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Myanmar: Power System Efficiency Project Brings Country Closer to Universal Electricity Access

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The World Bank’s Board of Executive Directors today approved a $350 million credit from the International Development Association (IDA) to increase the output and efficiency of power generation and improve the resilience of Myanmar’s electricity system to climate change and disasters. The Board also approved $110 million in additional financing for the Essential Health Services Access Project, implemented nationwide since 2015.

Myanmar needs to double its current installed power generation capacity over the next five to seven years to achieve universal electricity access by 2030. The Myanmar Power System Efficiency and Resilience Project will finance the upgrade to the Ywama gas-fired power plant, improving the availability and reliability of electricity services to consumers in the Yangon region. Investments in the power plant and in transmission infrastructure will free-up electricity supply in the rest of the country and will remove capacity constraints to enable more households to connect.

The project also contributes to Myanmar’s climate change mitigation and adaption commitments under the Paris Agreement. By using highly efficient technology, the project will help reduce greenhouse gas emissions per unit of electricity produced and investments in the power network will improve the system’s preparedness against climate change and disasters.

“Myanmar has the lowest electrification rate in South East Asia with only 50 percent of households connected to the public grid. This project will help close the power supply gap in an affordable and environmentally sustainable way, thereby removing one of the key constraints to achieving Myanmar’s goal of universal electricity access by 2030,” said Mariam Sherman, World Bank Country Director for Myanmar, Cambodia and Lao PDR.

The Government of Myanmar adopted the National Electrification Plan in 2014 to achieve universal access to sustainable electricity services by 2030, drawing on World Bank analytical support provided through the National Electrification Project (NEP). To date, the NEP has delivered electricity access to 2 million people and to schools, rural health clinics and community centers by extending the public grid in over 5,000 rural villages and delivering Solar Home Systems and renewable energy mini-grids in 7,200 villages throughout the country.

Access to Quality Health Services

The additional financing for the Myanmar Essential Health Services Access Project (EHSAP), consisting of a $100 million IDA credit and a $10 million Global Financing Facility (GFF) grant, will continue to support the Ministry of Health and Sports (MOHS) to increase access to quality essential health services, with a focus on maternal, newborn, and child health.

Since 2015, EHSAP has supported over 12,000 primary healthcare facilities across the country, ranging from township hospitals to the sub-rural health centers, with monthly funds to improve service delivery at these critical health facilities. The project strengthens the quality of healthcare by building skills of frontline health workers. It also aims to improve the regularity and systematic approach of healthcare supervision visits and the efficiency and responsiveness of public finance through financial trainings and financial data system modernization.

The additional finance will support primary healthcare infrastructure in some of the most socio-economically disadvantaged townships so that they are fully functional for essential service delivery and to scale up activities to strengthen the health system, including pandemic preparedness and response, which will support inclusion of health service delivery for all people in Myanmar. 

“We highly appreciate the World Bank and Global Financing Facility’s additional finance for the Essential Health Services Access Project. It provides vital support in reaching the goal of our National Health Plan 2017-2021 to extend access to essential health services of good quality for all people in Myanmar,” saidUnion Minister for Health and Sports Dr. Myint Htwe.“It moreover contributes to the objective of the Myanmar Sustainable Development Plan to reach universal health coverage in a pro-poor manner.”

COVID-19 Response

In the fight against COVID-19, funds under EHSAP are also being mobilized to assist capacity building and operational costs to intensify surveillance and testing activities in all states and regions, establish a functioning information and reporting system for all suspected cases, facilitate engagement with basic health staff and Ethnic Health Organizations for community surveillance, disseminate guidelines to health staff and community volunteers, and develop public Information, education and communication materials.

The World Bank has provided a $50 million loan for the Myanmar COVID-19 Emergency Response Project to help Myanmar fill a critical gap in its contingency plan to urgently increase hospital preparedness and surge capacity in order to reduce the spread of COVID-19, protect health workers, and treat patients.   

This project will also receive an $8 million grant from the World Bank Group’s Global Pandemic Emergency Financing Facility (PEF). The PEF is intended to provide financial support to IDA-eligible countries in case of major multi-country disease outbreaks. The PEF grant for Myanmar will support the surge response in the health sector, with special attention on benefiting the most vulnerable groups and communities in conflict- affected areas and ethnic health providers.

