Training and also some vocational training.
Cute Myanmar (toy manufacturing) provides a range of on-the-job training to workers including those with no prior experience. Figure 5-5 shows an example of Cute Myanmar workers.
Showa Gloves (gloves factory): 12 people from Aye Myit Tar Village in Ah Lun Soke Village Tract participated in a 3-month training program in Viet Nam. Now they are earning 200,000 Myanmar Kyats per month.
Acecook Myanmar Co., Ltd (instant noodles factory): 3 engineers were sent to Viet Nam for 3 months before the factory commenced operation.
Data collection on training could be strengthened (this is understood to be under discussion by MJTD/TSMC/OSSC).
There is an opportunity to source and publicise positive case studies
related to training and skills development in the PACs/townships, on the Source: Social Clarity, December 2016. website and other locations.
When asked during consultation discussions, some local communities said that they knew the SEZ had provided some training opportunities to people in their village tract/ward and/or other villages nearby. Some mentioned that they were not able to attend the training as they were working at the time the training programs were scheduled.
FINAL 45 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.5 Local Economic Development Some Locators, such as Cute Myanmar and Lu Thai, also source some After jobs, the most significant contribution the SEZ could make to local materials and services locally e.g. office accessories, buses to ferry economic development is facilitating business opportunities. This could be workers. through local supplier opportunities or other business opportunities. Data is not currently captured about local suppliers and services and Development of a major project can also cause local inflation and related there is no known policy or strategy to source locally or to develop the issues in the local area/region. capacity of local suppliers.
5.5.1 Local Inflation 5.5.3 Other Business Opportunities Communities in proximity to the SEZ report that they are experiencing There appear to be three main other or indirect business opportunities local inflation; for example land price, food, diesel, clothes products and related to the SEZ: car/motorbike ferrying for individual workers; small construction materials. shops along major access routes; and renting houses for workers. Aye Mya Thi Dar reported that before they could use 100-200 Myanmar Figure 5-6 is an example of a national business generating local Kyats for groceries but now need to use 500 Myanmar Kyats. business opportunities as a result of the SEZ. Most people do not see a direct linkage with the SEZ, although some Figure 5-6: Example Business Opportunity from SEZ residents perceive an indirect linkage.
There is currently no known monitoring of the local price of basic goods Myanmar World Consultant Company Sangyo and services in areas surrounding the SEZ that would allow possible inflation issues to be monitored. Consulting Company supplies canteen and cleaning services to factories in the SEZ and rents a house in 5.5.2 Local Supplier Opportunities the Myaing Thar Yar (2) Resettlement Site for its six Many Locators appear to utilize services from Yangon-based employees. The company provides services to Wacoal companies. Little evidence exists of local suppliers providing goods and and others. Myanmar World Consultant Company services directly to the SEZ. Sangyo Consulting Company pays 50,000 Myanmar Some examples exist of small local businesses supplying construction Kyats per month to house its workers within Myaing materials to sub-contractors, e.g., Suntac sub-contractors or others.
FINAL 46 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Around 94 small and medium enterprises have been established Unplanned development of small shops around the SEZ presents a around the SEZ. Some were developed pre-SEZ e.g. for the Thilawa number of potential community health and safety and influx impacts. In Industrial Zone. Others have developed since the SEZ. Figure 5-7 many cases, if not all, these small shops were established on shows some photographs of small businesses around the SEZ. Some government-owned land without a permit (see Section 5.8.1). In some of the small/medium businesses established include general stores cases, they have been established directly under power lines. selling rice, snacks, gasoline and diesel, restaurants, car and The SEZ’s current reporting requirements of Locators do not enable motorcycle repair shops, and tyre repair shops. Some vendors are local quantification of local economic impacts (micro and macro); including e.g., from Shwe Pyauk, Shan Su, Shwe Pyi Thar Yar, Myaing Thar Yar. indicators such as total Kyat spent on goods and services, number of Others have moved in e.g., influx families at Moe Gyoe Swan local and national suppliers etc. Monastery in Shwe Pyi Thar Yar Ward.
Figure 5-7: Some Small Businesses/Shops Established Around the SEZ
Source: JICA Expert Team, December 2016.
FINAL 47 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.6 Community Engagement24 A community relations officer is engaged by TSMC and conducts a The nature and level of community engagement undertaken can have a range of engagement activities with local communities, including significant effect on how communities perceive the social issues and informal collection of complaints/grievances. However, there is no impacts (positive and adverse) of a project. formal or regular program of consultation and engagement that ensures all PACs are informed about topics of interest to them. 5.6.1 Consultation and Disclosure Some communities have concerns about actual and/or potential future Both Kyauktan and Thanlyin Townships and the PACs would like to issues and impacts of the SEZ e.g. noise, water, air quality. This is in receive information regularly from the SEZ. Key topics of interest part due to exposure to other Industrial Zones including the Thilawa include: employment (job opportunities and employment data); planning Industrial Zone and industrial zones located in other regions. and scheduling of the SEZ development and related activities; and management of environmental impacts e.g. air quality, water quantity The only ongoing disclosure mechanisms known to be available and quality, waste, and noise. include: a large billboard near the entrance to the SEZ; the TSMC website (http://www.myanmarthilawa.gov.mm) and the planned MJTD Currently, SEZ communication appears to be mainly motivated by website (http://mjtd.com.mm). government compliance requirements (e.g., EIA or RWP disclosure) or major events e.g., opening ceremonies. 5.6.2 Community Protests
Consultation with or reporting to communities and local authorities since Two local community based organisations (CBOs) have been formed the SEZ began construction has not been regular. However, since with key agendas and specific areas of interest. One is pro-SEZ January 2017 MJTD has initiated a regular (bi-monthly) Thilawa development and the other, although supportive of the SEZ, is critical of Community Coordination Meeting. These meetings include village land, human rights and environmental aspects associated with its tract/ward administrators and local people from communities such as development.
Ah Lun Soke Village Tract, Aye Mya Thi Dar Ward, Shwe Pyi Thar Yar A number of protests and demonstrations have been organized by Ward, Thi Dar Myaing Ward, Shwe Pyauk Village Tract, Nyaung Waing these and other groups related to the SEZ. Some international NGOs Village Tract and Par Da Gyi Village Tract. are also heavily focused on SEZ activities including land acquisition and resettlement (see also Section 1.1.1).
24 Although community engagement is not an issue/impact per se, lack of or poor community engagement leads to greater levels of perceived impact on communities. Community engagement is also an important mitigation measure for some social issues, e.g., traffic safety awareness training.
FINAL 48 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-8 describes the Thilawa Social Development Group (TSDG) Figure 5-9 and Figure 5-10 describe and show the newly formed and its involvement related to the SEZ. Thilawa Local People Group who supportive of SEZ development in order to bring benefits both locally and to Myanmar in general. Figure 5-8: Thilawa Social Development Group (TSDG) Figure 5-9: Photograph of Pro-SEZ Supporters
The Thilawa Social Development Group (TSDG), supported by US and Japanese human rights non-government organisations
(NGOs), has focused on land and human rights matters including transparency of communication and access to information. Its initial focus was the Zone A 400 ha land acquisition and resettlement program although this has
broadened to include the quality of SEZ EIAs and associated management of environmental impacts. The TSDG presents itself as the farmers’ representative although not all farmers
support this; some believe TSDG advocacy has delayed SEZ development and negatively affected their livelihoods. The TSDG Leader is based in Ah Lun Soke Village Tract and representatives are active within Shwe Pyi Thar Yar, Thi Dar
Myaing and Nyaung Waing in particular. TSDG activities have precipitated focus by other international human rights NGOs Source: JICA Expert Team, December 2016. and academics. The TSDG was also invited to participate in the Multi-Stakeholder Advisory Group that was started in relation
to Phase 1 SEZ development (see Section 1.1.1).
