Nep Background

Nep Background

The National Electrification Project (Off-Grid)

History and Backgrounds

  1. The government of Myanmar and the World Bank has started the implementation of the National Electrification Project (Off-Grid) in 2015, aimed to universal electricity access by 2030 as the country has covered only 30 percent (total 63899 villages) of country population (51 million) presently. The NEP has been produced Geospatial Least Cost Electrification Rollout Plan by the World Bank and the government. As per the plan, the Ministry of Electricity and Energy (MOEE) has been taking responsible for the implementation of the National Grid-Line extension and the Department of Rural Development (DRD) under the Ministry of Agriculture, Livestock and Irrigation has implementing the Off-Grid Electrification Programme. Both responsive ministries would be implemented following objectives to cover national-wide electricity in 2030,

Objectives

The National Electrification Project (Off-Grid) is-

  • To improve electricity supply in rural areas
  • To implement pre-electrification system in villages where at least 10 miles far from the national grid line
  • To implement better electrification system by the community contributions
  • To develop Public- Private- Partnership by the Department of Rural Development.
  1. In the first phase of 5 years (2016-2021 fiscal years), the MOEE will be spending US$310 million (US$ 300 million for grid-extensions and $ 10 million for technical assistance) of total US$ 400 million by the funds of World Bank’s International Development Association (IDA) when the DRD is planned to spend US$ 90 million ($80 million for off-grid rural electrification projects and $10 million for technical assistance).
  2. Off-Grid Rural Electrification Programme has two components: Solar Home System and Mini-Grid Project.
  3. The Myanmar government and the World Bank has discussed for the National Electrification Project (On-grid and Off-grid) several times since May 2013 and approved on 16 September 2015. The first phase project (of first 5 years) has started in 2016-2017 budget year. There are 5 phases separated in the Geospatial Least Cost Electrification Rollout Plan to implement. According to the GLCER plan, the MOEE will be taking responsible for the first 3 phases (with grid extensions) and the 4 and 5 phases will be implemented by the DRD with the Pre-Electrification system for rural areas that which will not be covered the electricity for next 10 to 15 years.

Corporations with Development Partners

The Department of Rural Development (DRD) is working together with not only the World Bank also other development partners for rural electrification projects in Myanmar, followings are its development partners,

  1. Solar MINI-GRID projects (ready to connect when national grid line is set) at 12 villages in Sagaing, Magwe and Mandalay region has been completed by the assistance of the Asian Development Bank US$ 2 million in 2017.
  2. Japan International Corporation System’s (JICS) Funds Japanese Yen 994 million has been spent to implement hydro and mini-grid projects in 19 villages at Shan State and 13 villages in Chin State at 2017.
  3. In 2018, solar mini-grid projects at 5 villages in Sagaing and Magwe region have been completed by the assistance of the International Corporation Development Funds (ICDF) US$ 0.35 million.
  4. German Development Bank (Kfw) has supported Euro 9 million to implement solar home system in 23,000 villages at Southern Shan State (from 2018-2019 to 2020-2021 budget year).
  5. Solar Home System and Mini-Grid projects are expected to implement in villages in and around Chin State by the Italy Soft Loans US$ 30 million.

Germany based GIZ has been support Euro 2 million (from 2016 to July 2018) for improvement of rural electrification projects (technical support). The support will be help to be done rules and regulations for mini-grid projects, helping for check the evaluation process of tender applications, capacity building trainings for DRD staffs, making Organogram for organizational development. As well as another agreement has been made to support Euro 2.87 million (Euro 2 million by German government and Euro 0.87 million by New Zealand government) for technical support until 2021.