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Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No: PAD2197

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED IDA CREDIT

IN THE AMOUNT OF SDR 85.5 MILLION

(US$116 MILLION EQUIVALENT)

AND

A PROPOSED GRANT FROM THE SOUTHEAST ASIA DISASTER RISK INSURANCE FACILITY PROGRAM MULTI-DONOR TRUST FUND

IN THE AMOUNT OF US$1 MILLION

TO THE

REPUBLIC OF THE UNION OF MYANMAR

FOR A

MYANMAR SOUTHEAST ASIA DISASTER RISK MANAGEMENT PROJECT

May 24, 2017

Social, Urban, Rural and Resilience Global Practice East Asia and Pacific Region

This operation is part of the Agile Pilots initiative and uses a short version of the Project Appraisal Document

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2017)

Currency Unit = Myanmar Kyat (MMK)

SDR 0.737 = US$1

US$1.35685 = SDR 1

MMK 1,355 = US$1

FISCAL YEAR

April 1 - March 31

Regional Vice President: Victoria Kwakwa

Country Director: Ulrich Zachau

Senior Global Practice Director: Ede Jorge Ijjasz-Vasquez

Practice Manager: Abhas Kumar Jha

Task Team Leader(s): Michael Bonte-Grapentin, Henrike Brecht, Olivier Mahul

ABBREVIATIONS AND ACRONYMS

ASCE American Society of Civil Engineers

ASEAN Association of Southeast Asian Nations

CCRIF Caribbean Catastrophe Risk Insurance Facility

DBA Department of Budget and Accounts

DRFI Disaster Risk Financing and Insurance

DRM Disaster Risk Management

EDB Engineering Department for Buildings

EDRB Engineering Department of Roads and Bridges

EIRR Economic Internal Rate of Return

ERM Emergency Response Manual

ESMP Environmental and Social Management Plan

ESMF Environmental and Social Management Framework

FM Financial Management

GDP Gross Domestic Product

GoM Government of Myanmar

GRM Grievance Redress Mechanism

GRS Grievance Redress Service

INFORM Index for Risk Management

JICA Japan International Cooperation Agency

M&E Monitoring and Evaluation

MoPF Ministry of Planning and Finance

NDMC National Disaster Management Committee

NPV Net Present Value

PDO Project Development Objective

POM Project Operations Manual

RPF Resettlement Policy Framework

SCADA Supervisory Control and Data Acquisition

SEADRIF Southeast Asia Disaster Risk Insurance Facility

SOP Series of Projects

TF Trust Fund

TOR Terms of Reference

YCDC Yangon City Development Committee

YRG Yangon Region Government

YSC Yangon Project Steering Committee

The World Bank Myanmar Southeast Asia Disaster Risk Management Project (P160931)

Page 1 of 41

BASIC INFORMATION

Is this a regionally tagged project? Country(ies) Financing Instrument

Yes Cambodia, Lao People's Democratic Republic, Myanmar

Investment Project Financing

[✔] Situations of Urgent Need of Assistance or Capacity Constraints

[ ] Financial Intermediaries

[✔] Series of Projects

Approval Date Closing Date Environmental Assessment Category

15-Jun-2017 31-Oct-2023 B - Partial Assessment

Bank/IFC Collaboration

No

Proposed Development Objective(s) The Project Development Objective (PDO) is to improve drainage services, and the structural performance of selected public facilities in Yangon, and enhance the capacity of the Government to facilitate disaster response. Components Component Name Cost (US$, millions)

Strengthening Financial Planning for Disaster Resilience 21.00

Urban Flood Risk Management 71.00

Safer Public Facilities and Critical Infrastructure 22.00

Project Management 3.00

Contingent Emergency Response Component 0.00


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Organizations Borrower :

Myanmar

Implementing Agency : Ministry of Planning and Finance Yangon City Development Committee

PROJECT FINANCING DATA (IN USD MILLION)

[ ] Counterpart Funding

[ ] IBRD [ ✔ ] IDA Credit [ ] Crisis Response Window

[ ✔ ] Regional Projects Window

[ ] IDA Grant [ ] Crisis Response Window [ ] Regional Projects Window

[ ✔ ] Trust Funds

[ ] Parallel Financing

FIN_COST_OLD

Total Project Cost: Total Financing: Financing Gap:

117.00 117.00 0.00

Of Which Bank Financing (IBRD/IDA):

116.00

Financing (in US$, millions) FIN_SUMM_OLD

Financing Source Amount

International Development Association (IDA) 116.00

Southeast Asia Disaster Risk Insurance Facility (SEADRIF) Pr 1.00

Total 117.00

Expected Disbursements (in US$, millions)

Fiscal Year 2017 2018 2019 2020 2021 2022 2023 2024

Annual 0.00 1.50 5.20 17.40 35.90 32.00 15.30 8.70


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Cumulative 0.00 1.50 6.70 24.10 60.00 92.00 107.30 116.00

INSTITUTIONAL DATA

Practice Area (Lead)

Social, Urban, Rural and Resilience Global Practice

Contributing Practice Areas

Finance & Markets

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag Does the project plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment Yes c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance High

2. Macroeconomic Moderate

3. Sector Strategies and Policies Moderate

4. Technical Design of Project or Program Substantial

5. Institutional Capacity for Implementation and Sustainability High

6. Fiduciary High


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7. Environment and Social Substantial

8. Stakeholders Substantial

9. Other

10. Overall High

COMPLIANCE

Policy

Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✔] No

Does the project require any waivers of Bank policies?

[ ] Yes [✔] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Natural Habitats OP/BP 4.04 ✔

Forests OP/BP 4.36 ✔

Pest Management OP 4.09 ✔

Physical Cultural Resources OP/BP 4.11 ✔

Indigenous Peoples OP/BP 4.10 ✔

Involuntary Resettlement OP/BP 4.12 ✔

Safety of Dams OP/BP 4.37 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔

Legal Covenants

Sections and Description Institutional Arrangements

Financing Agreement: Schedule 2, Section I.A

Recurrent, Continuous

Obligation of the Recipient to maintain, throughout the Project implementation period, the following structures,


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all with a mandate, composition, staffing and resources acceptable to the Association: (i) the Yangon Project

Steering Committee, (ii) the Project Secretariat, (iii) project implementation structures within MoPF for the day-to-

day implementation and coordination.

Sections and Description Subsidiary Agreement

Financing Agreement: Schedule 2, Section I.B


Obligation of the Recipient to: (1) make part of the proceeds of the Credit available to YCDC under a subsidiary

agreement between the Recipient, through MOPF, and YCDC (“Subsidiary Agreement”), under terms and

conditions acceptable by the Association; and (2) exercise its rights under the Subsidiary Agreement in such

manner as to protect the interests of the Recipient and the Association and to accomplish the purposes of the

Credit; and (3) except as the Association shall otherwise agree, not assign, amend, abrogate or waive the

Subsidiary Agreement or any of its provisions.

Sections and Description Project Operations Manual

Financing Agreement: Schedule 2, Section I.C


Obligation of the Recipient to carry out the Project in accordance with the Project Operation Manual; and not

amend, waive or abrogate any provisions of the manual unless the Association agrees otherwise in writing.

Sections and Description Annual Work Plans and Budgets

Financing Agreement: Schedule 2, Section I.D


Obligation of the Recipient to: (1) furnish, not later than September 30 of each fiscal year of the Recipient during

the implementation of the Project (or such later date as the Association may agree) for the Association’s no-

objection, a consolidated Annual Work Plan and Budget (“AWPB”) containing all Project activities and Eligible

Expenditures proposed to be included in the Project in the Recipient’s following fiscal year, including the

Association’s and the Recipient’s respective shares in the cost of the AWPB; (2) ensure that the Project is

implemented in accordance with the AWPB and provide, promptly as needed, its share of the Project financing as

specified in the AWPB; and (3) not make or allow to be made any change to the AWPB without prior no-objection

in writing by the Association.

Sections and Description Environmental and Social Safeguards

Financing Agreement: Schedule 2, Section I.E



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Obligation of the Recipient to ensure that the Project is carried out in accordance with the safeguards instruments

(as defined in the Financing Agreement); and not amend, abrogate, or waive any of the safeguard instruments

unless the Association agrees otherwise, and report on their status of implementation as part of the semiannual

progress reports.

Sections and Description Contingent Emergency Response

Financing Agreement: Schedule 2, Section I.F


Obligation of the Recipient to adopt a satisfactory Emergency Response Manual for Component 5 of the Project

and, in the event of an eligible crisis or emergency, ensure that the activities under said component are carried out

in accordance with such manual and all relevant safeguard requirements.

Sections and Description Mid-Term Review

Financing Agreement: Schedule 2, Section II.A

Due Date: 36 Months after Effectiveness

Obligation of the Recipient to prepare and furnish a mid-term report, documenting progress achieved in the

carrying out of the Project during the period preceding the date of such report; review with the Association such

mid-term report; and thereafter take all measures required to ensure the continued efficient implementation of

the Project and the achievement of its objectives, based on the conclusions and recommendations of the mid-

term report and the Association’s views on the matter.

Conditions

Type Description Effectiveness Signing of Grant Agreement and Subsidiary Agreement

Financing Agreement, Article IV, Section 4.01 The Grant Agreement and the Subsidiary Agreement have been executed and delivered and all conditions precedent to its effectiveness or to the right of the Recipient to make withdrawals under it (other than the effectiveness of the Financing Agreement) have been fulfilled.

Type Description Disbursement Financing of Premia

Financing Agreement: Schedule 2, Section IV.B.1 (b) The Recipient may not withdraw the proceeds of the Financing allocated to the financing of premia until has requested the withdrawal of the Financing for the payment of Premia to the Southeast Asia Disaster Resilience Insurance Facility or the Association (or both), in accordance with Section V of Schedule 2 to the


Page 7 of 41

Financing Agreement Type Description Disbursement Contingent Emergency Response

Financing Agreement: Schedule 2, Section IV.B.1(c) The Recipient may not withdraw the proceeds of the Financing as may be allocated to Component 5 unless an Eligible Crisis or Emergency has occurred, all related safeguards instruments and requirements have been completed, the emergency response implementing entities have adequate staff and resources, and the Recipient has adopted the Emergency Response Manual, acceptable to the Association.