FINAL 49 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-10: Thilawa Local People Group Although the MSAG is no longer active, another version of the group is being considered for future civil society and other engagement. It is
considered important for YRG and MJTD to lead such engagement The Thilawa Local People Group was formed in November 2016 efforts and ensure that it is inclusive of others operating in the area, by the former Shwe Pyauk Village Tract Administrator who is such as MITT, the Thilawa Port, WBG (for Community Driven focused on harnessing SEZ benefits. Per its 9 November 2016 Development) and others. Press Release: “We are thinking that Thilawa SEZ is an engine Recent direct engagement between MJTD, Locators, and interested not only for economic development of Myanmar nationwide but also for our local business and community development here in civil society groups has included for example a tour of Dowa
Thanlyin and Kyauktan area. In addition to our generation, our Ecosystems, the private industrial waste management facility located in children and grandchildren would be more benefited by this the SEZ. opportunity”. The new CBO is actively involved in development
of the new Resettlement Site for PAPs displaced by the Zone B Figure 5-11: Photograph of a Meeting of the Thilawa SEZ MSAG development and is also supporting job-matching activities between local communities and Locators.
5.6.3 Civil Society Engagement
TSMC and MJTD have engaged with a range of interested civil society since the Zone commenced development in 2011.
A key highlight was formation of the Multi-Stakeholder Advisory Group (MSAG) that included representation from YRG, TSMC, MJTD, international and local civil society groups and PAPs (see Figure 5-11).
The MSAG was designed to enable a broad group of stakeholders to discuss and resolve community issues associated with the SEZ. It was
operational from February 2015 to mid-2016. Source: Myanmar Centre for Responsible Business, February 2015.
FINAL 50 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.7 Land and Livelihoods Land title documentation for Phase 1 PAPs are currently being provided Land Acquisition and Resettlement has a significant and long-lasting impact (but are not yet complete). Microfinance support recently commenced. on communities affected by major developments. While improvements have Upgrades were made to the BEHS (Sub) Myaing Thar Yar School to been made since the initial Zone A development, some investor, community accommodate Zone A and B PAHs (see also Section 5.10.2). and civil society perceptions of the SEZ have been tainted. Some issues A community centre has been provided for Zone A PAHs at the date to the initial land acquisition and resettlement activities in 1996/97. Resettlement Site (see Figure 5-13). A separate community centre is 5.7.1 Physical Resettlement & Economic Displacement being considered for Zone B PAHs nearby to this centre – and this
Figure 5-12 summarises actual and projected displacement impacts on requires further consideration as facilities are unlikely to promote communities (households and people) by the SEZ development. Zones integration between resettlers or with the host community. A and B require land from both Thanlyin and Kyauktan Townships. There are some ongoing issues regarding the land acquisition and crop Areas 5 and 6 require land from Kyauktan Township only. compensation for Zone A. Zone A PAHs have experienced challenges
Phase 1 of Zone A Resettlement commenced in November 2013. A restoring their livelihoods. Despite additional support measures, total of 81 PAHs were displaced. A total 68 PAHs were relocated to a livelihoods have not yet been fully restored for all Zone A PAHs. Resettlement Site in Myaing Thar Yar 3 and 13 PAHs were Lessons have been learned from implementation of the Zone A/Phase 1 economically displaced only. The Phase 1 Expansion took place in income restoration program that should support improved early 2016 and an additional 2 PAHs were relocated. implementation of future IRPs.
A Resettlement Work Plan (RWP) and Income Restoration Plan (IRP) The Initial Zone B Resettlement started in late April 2017. Communities for Zone A affected persons was prepared and implemented by the have moved out to enable SEZ Zone B construction to commence. TSMC with support from JET. Rental assistance has been provided whilst the new Resettlement Site 26 A 3-acre communal land plot has been allocated at the Resettlement is being constructed (next to the Zone A resettlement site). Site for Zone A PAHs, to support alignment of entitlements with Zone B Initially, around 100 PAHs are affected by displacement) for Zone B. 25 PAPs. Its use is currently under discussion; this should be expedited. Separate RWPs have been developed for each Zone B area and a new IRP is currently being prepared.
25 Evaluation of Zone A outcomes identified that the plot size was too small for 26 kitchen gardens to be established and therefore a larger plot size is being offered to A piped water supply system has been installed for Zone B PAHs but is not yet physically displaced Zone B PAHs. This communal land will be available to Zone A ready – it is due for completion by end August 2017. In the interim, community water PAHs to conduct gardening/cultivation activities. wells are available for those already living at the Zone B Resettlement Site.
FINAL 51 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-12: Summary of Displacement Impacts from Thilawa SEZ*
* (estimated only for areas still under development)
FINAL 52 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-13: New Community Centre at the Zone A Resettlment Site Other issues for host communities include influx of people seeking employment at the SEZ. New dwellings are established in the area regularly; although there is no reliable data on the actual level of influx (see Figure 5-14).
Despite these impacts, the host community has received limited benefits, e.g., infrastructure upgrades, employment, livelihood improvements, and vocational training.
There are ongoing issues with integration with resettlers, for example, the new community centre at the Resettlement Site is understood to accessible primarily to Zone A PAHs and not the wider community.
Figure 5-14: Photograph of one View of the Host Community
Source: Social Clarity, December 2016.
5.7.2 Host Communities
Host communities in Myaing Thar Yar have been affected by the Resettlement Site for the SEZ; impacts include noise, dust, and community safety issues. For example, there was a recent problem with development of the site for Zone B PAHs; where trucks were causing significant dust and community safety issues. The Myaing Thar Yar community wrote to local authorities and the SEZ about the issue, and although it was eventually resolved it took several months.
Source: Social Clarity, 2016.
FINAL 53 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.7.3 Food Security and Subsistence Figure 5-15: Photograph of Houses at Zone A Resettlement Site
Food security and subsistence are often affected when communities are displaced; particularly if their rural-based livelihood is replaced with a peri-urban one (e.g., more wage based/casual labour compared to agricultural livelihoods), as was the case with Zone A PAPs.
For Zone A PAPs, the relatively small size of their plots limited the possibility of home gardens (see Figure 5-15).
Food security has also been affected in communities that will lose land to the SEZ but have not yet been displaced. Farmers in Ah Lun Soke stopped investing in fertiliser to improve their rice yield as they did not know when they would need to stop cultivating. Their income decreased, less rice was locally produced, and the local price of rice increased.
The communal land being allocated to Zone A PAHs for gardening/agricultural use and the larger plot sizes for Zone B PAHs should help to improve the food security situation (see Section 5.7.1). Source: Social Clarity, 2015.
FINAL 54 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-16: Case Study of Influx at Moe Gyoe Swan Monastery 5.8 Population and Social Change Major projects such as the Thilawa SEZ create preconditions for, and often trigger, significant population and social change within host and neighbouring communities. In particular, in-migration of workers creates More than 400 people are currently/have recently been living at pressures on local governance and on local infrastructure and services, as the Moe Gyoe Swan Monastery, starting from Oct/Nov 2014. well as affecting social dynamics. The monastery is located in Shwe Pyi Thar Yar. Around 90%
have families, of less than 5 children. Around 10% are single. 5.8.1 Influx/In-migration (incl. foreigners) • Sometimes 5 or 10 people within one room. Significant influx into the local area has occurred. More than several hundred workers from elsewhere in Myanmar have moved into local • Frequent illness amongst workers living in the Monastery.
communities near the SEZ. Many workers are bringing their families so • Drinking water, groundwater & waste management the influx numbers are even higher. challenges.
