National Electrification Plan Offgrid Rural Electrification in Myanmar

National Electrification Plan Off-grid Rural Electrification in Myanmar Department of Rural Development Ministry of Agriculture, Livestock and Irrigation Workshop on National Electrification and Power Sector Development in Myanmar May 18, 2016

Sh go an ( Sa N) ga i Sh ng an M (S) ag M way an da l Ra ay kh Sh ine an (E K ) ac h Y in an go n K ay in Th Ch an in in th ay i N M ay Py on i. T aw K ay ah Ba y ad rw ye ya A Nos of Viillage Current Electrified Villages 14000 12000 10000 8000 6000 4000 Total Village Electrified Villages Unelectrified Villages 2000 0

Off grid project Area (16 -17) Shan State Townships - 25 Villages - 730 Households - 26606 Sagaing Region Townships - 11 Villages - 91 Households - 7756 Chin State Townships - 5 Villages - 274 Households - 11379 Rakhaing State Townships - 9 Villages - 350 Households - 30384 Remote communities areas located far beyond 11 miles from national grid and unlikely to receive electricity in next 10 years are targeted to pre-electrify. Kayin State Townships - 5 Villages - 110 Households - 7896 Ayeyarwady Region Townships – 10 Villages - 363 Households - 136081 Tanintharyi Region Townships - 6 Villages - 164 Households - 16666

Location of Project Site and Overall Quantities (2016 -2017) Formed VEC - 2082 Targeting Village - 2082 Targeting HH - 136768

Community Organization and Mobilization • Each village participating in the Off-Grid program must form a Village Electrification Committee, VEC • DRD will develop guidelines for VEC formation. v. To organize at least 9 persons in the committee v. To involve at least 3 women in the committee v. To involve 50% of middle age persons v. To be a collaborator for the development of the village

VEC • Explain the systems to villagers • Count the number of each system type • Collect down payments • Fill out SHS Form, keep one copy for records • Transfer the down payment to NEP account.

Off-grid Electrification for 2016 -2017 Fiscal Year Ø Electrification System ØSolar Home System ØMini-Grid System ( Solar, Hydro, Bio-mass and Bio-gas System) Ø Electrification Item (9 items) ØHouse-hold Electrification (small, medium , Large) ØRural Health Centre ØSchool (Primary, Middle, High) ØReligious Building Ø Street Light

Number of Lots and Systems (2016 -2017 FY) (A)Lot - 12 Lots Lot (1) Kayin Lot (2) Chin (a) Lot (3) Chin (b) Lot (4) Sagaing Lot (5) Tanintharyi Lot (6) Rakhine(a) Lot (7) Rakhine(b) Lot (8) Shan (East) Lot (9) Shan (North) (a) Lot (10) Shan (North) (b) Lot (11) Ayeyawaddy(a) Lot (12) Ayeyawaddy(b) 8

Number of Lots and Systems (2016 -2017 FY)(Cont; ) (B)System - 151166 Nos • SHS - 136768 Nos (30 Wp, 45 Wp, 60 Wp) • School - 1564 Nos (120 Wp, 375 Wp, 475 Wp) • Health Center - 328 Nos (180 Wp) • Religious Building - 2096 Nos (120 Wp) • Street Light - 10410 Nos (70 Wp) 9

List of Payment Collection for Community Contribution No State/ Region First Payment Town ships Total Villages HHs Second Payment Remarks Villages HHs Collecting 1 Kayin 5 110 7896 137 10870 - - 2 Chin 5 274 11379 153 5280 - - � 3 Sagaing 11 91 7756 83 5491 - - � 4 Thaninthary 6 164 16666 142 8743 - - � 5 Rakhine 9 350 30384 73 4356 - - � 6 Shan(East) 8 198 6058 141 4433 - - � 7 Shan(North) 17 532 20548 259 9391 180 6438 � 8 Ayarwaddy 10 363 36081 316 20348 - - Total 71 2082 136768 1304 68912 180 6438 Note � � � First Payment – 1304 villages / 68912 HHs = 1221. 213 Mil Kyats Until (16. 5. 2016) 10

Situation for Procurement Plan Sr. Subject Situation Hiring Period Remark 1 Procurement Consultant Finished 12 month 1 st, June 2 Project Implementation Advisors Finished 12 month 1 st, June 3 PV Inspection & Verification Firm Evaluation 4 month 15 th, Nov 4 PV Implementation Advisor Finished 12 month 18 th, May 5 Mini-grid Implementation Advisor Evaluation 12 month Aug 6 Open the tender SHS Finished (May 12, 2016) 11

Trainings Sr. 1 2 3 4 Type of Training Place Date No. of Trainee Remark 19. 1. 2016 – 22. 1. 2016 45 Union -35 S&D -10 Pro-Engineering ADB (Technical Assistance) Training for Verification the Component of Solar Home System and Design Calculation Department of Rural Development (Head Quarter) Training for Solar Minigrid Installation and Verification Department of Rural Development (Head Quarter) 4. 2. 2016 39 Union -23 S&D -16 Capacity Building for Biomass, Biogas Hydro Mini-grid Department of Rural Development (Head Quarter) 10. 3. 201611. 3. 2016 25 Union -23 S&D - 2 ADB (Technical Assistance) Training for Basic & Advanced GIS Department of Rural Development (Head Quarter) 16. 3. 201622. 3. 2016 28 Union - 24 S&D - 2 MOEE - 2 ADB (Technical Assistance)

Challenges and Barriers • Lack of communities institutional capacity due to people contribution at the beginning of the project • Most of the user don’t want to pay the cost of system without seeing the product • Poor access to finance by some user • Lack of knowledge for the use of good qualified product , operation and maintenance of the system • Lack the Rules and Regulations of Rural Electrification Law • Equipment and capacity building for DRD staff for inspection and feasibility study process • Participation of women in VEC • Private sector participation in remote area • Guidelines of the mini-grid system , operation and maintenance, collection of tariff (1% of household target in first year of NEP Project) • Time is limited to complete target installation for 16 -17 FY • Feasible data for mini-grid and budget allotment for feasible study

Way Forward Ø Ø Ø Develop the capacity building/training Implementing the target of the installation by (2016 -2017) FY Geospatial electrification planning: update and new data collection. Prepare the project progress reports based on the project results monitoring framework Support preparation and implementation of Rural Electrification Law and related regulations Development of mini-grid/small-power producer regulatory framework including tariff-setting mechanism Appropriation of Propose Mini-grid Project from State and Region and Private Sector into NEP Project and Development Partner’s Cooperation project. Support the Mini-grid pre-feasibility and feasibility Increasing the mini-grid project up to 10% of household at the end of phase 1 project Implementing the target of the Project Coordination with DRD, NGO, INGO, DP inline with NEP Project To implement the Project’s Environmental and Social Impact Assessment Framework.

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