PROJECT TEAM

Bank Staff

Name Role Specialization Unit

Michael Bonte-Grapentin Team Leader(ADM Responsible)

Disaster Risk Management GSU08

Henrike Brecht Team Leader Disaster Risk Management GSU08

Olivier Mahul Team Leader Disaster Risk Finance GFM3A

Sirirat Sirijaratwong Procurement Specialist(ADM Responsible)

Procurement GGO08

Christopher Robert Fabling Financial Management Specialist

Financial Management GGO20

Aristeidis I. Panou Team Member Legal Counsel LEGES

Artessa Saldivar-Sali Team Member Disaster Risk Management GSU08

Benedikt Lukas Signer Team Member Disaster Risk Finance GFM3A

Brendan Ming Hui Chia Team Member Operations GSU08

Bunlong Leng Safeguards Specialist Environmenral Safeguards GEN2B

Carmenchu D. Austriaco Team Member Finance WFALN

Chanin Manopiniwes Team Member Economist GTI02

Hideaki Hamada Team Member Disaster Risk Finance GFM3A

Khin Aye Yee Team Member Operations GSU08

Kyemon Soe Team Member Financial Management GGO20


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Martin Henry Lenihan Safeguards Specialist Social Safeguards GSU02

Thu Hang Vu Team Member Disaster Risk Finance GFM02

Zuzana Stanton-Geddes Team Member Disaster Risk Management GSU08

Extended Team

Name Title Organization Location

Alan Coulthart Lead Municipal Engineer

Philippe Jacobe De Naurois Consultant, Implementation arrangements

Spain

Veronica Mendizabal Joffre Governance and Capacity Development Consultant

Nairobi,Kenya


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MYANMAR

MYANMAR SOUTHEAST ASIA DISASTER RISK MANAGEMENT PROJECT

TABLE OF CONTENTS

I. STRATEGIC CONTEXT .................................................................................................... 11

A. Country Context ............................................................................................................... 11

B. Sectoral and Institutional Context ................................................................................... 12

C. Higher Level Objectives to which the Project Contributes ............................................. 14

II. PROJECT DEVELOPMENT OBJECTIVES ............................................................................ 15

A. PDO ................................................................................................................................... 15

B. Project Beneficiaries ......................................................................................................... 15

C. PDO-Level Results Indicators ........................................................................................... 15

III. PROJECT DESCRIPTION .................................................................................................. 16

A. Project Components ......................................................................................................... 16

B. Project Cost and Financing ............................................................................................... 19

C. Lessons Learned and Reflected in the Project Design ..................................................... 20

IV. IMPLEMENTATION ........................................................................................................ 22

A. Institutional and Implementation Arrangements ........................................................... 22

B. Results Monitoring and Evaluation ................................................................................. 23

C. Sustainability .................................................................................................................... 23

D. Role of Partners ................................................................................................................ 24

V. KEY RISKS ..................................................................................................................... 24

A. Overall Risk Rating and Explanation of Key Risks ........................................................... 24

VI. APPRAISAL SUMMARY .................................................................................................. 25

A. Financial and Economic Analysis ..................................................................................... 25

B. Technical ........................................................................................................................... 26

C. Financial Management ..................................................................................................... 27

D. Procurement ..................................................................................................................... 28

E. Social (including Safeguards) ............................................................................................ 29

F. Environment (including Safeguards) ................................................................................ 30

G. Other Safeguard Policies (if applicable) .......................................................................... 32

H. World Bank Grievance Redress ....................................................................................... 32


Page 10 of 41

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 34

ANNEX 1: MAP .................................................................................................................... 41


Page 11 of 41

I. STRATEGIC CONTEXT

A. Country Context

1. This project is part of a Southeast Asia regional program on Disaster Risk Management (DRM) financed by the World Bank, involving a Series of Projects (SOP) in Myanmar, Cambodia, and Lao People’s Democratic Republic (see Project Cost and Financing). Southeast Asia is highly exposed to natural disasters and the recurrent extreme events are seen as directly linked to the persistent poverty in the region. Among Southeast Asia countries, Myanmar, Cambodia, and Lao PDR face particularly high annual average losses, in excess of 0.7 percent of their gross domestic product (GDP). This program seeks to strengthen the region’s capacity and cooperation in the field of DRM. The projects incorporate three main common themes: (a) promote disaster risk pooling by seeking to establish the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) to provide participating countries with immediate liquidity for rapid disaster response; (b) strengthen the respective Ministries of Planning and Finance (MoPFs)as well as line ministries and/or municipalities to mainstream DRM into policies and support systematic allocations for resilience; and (c) implement integrated packages of structural and nonstructural investments to increase climate and disaster resilience.

2. Despite strong growth in recent years, Myanmar remains one of the poorest countries in Southeast Asia with a per capita GDP of US$1,204 (2015). Growth has been driven by economic reforms, public consumption, and private investment, easing to 7 percent in 2015–2016, due to a shock from heavy floods and landslides, a slowdown in investment flows linked to elections, and external trends such as lower commodity prices. Following elections in November 2015, won by the National League for Democracy, a new administration assumed office in April 2016. Growth is expected to accelerate to above 8 percent in 2017–2018, supported by increased investment and rapid expansion in the services sector, including transportation, banking, and telecommunications.1 However, more than a third of the population (19 million people) lived in poverty in 2009/2010.2 The poverty rate was estimated to be between 25.6 percent and 37.5 percent, with a high concentration in rural and conflict-affected areas, and high variability across geographic zones. The poverty rate for the Yangon Region is 34 percent.3 Access to basic services remains a challenge in both rural and urban environments.

3. Disasters in Myanmar have far-reaching impacts on livelihoods and drain Government resources. Myanmar ranks 2nd out of 187 countries in the 2016 Global Climate Risk Index4 and 9th out of 191 countries in the Index for Risk Management (INFORM).5 Over the past 25 years, Myanmar has suffered 24 disaster events, affecting more than 4 million people and causing US$4.7 billion in damages.6 A preliminary financial risk assessment estimated expected annual economic losses of over US$184 million due to natural disasters, equivalent to 0.9 percent of GDP.7 From July to September

1 World Bank. 2016. East Asia and the Pacific. Economic Update.

2 Estimate depends on methodology used. See World Bank. 2014. A Systematic Country Diagnostic.

3 Estimate depends on methodology used. See World Bank. 2014. A Systematic Country Diagnostic.

4 GermanWatch. 2016. Global Climate Risk Index 2016. https://germanwatch.org/fr/download/13503.pdf.

5 INFORM (Index for Risk Management). 2016. Results Report 2016 (http://www.inform-

index.org/Portals/0/InfoRM/2016/INFORM%20Results%20Report%202016%20WEB.pdf); Myanmar Country Profile (http://www.inform-index.org/Portals/0/Inform/2016/country_profiles/MMR.pdf). 6 Preliminary World Bank analysis based on data from EM-DAT database (http://www.emdat.be/).

7 World Bank and Global Facility for Disaster Reduction and Recovery. 2012. ASEAN. Advancing Disaster Risk Financing and

https://germanwatch.org/fr/download/13503.pdf

http://www.inform-index.org/Portals/0/InfoRM/2016/INFORM%20Results%20Report%202016%20WEB.pdf

http://www.inform-index.org/Portals/0/InfoRM/2016/INFORM%20Results%20Report%202016%20WEB.pdf


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2015, the country suffered from severe floods and landslides, cutting economic growth by 0.8 percentage points, and disproportionally affecting segments of the population that were already poor and vulnerable. The impact of climatic events in the last two successive monsoon seasons has resulted in some communities experiencing substantial losses, with negative income and welfare implications for both smallholder and landless households in the affected areas.8 Floods also resulted in substantial increases in the price of basic foods, especially rice.

4. To reduce disaster impacts, a comprehensive approach with pre- and post-disaster measures is needed. Ongoing urbanization and growth of assets highlight the need to invest in disaster and climate resilience. While the majority (66 percent) of the population is still rural,9 Myanmar is rapidly urbanizing with high demand for infrastructure and services.10 Much development is unplanned, occurs in hazardous areas, and is not in line with standards and regulations. Risk management solutions need to be integrated into public investment planning, particularly in the rapidly growing Yangon City, to reduce the costs of disasters while improving services for the population. At the same time, appropriate disaster response financing instruments, which help the Government to respond effectively to disaster, are lacking. These instruments are needed, for example, to finance social protection in post-disaster situations to help people from falling back into poverty.

B. Sectoral and Institutional Context

5. Myanmar has been adjusting its legal framework to promote disaster risk reduction across sectors, but implementation on the ground remains a challenge. In 2013, the Government of Myanmar (GoM) enacted the Natural Disaster Management Law and issued the supporting Disaster Management Rules in July 2015. The rules require all ministries and administrative units to prepare disaster management plans; however, enforcement and application of both the law and rules are limited. The mandate of the National Disaster Management Committee (NDMC) is broad, and given frequent disasters, it is heavily focused on post-disaster assistance. Weak capacity, a lack of resources, insufficient analytics, and a focus on disaster response hamper the mainstreaming of resilience principles across sectors. A National Building Code to improve disaster resilience in new buildings has been prepared and is being translated into Myanmar language, but has not yet been formally adopted.

6. The role of the MoPF in DRM is still limited, but global experience suggests that high-level Government agencies need to play a critical role in increasing resilience. The MoPF’s contribution and leadership is currently marginal in critical areas, such as convening line ministries, creating DRM awareness, prioritizing strategic risk reduction investments, allocating necessary resources for DRM, and promoting disaster risk finance instruments and policies to secure access to immediate funding for disaster response and post-disaster recovery. In particular, two areas require enhanced capacity building to tackle the increasing disaster and climate risks: (a) mainstreaming resilience into investment planning, and (b) strengthening disaster risk financing and insurance (DRFI).

