Project Data Sheet

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
PDS Updated as of 08 Jul 2014

Project Name Assam Power Sector Investment Program
Country India
Project/Program Number 47101-001
Status Approved
Geographical Location
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.
Sector Energy
Subsector Energy
Strategic Agendas Environmentally sustainable growth (ESG)
Inclusive economic growth (IEG)
Drivers of Change Governance and capacity development (GCD)
Gender Equity and Mainstreaming Categories No gender elements

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Loan0083Ordinary capital resources300,000
Counterpart 130,000
TOTAL US$ 430,000

Summary of Environmental and Social Issues

Environmental Aspects
B
Involuntary Resettlement
C
Indigenous Peoples
C

Stakeholder Communication, Participation and Consultation

During Project Design
Stakeholders consultation and participation are being carried out and will continue during the project processing and design.
During Project Implementation
Stakeholders consultation and participation will be arranged during the project implementation.

Description

The Assam Power Sector Investment Program (the Program) is a Multitranche Financing Facility (MFF) to fund the generation capacity enhancement and distribution efficiency improvement subprojects in the state of Assam, India. The objective of the investment program is to achieve adequate power supply in Assam. The Program will be for an amount of $300 million with the Tranche 1 expected for up to $50 million. Tranche 1 investment components will be for: (i) replacement of 60 MW, less effieicnt gas turbine generators in Lakwa with 70 MW, new and efficient plant; (ii) implementation and capacity building supports to Assam Power Generation Company (APGC) and Assam Power Distribution Corporation (APDC). Future tranches include construction of 120 MW hydropower project and distribution efficiency improvement projects in urban Assam.

Project Rationale and Linkage to Country/Regional Strategy

The peak electricity demand of Assam during 2011-12 was recorded for 1,250 MW; whereas, the availability of power including the state s own generation was only 960 MW leaving the peak capacity deficit of 290 MW - which is a shortfall of 23.2%. During peak period Assam purchases as much as 200 MW from the open market (Indian Energy Exchange, IEX) at higher costs . The transmission and distribution loss in the state during year 2011-12 is estimated to be 29.29%. Inadequate and unreliable power supply in the state is eroding the competitiveness of state s manufacturing and agriculture industries, and impeding the investments. The per capita consumption in the state is one of the lowest in India. Assam had only 209.21 kWh per capita consumptions per year against the all India average of 739.44 kWh per year in 2009-10. Adequate and reliable power supply at a reasonable cost is essential to boost the state s economy and for the poverty reduction. Out of the State s total 25,124 villages, only 19,729 (78%) villages were electrified till 2010-11. However, under the ongoing government initiatives, all villages are being connected to the grid by the end of 12th five year plan (2012 17). There are about 700 tea gardens in the state with an average demand of 300 kW. The cumulative demands of these tea gardens stand around 210 MW; of which only about 60 MW are grid supplied and rest are being met with the coal. These factors are likely to lead to an exponential growth in the state s electricity demand and which is forecast to reach 2,222 MW in 2019-20 widening the deficit by as much as 516 MW. To cater to the fast growing load, Assam needs significant investment for improving its transmission and distribution network, and enhancing the generation capacity. ADB assisted Assam to prepare a master plan and design the least-cost solution for transmission and distribution system . The master plan was prepared in 2008 with investment plan for Assam up to the end of 11th five year plan (2007 2011). Based on the prepared investment plan, ADB approved a MFF for an amount of $200 million under the MFF: Assam Power Sector Enhancement Investment Program (APSEIP) in 2009. At present the APSEIP is being implemented through - Assam Electric Grid Corporation Limited (AEGCL), the state transmission utility; and Assam Power Distribution Company Limited (APDCL), the state distribution utility. APSEIP s activities include - (i) Improvement of access to power from the construction of new transmission and distribution lines and substations and (ii) Energy efficiency enhancement through augmentation and refurbishment of transmission substations and distribution networks. It is envisaged that at the conclusion of APSEIP, Assam s transmission network will be reliable and efficient to cater to the state s growing demand . However, the investment needs for generation and distribution improvement are still huge. Assam is left with only very limited untapped hydro potential, which is in the range of 500 MW. There are no new gas or coal linkages available and the option of indigenous coalfield development is uncertain due to environmental concerns. To meet the state s growing power demand at affordable price, the state government has decided to optimally utilize its existing gas linkage through replacement of aged and inefficient plants with more efficient plants, and expediting the development of state s available hydro resource through state generating utility. In addition to developing the generation capacity, it is equally critical that Assam commensurately build its distribution infrastructure efficient and adequate, so that the additional power can be efficiently and reliably distributed to the end-users.

Development Impact

increased availability of electricity in Assam.

Project Outcome

Description of Outcome
increased capacity and efficiency of energy generation and distribution systems in Assam.
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Generation system upgraded and expanded Distribution system upgraded and expanded Institutional capacity of APGC & APDC strengthened Project management system in place.
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2013 May 28
Consulting Services
ADB will engage the following consultants (National and / or International) individually or through firm(s) or consortium of firms - the Project Specialist/Team Leader (International), Economic and Financial Analysis (International), Environmental Assessment and Management (International), Social Safeguard Specialist (International), Social Safeguard Specialist (National), Procurement Specialist (National), Community Development Specialist (National), Hydropower Construction Planning Expert (National), Climate Change Scientist (International), Generation Assets & Inventory Management Specialist (International), and Environmental Assessment and Management (National). The recruitment of consultants will be made in accordance with its Guidelines on the Use of Consultants by ADB and its Borrowers (2010, as amended from time to time). Consultants will be funded under TA-8351 subproject under the IND-CTA 0003: Advanced Project Preparedness for Poverty Reduction.
Procurement
Goods, equipment, and civil works to be financed under the Investment Program will be procured in accordance with ADB Procurement Guidelines (2010, as amended from time to time). International Competitive Bidding will be used for civil works and turnkey contracts. National Competitive Bidding will be used for contracts for goods and equipment estimated to cost less than $1 million. Advanced contracting and/or retroactive financing will be needed. Consultants will be engaged to help with project management. The Tranche 1 will have one major turnkey contract for gas plant replacement.
Procurement and Consulting Notices
http://www.adb.org/projects/47101-001/business-opportunities

Timetable

Concept Clearance 30 May 2013
Fact-finding 03 Sep 2013 to 12 Sep 2013
Management Review Meeting 18 Feb 2014
Approval 03 Jul 2014
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

Status of Covenants

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.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 0083

Contacts and Update Details

Responsible ADB Officer Herath M. Gunatilake (hgunatilake@adb.org)
Responsible ADB Department South Asia Department
Responsible ADB Divisions Energy Division, SARD
Executing Agencies

Links

Project Website http://www.adb.org/projects/47101-001/main
List of Project Documents http://www.adb.org/projects/47101-001/documents