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World Bank pledges to support Myanmar development
Posted By: PNA
Post Date : 8 Feb 2013
After years of being in the dark, Myanmar is on
the verge of supplying power to several of its more rural areas, courtesy of an
interest free loan from the World Bank. The loan, totaling 165 million USD, is
part of an initiative to improve electricity distribution throughout the
Southeast Asian nation.
At a press conference held in Yangon on 5
February, Axel van Trotsenburg, the World Bank’s East Asia and Pacific vice
president, commented on the importance of helping in the development of
Myanmar’s infrastructure and energy sector. The representative, along with
other delegates from the bank, met with President Thein Sein’s administration
over the course of 3 days to discuss the prospects of embracing rapid
transformation within Myanmar and to address strategic power sector reform in
order to ensure sustainable access to electricity, as well as attract more
foreign investment.
Following the Tuesday conference, Jin-Yong Cai, the Vice-President and CEO of
the International Finance Corporation (IFC), confirmed Myanmar would use the
funds to conduct projects that may assist with the nation’s development.
At the recent press conference, promoting
improved electricity supply as a key
development priority that requires public and private investment, was the main topic.
The country’s energy demand is steadily growing
fast, with current supply more than 30
percent below demand in Myanmar.
The 165 million USD, zero-interest loan for priority needs, will be distributed in
addition to a 80 million USD development grant that will enable smaller areas
to improve local facilities. The grant will go towards improving schools,
clinics, roads, and water supply.
At present, only 25 percent of the population
currently has access to reliable electricity. Though a resource-rich nation,
Myanmar is still afflicted with destitution - with approximately 32% of the
population living in poverty. While under the rule of the authoritarian -junta
government for nearly 50 years, the country’s production, education, and
economy was stunted. Signs of progress and international attention within
Myanmar, were limited and far reaching prior to reforms enacted by the Thein
Sein administration.
During the recent conference, Mr. van Trotsenburg inspired hope by
maintaining the loan would assist Myanmar in establishing “sufficient, reliable
and affordable electricity”. He supported the widely held belief that the
proliferation of energy is instrumental in relieving poverty in rural areas and
creating opportunities for all.
The World Bank Group previously supported
dramatic expansion of electricity access
in Lao PDR and Vietnam. Following funding, more than 80 percent of Lao
PDR citizens are connected, and in Vietnam over 97 percent of citizens have
access to power; the distribution of power has improved the economic climate of
both countries significantly.
Economic updates suggest Myanmar’s economy
accelerated in the 2011-2012 fiscal year, boasting a GDP growth of 5.5 percent.
The country’s growth is expected to reach 6.3 percent in the 2012-2013 fiscal year.
The Myanmar government will also set up a new
microfinance institution in the country to provide loans to more than 200,000
people by 2020. The loans will mostly be micro and small business loans that
will be managed by women.
The World Bank also commented on supporting the
ongoing peace process and stressed the importance of peace in development
success. The Bank pledged to work with the government to improve the management
of its budget and public finances. Areas
related to the agriculture and mining sector were briefly discussed, but no
plans were developed.
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