The IFC gave this presentation on promoting environmental and social standards of the hydropower sector.

1. HYDRO PROGRAM
PROMOTING ENVIRONMENTAL & SOCIAL STANDARDS OF THE
HYDROPOWER SECTOR
www.ifc.org/mekonghydro
October 22, 2015

2. IFC: A MEMBER OF THE WORLD BANK GROUP
2
Conciliation
and
arbitration of
investment
disputes
Guarantees
of foreign
direct
investment’s
non-
commercial
risks
Interest-free
loans and
grants to
governments
of poorest
countries
Loans to
middle-
income and
credit-worthy
low-income
country
governments
Solutions
in
private
sector
development
IBRD
International
Bank for
Reconstructio
n and
Development
IDA
International
Development
Association
IFC
International
Finance
Corporation
MIGA
Multilateral
Investment
and
Guarantee
Agency
ICSID
International
Centre for
Settlement of
Investment
Disputes

3. www.ifc.org/mekonghydro

4. REGULATORY FRAMEWORK
National Energy Policy – National Energy Management
Committee, led by Vice President
Electricity Law
National Electricity MasterPlan
National Electrification Plan
Many masterplans (feasibility and bankability)
100GW potential

5. ENVIRONMENTAL – RELATED FRAMEWORK IN
MYANMAR
Constitution (2008):
• Sec. 45 – protect and conserve natural environment
• Sec 390 – environmental conservation
National Environmental Policy (1994)
• Integration of environmental considerations into
development process
• Environmental protection – primary objective in seeking
development
Environmental Conservation Law (2012)
Environmental Conservation Rules (2014)
Environmental Quality Guidelines (2015)
EIA Procedures (submitted to cabinet) – attaching EIA and SIA
reports together with investment proposals
National Environmental Strategy Framework and
Masterplan (under-development)

6. CHALLENGES TO ADDRESSING E&S RISKS AND IMPACTS
FROM HYDROPOWER PROJECTS IN MYANMAR
Untapped resources located in
- Pristine or underdeveloped watershed/natural habitats
• Approximate 132 Key Biodiversity Areas (KBA) have been identified
• Remote areas, generally located near rural communities, with diverse
levels of vulnerabilities, ethnicities and languages; and land tenure
uncertainties;
• Difficult access, limited services including transmission to evaluate
energy generated or electric distribution to communities in the area of
impact.
• E&S institutional and regulatory capacity is still emerging;
• Streamlined stakeholder engagement and consultation process is not
standard practice
• Concession process is not linked to an environmental and social
assessment/criteria
• Limited watershed level /strategic resource management
• /cumulative impact assessment
• No benefit sharing schemes

7. We aim to increase
the share of new
private sector
investments in the
hydropower sector
that adhere to
good international
industry practice on
environmental and
social standards
by 2020
Since 2012, IFC’s Hydro E&S Advisory Program has been
working in the Mekong Region
Supported by
Australian and
Japan Governments
www.ifc.org/mekonghydro

8. Our
Services
Improve
Policies and
Regulations
Build
capacity on
cumulative
impacts
from
hydropower
cascades
Engage and
advise
hydropower
companies
www.ifc.org/mekonghydro
Support
financial
institutions
adopt E&S
standards

9. STRATEGIC ENVIRONMENTAL AND SOCIAL
ASSESSMENT
Systematic decision support process, aiming
to ensure that environmental and social and
other sustainability aspects are considered
effectively in policy, planning and programme
making
A tool to effectively plan balanced hydropower development
considering environmental and social values and cumulative impacts
of multiple projects on these values.

10. THE VISION
Hydropower development based on integrated
water, land and ecosystem planning,
reconciling a range of natural resources uses
and priorities by balancing economic,
environmental and social objectives to achieve
economic development, environmental
sustainability and social equity.

11. SEA IN THE BROADER POWER / HYDROPOWER PLANNING• National power generation
• Increase domestic electricity supply from 30% (2012) to 100% (2030)
• Power export to increase foreign earnings
National power generation
and electricity supply targets
• Achieve year-round supply reliability
• Reduced dependence on hydropower
Preferred national generation
mix
• Collection of initial baseline information on signifcaint
ecosystem and social values
• Multi-stakeholder consultation
• Identification of stakeholder development priorities
• Broad agreement on priorities
• Project proposal screening
• PP recommendations
SEA
• Additional baseline studies/assessments
• Improvement of PP in line with agreed sustainable hydropower priorities
• e.g. delineation of watershed reservation and development zones
Improvement of and new PP
• Identification of basin E&S values in diffferent zones
• Screening of projects based on zone values
• Cumulative impact assessments
Basin-by-basin hydropower
planning
• ESIA preparation for each proposed project
• Government project approval/non-approval
Project approval
• Construction and operation of individual projects
• On-going project monitoring
Project implementation

12. WHAT IS A POSSIBLE OUTPUT?
A clear indication of preferable river stretches
or sub-watersheds to develop and those to
retain in the their existing state – to avoid
siting of projects that will result in significant
adverse environmental and social impacts.

13. STRATEGIC ENVIRONMENTAL AND SOCIAL
ASSESSMENT – SHORT TERM
Screening pipeline project proposals based on significant
river and watershed values to provide
(a) a hierarchy of projects from most favoured to least
favoured per watershed basis
(b) “no go zones” with notable values where
hydropower projects are not recommended.
Projects that have already been approved ??

14. STRATEGIC ENVIRONMENTAL AND SOCIAL
ASSESSMENT – LONG TERM
Assessing all predicted hydropower projects over the next 20 years based
on:
(i) existing policy and plans for hydropower and other large scale
water resource developments
(ii) known existing and proposed hydropower developments in
Myanmar.
This assessment
(a) accounts for the sustainable development priorities of stakeholders
(b) frames a new sustainable development pathway to meet these
priorities
(c) provides recommendations on policies and plans and additional
studies required to establish and implement this pathway.

15. WHAT ARE SOME OUTCOMES?
(i) improved dialogue between stakeholders
(ii) a greater understanding by decision makers and other
stakeholders of the range of values and priorities that have to be
taken into account in formulating the sustainable hydropower
development pathway
(iii) a shared development pathway that accounts for stakeholder
priorities;
(iv) clear PP recommendations based on trading off different values
and outcomes; and
(v) clear recommendations on additional baseline data gathering.
October 22, 2015

16. For more information:
www.ifc.org/mekonghydro