Yangon, Myanmar, February 28, 2014—IFC,
a member of the World Bank Group, signed a mandate agreement with the Myanmar
Ministry of Electric Power to help improve the power supply in the country’s
most populated city of Yangon. A reliable and efficient electricity supply
system is essential for millions of residents and enterprises in Yangon
to improve livelihood, expand business opportunities and increase domestic
and international trade.
The mandate signed on February 26 will
involve IFC’s technical support and assistance in transforming the Yangon
Electricity Supply Board, or YESB, which comes under the Ministry of Electric
Power responsible for power distribution in Yangon - into a commercially
viable corporate entity. With IFC’s help, the government and YESB will
take necessary actions that allow YESB to operate as a standalone and regulated
electricity supplier within a three year time frame.
“Huge investment in the power sector
is needed to improve low power supply. Myanmar government encourages private
sector participation and restructuring of the existing state-owned enterprises
to reform the electric power sector,” said U Maw Thar Htwe, Deputy Minister
for Electric Power. “I firmly believe that we will achieve significant
outcomes through enhancing cooperation between our Ministry and IFC."
To help progress the corporatization
process and ensure necessary financing is available, IFC is envisaging
taking an equity stake in YESB.
“The mandate signing is a significant
step that shows a firm commitment by the government of Myanmar to move
forward with corporatizing the energy sector,” said Karin Finkelston,
IFC Vice President for Asia Pacific. “This transformation of YESB will
eventually extend reliable and affordable power supply to underserved segments,
improve system reliability and reduce distribution losses. If successful,
this project will be truly transformational as it will help revitalize
power supply in Myanmar’s most populated city. It will also set an example
for corporatization of other parts of the power sector and beyond.”
Support for the corporatization of YESB
is part of the World Bank Group’s efforts to pursue public-private partnerships
in the power sector, which will allow the government to leverage private
capital to increase investments in the electricity sector. IFC is also
advising the government on the competitive selection process for the 250
MW combined cycle gas fired Myingyan Independent Power Producer project.
This work complements IFC’s engagement on the distribution end by helping
to create a Public-Private Partnership framework that would allow quality
power developers to invest in Myanmar and provide much needed power supply
to close the fast growing gap between soaring demand and supply. The World
Bank Group plans to provide $1 billion in financial support to expand electricity
generation, transmission and distribution to help everyone in the country
gain access to electricity by 2030.
IFC, together with the World Bank, is
supporting reforms and investments in Myanmar to strengthen the private
sector and create jobs to reduce poverty and boost shared prosperity. IFC
works to improve the country’s investment climate, access to finance,
and infrastructure, with an initial focus on the power and telecommunications
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit