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Article

4 Jun 2017

Author:
NGO Forum on ADB,
Author:
NGO Forum on ADB,
Author:
NGO Forum on ADB

Myanmar: NGO Forum on ADB issued alert on environmental & social impacts of AIIB-funded Myingyan project

...[T]he Myingyan project is an investment to “build, own and operate a greenfield 225 MW Combined Cycle Gas Turbine (CCGT) power plant in the Mandalay region of Myanmar.” …A consortium of Sembcorp Utilities Pte. Ltd and MMID Utilities Pte. Ltd will develop and operate the project.

...This project is co-financed by [AIIB]...IFC...ADB. As this is co-financed, the AIIB will apply IFC's environmental and social standards and policies. The IFC classifies the Project as a Category A project...with correspondingly significant risks and impacts on the environment…[concerning] expansion of industrial activities in this rural area including cumulative impacts to air quality, influx of migrant construction labor, and the related community health and safety risks; and potential relocation of approximately 5 to 10 families of settlers without land titles or legal claims along the river water pipeline right of way.”

...IFC documents state that...three rounds of local stakeholder consultations were conducted... [T]he main concerns brought up…were: employment, availability, and quality of surface and ground water, access to electricity, air emissions and health implications, and noise. Villagers in Sa Khar were particularly concerned because heat generated from the adjacent steel mill killed their crops and made their land inviable……[T]he borrowing client, Sembcorp, will create a project-level grievance mechanism in order to engage with community members. …[T]he IFC’s Stakeholder Engagement document states that “[a] variety of methods will be available through which stakeholders can lodge grievances…. In addition… [a]ccording to AIIB’s policies, “people…adversely affected by a failure of the Bank to implement the ESP may also submit complaints to the Bank’s oversight mechanism….” However, at the time of writing, it is unclear what the exact scope and function of this Oversight Mechanism will be.

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