For example, outsiders have moved into: Thi Dar Myaing, Shwe Pyauk, • Frequent traffic accidents outside the Monastery; in part Shwe Pyi Thar Yar, Aye Mya Thi Dar, Shwe Pyauk, Myaing Thar Yar, due to the presence of small shops, including those
Ah Lun Soke, Hpa Yar Kone, Let Yat San and Kyaung Kone Seik Gyi. selling gasoline.
Workers have also moved for employment at the Thilawa Port, MITT & • List of workers staying at the Monastery is tracked by Soft Shell Crab Factory; it is not always possible to attribute influx to the monks and provided to Police. SEZ directly (see also ). Section 5.8.2 • Children attend schools in Aye Mya Thi Dar & Shwe Pyauk.
Local government (Townships, village tracts/wards) does not currently • Some people work at local shops and are wage workers. have a way to reliably track population changes. • Electricity and water supply promised by the SEZ (TSMC) An influx of workers is having an impact across the area but is but not delivered yet. concentrated in some locations, e.g.,: Thi Dar Myaing; Nyaung Waing; • A Community Centre has been built within the Monastery Ah Lun Soke; Let Yat San; Aye Mya Thi Dar; and Shwe Pyi Thar Yar. by Suntac, the Myanmar construction company whose Figure 5-16 describes a known example of influx at the Moe Gyoe workers are based there. Swan monastery.
FINAL 55 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
For Phase 1 of the SEZ it was decided to exclude the Moe Gyoe Swan 5.8.2 Urbanisation and Community Development monastery (see Figure 5-17) from the SEZ boundary. However, this has contributed to the influx now being experienced at this location. The SEZ and construction of other infrastructure projects (e.g. Thilawa Port) is contributing to the urbanisation of Kyauktan and Thanlyin Although there is monitoring of the number of workers at the monastery Townships, as is additional and forthcoming enabling infrastructure and their families, this does not alleviate the associated issues. such as No. 3 Thanlyin Bridge. Workers staying at the monastery perform construction jobs, at least This acceleration in urbanisation is also being felt at village tract/ward some of which could readily be done by local residents. level, particularly amongst those in proximity to major access routes. Potable water 27 is regularly donated to the monastery which Rapid urbanization in and around the SEZ area presents a number of contributes to alleviating pressure on local resources but contributes to challenges. These cannot be managed by one development or waste management challenges. A nurse from Kyauktan Township organization only, and require a coordinated approach. regularly visits the monastery to check the health of workers and their families which puts pressure on local health services. Figure 5-18 describes two examples of urbanization of communities in close proximity to the SEZ. These communities are experiencing rapid Attendance of children at local schools puts pressure on the education population growth but not the infrastructure and services improvements infrastructure and services in Aye Mya Thi Dar and Shwe Pyauk. required to adequately maintain community development. Figure 5-17: Location of Moe Gyoe Swan Monastery There are some positive economic outcomes as a result of this urbanization including the opportunity to rent out apartments and purchasing of goods and services by new residents/workers.
Source: JICA Expert Team, December 2016.
27 This is large plastic containers of water.
FINAL 56 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-18: Urbanisation Examples in Local Communities 5.8.3 Local Government Resources Thi Dar Myaing The influx of people seeking employment in proximity to the SEZ has created pressure on local government resources and infrastructure. By December 2015 more than 100 workers had moved in. Since the “Census System”28 previously in place has been dismantled, By late November 2016, the number of workers had doubled to 200 it is reported by local authorities that there is no structured process for and many had also brought their families. The total influx village tract/ward administrators to use to register and track the people population is now estimated at 700 people, compared to the official moving into and out of their communities. This affects infrastructure and registered population of 2,040. Potentially more than 25% of the services planning activities. It also distorts local governance processes total resident population is influx. e.g. 100 Household Heads, 10 Household Heads etc.
Initially, workers came for construction work but now the SEZ is at Within the PACs, influx workers frequently live apart from the existing Operations stage they have started to live permanently. community and are from rural areas in other regions e.g. Ayeryawady, Bago, Magwe. Often they are not familiar with local requirements, e.g., They live as ‘squatters’ and some people work as security guards. community health procedures for vaccinations (see Section 5.9.4). Many are from Ayeryawady region & Bago region. Local government officials play a role in local recruitment for the SEZ The influx workers rent eight apartments in Thi Dar Myaing for and other industry, such as by providing recommendation letters for their families. local residents for their job applications. The volume of recruitment Influx workers work at the SEZ but also Thilawa Port, Maersk etc. being undertaken for the SEZ, and the associated requirement for letters of support, has placed pressure on the resources of some local Aye Mya Thi Dar authorities (see also Section 5.4.2).
Estimated influx of more than 100 people. 28 This system refers to the long-term practice of “Overnight Guest Registration” which was amended in September 2016. Prior to September 2016, it was stipulated Official population is 300 Households. Potentially more than 25% that if a person from one place stays the night at a different place, he/she must inform to the Authorities. This requirement was stipulated in Article 13 (g): Ward or of the total resident population is influx. Village Tract Administration (2012). The revised legislation requires registration with village authorities for guests remaining in a ward or village for more than one month, however, it is understood that no action will be taken against those who fail to inform authorities of their guests. See: http://www.mmtimes.com/index.php/national-news/22620-midnight-inspection-claus e-abolished-by-parliament.html.
FINAL 57 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.9 Community Health, Safety and Security Figure 5-19 provides an example of feedback on security and crime Worker influx and increased traffic and industrial activity create health, from one of the PACs of the SEZ. safety & security challenges for neighbouring communities. Common issues Township authorities are understood to collect crime data for several and impacts that present over time include: increased traffic and other categories of crime, e.g., most serious 10 crimes, other 7 crimes and public incidents and injuries; increased crime/more violent crime; and other social issues. It is reported on an annual basis. Data for Thanlyin decreased feelings of security and safety due to strangers regularly coming and Kyauktan Townships is in the Socio-Economic Profiles (Annex 5). in and going out and also settling. The prevalence of communicable Figure 5-19: Example from Myaing Thar Yar Village Tract diseases can also increase due to influx and people from outside the area may bring new communicable diseases. Residents reported that due to population changes, the 5.9.1 Security & Crime crime rate has increased. Security within the village tract
Residents in some PACs report an increase in the volume and severity has been weakened because of strangers. Also the number of crime. According to Thanlyin Township authorities “every year the of people consuming alcohol has increased. They report level of crime increases and the level of “big crime” is increasing. They crime levels in their village tract are high relative to other reported that the volume of “small crime” is also increasing; for example, locations nearby and much higher than three years ago. the number of traffic accidents in 2016 was more than in 2015”. These changes are seen as indirectly related to the SEZ Increases in crime are sometimes indirectly attributed to the SEZ and “because people who make crime are influx workers”. sometimes attributed directly to the Thilawa Industrial Zone (located in
Shan Su, Thanlyin Township). Thanlyin Township reported that “50% of the “big crime” is due to influx of workers to Hpa Yar Kone, Let Yat San, 5.9.2 Community Safety
Aye Myit Thar, Aye Thit Sar. A lot of workers are living in these areas Communities have concerns about their children’s safety; particularly and because they don’t have enough income, they have financial those where school entrances are near major access routes such as problems. Therefore the crime level is high”. Lanmadaw Road in Thi Dar Myaing Ward (see also Section 5.9.3). In villages with influx workers, such as Shwe Pyauk, Thi Dar Myaing, While OSSC/MJTD environmental monitoring does require Locators to and Myaing Thar Yar, communities report they feel less safe than monitor community safety incidents that occur within the SEZ, the before e.g., they are not comfortable with leaving the doors of their assessment team did not hear of any SEZ monitoring of community houses open anymore. safety incidents related to the SEZ that occur outside its boundaries.
