Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
|PDS Creation Date||04 Dec 2006|
|PDS Updated as of||21 Oct 2013|
|Project Name||Electricity Market and Transmission Development|
|Geographical Location||Luzon and Mindanao|
|In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.|
|Subsector||Electricity Transmission and Distribution|
|Drivers of Change||–|
|Gender Equity and Mainstreaming Categories||–|
|Type/Modality of Assistance||Approval Number||Source of Funding||Approved Amount (thousand)|
|Loan||1984||Ordinary capital resources||40,000|
For more information about the safeguard categories, please see http://www.adb.org/site/safeguards/safeguard-categories
Environmental Issues The equipment procured under part A of the Project was installed inside TRANSCO s compound in Diliman, Quezon City. Therefore, part A has no adverse environmental impacts. Transmission components under Part B were classified under environment category B. The Luzon transmission upgrading used the ROW of existing transmission lines owned by TRANSCO. As such, the Department of Environment and Natural Resources (DENR) did not require an initial environmental examination (IEE) and issued a certificate of non-coverage to this effect on 16 June 1999. However, TRANSCO prepared an IEE for this component to meet the ADB environmental requirements. The Mindanao substation expansion will be within the boundaries of existing TRANSCO substations; DENR approved a certificate of non-coverage for this component on 31 January 2000. Social Issues Although the upgraded Luzon transmission lines will use the existing ROW, the upgrading work involved land acquisition and resettlement action for transmission tower foundation footing sites within the ROW. At the time of project apparisal, it was estimated that the Luzon transmission upgrading would involve constructing 303 towers, causing land impacts that are widespread but of very small magnitude (no affected families would lose more land than one tower base of 225 to 400 square meters). Permanent land impacts are 6.8 hectares (ha) of farmland and temporary losses are 413.8 ha. Of these, 213.0 ha are occupied by rice, 110.7 ha by sugar cane, 66.0 by corn, and 24.1 by trees. In addition, 299 houses and 92 minor structures will be demolished. Construction of the transmission lines would affect 1,535 landowners. Permanent land impacts would affect 2,391 families (11,955 people) of which 187 families (935 people) are tenants. Temporary land impacts would affect 1,334 families (5,830 people) of which 168 (840 people) are tenants. House loss/relocation will affect 321 families (1,605 people); loss of minor structures will affect 46 families (230 people), and loss of crops/trees would affect 1,535 families (7675 people). About 70 small businesses would also be affected. The above impacts are being reassessed during project implementation.
Consistent with the requirement to ensure that the introduction of the wholesale electricity spot market (WESM) proceeds as smoothly as possible, a consulting firm was engaged to assist the National Transmission Corporation (TRANSCO) to manage the procurement and implementation of the market management system (MMS). The consultant helped TRANSCO ensure that the MMS meets project requirements and is installed and commissioned in a way that facilitates an efficient start to initial market operation and a smooth transition to a fully functional and automated system.
|During Project Design
|During Project Implementation
|The objective of the Project is to develop necessary infrastructure for the power sector restructuring, i.e. (i) to establish the Wholesale Electricity Spot Market (WESM) so that the electricity generation is dispatched on a competitive basis to meet the power demand; and (ii) to upgrade the critical transmission lines and substations as required in the Transmission Development Plan to ensure the reliability of the power supply.|
|ADB has had a long involvement in, and is highly supportive of, the Government's plans to restructure and privatize the electric power industry, and create a competitive electricity market. Important underlying requirements of a competitive electricity market include first of all a fully functional power trading and pooling system and an adequate transmission network. Therefore, timely implementation of the WESM will be a prerequisite for the successful implementation of the power sector's restructuring and privatization. With the operations of WESM, the competition in the power sector is envisioned to bring electricity prices closer to marginal cost in medium and long term. All of the transmission components included in the proposed Project are also of high-priority for TRANSCO as defined in its least-cost transmission development plan. In particular, the substation expansion will enable implementation of accelerated rural electrification programs in Mindanao, which is one the poorest regions in the Philippines and its percentage of barangays with electricity in Mindanao is well below the national average. The Project fits into ADB's country operational strategy for the Philippines. The Project fits into ADB's country operational strategy for the Philippines and in line with TRANSCO's least-cost transmission development plan. As such, the Project will enable implementation of accelerated rural electrification programs, particularly in Mindanao, one of the poorest regions in the Philippines.|
|Description of Outcome
|Progress Towards Outcome
|Description of Project Outputs
|Status of Implementation Progress (Outputs, Activities, and Issues)
|Status of Development Objectives
|Date of First Listing||2006 Dec 04|
About 48 person-months of international and 24 person-months of domestic consulting services with expertise in (i) project and contract management, (ii) electricity market operation, (iii) computer software development, and (iv) computer systems integration and testing will be required to manage the procurement and implementation of the market management system of part A. A consulting firm will be selected by TRANSCO using quality and cost-based selection, based on an evaluation of full technical proposals.
For Part A of the Project, a turnkey contract for procurement and installation of hardware and software will be awarded using international shopping. Under part B, a turnkey contract will be awarded for the Luzon transmission upgrading using international competitive bidding (ICB) procedures. Such procedures will also be used for the supply and delivery of materials and equipment for Mindanao substations expansion. Erection and installation will be undertaken and funded by TRANSCO using local competitive bidding in accordance with standard procedures of TRANSCO that are acceptable to ADB.
|Procurement and Consulting Notices
|Fact-finding||02 Apr 2002 to 26 Apr 2002|
|Management Review Meeting||13 Jun 2002|
|Approval||19 Dec 2002|
|Last Review Mission||–|
|Loan 1984||19 Dec 2002||16 Dec 2003||09 Mar 2004||30 Jun 2009||–||03 Aug 2009|
|Date||Approval Number||ADB (US$ thousand)||Others (US$ thousand)||Net Percentage|
|Cumulative Contract Awards|
|17 Sep 2014||Loan 1984||32,182||0||90.00%|
|17 Sep 2014||Loan 1984||35,591||0||100.00%|
Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.
|Sector||Social||Financial||Economic||Others||Safeguards||Project Financial Statements|
|Responsible ADB Officer||Rehan Kausar (email@example.com)|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Divisions||Energy Division, SERD|
National Transmission Corporation (TRANSCO)
|List of Project Documents||http://www.adb.org/projects/36018-013/documents|