81388

                       Republic of the Union of Myanmar: Electric Power Project

                                              Chair Summary

                                    Meeting of the Executive Directors

                                              September 24, 2013


       Executive Directors approved a credit in the amount of SDR 92.6 million (US$ 140
million equivalent) to the Republic of the Union of Myanmar for the Electric Power Project on
the payment terms and conditions set out in the President’s Memorandum (IDA/R2013-0238).

         Directors welcomed this first IDA financed investment project under the Interim
Strategy Note that the Board endorsed in November 2012. They expressed support for the
project, which will expand electricity supply, help strengthen institutional capacity in the power
sector, and generate positive environmental benefits by reducing CO2 emissions. They noted
that, through these benefits, the project will contribute to poverty reduction and shared prosperity
in Myanmar, stressing the need to ensure that the most vulnerable will benefit from the country’s
growth.

        Directors emphasized the importance of building institutional capacity to underpin future
reform and sustainable development of the power sector, and welcomed the program’s proposed
technical assistance in this regard. They encouraged progress on achieving critical long-term
objectives such as increasing access to electricity, particularly for the poor and vulnerable,
improving financial viability in the power sector, and strengthening financial management and
procurement capacity. Looking ahead, Directors urged attention to the power distribution sector,
highlighting the importance of a more sustainable and appropriate tariff structure and pricing
model, while minimizing risks associated with currency depreciation to the poor. They also
highlighted the potential of exploring renewable energy sources in the future. They appreciated
the community consultations held for this project and encouraged continued broad consultations
with both stakeholders and the private sector. In addition, Directors highlighted the need for a
strong project results framework and reliable monitoring and evaluation system.

        More broadly, Directors recalled the WB Group’s Energy Strategy and encouraged a
One WBG approach in Myanmar ensuring strong linkages across IDA, IFC and MIGA. Finally,
Directors welcomed the authorities’ convening role in donor coordination and encouraged the
WB Group’s continued close collaboration with the IMF and other development partners.





    This summary is not an approved record.