FINAL 58 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-20 details a serious community safety incident that occurred in Residents reported that some incidents have occurred whereby workers Hpa Yar Kone village tract as a result of sub-contractor activities. have fallen off the light vehicles that ferry them to and from the SEZ causing injuries and the death of some SEZ workers. Figure 5-20: Serious Safety Incident at Hpa Yar Kone Village Tract The community grievance process may capture community safety Hpa Yar Kone reported an incident that occurred in 2015 in Kon issues as they arise, but is not sufficiently formalized to identify trends Chan Kone village, where three children drowned. A and emerging community safety problems so protection measures can sub -contractor had collected local sand to support construction at be implemented. the SEZ and the resulting hole was not backfilled. It filled with Figure 5-21: Children Playing on Excavated Stockpile Outside SEZ water during the rainy season and the three children fell in and dr owned. Compensation of 1-2 million Myanmar Kyat/child was paid. The incident was reported to the Police Dept. The children’s family has moved on; they were influx workers. The hole remains
unfilled.
While safety incidents that occur within the SEZ are required to be publicly disclosed in MJTD’s regular environmental monitoring reports to the Ministry of Natural Resources and Environmental Conservation (MONREC), these reports do not currently track incidents that occur outside the SEZ due to workers, construction companies or sub-contractors.
Excavations and other activities, e.g., welding, use of heavy equipment by SEZ contractors have been reported and observed to present safety risks to surrounding communities (see Figure 5-21). Contractor activities outside the SEZ, e.g., where they conduct pre-construction work such as welding, obtain materials such as fill, and store vehicles Source: Social Clarity, 2016. and equipment, is not known to be actively monitored.
FINAL 59 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-22: Traffic Accidents Reported by Communities 5.9.3 Traffic Accidents & Injuries
Residents in a number of PACs in proximity to the major access routes to the SEZ e.g., Hpa Yar Kone, Ah Lun Soke and Thi Dar Myaing, report
a significant increase in traffic accidents and injuries. Accidents between motorbikes and between motorbikes and cars are reported to be the most common accidents. While few residents directly
attribute accidents to the SEZ, they did note there were increasing numbers of vehicles ferrying workers to and from the site.
Some traffic accidents involving trucks and other heavy vehicles have resulted in deaths of community members. These could relate to the
SEZ or Port but no definitive records are readily available.
Residents also commented that some drivers were inexperienced and using alcohol while driving….“traffic accidents are somewhat higher than three years ago… because of influx of workers who use motorcycles but don’t obey traffic rules and drink alcohol while riding”.
Traffic accident information is monitored by the SEZ through the
OSSC/MJTD environmental monitoring process, but it is generally focused inside the SEZ boundary and is at the discretion of construction
companies and/or Locators to report. Figure 5-22 shows the key areas where communities report traffic accidents and injuries having occurred.
Township authorities are understood to collect data on injuries by
vehicles. It is reported on an annual basis. Data for each Thanlyin and Source: JICA Expert Team Kyauktan Township is in the Socio-Economic Profiles (Annex 5).
FINAL 60 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.9.4 Community Health & Communicable Diseases Figure 5-23: Photograph of Earthworks at the SEZ
Environmental health issues of concern to communities in relation to the SEZ include dust impacts during earthworks, noise, vibration, water quality and waste. Figure 5-23 shows a photograph of earthworks during Zone A development.
Air quality monitoring is understood to have been conducted during construction of Zone A on a quarterly basis at one monitoring location approximately 400m from Ah Lun Soke village (near Thilawa dam). A continuous 7-day monitoring process was implemented for Total
Suspended Particles (TSP) and Particulate Matter (PM10) as well as other parameters.
Review of some of the environmental monitoring reports29 appears to indicate that there were no significant dust issues from Zone A construction. However, the monitoring for dust impacts appears to have been limited (e.g., only one station, no evidence that community views were actively integrated, and only conducted once every quarter).
During construction, inspections are reportedly conducted that include Source: Social Clarity, 2015. checks on dust suppression (‘water sprinkling’), however, it is not clear if there is any validation of these activities actually occurring or being Township officials and community residents are concerned about the effective in suppressing dust. spread of infectious diseases due to the influx of workers to the SEZ. In
No known monitoring of dust or other air quality parameters related to Ah Lun Soke, two people contracted dengue fever. Increased road use by SEZ vehicles appears to have been implemented.30 population in the area reportedly led to increased waste which increased the number of mosquitos.
29 Thilawa SEZ Zone A Development, Environmental Monitoring Report Phase-2 Ah Lun Soke villagers are also concerned about communicable (Construction Phase), MJTD, Reports for December 2015, June 2016, and September 2016. diseases such as HIV/AIDS as workers are coming from various parts 30 No specific review of operations phase air quality monitoring was considered for this assessment. of Myanmar including the border areas.
FINAL 61 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
As described in Section 5.8.1, residents at the Moe Gyoe Swan 5.10 Social Infrastructure & Services Monastery are reportedly regularly unwell and are being monitored by Some communities have directly experienced impacts on their infrastructure the Kyauktan nurse on a monthly basis. It is not known whether any and services e.g. pressure on schools and health centres due to the influx communicable diseases have spread to the local population. of workers. Some have also experienced investment by MJTD and/or
Construction contractors and Locators are expected to report monthly construction companies in community facilities. on the risk of communicable diseases as part of the OSSC/MJTD 5.10.1 Pressure on Existing Infrastructure and Services environmental monitoring process. However, it is highly unlikely that Some areas in Thanlyin and Kyauktan Townships report that they have companies are in a position to report adequately on these risks without experienced pressure on infrastructure and services, at least in part dedicated health clinics, provision of data by individual workers, or a related to the SEZ development. For example: clear definition of what information should be reported. • Education facilities in Myaing Thar Yar and Shwe Pyauk have more Some Locators provide medical check-ups for their personnel e.g., students due to influx of workers and their families; Dowa Ecosystems, which helps to identify any worker health issues that might affect the community. • Drinking water in Thi Dar Myaing has been affected. Due to influx, there is not enough drinking water available during the summer Noise and vibration do not appear to currently pose a significant issue season; except in communities located near Kyaik Kauk Pagoda Road (e.g., Let Yat San village tract) who hear piling vehicles, those near the Thilawa • Aye Mya Thi Dar residents are concerned about ongoing access to Power Plant in Shwe Pyi Thar Yar ward who describe the noise from a 17-acre pond located in Zone B Area 2-3 and also to the deep the plant as “like a plane taking off”, and in Ah Lun Soke village tract well near Ywar Haung in Ah Lun Soke from which they purchase near the intersection of Ye Dan Road and Phywint Phyo Yay Road. drinking water; and
Some communities, such as Ah Lun Soke, are worried about noise and • In Kyaung Kone Seik Gyi and Let Yat San, communities have vibration in the future and the potential of vibration to affect cultivation noticed impacts on groundwater resources since 2015; they activities. Others, such as Thi Dar Myaing, are concerned about the reported that it takes around 25% longer to draw water than future proximity of the Zone B industrial zone to their ward and the previously.
potential for a range of environmental issues including air, soil, emissions, water, and noise.