Insurance in ASEAN Member States: Framework and Options for Implementation. 8 World Bank. 2016. East Asia and the Pacific. Economic Update.

9 World Bank. 2015. Rural Population Data 2015. Accessed November 2016.

http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS 10

Between 2000 and 2010, population in urban areas in the country increased from 4.7 million to 6.2 million. World Bank. 2015. East Asia’s Changing Urban Landscape: Measuring a Decade of Spatial Growth.

http://data.worldbank.org/indicator/SP.RUR.TOTL.ZS


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7. Mainstreaming resilience into investment planning is critical to ensure that the country’s assets and services develop in a safe, resilient, and sustainable way so that they can bring the desired benefits to its peoples. It is recognized that investing in disaster resilience yields a triple dividend: (a) losses avoided when disasters occur; (b) stimulating economic development with lowered disaster-related investment risk; and (c) synergies of economic, social, and environmental co-benefits, even in the absence of a disaster occurring for several years.11 For the ongoing and future development of Myanmar, Yangon in particular, it is necessary to consider the existing and future risks by avoiding high-risk areas through proper land-use planning, mitigating physical risks through design, construction, and proper maintenance and coordination, and increasing institutional capacity and preparedness. In the longer term, this will enable the city to yield resilience dividends, such as the potential increase in land values in areas that have undergone drainage infrastructure improvement. The MoPF is well-placed to promote resilient investment decisions, implemented by respective line ministries. Policies and technical guidance are however still lacking to protect key economic sectors and assets at risk and ensure that urban development is safe and sustainable.

8. Strengthening disaster risk finance would help Myanmar to systematically manage the financial impact of disasters and improve its post-disaster response financing capacity. Myanmar has limited financial capacity to respond to disaster events. The Government has established a National Disaster Management Fund (the ‘Reserve Fund’) and allocates a contingency budget, but it remains exposed to catastrophic events, relying heavily on international donor assistance for response, relief, and recovery. Emergency response costs, particularly floods, can cause significant short-term funding gaps and divert the use of public funds. Given the limited ability of the Government to access domestic and international credit sources and insurance markets or raise tax revenue after disasters, recovery and reconstruction costs of past disasters have been partially met through budget reallocation by line agencies and donor assistance, which is often unpredictable or reallocated from existing projects. When major disaster costs remain unaddressed, they are absorbed by the affected populations, most likely making the most vulnerable even worse off.

9. Yangon is an important growth pole in the country and is experiencing rapid urbanization. Yangon is triple the size of the country’s second largest city, Mandalay, and contributes approximately 25 percent of the country’s GDP, with over 90 percent of Yangon’s economy made up of industry and services. As the country’s commercial and financial hub, as well as its gateway for tourism, Yangon is expected to continue capturing a dominant share of Myanmar’s economic development. As has been the case in other industrializing economies, rapid urbanization has accompanied economic growth. Between 2000 and 2010, Yangon’s population increased from 2.6 million people to 3.4 million. Other estimates indicate that the city’s population grew at a rate of 2.1 percent per year, exceeding the national population growth rate of 0.9 percent. According to the 2014 Myanmar Population and Housing Census, Yangon Region has a population of 7.36 million, 70.1 percent of which is urban. Coupled with high economic growth, the growing urban population has placed the city’s infrastructure under strain, and urban service delivery does not cover the population of the entire region. For instance, only 40 percent of Yangon’s population has access to drinking water supplied by Yangon City Development Committee (YCDC), while 71 percent of the population has access to electricity.

11

Overseas Development Institute, Global Facility for Disaster Reduction and Recovery, and The World Bank. 2015. The Triple Dividend of Resilience.


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10. Yangon is in many ways unprepared for its growth. In the absence of a comprehensive land use and infrastructure plan, spatial expansion has been rapid and fragmented, and is not coordinated with infrastructure provision. While the city adopted ‘A Strategic Urban Development Plan for Greater Yangon’ in 2013, translating the plan into comprehensive land use and infrastructure investments remains a challenge. Since the preparation of the plan, good progress has been made in improving water coverage and quality, electricity supply, widening of roads, and constructing flyovers. Very recently, improvements have been made to the bus networks. The Government has since formed a committee of relevant agencies, including YCDC and the national government’s Department of Urban and Housing Development, to develop a land use plan and prepare Planning Guidelines and Building Regulations. However, there is a lack of robust risk information to ensure that the existing stocks of vulnerable infrastructure can be upgraded in a resilient and cost-effective manner and that new developments and services are located in safe areas in accordance with safe designs and construction standards. The city is at risk of flooding, with extreme events occurring 6 to 10 times a year when heavy rainfall coincides with high tides during the monsoon season. Yangon is also highly earthquake-prone, located along the active Sagaing fault system and built on weak surface geological conditions associated with an alluvial delta.

C. Higher Level Objectives to which the Project Contributes

11. This project will directly contribute to achieving national-level and Yangon-specific priorities. The urban resilience investments in Yangon will directly support one of the twelve priorities of the Myanmar Economic Policy, announced by the GoM in July 2016, which foresees “establishing towns that are compatible with environmental conservation, to enhance public services, to create more public places, and to protect cultural heritage.” The 2013 Strategic Urban Development Plan of the Greater Yangon seeks to make Yangon a more livable city by conserving heritage buildings and green spaces. The revised plan, currently under preparation with support from Japan International Cooperation Agency (JICA), will focus on DRM and specific hazards, in addition to public service delivery. The project investments in the city’s drainage system, public facilities, and critical infrastructure will help the Yangon Region Government (YRG) and YCDC achieve their priority of delivering high-quality public infrastructure and services. The project will also contribute to Myanmar’s efforts to meet its commitments related to the international Sendai Framework for Disaster Risk Reduction 2015–2030 and the regional ASEAN Agreement on Disaster Management and Emergency Response by enhancing capacity in disaster finance and mainstreaming resilient principles into development.

12. The World Bank Group Systematic Country Diagnostic and Country Partnership Framework (Report 95998) recognize the importance of DRM for Myanmar’s sustainable development. They recognize that the poor and vulnerable feel the greatest pressure when food prices fluctuate because of disasters and note that DRM is a critical element for reducing poverty. The framework identifies ‘climate change and disaster risk management’ as one of the four cross-cutting areas. Improved flood control and the reduction of vulnerability to shocks are included under the main engagement areas for reducing poverty. The project is also fully aligned with the World Bank Group’s East Asia Pacific Regional Strategy, which was presented to the Board in February 2016. The proposed project links directly to the strategic pillars12 of: (a) Governance and Institutions through support to capacity building for national and provincial agencies, (b) Infrastructure and Urbanization through investments in critical infrastructure,

12

World Bank. 2016. East Asia and the Pacific. Overview - Strategy. Website accessed September 2016. (http://www.worldbank.org/en/region/eap/overview#2)


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and (c) Climate Change and Disaster Risk Management through resilient investments and Disaster Risk Financing and Insurance (DRFI).

13. The project will contribute to the World Bank Group’s twin goals of ending extreme poverty and boosting shared prosperity in a number of ways. Natural disasters have socioeconomic consequences that go well beyond their most obvious impacts. Job losses and falling incomes have significant impacts on people’s well-being and long-term prospects, especially those who live close to subsistence levels. The project will help reduce human, economic, and financial losses by integrating resilience in upstream and downstream policies. Resilient investment in the densely populated downtown area and critical infrastructure of Yangon will avoid livelihood losses and economic disruptions and help protect development gains. The downtown area has some of the highest population densities in the city, with up to 53,800 people per square kilometer, and has a disproportionately high percentage of vulnerable people, including the elderly, pensioners, and low-income earners. Some of the poorest people in the city are street vendors in downtown Yangon whose daily incomes are directly affected by frequent flooding. Financial protection will help shield the Government’s budget and mitigate long‐term fiscal impacts, as well as enable the Government to provide immediate post-disaster response for the most vulnerable population, reducing the need for households to fall back on negative coping strategies such as borrowing money at very high interest rates.

II. PROJECT DEVELOPMENT OBJECTIVES

A. PDO

14. The Project Development Objective (PDO) is to improve drainage services, and the structural performance13 of selected public facilities in Yangon, and enhance the capacity of the Government to facilitate disaster response.

B. Project Beneficiaries

15. Direct beneficiaries will include about 175,000 residents (Census 2014) of the Yangon downtown area and an estimated 300,000 people who travel to work and trade there; at least 50 percent are women. Beneficiaries will include street vendors, almost all of whom are women. Further direct beneficiaries include an estimated 10,000 occupants of selected facilities to be upgraded by the project and approximately half a million beneficiaries served by these facilities. Yangon authorities will benefit from new equipment/systems and capacity building on drainage maintenance and flood risk management, as well as multihazard risk reduction. The MoPF will directly benefit from financial strategies and instruments developed to improve resilience to climate and disaster risks. Indirect project beneficiaries will include Yangon’s wider population and visitors and Myanmar’s people benefiting from the GoM’s enhanced ability to withstand disaster-related fiscal shocks.

C. PDO-Level Results Indicators

16. The achievement of the PDO will be measured through the following key indicators:

13

‘Structural performance’ derives from specific criteria and structural standards that the building is designed and retrofitted to meet, including desired targets to limit the level of damage in the event of a design-level earthquake.


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(a) Myanmar has information and capacity to access sovereign disaster risk insurance (Y/N) (enhancing the capacity of the Government to facilitate disaster response);

(b) Number of people benefitting from improved flood protection; of which are poor (%); of which are female (%) (reducing impacts of flooding);

(c) Increase in area provided with improved drainage services (%) (reducing impacts of flooding); and

(d) Number of direct occupants benefitting from public facilities strengthened to “Life Safety”14 performance level; of which are female (%) (improving the structural performance of selected critical public facilities in Yangon).

