Bolstering infrastructure in Myanmar-
Myanmar’s transition to democracy has opened up a floodgate of investment opportunities in the water supply segment, as with the other infrastructure sectors. Planning for large water supply projects to improve rural and urban water supply infrastructure has begun, thanks to the resumption of assistance from multilateral agencies.
Though the country’s current level of water access is 83 per cent of its population, exceeding its Millennium Development Goal target (2015) of 66 per cent, a significant share of its population still remains underserved with regard to improved water sources. Government statistics indicate that a mere 8 per cent of the population has access to piped water, with the remaining population dependent on tube wells, dug wells, bottled water, etc. to meet their water requirements. The absence of a unified policy framework and inadequate funding has meant that the country’s water supply infrastructure is grossly inadequate.
Going forward, the Myanmar government plans to collaborate with development agencies and the private sector in order to strengthen its institutional capacity and upgrade water supply infrastructure facilities. The impetus for action is spurred by the rising water demand stemming from rapid population growth and industrialisation.
Abundant resources, but inadequate infrastructure
The country is endowed with abundant freshwater resources with more than 18,000 cubic metres per year of water resources available for use. The main source of water is rainfall that exhibits large spatial and temporal variations. Potential surface water sources – the country’s six main river basins (Ayeyarwady [Irrawaddy], Sittoung, Rakhine State, Taninthari Division, Thanlwin, and Mekong) – produce 1,082 km3 per annum. Groundwater resources constitute the smallest fraction at an estimated 495 km3 per annum; however, a large portion of this water, which encompasses the base flow of rivers, is also accounted for as surface run-off.
At present, Myanmar is able to use only 5 per cent of its water resources. The agricultural sector is the primary consumer of freshwater resources, with small quantities deployed for domestic and industrial purposes. The Myanmar government has constructed reservoir systems and implemented groundwater and river pumping projects to meet domestic and industrial water requirements but their capacity is inadequate to meet the existing and growing demand.
Improving institutional frameworks for urban water supply
The water supply and sanitation services at the three key urban centres in the country – Yangon, Nay Pyi Taw, and Mandalay – are covered by their respective city development committees. Besides providing potable water, the city development committees are also responsible for the treatment and systematic disposal of wastewater generated within the municipal area. Further, township development committees have been established in each township to provide water and wastewater services.
In Yangon, Myanmar’s largest city and commercial capital, the engineering department (water supply and sanitation) of the Yangon City Development Committee (YCDC) is responsible for the provision of domestic water supply and wastewater management services to the urban areas. The utility serves a population of about 6 million across an area of 730 square km. It sources water from four main reservoirs: Hlawga, Gyobyu, Phugyi, and Ngamoeyeik. Currently, it supplies about 727,270 cubic metres of potable water per day. However, only about 54 per cent of the population is covered by piped water supply services. The remaining people rely on tube wells, lakes, and ponds. Some of the suburban areas of the city obtain water through small pump houses, tube wells, and water tankers.
At present, there is one water treatment plant (WTP) in the city – the Ngamoeyeik WTP (Phase I) – with a total capacity of 204,545 cubic metres per day. Although the Ngamoeyeik WTP comprises four main pumping stations – Pyawbwesu, Phugyi, Yanshin, and Yegu – only two of the stations are currently operational. YCDC is also implementing Phase II of the Ngamoeyeik WTP that will provide an additional capacity of 204,545 cubic metres per day. This plant is expected to be operational in 2013.
The proportion of non-revenue water (NRW) in the total water supply is as high as 65 per cent. Of this, about 50 per cent is wasted due to leakages in the distribution pipeline system. To eliminate physical leakages in the water supply channel, the engineering department of YCDC is currently replacing obsolete cast-iron pipes with new polyvinyl chloride pipes, as well as rubbing and cleaning old pipelines.
With regard to wastewater services, YCDC is responsible for the collection, treatment, and disposal of municipal wastewater. The committee has constructed an activated sludge process-based wastewater treatment plant with a capacity of 30 million gallons per day. Since the plant caters to only six townships, YCDC has formulated a plan to construct three common treatment plants in peri-urban and new settlement areas by 2040.
The cities of Nay Pyi Taw and Mandalay also have a similar administrative structure for water services. In Nay Pyi Taw, the water supply and sanitation (engineering) department of the Nay Pyi Taw Development Committee is in charge of supplying potable water to domestic and commercial complexes. Its main freshwater sources include tube wells, the Mingalar lake, along with the impounding reservoirs and the Ngalite dam. The Mandalay City Development Committee was formed to provide domestic water supply services to the urban population in Mandalay. The city obtains its water from tube wells, the Nandawshte lake, the Yeni stream, as well as the Kindar and Sedawgyi dams.
Donor agencies put their weight behind water infrastructure
With the Myanmar government supporting new economic and democratic reforms, multilateral agencies have resumed development grants to Myanmar since the beginning of 2012. The World Bank has decided to provide $85 million in grants to Myanmar for various projects including those that seek to improve water supply facilities.
Further, the Japan International Cooperation Agency (JICA) is working in collaboration with the Myanmar government and Japan-based corporations to develop water supply, sanitation, and drainage infrastructure in three key industrial zones in Yangon – Thilwara, Dawei, and Kyaukpyu. JICA is also providing a grant of 1.9 billion yen to the Myanmar government to improve water supply in Yangon. The project aims to enhance water supply services through renovation of WTPs and the pipeline system in Yangon, as well as reduce groundwater use by tapping new sources like the Kokkowa river and Toe river. It also seeks to lower NRW and leakages by forming district metering zones and monitoring water flow through the deployment of advanced tools like supervisory control and data acquisition systems.
The Asian Development Bank has also approved 12 technical projects worth $5.4 million for policy advisory and capacity development in order to promote investments in social and physical infrastructure. In addition, the World Bank has approved $440 million in credit to support reforms aimed at strengthening the public finance management and investment climate in the country.
Good prospects, though challenges remain
Increasing multilateral assistance and the uptake of new projects have helped to increase the pace of water supply infrastructure development in Myanmar. At the same time, they offer significant market opportunities for private sector technology and solution providers across the value chain of water management. Major urban centres such as Yangon, Mandalay, and Nay Pyi Taw offer good prospects for international water companies in the industrial and municipal water supply and treatment segments.
In order to leverage the private sector’s professional and technical expertise, the Myanmar government is organising a business-to-business exhibition for the water supply and wastewater management industry in November 2013. The exhibition will largely focus on the provision of advanced technological solutions for the country’s water and wastewater sector.
Going forward, the investment environment is expected to improve, with new projects being supported by multilateral agencies to enhance basic infrastructure facilities, especially the water supply system. The government has also signalled its interest in public–private partnerships to introduce the much-needed expertise in the development of basic infrastructure sectors like water. Nonetheless, operational and performance issues, such as limited manpower and institutional capacity, along with the lack of appropriate monitoring facilities, systematic database for infrastructure facilities, and surveillance of water quality, still need to be addressed to ensure the efficient use of resources and optimum results.