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Quiet panic: “We don’t know how oil market is going to function after a certain date”

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“How will the market react to the attempts by politicians to rig supply and price?” asks “The Financial Times” in an article “The week that could unravel the global oil market”. West countries came up with the idea of limiting the price of Russian oil, and now they themselves are afraid of terrible consequences.

Moscow has weaponised its natural gas supplies to Europe for months and is now actively trying to disable Ukraine’s electricity network. Consumer countries have become competitors as they race to secure scarce energy supplies. Fractures are visible in the decades-old Saudi-US oil relationship. Even in clean energy, leaders such as Joe Biden talk of a new battle to dominate supply chains.

The potential unraveling of the old order in the global oil market will reach a defining moment over the next week when Europe starts to block Russian seaborne crude from the continent. No one can say how disruptive these measures will be.

For energy industry veterans, the coming days mark a moment of deep peril for the oil market — and a global economy that still depends heavily on the commodity. Established geopolitical norms have been eroded in the past year, they say, and supply chains that have existed for decades are now being upended.

Russia’s willingness to torch its gas customer base in Europe and Saudi Arabia’s decision last month to slash oil supply — despite fierce opposition from the White House, who accused its Middle Eastern ally of aligning with Moscow — were just two examples.

 “These are tectonic shifts. Global markets were built on these trunk lines, of [natural gas] supply going between Russia and Europe, and both oil and gas between the Middle East and Asia,” says Roger Diwan, a veteran oil analyst at S&P Global Commodity Insights in Washington. “We don’t know how this market is going to function after a certain date. The adjustment will be dramatic.”

The price cap idea for Russian oil first promoted by the US Treasury department, is the most important and controversial initiative. The White House has worked for months to hold back prices, releasing unprecedented volumes of oil from its own emergency stockpile, while maintaining constant — if so far fruitless — pressure on Saudi Arabia and other producers to keep increasing supply.

For the Biden administration, it is a method to curb the Kremlin’s revenue while preserving the flow of Russian oil to the market in order to keep more oil price inflation at bay.

The plan is actually partly designed to offset much tougher restrictions put in place under EU sanctions on Russia.

The Kremlin has already said it will withhold supplies to countries co-operating with the price cap. “They said they would shut off gas supplies to anyone who doesn’t pay in roubles — and that happened,” says Martijn Rats, chief commodity strategist at Morgan Stanley. “You have to take into account the possibility that [cuts to oil exports] might actually happen.”

Vitol, the world’s largest independent oil trader, estimates Russian exports could drop by as much as a 1mn b/d, around 20 per cent of the volume it ships by sea. “I think the Russians likely have every intention to make this winter as miserable as possible for the west to make us reconsider our support for Ukraine,” says Croft at RBC. “We have made it very clear our pain point is energy.”

The OPEC Gulf states such as Saudi Arabia and the UAE chafe against the price cap believing it could one day be turned against them.

They also point to what they see as the hypocrisy of the West: demanding higher production while also seeking lower prices, which the industry argues has stymied investment and left the market ill-prepared for this crisis and what might come next.

…It’s clear that Western countries are entangled in sanctions against Russia. But this time the restrictions on the price of Russian oil will be very painful for the West itself.

International Affairs

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Best Practice: Why Going Green Is Best for Business

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Why Going Green is Best for Business

Over recent years, more companies have turned their attention to becoming greener and more environmentally friendly. But once the pandemic hit, companies shifted their focus away from initiatives, choosing to prioritize recouping their losses and staying afloat. However, dropping their environmental goals to protect their growth can be seen as short-sighted.

According to research data collected from over 35 countries, businesses, on average, perform better when employing green practices for multiple reasons. And while it might be difficult for some to make the changes needed to see this increased performance, companies like Signet in Australia understand the importance of staying committed to their eco-friendly ventures.

Tap into Emerging Niche Markets

A company can open itself to untapped niche markets and emerging trends by offering new green products and services, which is a great way to differentiate the company from its competitors. In some cases, companies committed to reducing their carbon footprint and boosting their green initiatives received millions in investment during the pandemic when most others struggled to keep their doors open. And as the world continues to struggle post-pandemic, these investments become invaluable.

D’light, a company dedicated to lighting solutions for those without access to any electricity, was able to help over 100 million people in 70 countries with their green products, simultaneously acquiring US$ 197 million in investment. In addition, Danish energy supplier, Ørsted, was named the most sustainable company in the world. Their success came from transforming themselves into green energy suppliers, and as a result, they have seen accelerated profits on their books.

