World Bank's $2bn aid promises broad benefits

Kim said during his visit to Myanmar in January that the World Bank’s US$2 billion investment plan will help the burgeoning nation as it works to reduce poverty, increase electrification and promote private sector participation.

In his speech delivered at North Dagon Township Hospital, Yangon, Kim detailed that of that total, about $200 million from the International Development Association will help Myanmar make progress toward Millennium (Development) Goals four, five and six on child mortality, maternal health and diseases such as HIV, AIDS and malaria.

“At Davos, we did a session that focuses specifically on the value of investing in health care. As much as 25 per cent of the economic growth of many countries over the last few decades had been a result of improving health outcomes and so we believe that investing in health is one of the best investments that can be made here in Myanmar,” he said.

It also includes $1 billion in financial support to expand electricity generation, transmission and distribution to help the country gain access to electricity by 2030, which will have broad developmental benefits for health, education and will also expand opportunities for business in urban as well as rural areas. The energy investment will support development of a national electrification plan.

It will also enhance institutional capacity and promote regulatory reforms that are needed to promote private sector participation, which is critical to meet Myanmar's vast development needs. 

Asked about the financing monitoring, he said “Over the 70 year history of the existence of the World Bank Group, we have developed very rigorous ways of ensuring that money is spent effectively. So both in the government, through procurement contracts, even in the private sector we have a very stringent set of safeguards and we also audit every single project. So we're very confident that this $2 billion will be spent well but at the same time we will also be monitoring and verifying very carefully exactly where the money goes.”

Kim’s visit was the first for an acting president of the World Bank to Myanmar. 

He also announced a financial pledge at the ceremony, which was joined by Myanmar Minister of Health Pe Thet Khin. They met doctors, local residents, and members of the international donor community and Kim pledged the funding will help improve the lives of the poorest people and support ongoing reforms in Myanmar.

“We are increasing our support for the huge reform effort underway in Myanmar because we want to help the government bring benefits to poor people even more quickly,” said Kim. 

“Our US$2 billion dollar multi-year programme will support the government’s plans to deliver universal health care to citizens and to help everyone in the country gain access to electricity by 2030.”

The World Bank Group will harness expertise and resources from IDA, IFC and MIGA to support the government’s investment programme. This will include US$1 billion in Bank Group financial support to expand electricity generation, transmission and distribution. More than 70 per cent of Myanmar’s people do not have access to reliable electricity.

“Expanding access to electricity in a country like Myanmar can help transform a society – children will be able to study at night, shops will stay open, and health clinits will have lights and energy to power life-saving technology. Electricity helps bring an end to poverty,” said Kim.

Today, he will attend the Second Annual Myanmar Development Forum in Nay Pyi Taw, where he will meet with President Thein Sein, members of the government and opposition, and business leaders.