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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized IN PARTNERSHIP WITH ACKNOWLEDGEMENT S The Strategic Environmental Assessment (SEA) of the Myanmar Hydropower Sector would not have been possible without the leadership of Ministry of Natural Resources and Environmental Conservation (MONREC) and Ministry of Electricity and Energy (MOEE), with support from the Australian Government. Myanmar government focal points for this study including Daw Thandar Hlaing, U Htoo Aung Zaw, U Nay Lin Soe, and U Sein Aung Min played a critical role at all stages of the SEA process. U Hla Maung Thein, Daw Mi Mi Khaing, U Tint Lwin Oo, and Dr. San Oo guided the work of the SEA and the focal points. These individuals provided technical inputs and facilitated working relations. ICEM - International Centre for Environmental Management and the Myanmar Institute for Integrated Development prepared the overall SEA, with this final report prepared by IFC. ICEM’s technical team included Jeremy Carew-Reid, Rory Hunter, Edvard Baardsen, Jens Grue Sjørslev, John Sawdon, Lois Koehnken, Lwin Wai, Mai Ky Vinh, Peter-John Meynell, Rick Gregory, Stephen Gray, Vuong Thu Huong, Win Myint, Yinn Mar Swe Hlaing, Yan Min Aung and Lina Sein Myint. The IFC team leading and guiding the SEA included Kate Lazarus, Matt Corbett, Pablo Cardinale, Naung San Lin, and Tiffany Noeske. Vikram Kumar, IFC Country Manager for Myanmar, provided valuable inputs. We also recognize the ongoing support of IFC’s Environmental and Social Governance Department and Infrastructure Department, as well as the feedback and collaboration received from colleagues at the World Bank. We are thankful for the generous support from the Australian Government, including John Dore, Rachel Jolly, Nick Cumpston, Dominique Vigie, Tim Vistarini, Ounheun Saiyasith, and Thipphavone Chanthapaseuth. We are grateful to the dedicated civil society organizations, nongovernmental organizations (NGOs), SEA Advisory and Expert Groups, and the Hydropower Developers’ Working Group for contributing to this study and working to advance sustainability in Myanmar’s hydropower sector. ABBREVIATIONS ADB Asian Development Bank AG Advisory Group AIRBMP Ayeyarwady Integrated River Basin Management Project AOI Area of influence BAU Business-as-usual BEWG Burma Environment Working Group BOT Build, Operate, and Transfer CIA Cumulative Impact Assessment CSOs Civil Society Organizations DEPP Department of Electric Power Planning DWIR Directorate of Water Resources and Improvement of River Systems EAOs Ethnic armed organizations ECC Environmental Compliance Certificate ECD Environmental Conservation Department EFlow environmental flow EG Expert Group EIA Environmental Impact Assessment EITI Extractive Industries Transparency Initiative EITI-MSG Extractive Industries Transparency Initiative Multi-Stakeholder Group ENAC Ethnic Nationalities Affairs Council GIS Geographic Information System GoM Government of Myanmar GWh Gigawatt hour HDWG Hydropower Developers’ Working Group HIC Hydro-Informatics Center HPP Hydropower plant project ICEM International Centre for Environmental Management IEE Initial Environmental Examination IFC International Finance Corporation JICA Japan International Cooperation Agency JV Joint Venture JVA Joint Venture Agreement JV/BOT Joint Venture/Build, Operate and Transfer KBA Key Biodiversity Area KIO Kachin Independence Organization KNPP Karenni National Progressive Party KNU Karen National Union kWh Kilowatt hour kV Kilovolt Lao PDR Lao People’s Democratic Republic LNG Liquefied Natural Gas LPG Liquefied Petroleum Gas masl Meters above sea level MATA Myanmar Alliance for Transparency and Accountability i MoA Memorandum of Agreement MOALI Ministry of Agriculture, Livestock and Irrigation MOECAF Ministry of Environmental Conservation and Forestry MOEE Ministry of Electricity and Energy MOEP Ministry of Electric Power MONREC Ministry of Natural Resources and Environmental Conservation MoU Memorandum of Understanding MPLCS Myanmar Poverty and Living Conditions Survey MRC Mekong River Commission Mtoe Million tons of oil equivalent MW Megawatt NCA Nationwide Ceasefire Agreement NEMP National Electricity Master Plan NGO Non-governmental organization NTFP Non-timber forest product NTP Notice to Proceed PES Payment for ecosystem services PPA Power Purchase Agreement SDF Sustainable development framework SEA Strategic Environmental Assessment SIA Social impact assessment SOBA State of the Basin Assessment TWh Terawatt hour UNDP United Nations Development Program UNESCO United Nations Educational Scientific and Cultural Organization VEC Valued environmental and social component WWF World Wildlife Fund ii TABLE OF CONTENTS ACKNOWLEDGEMENTS .................................................................................................................................. I ABBREVIATIONS .............................................................................................................................................. I TABLE OF CONTENTS .................................................................................................................................. III LIST OF FIGURES ............................................................................................................................................. V LIST OF TABLES .............................................................................................................................................. VI TERMINOLOGY .............................................................................................................................................. VII EXECUTIVE SUMMARY .............................................................................................................................. VIII 1. INTRODUCTION .................................................................................................................................. 1 2. SEA PURPOSE, VISION, AND PRINCIPLES................................................................................... 4 3. APPROACH AND METHODOLOGY ................................................................................................ 8 4. BASINS AND SUB-BASINS .............................................................................................................. 14 5. ENERGY AND HYDROPOWER DEVELOPMENT ....................................................................... 20 6. SIGNIFICANT ENVIRONMENTAL AND SOCIAL ISSUES ......................................................... 28 7. HYDROPOWER BUSINESS-AS-USUAL DEVELOPMENT IMPACTS ..................................... 34 8. SUSTAINABLE DEVELOPMENT FRAMEWORK ....................................................................... 47 iii 9. BASIN SUSTAINABILITY ................................................................................................................ 78 10. SUSTAINABLE DEVELOPMENT FRAMEWORK IMPLEMENTATION PLAN ..................... 92 REFERENCES ................................................................................................................................................ 105 APPENDIX A: MYANMAR SUB-BASINS ................................................................................................ 107 APPENDIX B: OPERATIONAL AND UNDER CONSTRUCTION HYDROPOWER PROJECTS ... 118 APPENDIX C: SUB-BASIN RATING METHODOLOGY ....................................................................... 120 APPENDIX D: SUB-BASIN EVALUATION RATINGS – SOCIAL/LIVELIHOODS AND CONFLICT .......................................................................................................................................................................... 129 APPENDIX E: PROPOSED AND IDENTIFIED HYDROPOWER PROJECTS IN MYANMAR ...... 133 iv LIS T OF FIGURES Figure 1.1: Myanmar Basins .......................................................................................................................................... 2 Figure 3.1: SEA Methodology and Outputs ............................................................................................................... 9 Figure 3.2: SEA Stakeholder Engagement Activities ........................................................................................... 12 Figure 4.1: Myanmar River and Coastal Basins .................................................................................................... 14 Figure 4.2: Myanmar Sub-Basins ............................................................................................................................... 15 Figure 5.1: Status of Hydropower Development in Myanmar ........................................................................ 26 Figure 6.1: Frequency of Issues of Concern Raised by River Basin ............................................................... 30 Figure 6.2: Frequency of Opportunities Raised by River Basin ..................................................................... 31 Figure 7.1: Ayeyarwady River Natural and Regulated Flows .......................................................................... 35 Figure 7.2: Thanlwin River Natural and Regulated Flows ............................................................................... 38 Figure 7.3: Sittaung River Natural and Regulated Flows .................................................................................. 41 Figure 8.1: Proposed Hydropower Projects on Mainstem Rivers ................................................................
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