DFIs eye Myanmar retreat amid coup
Development finance institutions (DFIs) could be forced to retreat if a strict policy is imposed against Myanmar’s military coup on 1 February. DFIs expressed concerns over the coup d'état last month and have been reviewing the situation, given there exposure to projects such as the heavily DFI-backed Myingyan IPP.
The World Bank has already halted payments for projects in Myanmar on withdrawal requests made due to the military coup. The bank "will not process any withdrawal applications received on or after 1 February", said the DFI in a letter to Myanmar's Finance Ministry seen by local press last week.
The World Bank will still make direct payments to project suppliers, contractors and consultants, where it has received withdrawal applications before the date. Financing proceeds previously disbursed should only be used for eligible expenditures agreed with the bank, World Bank stated in the letter. The DFI would also "seek refund of funds that it deems are not required at this time for the carrying out of project activities". It has also suspended all ongoing projects in the country to which it had commitments, amounting to at least 24 projects.