III. PROJECT DESCRIPTION

A. Project Components

17. The project will support key Government agencies in mainstreaming of DRM into urban development and strengthening financial resilience. The project will improve the technical capacity of the MoPF to develop stronger DRM analytics and disaster risk finance instruments and policies to help protect Government finances and improve their post-disaster financing capacity. These upstream regulatory planning tools will be complemented with downstream resilient investments in public infrastructure in Yangon City, to strengthen its policies and guidelines for public investment planning and facilitate integration of resilient principles into sectoral development. The resilient approaches will be demonstrated through the improvements of urban drainage infrastructure as part of an integrated urban flood risk management approach to withstand regular flooding, reducing regular reconstruction costs, and decreased flood impact on the population. Structural performance of selected critical public facilities will also be strengthened. These structural investments will be complemented with nonstructural investments taking the form of institutional capacity building to help mainstream resilience with a long-lasting positive impact on development.

18. The project comprises five components, which are outlined in the following paragraphs.

Component 1. Strengthening Financial Planning for Disaster Resilience (US$20 million IDA Credit + US$1 million trust fund [TF] Grant).

19. Component 1 will increase the disaster resilience of Myanmar by enhancing the MoPF’s capacity to integrate disaster and climate resilience into budgets and sectoral investment planning and enhance the Government’s capacity to meet post-disaster funding needs. This component will be implemented by the MoPF.

Subcomponent 1.1. Support for Strengthening Disaster Resilience (US$1 million TF Grant)

14

According to the American Society of Civil Engineers (ASCE) 41-13 ‘Seismic Evaluation and Retrofit of Existing Buildings’ and associated design standards, which are reference standards in use in Myanmar. Buildings that meet the ‘life safety’ performance level allows for damage to structural and nonstructural components in a design earthquake, while minimizing the risk of death and injury.


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20. This subcomponent will provide technical assistance to strengthen the financial planning capacity of the MoPF for disaster resilience, including (a) mainstreaming disaster and climate resilience into public investment planning and development processes, (b) preparing a national disaster risk financing strategy; and (c) facilitating Myanmar’s engagement in the preparation and establishment of a regional disaster risk pooling mechanism, and (d) supporting day-to-day implementation of this part of the project.

21. This subcomponent includes (a) participation in regional consultations on the structure of the catastrophe risk pool with other Asian countries, regional organizations such as Association of Southeast Asian Nations (ASEAN), and the private reinsurance industry, (b) contribution to the drafting of the operational manual of the regional catastrophe risk pool, including governance, operational, legal, and financial structure, (c) support to insurance product design, and (d) support to the drafting of the transaction documentation. This subcomponent will be financed through a recipient-executed TF grant.

Subcomponent 1.2. Payment of Disaster Risk Insurance Premium (US$20 million IDA Credit)

22. Subcomponent 1.2 will assist the GoM in securing access to sovereign disaster risk insurance through financing of premiums to an international risk carrier such as the proposed SEADRIF. Should the establishment of SEADRIF be delayed for any reason, the GoM could purchase catastrophe risk insurance coverage directly from the World Bank Treasury, which would aggregate catastrophe risks with other participating countries and then pass it on as a single portfolio to international markets. This option has worked successfully in the Pacific and would provide the Government with diversification benefits from working together while simplifying the institutional arrangements.

Component 2. Urban Flood Risk Management (US$71 million IDA Credit)

23. Component 2 will help reduce flood risk by improving and increasing the capacity of drainage infrastructure in Yangon and introducing an integrated approach to flood risk management. The YCDC Engineering Department of Roads and Bridges (EDRB) will implement this component.

Subcomponent 2.1. Drainage Improvements (US$70 million)

24. Subcomponent 2.1 will improve and increase the capacity of drainage infrastructure in selected locations of Yangon downtown area. This includes, where appropriate, retention storage, automatic tidal gates, and high-capacity storm pumps. A Supervisory Control and Data Acquisition (SCADA) system will be installed to enable remote monitoring and operation of drainage infrastructure. Funds permitting, improvements to other priority areas suffering regular flooding would also be considered during project implementation.

Subcomponent 2.2. Flood Risk Management Planning and Maintenance (US$1 million)

25. Subcomponent 2.2 will provide technical assistance and maintenance equipment to build capacity for integrated flood risk management through, among other things, (a) developing and operationalizing an improved asset management system to better manage preventative maintenance of the drainage infrastructure and identifying and procuring specialized equipment designed for local conditions for improved maintenance of drains, (b) promoting the concept of sustainable drainage


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systems by proposing planning regulations and building codes to reduce and reuse on- and off-site storm water runoff to drains from new and existing developments and buildings, and (c) identifying and preparing climate-resilient detailed designs for drainage improvements and expansion.

Component 3. Safer Public Facilities and Critical Infrastructure (US$22 million IDA Credit)

26. This component will reduce disaster risk in Yangon by (a) retrofitting priority public facilities to ensure a targeted level of performance during a design-level earthquake,15 and (b) supporting risk assessments for lifeline infrastructure. The YCDC Engineering Department for Buildings (EDB) will implement this component in cooperation with relevant YCDC departments, such as Markets Department, Engineering Department of Water and Sanitation, and so on. The proposed activities for support are as described in the following paragraphs.

Subcomponent 3.1. Risk Reduction for Public Facilities and Infrastructure (US$21million)

27. Subcomponent 3.1 will reduce seismic risk in Yangon through retrofitting of priority public facilities and buildings to improve the structural performance of critical public facilities and infrastructure, which are important to the city’s social and community services and are regularly used/occupied by large numbers of people. A long-list of facilities has been prepared, using well-established prioritization criteria that have been applied in previous World Bank-supported DRM projects. Specific buildings and facilities will be selected within the first six months of project effectiveness. The selected buildings and facilities may include important civic facilities and ones that house lifeline infrastructure or utilities,16 which would need to be assessed to identify retrofitting/upgrading needs to ensure functional continuity in the event of a major disaster. The construction works will focus on the structural strengthening (seismic retrofitting) of existing public facilities. This means increasing the capacity of the structural frame to resist larger earthquake forces than those for which the facility was originally designed and built.

Subcomponent 3.2. Risk Assessment of Critical Infrastructure and Institutional Capacity Building (US$1 million)

28. Subcomponent 3.2 will finance institutional capacity building and technical assistance for (a) carrying out a detailed, multihazard risk assessment of lifeline/critical infrastructure in Yangon to help identify retrofitting and strengthening needs for system continuity, prioritize future investments, and provide options for the Government and development partners to support a comprehensive, long-term risk reduction program encompassing upgrading, retrofitting, or replacement of critical infrastructure elements, and (b) strengthening institutional capacity building of YCDC to develop a digital database of building information based on permits issued, which would in turn support assessment of building vulnerabilities and prioritization of buildings (both public and private) for future risk reduction interventions. Activities to be supported could include (a) assessment of the YCDC Building

15

Seismic risk will be reduced by improving the structural design and construction of public buildings, to a ‘life safety’ performance level, at a minimum. In the case of facilities that are critical to the continuity of lifeline infrastructure, such as water pumping station buildings, the targeted structural performance level will be ‘damage control’, according to relevant seismic design standards (that is, ASCE 41-13 and ASCE 7-10, which are currently used as the reference standards in Myanmar). 16

Social infrastructure such as health facilities and schools are union ministry assets and will not be included at this stage to avoid implementation complexities.


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Department’s building permitting workflows, streamlining of processes, and development of the associated database architecture, (b) digitization of building documents and permit records, (c) procurement of the required hardware and software, and (d) associated training for EDB staff.

Component 4. Project Management (US$3 million IDA Credit)

29. Component 4 will support the day-to-day implementation of the project, and build institutional capacity to sustain the implementation capacities beyond the life of the project. It will cover project management, coordination, procurement, financial management (FM), technical and safeguards aspects, monitoring and evaluation (M&E), reporting, knowledge sharing, and exchange, as well as awareness building.

Component 5. Contingent Emergency Response Component (US$0)

30. Component 5 will allow for a reallocation of credit proceeds from other components to provide emergency recovery and reconstruction support following an eligible crisis or emergency at the national or subnational level. In light of the project design, the Contingent Emergency Response Component would be expected to be operationalized through a reallocation from Component 1 to provide emergency recovery and reconstruction support at the union-level, and from Components 2, 3, and 4 to provide emergency recovery and reconstruction support at the Yangon Region level. To ensure that there is capacity at both levels, Emergency Response Manuals (ERMs) will be developed by the MoPF for the union-level emergency response and by YCDC/YRG for the Yangon Region-level emergency response for specific eligible disasters, detailing fiduciary, safeguards, monitoring, and reporting, and any other necessary implementation arrangements.

B. Project Cost and Financing

31. The lending instrument will be Investment Project Financing with a six-year implementation period. In addition to the IDA Credit of US$116 million equivalent, comprising US$102 million national IDA and US$14 million regional IDA allocations, for Subcomponent 1.1, a US$1 million trust-funded recipient-executed grant will be provided to support capacity building and technical assistance for financing Subcomponent 1.1. In accordance with the Annual Union Budget Law and Debt Management Law, a subsidiary agreement will be required between the MoPF and YCDC for the purpose of utilizing the IDA credit by the YRG.

32. This project is part of a regional program using the SOP approach, covering three countries: Myanmar, Cambodia, and Lao PDR. The projects are independent but have a similar design to address issues that are common to all the participating countries. The project meets the regional funding eligibility criteria as follows: (a) the program is expected to generate significant cross-boundary benefits by seeking to establish the SEADRIF which would be the first regional catastrophe risk pool in Southeast Asia, to provide participating countries with immediate liquidity for rapid disaster response; and (b) the program will also provide a platform for transferring knowledge and building common approaches for DRM and climate-resilient policies and institutional set up.