FINAL 62 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-24: Affected Infrastructure Reported by Communities The Zone B development would likely put pressure on available
cemeteries within Kyauktan Township. Graves in the current Aye Mya Thi Dar cemetery need to be moved to a cemetery in West Ward, which
is next to the temporary waste dump. This could magnify the potential expansion issues that the waste dump area is already creating.
The temporary waste dump in Kyauktan West Ward is experiencing significant pressure. This also affects fire and emergency services as
there was a fire at the dump site in summer because of the heat inside the rubbish, which they estimated was five times more than the volume
of waste being stored in 2015. Township personnel also observed that
in the rainy season the dump site smelled. They further observed that the number of waste collection scavengers at the temporary dump is
now 10 people, up from 1-2 people three years ago.
There is pressure on internal roads and small concrete bridges in
Myaing Thar Yar and Kyauktan Urban area. Some roads and bridges were destroyed due to heavy vehicles linked to the SEZ. A “water boxer”
vehicle from the construction company Suntac Co., Ltd. took water from Shwe Pyauk Creek by parking on concrete bridges that were
subsequently damaged (e.g., Shwe Da Yay bridge).
There has been pressure on storm water drains through dumping of
waste in plastic bags e.g., by Moe Gyoe Swan Monastery by the side of the road and also by vehicles commuting to the SEZ. Waste is being left
by the roadside – for example beside Par Da Gyi Road in Shwe Pyi
Thar Yar and Aye Mya Thi Dar.
Figure 5-24 shows the infrastructure reported by communities/local Source: JICA Expert Team authorities to have been affected.
FINAL 63 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
5.10.2 Improved Infrastructure and Services Figure 5-25: Shwe Pyauk Health Centre
MJTD and some Locators (factories) within the SEZ have supported improved infrastructure and services in surrounding communities.
A donation of 2-year clinic operation fees, clinical equipment and medicines for Shwe Pyauk Health Centre was provided by MJTD to a value of 10 million Myanmar Kyats (see Figure 5-25).
A brick pond and water pumping system, road safety speed bump and sign board for Ah Lun Soke Village were provided in collaboration with Myanmar Government such as YRG, and TSMC and MJTD.
The construction of two-storey building for new classrooms in the BEHS (Sub) Myaing Thar Yar School has been implemented by in collaboration with Myanmar Government such as YRG, TSMC and MJTD. In part, this will alleviate anticipated pressure due to the forthcoming Zone B resettlement.
MJTD, Locators and others have provided a range of health and education services support. A summary of key contributions is shown in Source: JICA Expert Team Figure 5-26.
FINAL 64 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-26: Other Social Services Contributions by the SEZ 5.10.3 Increased Traffic Congestion in Local Communities
CSR Initiatives by the SEZ Local communities, particularly those located on key traffic routes, have experienced an increase in traffic; for example, Hpa Yar Kone, Ah Lun Dental check-ups at Aye Mya Thi Dar Ward schools have been funded Soke, Nyaung Waing and Thi Dar Myaing. (about 600 students). Figure 5-27 shows the main roads used by SEZ-related vehicles A stationery donation to 400 students: (i) in Ah Lun Soke V/Tract; (ii) to ‘squatters’ near Myanmar Maritime University (MMU) in Kun Chan Kone, including those for construction, factory deliveries and transport of Hpa Yar Kone V/Tract; (iii) and in Aye Mya Thi Dar Ward. workers. This map has been prepared based on data collected through Tree planting activity around the SEZ boundary. key informant interviews at township and village tract/ward level.
Water supply for Pi La Khat village in Kyauktan. Several communities reported that Phwint Phyo Yay Road had recently Garbage collection by Dowa Ecosystems for Ah Lun Soke Village. been partially upgraded, although this was in part to address damage that had already been caused. Advanced English Language class for Thanlyin and Kyauktan Townships: 13 university students - intermediate level. 50 students - basic level. Construction companies and sub-contractors have reportedly damaged Long-term scholarship program: 11 high school students and 3 university inner earthen roads, such as in Nyaung Waing and Ah Lun Soke. They students from Aye Mya Thi Dar Ward, Shwe Pyauk Village Tract, Nyaung park heavy vehicles in the village tracts/wards when not being used. Waing Village Tract & Let Yet San Village Tract. Construction companies and sub-contractors are reported to have used Internship program for engineering students from Thanlyin Township Government Technological University (GTU). earthen roads in PACs during the rainy season causing further damage. Vocational training program (sewing training) for Shwe Pyauk V/Tract & Aye Communities have expressed concern about potential risks for Mya Thi Dar Ward (Kyauktan). schoolchildren due to both increased traffic and the presence of heavy Construction company Suntac funded a Community Centre within the Moe vehicles on local roads at the times children are going to and from Gyoe Swan Monastery located in Shwe Pyi Thar Yar Ward. school. In Myaing Thar Yar, the community requested trucks not use the concrete road previously developed by TSMC/MJTD on weekdays between 2.30-3 pm.
FINAL 65 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Figure 5-27: Road Usage in and Around the SEZ
Source: JICA Expert Team
FINAL 66 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
CHAPTER 6. SOCIAL MANAGEMENT PLAN
6.1 Overview This chapter proposes some key recommendations to enhance the positive benefits the SEZ is contributing to Myanmar, including to communities in proximity to the Zone, and mitigate the adverse socio-economic issues and impacts currently being experienced. It builds on the earlier socio-economic analysis and includes some proposed indicators to monitor and measure progress in each impact category. In developing these proposed indicators we have been mindful of the need to minimise additional data collection.
The recommendations are summarized in a Social Action Plan (Table 6-1) and Social Monitoring Plan (Table 6-2). Mitigation measures and monitoring actions have been attributed to specific parties wherever feasible, i.e., TSMC, MJTD and/or the OSSC.
It is intended that these action plans will be developed further as time-bound implementation plans that can be readily implemented by the relevant groups associated with management of the SEZ.
6.2 Key Recommendations for Enhancement and Mitigation Initial thoughts on key recommendations for enhancement and mitigation are shown in Table 6-1. Prior to finalisation, these will need to be “workshopped” with TSMC/OSSC and MJTD to check alignment with existing and planned initiatives being implemented.
