PROJECT

Projects

Environmental & Social Review Summary

Project Number

36627

Company Name

SEMBCORP UTILITIES PTE LTD

Date ESRS Disclosed

Sep 16, 2015

Country

Myanmar

Region

East Asia and the Pacific

Last Updated Date

Oct 25, 2025

Environmental Category

A - Significant

Status

Active

Previous Events

Approved : Oct 8, 2016
Invested : May 16, 2017

Sector

Gas - Thermal Power Generation

Industry

Infrastructure

Department

Regional Industry - INF Asia & Pac

Project Description

International Finance Corporation (“IFC”) is considering up to US$40 million of debt financing to build, operate, maintain and transfer a greenfield 225 MW Combined Cycle Gas Turbine (CCGT) power plant in the Mandalay region of Myanmar (“the project”). The project will be developed by a consortium of Sembcorp Utilities Pte Ltd (“Sembcorp Utilities” or “sponsor”) and MMID Utilities Pte Ltd (“MMID”) under a special purpose vehicle (“Company”).

The 225MW CCGT will include two sets of Gas Turbine (GT) units; two sets of Heat Recovery Steam Generator (HRSG); one steam turbine generating unit with associated auxiliary equipment; a switchyard area; cooling Water System; demineralized Water System; and wastewater treatment facility. The gas supply pipeline will connect the power plant to an existing gas receiving station located approximately 1.6 km away. A 230kV overhead transmission line, approximately 3 km in length, will connect the power plant to an upgraded Myingyan Steel Mill sub-station located within an existing adjacent steel mill complex. The power plant will be operated with a closed-loop water cooling system. A water supply pipeline will connect the power plant to the water intake point and new pumping station at the Ayeyarwady River about 12 km away and will be buried underground. A wastewater discharge pipeline will connect the power plant to an existing irrigation canal located approximately 2.5 km away. The water supply and wastewater pipelines will be run in parallel for 2.5 km until reaching the irrigation canal. The water supply pipeline will be built alongside and within the right of way of the irrigation canal all the way to the Ayeyarwady River. The project will also require the reinforcement and commissioning of a jetty located at Nyanung Hla, about 28 km from the project site.

Construction is expected to start in the first quarter of 2016 and be completed in approximately 22 months with commercial operation targeted for the first quarter of 2018. Construction activities of the project will include: mobilization, site clearance, onshore construction of all project components, Nyaung Hla jetty reinforcement and commissioning. Heavy equipment such as bulldozers, excavators, dump trucks, compactors, etc. will be used at the project site. The EPC contractor will be appointed to undertake the engineering, procurement and construction activities of the project. The EPC contractor will be responsible for implementation of the mitigation, management measures and monitoring program under the sponsor’s supervision.

The Operation and Maintenance (O&M) of the project will be undertaken by the sponsor with the support of a long term service agreement (LTSA) for the GT with the manufacturer. The LTSA will cover the supply of spare parts, supervision and specialized labor for inspections, major and minor overhauls.

Core project facilities (i.e. power plant) will together occupy a footprint of about 11.6 hectares. The power plant site is situated within a larger 280 ha Government owned and operated steel mill site (which houses the Myingyan Steel Mill 4) and is located towards the northeastern corner of the site.

Based on findings of the project’s scoping report and from IFC’s village visits, the 280 ha site was acquired for the purpose of establishing the steel mill by the Ministry of Industry (MoI) between the years 1998-2000. Officially this economically displaced about 130 villagers from the Sa Khar, Hnan Hwa, and Hpet Taw villages, in a Government-led land acquisition process that involved up to 90 persons from Sa Khar; 40 from Hnan Hwa; and a smaller but unconfirmed number from Hpet Taw. The process did not involve any physical resettlement. It is unclear how many of those persons, if any, owned/used the 11.6 ha power plant plot that has subsequently been identified within the larger 280 ha site. The site was fenced after the year 2000 although during recent site visits in 2015 it was observed that gates and fences were open in some places allowing villagers to use the site for informal fire wood collection and cattle grazing.

Based on information available, compensation was not made during 1998-2000. One time cash compensation of 200,000 - 283,000 Kyat / ha (depending on land productivity) was paid 15 years later in 2013 by the Government to these 130 persons who had title to the affected land. It appears that the amounts paid did not cover replacement value, as at least some of the affected persons reportedly sold off assets or took on debt to come up with funds to buy replacement land of comparable size/location/productivity. Besides the above-mentioned 130 persons, an unknown number of other users of the 280 ha site did not possess titles and were not compensated. Some of the affected persons (including land rights holders and others not identified) lost all of their landholding in 2000, while others retained varying percentages of their original total landholding. Some of them who had reportedly incurred debt since 2000 used the compensation they received in 2013 to pay off part of the debt.