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Table 1. Project Cost and Financing

Project Components Project Cost

(US$, millions)

IDA Financing (US$, millions)

TF Grant (US$,

millions) National Regional

1. Strengthening Financial Planning for Disaster Resilience 21 6 14 1

1.1. Support for Strengthening Disaster Resilience 1 — — 1

1.2. Payment of Disaster Risk Insurance Premium 20 6 14 —

2. Urban Flood Risk Management 71 71 — —

2.1. Drainage Improvements 70 70 — —

2.2. Flood Risk Management Planning and Maintenance 1 1 — —

3. Safer Public Facilities and Critical Infrastrucure 22 22 — —

3.1. Risk Reduction for Public Facilities and Infrastructure 21 21 — —

3.2. Risk Assessment of Critical Infrastructure and Institutional Capacity Building

1 1 — —

4. Project Management 3 3 — —

5. Contingent Emergency Response Component 0 — — —

Total Costs 117 102 14 1

C. Lessons Learned and Reflected in the Project Design

33. Global experience shows that high-level Government agencies, including MoPFs, play a crucial role in promoting a balance of structural and nonstructural investments. In the Philippines, contingent disaster risk financing is closely aligned with strategic DRM policy reforms implemented by sectoral agencies. In Sri Lanka, investments in financial resilience go hand in hand with building physical resilience. In Lao PDR, the Ministry of Planning and Investment supports line ministries in systematic mainstreaming of disaster and climate resilience. This project fully acknowledges the vital role of the MoPF in promoting investments in risk reduction into planning and development. DRFI and risk-reduction investments complement each other to increase the resilience of the country against adverse disasters.

34. The project considers lessons learnt from urban floods mitigation/drainage projects in the region17 such as the Ho Chi Minh Environmental Sanitation project, including the following:

17

The team has also studied and incorporated best practice in project design from other projects in Vietnam and the region, for example, the Vinh Phuc Flood Risk and Water Management Project (recognizing interagency cooperation needed across GoM departments and ensuring appropriate implementation arrangements support this), the Can Tho Urban Development and Resilience Project (combining infrastructure investments and technical assistance in urban flood risk management), the Sindh Resilience Project in Pakistan, and other flood risk management investments in Colombo, Sri Lanka, and China.


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(a) Understanding the GoM processes for the review and approval of designs and procurement decisions and proactively addressing any delays during implementation. The task team will continue to engage with GoM stakeholders to ensure that they understand, in particular, the World Bank’s Procurement Guidelines and Procurement Documents and where these differ from the GoM’s Procurement Regulations. Training and awareness raising by specialists will be provided as necessary. During project implementation, the task team will respond proactively and resolve procurement related issues with the appropriate level of Government.

(b) Ensuring access to land is resolved well ahead of the awarding of construction contracts. The regional government authorities have agreed to arrange access to land and the land required for outfall structures in the Port Authority area with the Ministry of Transport and Communications after the routes for the drains and locations of structures have been defined in the designs. Securing approval for drain excavation in busy roads can present a risk which should be mitigated by the fact that the EDRB is responsible for both roads and drains.

(c) Integrating structural and nonstructural measures. Alongside physical investments, the project will include, for example, the installation of a SCADA system to enable key drainage infrastructure and flood levels to be monitored and controlled remotely. It will also assist YCDC to introduce and preserve passive flood prevention measures to attenuate storm runoff such as household storage and infiltration and retention ponds and basins, by drafting improvements to and strengthening enforcement of planning regulations and building codes.

(d) Ensuring provisions are made for separating wastewater from drains. Drainage design will incorporate measures to separate wastewater to enable it to be intercepted and conveyed for treatment in the future.

35. Consultation with project beneficiaries and inclusion of functional upgrades to modern service provision standards make risk reduction investments for public facilities and assets more effective and sustainable. Experience from large retrofitting projects such as the Istanbul Seismic Risk Mitigation Project shows that coordination with line ministries and administrators of individual facilities is crucial to ensuring that the design and retrofitting plans (and associated budget allocations) consider service quality and required functionalities. This generates strong support for the primary investment in risk reduction, even though the works may cause disruption to the operation of the facilities. Since early preparation, this project has involved stakeholders in the identification and planning of retrofitting/upgrading to enable transparent facility selection, design, tendering, and implementation processes.

36. A comprehensive financial protection strategy allows for timely and cost-efficient mobilization of funds for rapid response and recovery needs post disaster. The Caribbean Catastrophe Risk Insurance Facility (CCRIF) Project, participation of Honduras and Nicaragua in CCRIF, the Pacific Resilience Program, the Turkish Catastrophe Risk Insurance Project, and the Southeast Europe Catastrophe Risk Insurance Project show that insurance can enhance the financial protection of the Government by transferring catastrophe risks to the reinsurance and capital markets. In addition,


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regional catastrophe risk pools allow for a better risk diversification and higher risk retention, both contributing to lower insurance premiums. These lessons learnt have been integrated into the design of Component 1 by including the proposed regional catastrophe risk pooling mechanism as part of the national financial protection strategy to be developed and by designing the regional catastrophe risk pool to leverage regional risk diversification, build up regional reserves, and access the international catastrophe risk insurance market on competitive terms.

37. The project also incorporates lessons learnt from the Myanmar portfolio in terms of project implementation and readiness for implementation:

(a) Approval processes tend to be lengthy and unclear, with a highly top-down authorizing environment. The task team is engaged in intensive dialogue with the Yangon Chief Minister as a political sponsor and champion to ensure that approval processes proceed smoothly.

(b) Government and project management unit staff tend to lack capacity in procurement procedures. The task team is providing intensive hands-on technical and procurement support through World Bank-executed TFs to build capacity in procurement. The preparation of International Competitive Bidding of works will be outsourced to consulting firms, with terms of reference (TORs) agreed.

IV. IMPLEMENTATION

A. Institutional and Implementation Arrangements

38. Implementation. The project will have two implementing agencies: the MoPF will implement Components 1 and 5, and YCDC will implement Components 2, 3, and 4. YCDC will form a project secretariat to coordinate with relevant project implementation departments and ministries. The project secretariat will report to the Yangon Project Steering Committee (YSC) through the Yangon Mayor. YCDC secretary will act as the project director, supported in day-to-day operations by project managers located within EDRB and EDB. The project will use YCDC’s existing structures and processes, with the support of the secretariat. EDRB and EDB will be responsible for the technical aspects of Components 2 and 3, respectively, and FM and procurement will be centrally managed by the project secretariat with the support of the Department of Budget and Accounts (DBA). The MoPF will enter into a subsidiary agreement with YCDC for the purpose of making available the proceeds of the Credit allocated to Components 2, 3, 4 to YCDC.

39. The MoPF and YCDC each will manage a Designated Account. Current staff of the key agencies will be assigned to the project and will be supported by experts hired under the project as needed. Project funds will be available for the required equipment and incremental operating costs and the recruitment of nongovernment staff to support technical implementation and coordination.

40. Detailed institutional and implementation arrangements will be described in the Project Operations Manual (POM). For Component 5, ERMs will be developed within the first year after effectiveness.


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41. Coordination. To support coordination at the Yangon Region level, a YSC will be formed, chaired by the Yangon Chief Minister with representatives from ministries and agencies involved in the project. Its size will be limited to 6–8 members to ensure better performance and it will include the relevant region ministers, such as the Minister of the MoPF, the Minister of Infrastructure, Yangon Mayor, and the minister in charge of DRM. The NDMC18 will be updated periodically by the MoPF (Union) on the union-level activities and by the YSC chair on project progress for the Yangon regional activities.

B. Results Monitoring and Evaluation

42. The Results Framework will be the main tool for monitoring and evaluating the outcome and intermediate indicators for the project. An M&E system for the regional activities will be developed and maintained by the project secretariat at YCDC. YCDC will be responsible for collecting the required data, setting up the monitoring system, and reporting the results. Under Component 4, international and national consultants will focus on setting up and providing training on the M&E system. Information and data collected by the EDRB, EDB, and DBA will feed into the M&E system to help monitor the project's outcomes and impacts. Sufficient budget from Component 4 has been allocated to M&E. The MoPF at the union level will monitor implementation progress of the technical assistance under Subcomponent 1.1.

43. A semiannual M&E report on the national and Yangon Region activities will be submitted to the World Bank according to agreed dates. In addition, monthly and quarterly reports will be prepared on implementation progress. For the Yangon Region, the M&E reports will be used to inform management and YSC to guide budget allocation, planning, and decision making.

44. A Midterm Review will be carried out within 36 months after project effectiveness to assess the performance of project implementation and recommend any needed adjustments to achieve the PDO.

C. Sustainability

45. To promote resilient development beyond the project, support will be provided to institutionalize resilient guidelines and systems in the MoPF, EDRB, and EDB. Guidelines will be developed for mainstreaming DRM into public investment processes and staff will be trained. Technical assistance will be provided to the MoPF to develop a disaster risk finance strategy and action plan to promote fiscal resilience and sustainability. The project will help advance the DRFI agenda in the region and contribute to the sustainability of the regional catastrophe risk pool such as SEADRIF.

46. EDRB will be supported to institutionalize resilient practice through capacity and institution building, improved planning, and sustainable maintenance, including asset management arrangements, procedures, and specialized maintenance equipment that are appropriately designed for Yangon’s needs. The project will support the functional upgrading and strengthening of the EDB, to ensure that modern service standards are in place. Quality management systems and training, cost-

18

The Disaster Management Law was passed in August 2013 and the Disaster Management Rules were finalized in April 2015. According to the Disaster Management Law, the Government established the NDMC, the highest decision-making body for disaster management. The NDMC is chaired by Vice President II and the Minister of Social Welfare, Relief, and Resettlement and the Minister of Home Affairs are the vice-chairs and constituted, depending on the emergency by working committees and subcommittees.


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effective maintenance budgeting, and selecting appropriate technological solutions for upgrading will be factored in during the detailed design phase.

D. Role of Partners

47. A number of development partners including the Asian Development Bank, JICA, French Development Agency, and UN-Habitat are supporting urban development in Yangon. JICA funded the preparation of the 2013 Strategic Urban Development Plan for Greater Yangon19 and subsequently the preparation of Sector Master Plans for Transport, Water Supply, and Sewerage and Drainage. JICA has already approved two water supply loans and a proposed sewerage and sewage treatment project is being developed. JICA is also supporting a Science and Technology Research Partnership for Sustainable Development which is assessing urban vulnerability in Yangon along a number of dimensions, which will feed into a selection of public facilities for retrofitting and the selection of the priority infrastructure networks for detailed multihazard risk assessment and risk-reduction planning. Partnerships will be explored with development partners to leverage additional development financing to help prepare the regional catastrophe risk pool and finance it through (a) technical assistance, (b) capitalization of a regional catastrophe risk pool like SEADRIF, and (c) financing of the start-up costs. Donor partners have already expressed strong interest to support such a regional catastrophe risk pooling mechanism. This is, for example, fully aligned with the G7 Climate Risk Insurance Initiative led by Germany, and with the ASEAN+3 DRFI agenda promoted by Japan.