Catering to these niche markets makes businesses the leaders of their sectors, allowing them to expand rapidly into international markets. And while such environments may only be realistic for some, it is possible to reexamine working practices and processes to make them more accessible.

Increased Efficiency

By making processes greener, companies can benefit from efficiency gains in the form of lower energy costs, securing green tax credits, and improving overall operational efficiency, to name a few. Moreover, these types of gains directly lead to commercial benefits. They can be as simple as printing fewer documents, reducing electrical usage in offices, and employing reusable or refillable items where possible.

In the UK, 78% of businesses investing in green technologies have benefited tremendously. And for large companies, like Procter & Gamble, this can translate into billions. On the other end of the spectrum, however, those causing environmental harm should be prepared to face ever-increasing costs and negative impacts within their business spheres.

Improved Employee Motivation

As eco-friendly business practices become the way of the future, job seekers are showing more interest and desire to work for companies committed to this cause. It is a common belief that if an employer cares for the environment and sustainability, they will care for their employees, which ultimately leads to higher job satisfaction.

These work environments facilitate an increased feeling of purpose, which in turn, makes work feel more meaningful. In addition, a recent poll indicates that millennials and Gen Z’s have far higher levels of concern for the environment. And considering these are the generations currently breaking into the job market, it is more logical to cater to this consideration.

By some estimates, there could be as much as a 16% boost to employee productivity in companies following greener trajectories.

Increased Engagement

Nearly all consumers worry about at least one environmental issue, with roughly half going as far as boycotting companies they deem too harmful. Ultimately, they want to make more responsible purchases, which should be viewed as an opportunity, not an obstacle. Making it easier for people to access clear recycling and sustainability information on packaging can help them make better choices and build loyalty to certain brands.

Along with more customers, green initiatives are appealing to stakeholders and investors. According to research focusing on American companies from 1993-2009, those with high sustainability had far superior stock market performances, leading to more lucrative investments. Additionally, investors have started to expect a lot more regarding these practices, made evident by the increase of global sustainability investments to US$30.7 trillion by April 2019.

Polysolar, which specializes in glazed windows that generate electricity, raised more than double the investment amount it was after through crowdfunding alone. Likewise, Unilever, attempting to rectify a poor history of exploitation, has already received increased engagement and loyalty thanks to the changes it is making.

Going green is not a simple process or quick fix. Business spheres differ and require different approaches to achieve a more eco-friendly impact. It takes effort and commitment to sustain for businesses and consumers alike. But, regardless of which side of the spectrum you fall on, this is the global industry’s future. To be connected and supported, making the necessary changes as early as possible is crucial to set companies on steady roads moving forward.

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Accelerating private sector investment in large-scale Renewable Energy

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Following its 2020 edition, the Economic Policy Dialogue series (EPD) is back with six new sessions that will run until June 2023. Organized by the United Nations Development Programme (UNDP) and the World Bank Group in Tunisia through TERI Trust Fund, these monthly meetings aim to bring together relevant key stakeholders to create a space for constructive, inclusive, and transparent debate, allowing to collectively address the challenges of economic and social reforms facing the country.

The six EPD sessions are organized to foster dialogue on structural reforms and collectively identify practical and operational solutions to facilitate the implementation of reforms needed to address economic and social challenges as well as economic and development priorities.

The first session will be held on Thursday, 24 November 2022, and will focus on “Accelerating private sector investment in large-scale renewable energy.” Through a frank and direct debate, this dialogue session will aim to propose solutions to accelerate the realization of large-scale renewable energy projects, find ways to overcome the identified barriers and propose innovative mechanisms for a win-win partnership to regain investor confidence and catalyze the development of these projects. Accelerating the implementation of these projects is the only way to reduce the energy deficit and contribute to achieving energy transition objectives: energy security, economic competitiveness, social equity, and climate action.

Tunisia’s interests in the energy transition are evident given the country’s increasing energy demand (1.5% per year) and the worsening of the energy deficit. All the while, the country remains, despite the adoption of several forward-looking laws, far from the objectives it had set itself – namely, 30% of renewable energy in the energy mix in 2030.

At the end of each session, proposed in a participatory format, recommendations will be formulated to initiate and fuel reflection on possible national socio-economic reforms. These reforms aim to improve access to regional development, youth employability, and economic and financial inclusion within the Sustainable Development Goals (SDGs) framework.

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