As this legacy land acquisition was undertaken 15 years ago by a Government entity, was focused on a much larger site and was not related to the establishment of the proposed power plant (i.e. not undertaken in anticipation of the IFC financed project), PS5 is not deemed to be applicable to the legacy resettlement (but is applicable to Right-of-Way land acquisition for the water supply line and overhead transmission line – refer to PS5 section). Nonetheless, the Company seeks to promote local development and license to operate in the project area and is thus committed to working with historically affected communities to improve their livelihoods and facilitate access to project-related employment opportunities for them where possible (prioritizing historically affected households to the extent feasible). Refer to the community engagement section for details.

Overview of IFC's Scope of Review

IFC’s review of this project consisted of appraising technical, environmental, and social information made available by the sponsor including: Environmental and Social Impact Assessment (“ESIA”) as well as Environment, Health, and Safety (“EHS”) management plans of the project; project EHS Plan; sponsor’s EHS Policy Statement and Corporate Management Plans and Procedures; EPC contract; and sponsor’s Human Resource (“HR”) policies.
The appraisal team also interviewed the sponsor’s corporate management and business level management team including: function heads for environment, health and safety, human resources, corporate social responsibility, and external affairs and security. Further, the appraisal included site visits to the project site and meetings with community members from Sa Khar, Hnan Ywa, Hpet Taw and Nyaung Kan.

IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
0284993_Myingyan CCGT ESIA_Cover Sheets_150915.pdf
0284993_Myingyan CCGT ESIA_Annex M.pdf
0284993_Myingyan CCGT ESIA_Annex L.pdf
0284993_Myingyan CCGT ESIA_Annex K.pdf
0284993_Myingyan CCGT ESIA_Annex J.pdf
0284993_Myingyan CCGT ESIA_Annex I.pdf
0284993_Myingyan CCGT ESIA_Annex H.pdf
0284993_Myingyan CCGT ESIA_Annex G.pdf
0284993_Myingyan CCGT ESIA_Annex F.pdf
0284993_Myingyan CCGT ESIA_Annex E.pdf
0284993_Myingyan CCGT ESIA_Annex D.pdf
0284993_Myingyan CCGT ESIA_Annex C.pdf
0284993_Myingyan CCGT ESIA_Annex B3.pdf
0284993_Myingyan CCGT ESIA_Annex B2.pdf
0284993_Myingyan CCGT ESIA_Annex B1.pdf
0284993_Myingyan CCGT ESIA_Annex A.pdf
0284993_Myingyan CCGT ESIA_21_References_150915.pdf
0284993_Myingyan CCGT ESIA_20_Conclusions_150915.pdf
0284993_Myingyan CCGT ESIA_19_Disaster Risk Plan_150915.pdf
0284993_Myingyan CCGT ESIA_18_ESMP_150915.pdf
0284993_Myingyan CCGT ESIA_17_Cumulative Impact Assessment_150915.pdf
0284993_Myingyan CCGT ESIA_16_Stakeholder Engagement_150915.pdf
0284993_Myingyan CCGT ESIA_15_Social Impact Assessment_ 150915.pdf
0284993_Myingyan CCGT ESIA_150915.pdf
0284993_Myingyan CCGT ESIA_14_Biodiversity_150915.pdf
0284993_Myingyan CCGT ESIA_13_Waste_150915.pdf
0284993_Myingyan CCGT ESIA_12_Soils and Groundwater_150915.pdf
0284993_Myingyan CCGT ESIA_11_Landscape and Visual_150915.pdf
0284993_Myingyan CCGT ESIA_10_Noise and Vibration_150915.pdf
0284993_Myingyan CCGT ESIA_09_Surface Water Quality_150915.pdf
0284993_Myingyan CCGT ESIA_08_Greenhouse Gas_150915.pdf
0284993_Myingyan CCGT ESIA_07_Air Quality_150915.pdf
0284993_Myingyan CCGT ESIA_06_Baseline (Socio-economic)_150915.pdf
0284993_Myingyan CCGT ESIA_05_Baseline (Biophysical)_150915.pdf
0284993_Myingyan CCGT ESIA_04_Impact Assessment Methodology_150915.pdf
0284993_Myingyan CCGT ESIA_03_Administrative Framework_150915.pdf
0284993_Myingyan CCGT ESIA_02_Project Description and Alternatives_150915.pdf
0284993_Myingyan CCGT ESIA_01_Introduction_150915.pdf
0284993_Myingyan CCGT ESIA_00_Executive Summary_150915.pdf