V. KEY RISKS

A. Overall Risk Rating and Explanation of Key Risks

48. The overall implementation risk of the project is rated High. Risks relating to political and governance, institutional capacity for implementation and sustainability, and fiduciary are rated High, while risks relating to technical design of project, environment and social, and stakeholders are rated Substantial. The principal risks and the corresponding mitigation measures for risk elements in the Systematic Operations Risk-Rating Tool table (see data sheet) that are rated either High or Substantial are discussed in the following paragraphs.

49. Political and governance. The project involves multiple levels of governance, including national, regional, and city level. In addition, there are multiple donor initiatives within the Yangon Region. The project will cooperate with key donors to support the consolidation of ongoing and planned initiatives. Component 1 will require collaboration among the Governments of Myanmar, Cambodia, and Lao PDR to mitigate this risk, which is critical to ensuring the preparation and establishment of such a regional vehicle. All three countries have agreed to join a regional DRFI working group, which aims to facilitate peer-learning exchange and coordinate the preparation and establishment of the regional facility. Should one of the countries decide not to join and/or the facility cannot be established, other countries could still access sovereign disaster risk insurance through the World Bank Treasury.

50. Institutional capacity to implement the project. Technical assistance will be provided to the MoPF to enhance its capacity to include disaster and climate resilience in financial planning. An

19

It is currently being revised to cover the entire Yangon Region.


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operational manual of the proposed regional catastrophe risk pool will be prepared. For the Yangon Region activities, YCDC has limited experience in implementing projects funded by international development agencies20 and is not familiar with hiring international consultants or contractors. During project preparation, international experts provided support and training in World Bank guidelines. Experienced international consultant firms will be hired for design and construction supervision.

51. Fiduciary. Risks and mitigation measures for FM and procurement are discussed in the appraisal summary section. The World Bank’s fiduciary policies do not apply to any potential insurance payout enabled through the project because the scope of the project ends with providing access to sovereign disaster risk insurance.

52. Technical design. The design of innovative parametric insurance products, especially against flood risks, will rely on state-of-the-art catastrophe risk modeling and remote sensing technology. Estimating rainfall intensities, durations and runoff, river and tide levels, and the impacts of climate change are inherently risky, particularly where historical data is scarce. Related risks will be mitigated to the extent possible by using proven international methodologies. There is limited in-country technical capacity for seismic retrofitting, as there are no building regulations and design standards in place for strengthening existing buildings. This risk will be mitigated by encouraging international structural design firms to partner with local engineering firms to develop detailed seismic retrofit designs and building local capacity.

53. Environment and social and communication with stakeholders. Risks and mitigation measures for environment and social aspects are discussed in the appraisal summary section. The Substantial risk rating is mostly related to the limited safeguard management capacity of YCDC and will be mitigated through providing YCDC with safeguard consultants, training, and capacity building.

VI. APPRAISAL SUMMARY

A. Financial and Economic Analysis

Financial Analysis

54. Past and current financial performance of YCDC. Financial statements for FY2012–FY2016 (ending March 31, 2016) were reviewed. Between FY2012 and FY2016, operating revenues nearly tripled in local currencies (and quasi-doubled in U.S. dollar equivalent) while operating expenses increased by only 120 percent during the same period. The operating ratio21, a measure of the operational efficiency calculating the current expenditures as a percentage of the current revenues, decreased from 69 percent in 2011–2012 to 50 percent in 2014–2015, and 56 percent in 2015–2016, averaging around 55 percent for the last three years. The short-term equilibrium is such that the surplus on current budget finances the annual investments. The contribution to investments from the current revenues is calculated as 37 percent on average for the last three years. The consolidated financial equilibrium is a small deficit (less than 1 percent on average for the last three years), which increased to 2 percent in 2015–2016 representing about MMK 5 billion.

20

A JICA-funded water supply project approved in 2015. 21

Operating ratio = current expenditures / net revenues.


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55. YCDC medium- and long-term debt repayment. It has been proposed to Parliament that the repayment of the IDA credit be linked to the water cost recovery mechanism being set up within the Greater Yangon Water Supply Improvement Project, that is being financed by JICA. Part of the revenues generated through the sale of water to the Thilawa Special Economic Zone (estimated to be some 10 million gallons per day by 2018) will be allocated to the IDA repayment. By the time IDA repayment become due, these annual repayments will represent less than 30 percent of the anticipated annual revenues generated, debt service to JICA loans representing a priority 50 percent of these.

Economic Analysis

56. For Component 1, preliminary actuarial analysis of the portfolio of flood risk including Cambodia, Myanmar, and Lao PDR shows that indicative premium savings are estimated in excess of 27 percent due to catastrophe risk pooling, risk retention of first losses through joint reserves, and economies of scale in operational costs, compared to the insurance premium if countries were to access the international reinsurance markets individually. When disaster risk insurance is provided through the proposed regional pool, SEADRIF, the economic internal rate of return (EIRR) is estimated at 30 percent on average, varying from −29 percent if no severe disaster occurs during the three-year period (with a probability of 73 percent) to 262 percent or more, if at least one severe disaster (with a probability of 10 percent) occurs during the three-year period. With a 10 percent discount rate and a US$15–20 million premium contribution, this is equivalent to a net present value (NPV) of US$2.3 million on average, ranging from −US$8.8 million to US$934.5 million. Should disaster risk insurance be intermediated, for example, by the World Bank Treasury, the average EIRR is estimated at 23 percent.

57. For Component 2, improved drainage infrastructure in Yangon will primarily reduce transportation delays and cost in the city, while at the same time by reducing flooding it will reduce economic loss from annual floods. Flooding has also caused a portion of the population to lose economic or income-generating opportunities. The EIRR is estimated at 32.6 percent. With a 10 percent discount rate, this is equivalent to an NPV of US$86.88 million. Details of the financial and economic analyses and associated sensitivity analyses are presented in the POM.

58. For Component 3, retrofitting public facilities to ensure they withstand 1-in-30-year earthquakes will reduce damages to those buildings as well as avoid related fatalities. Benefits include (a) avoided loss of life, (b) avoided replacement cost, and (c) avoided disruption of economic activities. Based on the public facilities proposed to be financed, the EIRR is estimated at 18.2 percent. With a 10 percent discount rate, this is equivalent to NPV of US$13.25 million.

B. Technical

59. Disaster risk finance. For Component 1, the technical design builds on the extensive experience of the World Bank in supporting the development of establishment of such pools, for example, in the Caribbean and in the Pacific, and an internal review will be held on the proposed technical design of the regional disaster risk pool. In parallel to deciding on the policy priorities with the countries, consultations are underway with key counterparts including private sector partners and potential host jurisdictions such as Singapore. Insurance products will be designed and priced to ensure (a) increased financial protection of the participating countries (for example, perils insured and coverage), (b) financial sustainability of the pool, that is, if they are adequately priced, and (c) attractiveness to the


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reinsurance market, so that excess catastrophe risks can be transferred to the reinsurers on competitive terms. Insurance products offered by the regional pool will first cover floods and excess rainfall, which are a major peril in all participating countries (Myanmar, Lao PDR, and Cambodia). They will then be extended to other perils such a tropical cyclones and earthquakes.

60. Resilient investments. With the example of investments in Yangon City, the project will demonstrate systematic integration of climate and disaster risks into public investment planning and designs. The drainage infrastructure designs will consider the options of providing high levels of passive measures (for example, retention basins, infiltration, and so on) versus more active measures (for example, high-capacity storm pumps). Evaluation of the options will take account of cost benefits based on full life-cycle costs, the capacity of YCDC to manage and sustain the infrastructure, and their comparative reliability. Design of the drainage infrastructure will be based on internationally recognized hydraulic models suitably adapted for Yangon’s conditions. Capacity building will be provided to institutionalize the adoption of resilient design guidelines. These guidelines will be utilized to prepare designs for drainage improvements for the next highest priority flood-prone areas in Yangon. Enhancement of the EDRB’s asset management system will include collecting data on infrastructure condition and vulnerability to natural hazards, which will be used for investment prioritization and the preparation of annual maintenance plans. A detailed risk assessment of a lifeline infrastructure network, with a reliability analysis will help identify retrofitting, strengthening, and redundancy needs to ensure system continuity. This will support the development of a prioritized plan for future investments by the Government and development partners as part of a comprehensive approach.

61. Innovation. The project includes a number of innovative aspects: (a) preparation of the first regional catastrophe risk pool in Asia, including new financial product design that combines a parametric trigger and a soft trigger (for small disaster events and potential basis risk), informed by state-of-the-art earth observation technology for financial flood risk assessment; (b) introduction of remote control and monitoring of key infrastructure such as tidal gates, storm pumps, and flood levels at key locations in the system through a SCADA system to enable YCDC to anticipate and react to potential flood incidents more effectively and efficiently; (c) use of hydraulic modeling to design and optimize drain networks and the integration of passive measures to attenuate storm runoff to reduce the size of drains and pumps required; and (d) inclusion, as a prioritization criterion, of potential fatalities that would be avoided through retrofitting/structural strengthening.

C. Financial Management

62. The MoPF is responsible for FM for Component 1 and YCDC is responsible for FM under Components 2, 3, and 4. Regarding the MoPF, capacity assessments conducted in 2014 and 2015 identified that most departments have sufficient numbers of staff to manage FM. It has been agreed that the MoPF will assign one of its departments as the primary focal point for the project’s FM. The World Bank has assessed the staff capacity and will provide training on FM and disbursement matters. YCDC’s finance staff, with adequate skills and experience in managing large annual departmental budgets, has sufficient capacity to handle the project’s FM. The DBA manage the project’s budget and financial reports consolidation, and the internal audit department will be responsible for the internal oversight function. Internal controls are strong enough to manage the project’s funds using existing systems. For Component 5, the applicable FM arrangements will be detailed in the ERMs.


