COUNTRY REPORT ON
WATER RESOURCES MANAGEMENT FINANCING
MYANMAR
AYE MYINT, Director (Retired)
Irrigation Department, MOAI
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Contents of Presentation
1. Policy Frameworks for WRM Financing
2. Financing needs
3. Measures for reducing costs of achieving policy
objectives
4. Increasing financial resources from users and
beneficiaries
5. Conclusion
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
1. Policy Frameworks for WRM Financing
(1) Financial and Budget policy
(2) Agricultural policy
(3) Guidelines for irrigation development and efficient
utilization of nation’s water resources
(4) Policy for watershed conservation
(5) Policy for environmental conservation
(6) Policy for environmental health
(7) Policy for forest, wildlife, wild plants and forest
ecosystem
(8) Guidelines for IWRM in all sector (National Water Vision)
(9) Policy for energy
(10) Policy for poverty eradication
(11) Policy for fishery sector
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
1-1 Financing sources and funding mechanism
-
Funded by Government
-
Soft loans received from foreign countries
-
Funded by JV/BOT basis by foreign and local investors
-
Funded by the community itself and well- wishers
-
Funded by local NGOs, INGOs
-
Funded by international organizations
-
Self managed by YCDC, MCDC by revenue from tariffs
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
1-2 Principles for guiding financing
• Budgets are prepared in accordance with national government
objectives and departmental priorities as set out in national short-term
and long-term strategic plans.
•
The budget of each department related with water sector is presented
to Parliament by the relevant Minister for approval.
•
Adjustment to budgets is made by budget committee of Parliament in
accordance with available funds and national priorities.
•
The head of water related departments, the concerned Ministers, and
the Auditor General have the responsibilities in relation to financial
management.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
Continued
• Aids from foreign countries, loans and investment of national and
foreign investors are managed by the basic of recipient country’s
policy initiatives.
• To implement development works with aids and loans from foreign
countries and international organizations instead of relying only upon
the national own budget.
• Forming “Aid Effectiveness Management Institution” to control and
monitor .
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
2. Financing needs
(1) Agricultural water supply
(2) Hydroelectric Power
(3) Municipal, Industry and Rural water supply
(4) Urban flood/ Rural flood for damage reduction
(5) Drainage(Urban/Rural)
(6) Erosion and run-off control
(7) Water quality management
(8) Recreation, fishing, hunting and ecological system
(9) Navigation
(10) Others
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
3. Measures for reducing costs of achieving
policy objectives
3-1
The weighting of alternatives
3-2
Consideration of soft measures
3-3
Application of Cost-effectiveness Analysis ( CEA )
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
3-1 The weighting of alternatives
•
Structural and non –structural measures (eg , Flood plain zoning ,
Flood forecasting and warning )
•
Rain water harvesting and flood water harvesting
•
Conservation of agriculture instead of terrace construction
•
Enforcing laws, regulations and standards ( to reduce the negative
impacts, to manage the cultivated lands, forest areas and mining areas.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
3-2 Consideration of soft measures
•
Raising of training and awareness programs
•
Proper control and monitoring systems
•
Proper investment plans for extension services
•
Upgrading of education sector and build up capacity
•
Use of communication media or channels such as demonstration
projects, forums, workshops, seminars and publications etc.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
3-3 Application of Cost-Effectiveness Analysis (CEA)
•
The concerned water related ministries and relevant departments take
full responsibility for controlling and monitoring of approved budgets
for implementation works effectively efficiently.
•
Require proper coordination works and target group or community
must be included during the process of discussion to make decision
before implementation of the projects.
•
Established “ Aid effectiveness Management Institution” to use
foreign aids and loans effectively.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
4. Increasing financial resources from users
and beneficiaries
•
To formulate national water policy first
(already completed at interim stage)
•
To promulgate appropriate legal documents and regulation to introduce
user-pay and polluter-pay principles
•
To encourage private participation or mobilize user contribution in water
infrastructure development and management
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
4-1.
Mechanisms to be implemented for financing WRM
•
Cost –recovery from users.
•
Identify the source of funds for O&M and the level of contribution by
beneficiaries.
•
Investment in high priority projects must be promoted.
•
Holding seminars and workshops to encourage direct private and
foreign investment.
•
Explore external financial assistance such as grants, aids, low interest
loans.
•
To establish monitoring mechanism for environmental conservation,
effectiveness and efficiency of activities and education,
communication and information.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
Continued
• To establish a main coordination body of water sector as former
“Myanmar Water Resources Committee” to develop national water
policy, master plans, guidelines and comprehensive legislations for
privatization and also for fund raising .
(NWRC was already established)
• To promote coordination and cooperation works among service
providers and water users and encourage local peoples to participate in
management works at basin and on farm levels.
• New legislation for implementation of PPP (Public Private Partnership)
infrastructure projects for development of basic infrastructure in water
sector.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
4-2 Financial sources
•
Mainly funded by Government
•
Could be expected from UN organizations, MDG funds, Carbon credit
funds, IMF, World Bank and ADB.
•
Privatization is one of the measures for increasing funding.
•
Contribution of users and tax payers in terms of tariffs and tax for
implementation of small projects.
•
Implementing BOT/JV basis projects to increase the investment in
water sector.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
4-3 Economic and financing instruments
•
Tariffs and charges
•
Abstraction charges
•
Pollution charges
•
Water markets
•
Tradable discharge permits
•
Subsidies
•
Water service charges
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
Myanmar National Water Policy
WATER PRICING
• Principle of differential pricing may have to be installed subjected to
allocation and pricing on economic principles.
• Water Regulatory Authority (WRA)
– fix and regulate the water tariff system and charges
– tariff will be periodically reviewed
• The water charges should preferably as a rule be determined on volumetric
basis
• Recycle and reuse of water, after treatment to specified standards, should
also be incentivized through a properly planned tariff system.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
Continued
• Water Users Associations (WUAs)
– statutory powers to collect and retain a portion of water charges
– manage the volumetric quantum of water allotted
– distribution system in their jurisdiction
– WUAs should be given the freedom to fix rates subject to floor rates
determined by WRAs
• Water Pricing
– Unbalanced pricing of electricity incompatible with water pricing may
lead to wasteful use of both electricity and water. This needs to be
examined and carefully formulated.
– . As an alternative, where limited ground water use for agriculture at a
subsidized cost is considered desirable, separate electric feeders for such
a use should be considered.
( source: Myanmar National Water Policy,2013 ,in interim stage )
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
5. Conclusion
-
-
-
-
Huge investment in water sector to meet demanding objectives of
nation as growing economy, increasing urbanization and also to get
the objectives of MDGs as per UN declaration.
Cost -recovery from users for governance functions provides an
important mechanism for financing the increasing water resources
management requirements.
It is required to reform the water sector by decentralization to promote
the role of service providers and local communities and adopting
demand responsive approach for funding.
Needs to give incentives to attract community and private
participation in investment such as low taxes, and suitable water
prices for cost-recovery.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
Continued
-
Need to create special funds such as carbon credit funds, environment
protection funds and MDGs funds etc.
-
Recognized that participation of water users and private sector in
water infrastructure development and management becoming more
important.
-
Need to enforce appropriate legal documents for user pay, polluter
pay principle.
-
Need specific water policy to encourage private participation or
mobilize user contribution .
-
Need apex body to control the nation water resources and to lead
for emerging of national water policy.
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar
THANK YOU FOR YOUR
ATTENTION
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Regional Workshop on Water Resources Management Financing Myanmar
3rd October 2013, MiCasa Hotel, Yangon, Myanmar