[{"bbox": [96, 150, 1134, 259], "category": "Text", "text": "The systemic budget deficit of the national electricity provider coupled with the on-going crisis, where a significant share of the population cannot afford or is not willing to settle its electricity bill<sup>11</sup>, has led to a deterioration in the quality of the national grid (increase of power shortages frequency and duration, voltage and frequency instability) and a slowdown in the National Electrification Program (NEP), started by the previous government."}, {"bbox": [96, 283, 1134, 418], "category": "Text", "text": "The energy performance of buildings is poor due to the use of inefficient building materials. This results in high indoor temperatures, affecting the life of rural populations through heat-related illnesses, lowered capacities to work or study, lower capacity to recover through sleep. With no standards or guidelines on energy performance and a largely informal construction market for stand-alone houses, most households of Myanmar live in highly inefficient buildings, and the use of cooling devices increases household expenses."}, {"bbox": [96, 442, 1134, 656], "category": "Text", "text": "In terms of overall strategic EU policy response to the situation in the country, the Foreign Affairs Council Conclusions of February 2021<sup>12</sup> stress the need to avoid any actions legitimising the military regime and to support the people of Myanmar. Regarding development assistance, an in-depth portfolio review was undertaken with the aim to put on hold or terminate all projects or components of projects which supported the government systems. Instead, programmes targeting vulnerable people, communities and civil society and covering basic needs and services continue to be implemented. Supporting the people of Myanmar with better access to renewable electricity is in line with overall EU policy to mitigate climate change by cutting emissions, and strategic priority of the European Green Deal<sup>13</sup>."}, {"bbox": [96, 680, 1134, 789], "category": "Text", "text": "Following the military coup of February 2021, with the impossibility to interact with the de facto authorities without legitimizing the military coup, all loans of development banks (AFD, ADB and the World Bank) were suspended. Therefore, it is not possible to combine the EU grant with a loan to implement this program and a blending modality cannot be used."}, {"bbox": [96, 813, 1134, 1160], "category": "Text", "text": "The present action is proposed to focus on selected areas, e.g. parts of Chin state, the dry zone with Mandalay and partly the Sagaing and Ayeyarwady region, with a possible extension and/or modification to other rural areas of the country, depending on the overall context/security evolution. This will be decided following political and operating developments in the country and based on consultations at community level. The Ayeyarwady region has high potential for the development of photovoltaic energy, which is largely under-exploited. The proximity to Yangon, the relative stability of the current political situation and the network of active non-state actors in the region, makes Ayeyarwady one of the priority areas for this project. Although the central dry zone is one of the areas most affected by the political crisis, with villages which are subject to armed conflicts, the sub-region provides 35% of Myanmar's grain crop while being the most water stressed. It is also one of the most food insecure regions in the country. There is a strong need and challenge to offer decentralised solutions for economic actors, particularly farmers (pumping, irrigation) in order to secure production and develop productivity. Chin State is a mountainous region, with a high-unassessed hydro potential. The choice of the Chin state makes it possible to reach a disadvantaged ethnic and peripheral area, in addition to the more central regions covered by the action."}, {"bbox": [85, 1254, 341, 1286], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1300, 1134, 1383], "category": "Text", "text": "Since the beginning of the political crisis in 2021, many international investors in the energy sector have pulled out or paused their investments. The regime's isolation is bound to continue and the situation can therefore not be expected to improve. Myanmar's previous government had developed the National Electrification Plan (NEP),"}, {"bbox": [85, 1413, 1134, 1514], "category": "Footnote", "text": "<sup>11</sup> According to the memo *Myanmar's Electricity Sector After the Coup* (July 2021), by an independent group called Independent Economists for Myanmar (IEM), bill collection rates had dropped as low as 2-3% in the aftermath of the coup. In a seminar under Chatham House Rule held in late 2021, a private consultancy reported less dramatic figures but maintained that monthly bill collection revenues had dropped by nearly 40% between pre-coup levels and the end of 2021."}, {"bbox": [85, 1527, 1144, 1579], "category": "Text", "text": "This only applies to households connected to the national grids, i.e. who pay their bills to the MOEE-affiliated distribution network operators."}, {"bbox": [85, 1596, 867, 1622], "category": "Footnote", "text": "<sup>12</sup> Council of the European Union, Concil Conclusions – Myanmar/Burma 6287/21. 22.2.2021"}, {"bbox": [85, 1621, 893, 1646], "category": "Footnote", "text": "<sup>13</sup> Communication and roadmap on the European Green Deal, COM (2019) 640 final, 11.12.2019"}, {"bbox": [1038, 1680, 1144, 1706], "category": "Page-footer", "text": "Page 5 of 20"}]