FINAL 67 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Table 6-1: Social Action Plan
Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T
A. Employment & Skills Development A1.1. Develop and implement an SEZ Policy and Procedure for Local Employment. This should clearly articulate a requirement to prioritise employment of directly affected communities (i.e., PAPs and PACs) during construction and X X X H operations, particularly for unskilled positions. The policy should define ‘local’ versus ‘national’ employment and set minimum requirements to be met by all relevant parties (e.g., MJTD, Locators, construction companies, etc). A1.2. Prepare a Thilawa SEZ Jobs Booklet detailing the types of roles available within the SEZ during construction and operations and the required qualifications, X X X M experience and skill requirements. Circulate the SEZ Jobs Booklet within PACs (to PAPs and others) and at local high schools and local universities. A1.3. Implement a Job Seeker Service for PACs/PAPs. Build on the current job- matching efforts by MJTD/TSMC/OSSC to develop a comprehensive skills inventory of working age persons interested in working at the SEZ. A D atabase should be compiled and updated regularly. This should be used to match SEZ employment and training opportunities with candidates from directly affected communities i.e. the PACs. It is recommended that the service include establishment of a recruitment centre/s in some PACs, regular distribution of printed job advertisements in PACs, CV preparation support, etc. The s ervice should be developed with local government to X X X H integrate local requirements (e.g., character references from village tract/ward administrators) and reduce the documentation burden on local government. The job seeker service should include a transparent recruitment process (e.g. widespread promotion of jobs and adherence to a structured and non- discriminatory selection process). It should specifically identify current and future job opportunities that could be matched with interested PAPs/ PACs by holding regular meetings between the OSSC Labour Department, Locators and construction contractors/sub- contractors.
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Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T
A1.4. Report regularly on employment statistics. Report regularly on local and national employment efforts and the number of people employed per period (e.g., per quarter) by place of origin (local 31/national/foreign) and gender to the OSSC. X X H Reporting could be integrated with other regular reporting, e.g. reporting on Locator lease commitments and IEE/EIA requirements. A1.5. Develop a Human Resources Policy for the SEZ. All relevant parties (e.g., MJTD, Locators, construction contractors etc) should adhere to and/or have equivalent HR policies. This Policy should include relevant non- discrimination X X X H requirements for example on the basis of age, appearance, gender and ethnicity. It should also include requirement for adherence to relevant Myanmar laws and mechanisms (e.g. labour, occupational health and safety). A1.6. Develop and implement an audit schedule and program to monitor progress on employment at the SEZ. This could be integrated with the broader TSMC and OSSC monitoring/auditing process, e.g., for adherence to locator lease commitments and IEE/EIA requirements. The audit program should include review of X X M local and national employment levels, employment conditions including living arrangements, employment grievances and any other relevant risk factors. Responsibility for audits should be cascaded from MJTD down to Locators and contractors (and include audit of construction sub- contractors). A1.7. Develop and implement a structured Skills Development and Training Program for PACs/ PAPs aligned to current and projected SEZ skills requirements. X X X X H This should be informed by the OSSC skills inventory. A1.8. Regularly implement cross- cultural education training (e.g. six monthly): to support Myanmar workers to work effectively in a cross- cultural work X X X L environment. This would typically be done in an induction program or similar.
31 Specific place of origin, e.g., village tract/ward should be recorded and reported for local employment.
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Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T
B. Local Economic Development B1.1. Develop and Implement a Local C ontent S trategy for the SEZ, including monitoring and evaluation framework. This should set out the requirements and actions needed to boost local supply. These should be cascaded in a specific and structured way by MJTD to Locators and by Locators to construction companies and o ther contractors (and sub- contractors) along the full scope of the Locators’ supply chain. It is recommended that MJTD and the SEZ’s largest Locators implement a pilot X X X X M supplier capacity building initiative for local suppliers, to support them to strengthen their capability to supply goods and services to the SEZ (e.g., support might include contract development and negotiation assistance, loaning of technical or general equipment, occupational health and safety (OHS) training and support, quality control/quality assurance (QC/QA) training and support etc). B1.2. Implement a Supplier Fair (business matching program) to maximise supply opportunities related to the SEZ for local businesses. At least annually is recommended. This typically involves inviting local suppliers to a structured event X X X M where MJTD, Locators and construction companies present their supply requirements and local businesses present their capabilities. The objective of the event is to match local businesses with current and projected SEZ business opportunities. B1.3. Implement an Incentives Scheme for Locators and construction companies to maximise local content involvement in their activities (i.e., through employing local workers and local suppliers). Such a scheme would typically involve X X M the strongest contributing Locators and construction companies receiving awards and/or other benefits from the SEZ. C. Community Engagement C1.1. Prepare and implement a Stakeholder Engagement Plan (SEP) for the SEZ. This should focus on key stakeholders including PAPs, PACs, v illage t ract/w ard X X H a dministrators, township government, and relevant civil society organisations. The
FINAL 70 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T SEP should include identification and analysis of stakeholders, methods of engagement, and an action plan or ‘schedule’ of engagement activities by group. The SEP should also define how disclosure materials will be used and disseminated on a regular basis (e.g, in print, on website, other media). It is recommended that a regular (at least quarterly) Community Newsletter about the SEZ be disseminated in all PACs, host townships and other locations. A wide range of tools should be used to implement the stakeholder engagement program (e.g., meetings, leaflets, information boards, online promotion, print advertisements, information centres etc). A system for tracking and monitoring stakeholder engagement and issues management should also be defined in the SEP. C1.2. Document and Implement a S tructured Community Grievance Management System. This system should be consistent across all key parties, i.e., TSMC, YRG, MJTD and others. It should be cascaded to Locators, construction companies, other contractors (and sub- contractors) along the full scope of the X X H Locators’ supply chain. Communities must be engaged in the implementation of the grievance procedure. Training on the grievance management procedure and process must be required for all Locators, construction contractors and sub- contractors and others as relevant. C1.3. Establish a Community Information Centre(s) as a local centre where communities can drop in, find out information about the SEZ, and have their enquiries addressed. Consider mobile or ‘pop- up’ information centres in PACs for easy access to information in addition to a permanent information centre. More than one permanent X X H information centre may be appropriate given the size of the SEZ (e.g. one located in each host township). The information centre/s would be a key location for disclosure of SEZ documentation and placement of SEZ job advertisements. C1.4. Renew the Multi- Stakeholder Advisory Group (MSAG) and/or initiate another similar forum for engagement with key regional/national level stakeholders X X M on topics of mutual interest related to the Thilawa SEZ. There should be a clear mandate for such a group and it should include relevant officials and others active in
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Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T the Thilawa SEZ and surrounding area, e.g., World Bank Group, MITT, Thilawa Port, Wilmar, Maersk, Locators, civil society etc. Ensure there is a clear Terms of Reference (ToR) for the Forum with a requirement for minuted meetings and monitoring and follow- up on agreed actions. It is essential that senior management from MJTD and TSMC attend these meetings so that decisions can be made and required actions (and associated budget) approved. C1.5. Document and Implement a Structured Social/Community I nvestment P rogram targeted to all PACs. This should build on corporate social responsibility (CSR) efforts already made by MJTD/TSMC. It is expected that the program could use funds already collected on a regular basis by the OSSC from each Locator for social/community investment purposes. Develop and document the social/community investment strategy and program. Engage Locators, PACs and others as relevant in X X M its development and implementation. It is recommended that priority investment is given to health services and infrastructure improvements within PACs including a dengue fever eradication program given the recent outbreak experienced in Ah Lun Soke adjacent to the SEZ. This Program should be developed in consultation with host townships and other local government stakeholders to ensure the available funds are applied to priority development needs using a transparent and balanced approach. D. Land & Livelihoods D1.1. Conduct a completion audit of the Phase I/Zone A resettlement program. Use an independent expert to conduct the audit. This should include a final evaluation of the livelihood status of Zone A PAHs. In the event that any cases of hardship (not yet restored livelihoods) are identified, tailored corrective actions should be designed, implemented and monitored. These corrective actions may X X H include identification and implementation of further livelihood opportunities, inclusion in the Zone B IRP, or similar. Publish the results of the completion audit, implement any corrective actions identified, monitor their effectiveness and adapt the implementation approach as necessary.
