Myanmar's hydropower investors urged to zero in on sustainability

Myanmar's hydropower investors urged to zero in on sustainability

In Asia, 700 million people live without electricity. To meet Asia's growing
energy demands, hydropower projects in the Mekong region are developing
fast. In Myanmar alone, hydropower potentials top 100MW - the region's
highest. If realized sustainably, the energy produced could benefit 34
million people, or about 66 percent of the population that currently live
without access to electricity. This is coupled with Lao People's Democratic
Republic's energy generation potentials, which could bring electricity to
nearly all rural households by 2020, drive business growth, and generate
income to reduce poverty.

The challenge, however, is to develop this natural resource sustainably.
Asian Power recently caught up with the president of Hydropower Developers'
Working Group, Myanmar, Aung Zaw Naing as he discussed why Myanmar needs to
focus on project sustainability in the hydropower sector.

Myanmar has ambitious hydropower targets but is always plagued by project
delays and still remains to be among the least-powered countries in SEA.
Given these, is it still possible to achieve the nationwide electrification
target by 2030?

The government faces a spectrum of challenges in the electrification target
process, from generation, transmission, distribution, to grid efficiency.
Private sector investments in the power generation sector will help the
financing requirement of the entire sector's development, and thus
accelerate the electrification process.

To encourage private sector investments, investors would need clear, private
sector-minded and sustainable policy and regulations which help the
bankability of such capital-intensive projects. This in turns reduces the
financial cost of borrowing and consequently achieves production cost
efficiency. Clear and sustainable policies also create a level playing field
for all investors, which encourages more private sector investment.

When it comes to sustainability, Myanmar still has a long way to go in
hydropower. What is lacking in Myanmar's hydropower sector so that this may
be addressed?

The Hydropower Developers' Working Group was developed on the basis that the
private sector has a key role to play in the sustainability of Myanmar's
hydropower sector. Our businesses rely on more sustainable operations if
they are going to have a higher return in the long-term. Sustainability is
not achieved overnight; it's going to require everyone working together.
Myanmar members will benefit from accessibility to international developers
who have tremendous experience working globally. These developers would be
able to help raise the level of awareness of international best practices in
environmental, social and corporate governance standards. The coming
together of the local and regional companies will strengthen the overall
sector and ensure we have world-class hydropower companies operating in
Myanmar coupled with local companies with improved know-how.

Also, if we share information better, we will be a step closer to achieving
sustainability. The Hydropower Developers' Working Group plans to promote
improved information sharing between its members including hydropower
companies, consultants, legal firms and suppliers and the government and
other stakeholders.

I agree - better engagement of stakeholders is the way forward if we are
going to achieve sustainability. The HDWG is planning to hold annual forums
where we can discuss sector concerns and challenges with stakeholders. We
are hoping for the HDWG to become a platform for developers to better reach
out to all stakeholders and likewise, a means for stakeholders to address
all members collectively. With this model we are aiming for higher impact.

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Ref:
http://asian-power.com/people/exclusive/myanmars-hydropower-investors-urged-
zero-in-sustainability

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com