http://www.adb.org/news/adb-norway-help-update-myanmar-electricity-law MANILA, PHILIPPINES – The
Government of Norway will provide an $850,000
technical assistance (TA) grant to the Asian Development Bank (ADB) to
help Myanmar
update its 1984 Electricity Law
so that it reflects current international standards, and creates the right
conditions for establishing an electricity regulator, expanding rural electrification,
and promoting off-grid solutions.
“The development and implementation of a
National Electricity Law is the first step to meeting the country’s power
needs,” said Stephen Groff, ADB Vice President of Operations in East Asia,
Southeast Asia and the Pacific.
As the country opens and economic sanctions are removed, huge
numbers of visitors are pouring into the country. The local population can now
more readily buy household electrical appliances and local businesses are
expanding rapidly. All of this has placed an enormous strain on the power
supply network, which is often unreliable in urban centers and barely extends
to Myanmar’s rural areas.
“Energy access for all is a priority for Norway. Without access to
modern energy, there can be no development,” said Espen Barth Eide, Norway’s
Minister of Foreign Affairs during a visit to Myanmar on 5 November. “Having an
updated Electricity Law, putting the proposed law into use, and conducting
initial capacity building on principles of electricity regulation is essential
for the development of Myanmar’s power sector, and an important contribution to
the development of Myanmar’s economy and the welfare of its people.”
The TA grant will support the
drafting of energy legislation to gradually unbundle generation, transmission,
and distribution subsectors; allow private sector participation in power
generation; establish rules and regulations for small independent power
producers to promote off-grid electrification; implement rural electrification
programs; and establish an electricity regulator consistent with
internationally-recognized best practices.
The desire to update the law reflects the Government’s recognition
that foreign direct investment will be required to meet the massive level of
spending needed in the power sector, and that the lack of a comprehensive and
transparent regulatory framework is impeding private sector participation in
the power sector.
The TA grant will also be used to review various regulatory
systems or laws applied to power sectors within and outside the region in order
to formulate appropriate legislation that best suits Myanmar. Secondary
legislation, and rules and regulations to implement various provisions of the
Electricity Law, as well as create an Electricity Regulatory Authority, will be
developed.
Drafting of the legislation and implementing rules and regulation
will be carried out by the Ministry of Electric Power, in conjunction with
other government departments, the private sector, civil society,
parliamentarians, and development partners. It is expected to take 18 months,
with completion targeted for June 2014.
The TA grant, provided by the Government of Norway, will be administered by
ADB.
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Advice from ADB (passed on by Bobet)