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Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T
D1.2. Continue to implement the Micro- finance Program for Zone A PAHs. Expand the program to include Zone B PAHs as soon as feasible. This will require additional funding from MJTD/TSMC. There should be adequate supervision, monitoring and evaluation of the program. The program should be evaluated regularly X X H (6 monthly is recommended) to assess its effectiveness and implement any improvement actions required. Regular publication of the outcomes/results of the program should be shared with participants as well as the public (excluding any confidential information). D1.3. Develop and Implement the IRP for Zone B PAHs. Ensure lessons learned from Zone A are adequately addressed for Zone B. Include in the Zone B IRP any vulnerable Zone A PAHs and those who have not yet restored their livelihoods. A specific Vulnerable Peoples Program should be implemented as part of the Zone B IRP. The Zone B IRP should include comprehensive livelihood support measures. For example, in addition to job matching and vocational training, this would likely include: capital investment; equipment and materials provision; access to credit; job readiness training and mentoring, etc . It is important that the Zone B IRP also includes provision X X H for adequate social infrastructure and services at the Resettlement Site and in the host community. Integration of Zone B PAHs with the host community and Zone A PAHs should be strongly considered in the approach to ongoing development of the Resettlement Site (e.g. two separate community centres very nearby to each other – one each for Zone A and Zone B resettlers – is not likely to promote integration and should be reconsidered). Consideration should be given to provision of a health clinic and market at or nearby to the Resettlement Site. D1.4. Develop and Implement a program to support the Host Community of Myaing Thar Yar. This could include further infrastructure and/or service X X H improvements, inclusion in the micro- finance program, and other assistance measures. Conduct a needs analysis and undertake engagement with
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Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T community- nominated representatives of the Host Community to develop the content of the program. Ensure the program is adequately funded 32. It should include activities and events to enhance overall integration between resettlers and the host community. Any activities undertaken should be coordinated with the activities of the World Bank Community Driven Development (CDD) Program. D1.5. Develop and Implement a Small- S cale Cultivation Program for Zone A PAHs on the 3- acre communal land plot at the Resettlement Site. This should include fair allocation and support with land preparation, seeds, market assessment and so X X H on. Ensure allocation and use of the land is approved without further delay. [Strong support for the effective use of this communal land is essential; otherwise there is a high likelihood it will not succeed and become a negative outcome for Zone A PAHs]. E. Population & Social Change E1.1. Develop an Approval Process for Workforce Accommodation for construction contractors and Locators (including use of non- local workers). This should require development of a specific rationale for why non- local workers are required, as relevant, and, if so, require the contractor and Locator to provide specific information about how these workers will be adequately housed. Any worker h ousing/camp accommodation constructed should be reviewed and approved by the Locator to ensure that it meets basic standards and minimises potentially adverse X X X H socio- economic and environmental impacts on neighbouring communities. Worker accommodation should be regularly inspected by MJTD/TSMC and corrective actions should be identified and implemented by responsible parties as required, to ensure adherence to provision of adequate worker housing and minimisation of adverse impacts. This a pproval p rocess and the associated requirements should be cascaded to Locators & construction contractors and sub- contractors.
32 [The program should be adequately funded including by MJTD/TSMC under their obligations to meet international standards for resettlement [which specify that impacts on the host community should be managed and they should be able to derive benefits from the project].
FINAL 74 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T
E1.2. Discourage the ongoing use of Moe Gyoe Swan Monastery in Shwe Pyi Thar Yar as temporary workers accommodation. Identify and discuss alternative arrangements with relevant Locators and construction companies including X X X H development of formal worker housing in a relevant location. Any such locations should be identified and prioritised in consultation with MJTD/TSMC/OSSC. E1.3. Support Township and Ward/Village Tract Administrators to track and report on influx/population changes. Use this information to develop/refine X X M appropriate mitigation strategies to minimise unplanned influx and other impacts. E1.4. Hold Regular Briefings with Township/Village Tract/Ward Administrators to address local issues as they arise. This will include: sharing planning information about the SEZ development in advance to help government manage its resources; and discussing socio- economic and other impacts being experienced and strategies for hhow to manage them. Mitigation measures for addressing recurrent issues as they arise should be agreed, implemented and X X X X H documented. [Implement a standing meeting agenda with key items to be regularly discussed. At a minimum, this should include: construction and operations activities; workforce requirements; community complaints; influx; traffic issues including accidents; community health and safety; security and crime; community consultation; infrastructure and services pressures; and others as relevant. F. Community Health, Safety & Security F1.1. Implement a Comprehensive Traffic Management Program with Locators, construction companies and others to define expected traffic management, safety and reporting requirements both inside and outside the SEZ (e.g., if an SEZ vehicle has an accident outside the SEZ it should be reported to X X X H MJTD/TSMC). This management program should be designed to monitor traffic issues including congestion, and also accidents and injuries that occur outside the SEZ on major access routes. Relevant mitigations should be identified and implemented. A
FINAL 75 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T procedure to investigate SEZ related accidents on major access routes should be included in the program. This should document the role and accountabilities of MJTD/TSMC/OSSC and also Locators, construction companies and local authorities. The traffic management program should include driver training requirements, traffic management planning, and traffic management improvement measures such as traffic lights, speed bumps, signage, road improvements etc F1.2. Implement a Community Safety Campaign in all PACs. This should include visual presentations and other creative ways to engage residents, including children, on core traffic safety topics and also other general safety topics. All villages/wards in proximity to major access routes should be prioritised for X X X H implementation of the community safety campaign as well as PACs that are otherwise at risk from SEZ construction and operations activities (e.g., locations where fill material is sourced, or vehicles are stored etc). F1.3. Expand Environmental H ealth & S afety (EHS) Management and Monitoring to include activities occurring outside the SEZ boundary, e.g., storing equipment and machinery in local communities; sourcing water, fill material and other resources from nearby area; and management of construction- related activities outside the boundary of the SEZ e.g. excavation activities. This applies in particular to all construction contractors and sub- contractors , for whom Locators are X X X H responsible (in accordance with their contracted scope of work). It should include developing a minimum SEZ standard (e.g., a contractor social management control plan or procedure) to govern contractor and sub- contractor activities and behaviour outside the SEZ, including spot checks/ inspections and implementation of remedial actions as required. G. Social Infrastructure & Services G1.1. Support Host Townships to Conduct a Strategic Review of Infrastructure and Services r equirements. E.g. classrooms, sub- rural health X X M clinics, waste management services etc, through engagement with Township GAD and
FINAL 76 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Lead Responsibility Priority
H igh Categories Proposed Measures / Actions M edium
L ow MJTD TSMC OSSC LOCATORS CONTRACTORS LOCAL GOV’T other relevant departments, and also Village Tract/Ward Administrators. Agree potential mitigation measures and collaboration opportunities to support the host townships to manage increasing pressure on infrastructure and services as a result of the SEZ. G1.2. Engage with the Host Townships to address key infrastructure and services issues. Priority should be given to the Kyauktan Township West Ward Waste X X M Dump and roads and bridges that have been identified as damaged due to SEZ activity. G1.3. Share SEZ vehicle registration and traffic monitoring data collected at SEZ entries/exits with host townships on a regular basis (propose monthly). This should be used to inform ongoing discussions between the SEZ, host townships, X L regional government and other stakeholders, as relevant, on traffic levels and any potential mitigation measures needed to address congestion and management.
