WORLD BANKGROUP THE WORLD BANK JFC I ENVIRONMENTAL IMPACT ASSESSMENT (EIA) SYSTEMS DIAGNOSTIC A robust EIA and monitoring system is critical in Background: The EIA systems diagnostic is identifying and managing the potential impacts of a part of Myanmar Country Environmental large-scale development and striking a balance between Analysis (CEA). It was developed in economic development, environmental conservation, partnership with Environmental Conservation and social cohesion. Significant challenges remain in Department (ECD) under the Ministry of Natual esoucesand nvionmetalthe review and approval of EIA reports, and an effective Natural Resources and Environmental Conservation (MONREC). This report monitoring and inspection regime is not in place. There enhances understanding of EIA systems and have been some recent investments in institutional provides recommendations towards their strengthening and technical capacity. strengthening. * In 2012, the government introduced the Environment Methodology: From October2018 to April Conservation Law, supported by the Environment 2019 the World Bank and IFC carried Conservation Rules (2014) and EIA Procedure (2015). out a review of EIA systems. The report idenifis te ke chlleges nd rovdes* In 2016, MONREC set up the EIA Division under the identifies the key challenges and providesEniomtaCnsrtonDptet(C) recommendations to support the ECD in Environmental Conservation Department (ECD) effectively implementing the EIA Procedure to oversee the review and approval of EIAs, Initial (2015), including staffing, administrative, Environment Examinations (IEEs), and Environmental technical, legal, and institutional issues. Management Plans (EM Ps). The E/A systems review included analysisof * The number of EIAs, IEEs and EMPs submitted is ECD data and surveys of EIA Division staff at increasing every year, with a significant increase of Union and State/Region level, environmental EMPs in 2016/17 and of all reports in 2017/18 (Figure and social consultants, private sector, third- 1). party reviewers, and NGOs. photo: QLesya Verheijen Ongoing agenda for reform The Myanmar Sustainable Development Plan (MSDP) EIA/IEE/EMP received from FY2014/15 to (2018-30) and National Environment Policy (NEP) FY2017/18 (2019) provide the foundation for mainstreaming environment and natural resources into development 3,000 planning. 2,500 2,000 MSDP 2018: Recogni5es the importance of 1,500 environment and natural resources for economic 1,000 growth. Goal 3 identifies the need to build 500 infrastructure to facilitate economic growth and 0 -also to establish effective social and environmental 2014-15 2015-16 2016-17 2017-18 safeguards against negative impacts of a EIA IEE gEMP infrastructure development. NEP 2019: Covers three strategic areas: (i) Source: ECD data clean environment and health, (ii) functioning ecosystems, and (iii) sustainable development and * A total of 2,783 reports were submitted as of mainstreaming environmental management. February 2019 and 89.6 percent had been replied to. * Yet only 6.9 percent (192) of reports had been Current budget, staffing and approved, leaving 250 EIAs, 482 IEEs, and 1,851 EMPs awaiting approval. resources * There is not an effective system in place for MONREC and ECD have set ambitious targets to monitoring, inspection and audit of new or existing recruit more than 19,000 staff by 2025 and establish projects. 73 offices at district level and 365 at township level. Internally, they have also recogni5ed the urgent need to strengthen EIA systems. However, this will require EIAs, IEEs and EM Ps by sector significant budget, resources and capacity building. Currently, the Mining sector accounts for 72.2 percent The planned budget allocation for the 2017/18 FY was (2,010) of the total reports submitted. There is a more just under US$2 million. The share of Union budget even distribution of EIA reports across different sectors. allocated to environmental conservation activities has increased steadily (albeit modestly) from 0.15 per cent in 2011/12 to 0.23 per cent in 2016/17. Significant challenges remain in effectively EIA received by sector from FY 2011/12 - 2017/18 implementing the EIA Procedure (2015). This is largely due to the limited resources and institutional capacity of ECD to review, approve, and follow-up on EIAs for investments and developments across all sectors. This 3 Special Investment Projects limited capacity is causing a significant backlog of * Energy Sector Development unprocessed EIAs, IEEs and EMPs. Agriculture, Livestock and Forestry Development Manufacturing a Water Supply 18'% Infrastructure and Service Development Transportation Mining 1% Key findings * Limited capacity and resources for the timely * The process of establishing committees involving review and approval of EIA. By February 2019, only representatives from ECD, General Administration 37 out of 287 EIAs (or 13 percent) submitted had Department, Township authorities and other been approved. departments has started in some state/regions. * Delays in issuing Environmental Compliance Their purpose is to conduct monitoring and Certificates (ECCs). By June 2018, fewer than 10 inspections on large projects including cement ECCs had been approved and issued by ECD. plants, hydropower and mining. However, the subnational PCD offices only have limited staff, * Poor quality of EIAs, IEEs and EMPs submitted. The equipment and facilities to conduct effective ECD is dealing with a constant stream of documents that are largely inadequate due to poor impact and monitoring. risk assessments. This is resulting in deficient EMPs * Challenges in applying EIA Procedure (2015) to and mitigation measures, particularly in the mining Special Economic Zones (SEZs). sector. * Limited use of Strategic Environmental * Limited monitoring, inspection and compliance. Assessment (SEA) for planning. Currently, there is not an effective monitoring and * Inadequate public participation and disclosure inspection regime in place. Through discussions and provisions for social impact assessment (SIA). with ECD Headquarters and State/Region offices, This includes a lack of clarity on which Ministry or it was reported that the Pollution Control Division Department is responsible for dealing with social (PCD) normally only conducts monitoring or issues. inspection in response to complaints received from local communities. Way Forward * Improve environmental compliance and enforcement. Conduct a legal and institutional The recommendations for improving the EIA systems review on EIA Division and PCD on compliance, aim to ensure that the government has a moderniSed inspection and monitoring. information system for managing the EIA process. It also seeks to equip the ECD with the appropriate * Operationalie financial mechanisms. Assess the technical capacity, tools, budget, and resources to ECL (2012), ECR (2014) and EIA Procedure (2015) to becomcal cpamoreeffcity,tvs e netal reur. tdesign a process for obtaining fees, the review and become a more effective environmental regulator.aprvloEI,ndmitig dcmlace approval of EIA, and monitoring and compliance. The CEA recommends several actions to improve * Establish an Environmental Management Fund. environmental management in Myanmar. This could potentially provide significant sources of funding that could be used to improve the review Short term actions include: and approval process as well as environmental * Develop an Environmental Management inspection and monitoring (Schulte & Baird 2018). Information System (EMIS). This includes the existing ICT, process flow and document control at Union and state/region ECD offices to inform the Development partner support design of Phase 1 of the EMIS for the review and approval of EIAs, IEEs and EMPs. Over the last three years, the World Bank, * Adopt a risk-based approach and delegate IFC, Asian Development Bank (ADB), Japanese approval for EIAs, IEEs and EMPs. Develop a risk- International Cooperation Agency (JICA), United based approach for categori6ing projects and Nations Development Programme (UNDP), conduct a legal review to determine how delegations Norwegian Environment Agency (NEA), Myanmar for approvals can be revised in the EIA Procedures Centre for Responsible Business (MCRB) and other (2015). development partners have invested in building * Establish a third party review panel. Develop scope the capacity of ECD through support to training and funding mechanisms for an independent review and development of sector specific guidelines. panel so that experts can be mobili6ed to assist ECD Safeguards Learning Center with the review of EIAs and IEEs. * Invest in capacity building and training. Conduct The World Bank, in coordination with the ADB training needs assessment to prioriti6e training and JICA, is in the process of establishing a topics for EIA Division and PCD staff, consultants functioning environmental and social Safeguard and the private sector. Learning Centre (SLC) within ECD, through the * FinaliSe draft sectoral guidelines and prepare World Bank Australia Safeguard Partnership additional guidance. ECD need to approve the (WBASP), to provide training to EIA Division, PCD draft sectoral guidelines for mining, oil and gas, and other staff. The IFC will continue to work with hydropower and public participation. They also the private sector to improve risk assessment need to prepare and prioriti6e additional sector and management skills on topics such as social guidelines including SEZ, infrastructure, transport, survey methods and resettlement action plans, and compliance for artisanal and small-scale designing impact assessments and management mining. plans, conducting biodiversity and health impact assessments. * ReorganiSe the EIA Division. Conduct an organi6ational review to reorgani6e the EIA Division to separate administrative and technical functions for review and approval. REFERENCES Schulte, William J., and M. H. Baird. 2018. "Myanmar's Nascent Environmental Governance System: Challenges and Opportunities." Natural Resources and Environment 33 (2): 21-26. This policy brief is based on World Bank Group. 2019. Myanmar Country Environmental Analysis. Environmental Impact Assessment Systems Diagnostic. Washington, DC: World Bank Group.