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63. The overall FM risk is assessed as Substantial. The main FM risks identified include: (a) limited documentation of policies and procedures including clarity on applicable Government rules that apply to YCDC; (b) finance staff of YCDC implementing departments have had little exposure with development partner-financed projects, except with JICA; (c) YCDC departments have limited experience in managing international contractors and consultants; (d) a high level of YCDC payments to suppliers and contractors are made in cash; (e) YCDC staff have little experience with managing foreign currency payments; and (f) all the systems and processes are manual.

64. The mitigating measures in relation to project expenditures are as follows: (a) an FM manual providing details on the processes and procedures to be used will be included in the POM; (b) part time FM consultants will provide training and technical advice on FM, contract management, monitoring, and quality assurance for FM staff directly involved in project implementation and to staff involved in the various oversight functions of YCDC and the YRG; (c) as far as possible, payments will be made directly to suppliers and contractors; (d) direct payments for foreign currency payments to contractors/consultants will be used; and (e) an Excel-based system using a chart of accounts that will allow transactions to be recorded according to Government codes as well as by project components and disbursement categories will be established.

D. Procurement

65. The MoPF is responsible for procurement activities under Component 1 and YCDC is responsible for procurement activities under Components 2, 3, and 4. Procurable items will include (a) technical assistance to strengthen financial planning for disaster resilience under Component 1; (b) drainage system and related works and maintenance equipment and consultant services for design, construction supervision, and capacity building under Component 2; and (c) the retrofitting of public facilities and related consulting services for design and supervision, as well as for capacity building and development of a database system under Component 3. In addition to the above, the provisions of the ERMs will apply to Component 5. The MoPF has procurement experience under World Bank-financed projects. YCDC is experienced in undertaking simple designs and construction in-house but lacks experience in procuring consultant services and works on a competitive basis.

66. The identified risks include (a) lack of a legal framework for public procurement and no official written procedures within YCDC, which could lead to delays; (b) limited capacity and experience with international competitive procurement; (c) limited English language proficiency of project staff; (d) delays due to centralized approval processes; (e) delays due to coordination needs between different GoM levels and within YCDC; (f) managing construction in congested built-up urban areas; and (g) need to strengthen the system for dealing with tender complaints.

67. These risks will be mitigated through (a) ensuring that the World Bank’s Procurement Guidelines are followed; (b) employing an international procurement specialist to assist YCDC and to provide knowledge transfer and capacity building to the assigned YCDC staff; (c) providing Hands-on Expanded Implementation Support to kick-start project implementation and to build YCDC procurement staff’s capacity; (d) YCDC assigning at least one full time officer per department to work with the World Bank and the international procurement specialist; (e) providing procurement training to YCDC staff; (f) translating shopping and National Competitive Bidding tender documents into Myanmar and providing English language training to staff involved in procurement; (g) listing sequential steps and estimated


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processing times of YCDC internal procurement process and clarifying delegation of procurement authority; (h) YCDC forming a procurement committee for the project; (i) YCDC appointing specific members from each department under the leadership of the project director to ensure coordination; and (j) applying the World Bank’s guidelines and procedures for dealing with complaints and YCDC designating a unit for coordination of complaints.

68. Procurement under the project will be carried out in accordance with the World Bank’s ‘Guidelines: Procurement of Goods, Works, and Non-Consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers’ dated January 2011 and revised in July 2014,22 ‘Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers’ dated January 2011 and revised in July 2014, and the provisions stipulated in the Financing Agreement. Systematic Tracking of Exchanges in Procurement (STEP) will be applicable for this project.

69. Readiness for implementation. For the first 18 months of implementation, draft TORs for the design and supervision consultants for the drainage improvements and the building retrofitting works, as well as priority technical assistance, have been prepared. Retrofitting concept designs have been developed for a long list of critical facilities. YCDC has assigned its technical and safeguard focal points and TORs for key project implementation support consultants have been drafted. Details on procurement arrangements are presented in the POM. MOPF and YCDC prepared an initial Procurement Plan (April 27, 2017) for the first 18-month implementation period, which has been finalized and deemed acceptable to the World Bank.

E. Social (including Safeguards)

70. Overview. Component 1 finances technical assistance and disaster insurance premiums for which no safeguards policies are triggered. The World Bank’s environment and social safeguards apply to Components 2 and 3, which finance civil works and related consulting services. Given that specific subprojects and locations are unknown at the time of appraisal, the GoM prepared an Environmental and Social Management Framework (ESMF) that provides guidelines to ensure the project is implemented in an environmentally and socially sustainable manner. Because the works are taking place in an urban context, the World Bank’s policy on indigenous people is not triggered.

71. Involuntary Resettlement (OP/BP 4.12). Land acquisition or resettlement impacts are expected to be minimal, with investments focused mainly on underground drainage systems, and a limited number of unlined open channels that are regularly dredged and therefore free of encroachment. The retrofitting of existing public facilities will not result in land acquisition, as these are located on public land free of encroachment. Nonetheless, it may be necessary to acquire small amounts of land for the purpose of installing tidal gates and storm pumps. Most of the potential sites are within Yangon Port where there is flexibility to locate them away from existing buildings and working areas. For access to drainage systems and channels, it may be necessary to temporarily displace informal residential structures or commercial activities that are encroaching on the right-of-way. The project may also impact shops and small businesses operating in the markets to be retrofitted under Component 3.

22

The Project Concept Note was approved in 2015 before the effectiveness of the new Procurement Policy. Use of Borrower Regulations under the new Procurement Policy was considered. However, since scope of procurement will involve relatively low- to medium-value packages using traditional approaches, there would be little benefit in switching to the new Policy Framework. In addition, project preparation was at an advanced level at the time of new policy effectiveness.


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Because the detailed locations and designs of the investments are not known at the time of appraisal, a resettlement policy framework (RPF) has been prepared and will be applied to all subprojects to address potential adverse social impacts due to involuntary acquisition of assets. The RPF includes provisions for compensation and rehabilitation assistance and will be used as the basis to prepare site specific resettlement plans during implementation, when detailed designs will be ready and the exact locations of investments will be known. The provisions of the RPF will also apply to the works following design of any infrastructure under Subcomponent 2.2, which may require land acquisition and resettlement.

72. Citizen engagement. Local communities and stakeholders were consulted during project preparation, and consultations will continue throughout the design period and implementation of the project to ensure that communities are adequately informed. A consultation and communication plan, as well as a grievance redress mechanism (GRM) for the project and subprojects are included in the ESMF.

73. Gender considerations. The project design and implementation consider gender differences, being cognizant that men and women often have different perceptions of risks, take on different roles in emergencies and disaster preparedness, and face different impacts. Overall, the project will (a) seek employment with equal pay and gender-responsive physical design in standard contract bidding documents; (b) raise awareness among contractors on gender-sensitive employment practices and hiring of women; and (c) tailor DRM awareness training to be gender specific. Safeguards compliance will mitigate potential negative impacts related to women’s and children’s health and well-being. There are also component-specific gender considerations that will be monitored during project design and implementation, which are detailed in section 5.2 of the ESMF.

F. Environment (including Safeguards)

74. Overview. The project will focus on the improvement of existing drains and public facilities. While the type of works to be financed (improvement of the drains and public facilities) have been identified, the final list of locations and civil works will be jointly assessed and selected by the client and the World Bank task team, based on an analysis of specific costs and detailed engineering designs during implementation. Significant negative environmental impacts are not anticipated and impacts will be limited to dust, noise, health and safety of workers and communities, disturbance to small businesses and street vendors, sourcing of materials, and disposal of construction wastes. Because, these impacts are temporary and site specific, the project is classified as Category B. Therefore, an ESMF has been prepared by YCDC to guide the mitigation of site-specific, temporary environmental and social impacts once the location and designs of subprojects are known. In the unlikely case that a subproject of an Environmental Assessment Category A would be proposed, it would be considered ineligible for project financing. The project triggers the World Bank environmental safeguard policies discussed in the following paragraphs.

75. Environmental Assessment (OP/BP 4.01). While there are potential environmental impacts caused by physical infrastructure improvements and rehabilitation within existing alignments under Components 2 and 3, significant negative environmental impacts are not anticipated. Impacts will be limited to noise and dust, business disturbance, sourcing of materials, and waste disposal during construction. They will be limited and reversible.


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76. Natural Habitats (OP/BP 4.04). According to JICA’s Sewerage and Drainage System Master Plan (2014:12-9), and cross-referencing the International Union for Conservation of Nature Red List database, there are three threatened species of animals and one threatened plant species in Greater Yangon. However, these species live in forests in the Greater Yangon Region and are not expected to be affected by the proposed project. Potential rehabilitation of existing open channels under Component 2 may have some temporary minor impacts on wetlands. The ESMF will help ensure that subprojects are screened and designed in a way to avoid or minimize any potential disruption to the wetlands and river basins.

77. Physical Cultural Resources (OP/BP 4.11). This policy is triggered due to a possibility that physical cultural resources could be found during civil works. In addition, a chance-find procedure has been included in the ESMF. Also, under Component 3, some of the facilities identified for seismic retrofitting may be considered to have significant architectural and/or historic value. The project will assist in the preservation of these structures. Detailed retrofit designs solutions will not only consider the safety of continued use of the building, but will also need to sufficiently preserve the architectural, historical, and aesthetic integrity of the buildings. The relevant Environmental and Social Management Plans (ESMPs) will include provisions for preservation of all architectural and historic qualities of these structures along with a system for monitoring the retrofitting works to ensure compliance with relevant guidelines on the preservation of cultural property. Designs and works will be subject to expert review and supervision by certified specialists in the field of historical building preservation. YCDC will approve all technical documentation for these buildings and can call on the Yangon Heritage Trust, a nonprofit organization, as needed.

