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Rapid Socio-Economic Review (Main Report)

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Rapid Socio-Economic Review (Main Report) 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 FINAL 2 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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 FINAL 3 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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]. FINAL 4 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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 FINAL 5 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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 FINAL 6 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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) FINAL 7 Thilawa SEZ, Rapid Socio-Economic Review (Main Report) August 2017 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.
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