FINAL 77 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
6.3 Socio-Economic Indicators to Measure Progress Table 6-2 summarises some proposed socio-economic indicators that could be used to measure progress on the social performance of the SEZ. Prior to finalisation, it is intended that these should be discussed with TSMC/OSSC and MJTD to check alignment with existing and planned SEZ monitoring activities. There may also be other relevant indicators that could be used by one or more parties involved with the SEZ.
Table 6-2: Social Monitoring Plan
Impact Area Indicators (outcome) Frequency Means of Verification
Lease agreements A. Employment 1. No. of Direct Jobs Projected 33 Six monthly [Data currently collected in agreements may need to be & Skills by Locators. Development modified] OSSC Labour Department data/records 2. No. of New Local Direct Jobs 34 Six monthly [Data disaggregated by original and current residence, Created by Locators. and gender] 3. No. of Indirect Jobs 35 Contractor monitoring reports from Locators Six monthly Created. [Standard template or equivalent would be needed] MJTD Labour Department data/records 4. No. of In- house Jobs 36 Six monthly [Data disaggregated by original and current residence, Created by MJTD. and gender] Construction monitoring reports from Lead Contractors 5. No. of Construction Jobs [Standard template or equivalent would be needed, 37 Quarterly Created. including for sub- contractors, advertised in order to aggregate data about construction roles] Copies of job a dverti s ements l ocally 6. No. of Jobs Advertised 38 Quarterly [ All unskilled construction and operations roles should be Locally. advertised locally first]
33 Defined as estimated direct jobs to be created by Locators that have signed a lease agreement with the Developer. 34 Defined as the actual number of jobs created by a Locator. Direct jobs represents the number of people whose work is directly billed to Locators. 35 Defined as those jobs generated by suppliers of goods and services to Locators. 36 Defined as number of jobs created by the Zone Developer (MJTD). 37 Defined as the number of jobs created during the construction process. 38 Defined as the Project Affected Communities (PACs) within the Direct AOI.
FINAL 78 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Impact Area Indicators (outcome) Frequency Means of Verification
7. No. of Registered Job Local Job Seeker Database (e.g., MJTD/OSSC) Seekers from the PACs and Quarterly [ Preferably one database will be centrally managed] host townships. Training data from Locators, MJTD, Construction Companies. 8. No. and Type of Training [Data disaggregated by both original and current Programs Provided by the Six monthly residence and gender]. SEZ. [Standard template or equivalent would be needed, including for sub- contractors, in order to aggregate data about construction roles] 1. No. and Location of Small & B. Local Medium- sized Enterprises Supplier data from Locators/MJTD/ Construction Six monthly Economic (SMEs) Supplying Companies Development Goods/Services to the SEZ. [Standard template or equivalent would be needed]. 2. Total Value (Myanmar Kyat) [Data disaggregated by both original and current location of Materials/Services Six monthly of suppliers] Supplied to the SEZ. Reports on local supplier development support activities 3. No. and Location of Local in Thanlyin and Kyauktan Townships Supplier Development Six monthly [Initiatives may include supplier fairs/forums, capacity Initiatives Implemented. building workshops, health, safety & environment (HSE) training, etc] Regular market assessment of consistent set of basic 4. Percentage of Change in Cost goods and services across the Direct AOI Six monthly of B asic G oods & S ervices. [Such goods could include food, diesel, gasoline, clothing, construction materials etc] 1. No. of Formal Community C. Community Engagement Activities with Quarterly Meeting minutes/records/reports Engagement PACs [ All meetings/visits/other engagements with any PACs on all topics related to the SEZ should be monitored] 2. No. of Formal Civil Society [Data disaggregated by location, type and purpose of Quarterly Engagement Activities engagement activity and gender]
FINAL 79 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Impact Area Indicators (outcome) Frequency Means of Verification
Community grievance system/database (MJTD/TSMC). 3. No. and Nature of Community Quarterly Regular social and environmental m onitoring reports from Grievances Received MJTD/Locators/Construction Companies [Consistent community grievance procedure will need to 4. No. and Nature of Community Quarterly be implemented in all PACs] Grievances Resolved & Open [Grievance data disaggregated by type of grievance] Copies of disclosure materials published 5. No. of Printed Materials / Evidence of distribution of disclosure materials (e.g., Quarterly Publications Disclosed document summarising distribution, photographic evidence of disclosure on noticeboards, offices etc) Visitor logbook/ records from Community Information 6. No. of Visitors to Community Quarterly Centre Information Centre [Assumes community information centre is established] 7. Satisfaction Level of Perception surveys building on the initial surveys Annually Communities conducted for this assessment (and others as relevant) 1. RWP Monitoring As defined See individual RWPs. D. Land & Livelihoods 2. IRP Monitoring As defined See individual IRPs. 3. No. of Community Grievances See Items C3 & C4 above. Received & Resolved Quarterly [ Specific land acquisition and livelihood- specific grievances should be captured and monitored]. General Administration Department (GAD) records E. Population & 1. Total Population in Thanlyin Six monthly [Monitoring total population will help to determine if Social Change & Kyauktan Townships emerging trends are occurring in host townships] 2. Total Population in PACs Data from Village Tract/Ward authorities (including estimated influx) National Registration Card (NRC) records Quarterly [Should include reporting on influx of workers and their families by location in the PACs and host townships] [Standard template or equivalent would be useful] 3. No. of Non - permitted SMEs Reports from regular observations/audits Six monthly e stablished adjacent to SEZ Township GAD records
FINAL 80 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017
Impact Area Indicators (outcome) Frequency Means of Verification
4. Percentage Change in Township GAD records Annually Township Poverty Ratio Township GAD records F. Community 1. No. of Traffic Accidents in Police traffic accident records Health, Safety Thanlyin & Kyauktan Six monthly & Security Townships [Monitoring total traffic accidents will help to determine if emerging trends are occurring in host townships] Regular environmental monitoring reports from 2. No. of Traffic Accidents MJTD/Locators/Construction Companies 40 involving SEZ- related Quarterly Police traffic accident records Vehicles 39 [Data disaggregated by location and company involved] Inspection reports of contractor/ sub- contractor activities 3. No. of Community Safety [Assumes main construction contractors will conduct Issues Identified during Quarterly periodic inspections/audits of sub- contractors including Construction location of equipment storage and worker housing]. Records of community safety briefings (e.g., attendance 4. No. of Community Safety Six monthly records, photographs etc) Briefings Implemented [Community safety briefings should be held in all PACs] 1. No. of Infrastructure and G. Social Service Improvements Data from MJTD/Locators/Construction Companies Infrastructure [Standard template or equivalent may be needed] & Services 2. No. of C orporate Social 41 [Data disaggregated by type and location of activity or Responsibility (CSR) Six monthly CSR initiative and by estimated no. of beneficiaries] Initiatives Estimated no. of beneficiaries should be disaggregated by 3. Total Value (Myanmar Kyat) gender where possible] of CSR Initiatives by the SEZ
1. Percentage Change in Key Township GAD records H. Other 42 Annually Township Statistics Other relevant township data and reports
39 Defined as vehicle accidents outside the fence that involves any SEZ-related vehicles. 40 Currently environmental monitoring reports do not appear to capture accidents ‘outside’ the fence that involve SEZ-related vehicles. 41 Corporate Social Responsibility (CSR) is used interchangeably with community investment. 42 Key parameters in the Township Socio-Economic Profiles (Annex 5) can be used; suggest at least communicable diseases and infrastructure and service changes included.
FINAL 81