78. Asbestos. The public facilities are over 50 years old and could contain asbestos materials in the roofs, posing health risks to the construction workers. To adhere with the World Bank's Guidance on Asbestos Management, the ESMF includes a protocol requiring YCDC to survey the selected historic public facilities for retrofitting investments to quantify the risk posed by asbestos that may be present in existing structures. The protocol also requires YCDC to determine appropriate measures for the handling and disposal of hazardous materials as well as occupational health and environmental mitigation measures for construction workers during the civil works. Asbestos has been widely used worldwide as a construction material and insulator because of its strength, durability, and heat resistance characteristics. In recent years, evidence of the adverse health effects of exposure to asbestos has been mounting globally, leading to urgent calls to cease production of the most-harmful asbestos types, to limit the use of less-harmful asbestos (for example, discontinued spraying of asbestos), and to impose strict exposure standards for workers handing raw asbestos and asbestos-containing products. Occupational exposure to asbestos by inhalation can cause asbestosis (scarring of the lung tissue), lung cancer, and mesothelioma (cancer of the lung’s lining).

79. Instruments and implementation. Given that detailed designs and exact locations for subprojects are unknown at the time of appraisal, YCDC, with the support of independent safeguard consultants, prepared an ESMF to provide guidance and procedures on environmental and social safeguards planning and compliance during the implementation of all subproject investments. The types of environmental safeguard instruments that will be prepared for subprojects include ESMPs, waste management plans, cultural heritage chance-find procedures, and asbestos-handling procedures. The subproject instruments will be incorporated into bidding documents to inform the contractors of their obligations to comply with the national and World Bank safeguard policy requirements.


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80. The ESMF also includes a generic ESMP or Environmental Code of Practice. The ESMF also includes a protocol requiring YCDC to determine appropriate measures for the handling and disposal of asbestos-containing materials, a chance-finds procedure to guide the screening, and the identification of measures and instruments to mitigate potential impacts from urban drainage and building rehabilitation activities. Environmental and social sustainability is largely dependent upon capacity of the implementing agency, YCDC, to coordinate the planning and supervision of contractors. With the exception of the 2014–2015 JICA project for the Strategic Urban Development Plan of the Greater Yangon Region, YCDC has limited experience implementing projects financed by donors and international finance institutions. Consequently, YCDC lacks experience in implementing World Bank guidelines on environmental and social safeguards. YCDC recognizes the importance of environmental protection and avoiding, minimizing, mitigating, or compensating for adverse social impacts particularly as a precondition for obtaining World Bank financing. Therefore, the project has allocated a safeguard implementation budget for institutional strengthening and capacity building, which includes on-the-job training, workshops, field visits, and external training opportunities for its staff. The safeguard budget is allocated for the ESMF implementation costs and expenses for safeguards supervision consultants cost, who will support YCDC regarding the development of the specific site-specific safeguards instruments. This includes staff costs, travel, consultation workshops, translation, and trainings.

81. Consultations. A series of public consultations with stakeholders (including separate meetings with women) were held on December 16–19, 2016 as part of the preparation of safeguards instruments and final public consultations were held on March 29, 2017. Results from this consultation process have been integrated into the project’s safeguards instruments and they indicate that stakeholders and potential project-affected people largely support the project.

82. Disclosure. The final ESMF and RPF were disclosed on March 31, 2017 by YCDC on its website and on April 3, 2017 on the World Bank’s website.

G. Other Safeguard Policies (if applicable)

83. No other safeguards policies are triggered under the project. For capacity strengthening on sustainable and resilient development, YCDC has agreed to integrate environmental and social safeguards provisions to the technical assistance activities, in accordance with the World Bank Safeguards Policies to Technical Assistance Activities in World Bank-financed Projects.

H. World Bank Grievance Redress

84. Communities and individuals who believe that they are adversely affected by a World Bank supported project may submit complaints to existing project-level grievance redress mechanisms or the World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may also submit their complaint to the World Bank’s independent Inspection Panel which determines whether harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures. Complaints may be submitted at any time after concerns have been brought directly to the World Bank's attention, and World Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service


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redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

.

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY : Myanmar Myanmar Southeast Asia Disaster Risk Management Project

Project Development Objectives

The Project Development Objective (PDO) is to improve drainage services, and the structural performance of selected public facilities in Yangon, and enhance the capacity of the Government to facilitate disaster response. Project Development Objective Indicators

Indicator Name Core Unit of Measure

Baseline End Target Frequency Data Source/Methodology Responsibility for Data Collection

Name: Myanmar has information and capacity to access sovereign disaster risk insurance

Yes/No N Y End of the project

Monitoring reports

MOPF

Description: Country-specific sovereign disaster risk insurance product has been designed and quoted competitively

Name: Number of people benefitting from improved flood protection; of which are poor (%); of which are female (%);

Number 60000.00 475000.00 mid-term and end of project

Beneficiary Surveys

YCDC


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Description: This indicator measures the number of beneficiaries of the improvements to drainage infrastructure and systems that will be undertaken in selected areas of Yangon, disaggregated by income level and gender.

Name: Increase in area provided with improved drainage services

Square kilometer(km2)

1.50 4.30 6 monthly

Progress Reports

YCDC

Description: This indicator measures the urban area of Yangon that will benefit from the improved and increased capacity of drainage infrastructure improvements, and in particular improvements to the retention and pumping capacity, which will reduce flooding during high-intensity rainfall events.

Name: Number of direct occupants benefitting from public facilities strengthened to “Life Safety” performance level; of which are female (%);

Number 0.00 10000.00 6 monthly

Progress Reports

YCDC

Description: This indicator measures the number of occupants of the public facilities that will benefit from reduced risk of exposure to injury or death in the event of an earthquake, due to the improved structural integrity of these facilities following retrofitting in accordance with ASCE 41-13 ‘Seismic Evaluation and Retrofit of Existing Buildings’. and associated design standards, which are reference standards in use in Myanmar. Buildings that meet the ‘life safety’ performance level allows for damage to structural and nonstructural components in a design earthquake, while minimizing the risk of death and injury. The indicator is disaggregated by gender.


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Intermediate Results Indicators



Name: MOPF has developed and adopted a strategy for building financial resilience to disasters

Yes/No N Y Annually

Progress Reports

MOPF

Description: This indicator monitors the development of a financial resilience strategy detailing how funds are mobilized and executed for post disaster response, that will be developed and adopted by MOPF. Complimentary technical assistance will be provided by the World Bank under the Southeast Asia Disaster Risk Insurance Facility Program.

Name: Length of culverts, main and interceptor drains improved

Kilometers 0.00 38.00 6 monthly

Progress Reports

YCDC

Description: This indicator measures the length of culverts, main and interceptor drains that are improved. Based on the detailed design the exact target of length of culverts, main and interceptor drains will be revised.

Name: Major outlet structures incorporating storm pumps constructed


Progress Reports

YCDC

Description: This indicator measures the number of outlet structures that will include high-capacity storm pumps, which are critical to significantly increasing the drainage capacity of drainage systems in downtown Yangon.

Name: SCADA system operationalized

Yes/No N Y 6 monthly Progress Reports YCDC


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Description: This indicator measures the development and operationalization of the SCADA system, which will monitor the function and operation of drainage infrastructure remotely.

Name: Number of public buildings/facilities retrofitted/strengthened/upgraded


Progress Reports

YCDC

Description: This indicator monitors progress made in the seismic retrofitting of identified public buildings and facilities, that have been upgraded to withstand earthquakes at a “Life Safety” performance level, in accordance with ASCE 41-13 ‘Seismic Evaluation and Retrofit of Existing Buildings’ and associated design standards, which are reference standards in use in Myanmar. Buildings that meet the ‘life safety’ performance level allows for damage to structural and nonstructural components in a design earthquake, while minimizing the risk of death and injury.

Name: Building information database established

Yes/No N Y 6 monthly

Progress Reports

YCDC

Description: This indicator measures the set-up of a digital database incorporating building information on the part of YCDC, that would support its current and future efforts in assessing building vulnerabilities, and prioritizing buildings for future risk reduction interventions.

Name: Grievances registered related to delivery of project benefits addressed (%)

Percentage 0.00 85.00 6 monthly

Progress Reports

YCDC

Description: This indicator measures the transparency and accountability mechanisms established by the project so the target beneficiaries have trust in the process and are willing to participate, and feel that their grievances are attended to promptly. It is understood that local sensitivities and tensions will not allow grievance or redress


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mechanisms to be established in all projects.

Name: Proportion of beneficiaries satisfied with improved and maintained drainge, % of which women

Percentage 10.00 70.00 mid-term and end of project

Beneficiary Surveys

YCDC

Description: This indicator measures satisfaction on the part of beneficiaries in relation to the project infrastructure interventions, specifically the implementation and operationalization of the improved drainage systems and network. It is disaggregated by gender.


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Target Values Project Development Objective Indicators FY

Indicator Name Baseline End Target

Myanmar has information and capacity to access sovereign disaster risk insurance N Y

Number of people benefitting from improved flood protection; of which are poor (%); of which are female (%);

60000.00 475000.00

Increase in area provided with improved drainage services 1.50 4.30

Number of direct occupants benefitting from public facilities strengthened to “Life Safety” performance level; of which are female (%);

0.00 10000.00

Intermediate Results Indicators FY


MOPF has developed and adopted a strategy for building financial resilience to disasters N Y

Length of culverts, main and interceptor drains improved 0.00 38.00

Major outlet structures incorporating storm pumps constructed 0.00 5.00

SCADA system operationalized N Y

Number of public buildings/facilities retrofitted/strengthened/upgraded 0.00 8.00


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Building information database established N Y

Grievances registered related to delivery of project benefits addressed (%) 0.00 85.00

Proportion of beneficiaries satisfied with improved and maintained drainge, % of which women

10.00 70.00


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ANNEX 1: MAP

COUNTRY: Myanmar

Myanmar Southeast Asia Disaster Risk Management Project Map Reference: MYA42688