India: MFF - Madhya Pradesh Power Sector Investment Program (Tranche 2)

Sovereign Project | 32298-033

Summary

The distribution component of MP's investment program from 2007 to 2012 is predicated on building sufficient capacity for evacuation of power from exisitn and planned power stations and substations, and delivering power reliability and efficiency to consumers. ADB will finance part of the distribution investment program from 2007 through 2012. The impact of the distribution component will be more pronounced and apparent from the perspective of consumers. Improvements in voltage profiles will be evident through better lighting and fewer equipment failures. Supply will be available more consistently and momentary outages will be significantly reduced. The distribution component will also directly impact both technical and non-technical losses and eventually sector profitability and financial sustainability.

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Project Name MFF - Madhya Pradesh Power Sector Investment Program (Tranche 2)
Project Number 32298-033
Country India
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2324-IND: MFF - Madhya Pradesh Power Sector Investment Program (Tranche 2)
Ordinary capital resources US$ 45.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Energy sector development and institutional reform
Gender Equity and Mainstreaming
Description The distribution component of MP's investment program from 2007 to 2012 is predicated on building sufficient capacity for evacuation of power from exisitn and planned power stations and substations, and delivering power reliability and efficiency to consumers. ADB will finance part of the distribution investment program from 2007 through 2012. The impact of the distribution component will be more pronounced and apparent from the perspective of consumers. Improvements in voltage profiles will be evident through better lighting and fewer equipment failures. Supply will be available more consistently and momentary outages will be significantly reduced. The distribution component will also directly impact both technical and non-technical losses and eventually sector profitability and financial sustainability.
Project Rationale and Linkage to Country/Regional Strategy The intervention in the Madhya Pradesh power sector is consistent with the ADB Strategy of supporting state level sector reforms, in this case with the emphasis on the transmission and distribution subsectors.
Impact

Contributed to sustaining economic growth and social development in Madhya Pradesh.

Contributed to meeting the energy demand growth in Madhya Pradesh

Project Outcome
Description of Outcome Reduction in system losses and improved supply quality and reliability.
Progress Toward Outcome

Distribution losses during FY2010: 32.78%

System reliability during FY2010: 91%

Collection efficiency for FY2010 was 96% in urban areas and 93.22% in urban and rural areas combined.

Implementation Progress
Description of Project Outputs Installation of, high voltage distribution systems, remote metering, consumer metering and renovation of substation protection system.
Status of Implementation Progress (Outputs, Activities, and Issues) Contracts for all the originally envisaged nine packages were awarded during December 2007 to March 2009. Out of nine packages, two packages have already been completed; six packages are under implementation and one package, namely HVDS in Gudawara was terminated in July 2010 due to unsatisfactory performance of the contractor. The re-bidding process has been initiated for the terminated contract and the same is expected to be awarded by April 2011.
Geographical Location Madhya Pradesh
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

Loan covenants relating to Environmental and Social Safeguards are being met by DISCOM in implementing the project. The institutional arrangements for supervision and reporting have been streamlined with engagement of external monitoring agency.

The semi-annual reports submitted on implementation of EMPs have not raised any environmental safeguards related concerns. The Environmental Monitoring reports submitted by DISCOM have been uploaded in ADB website.

Involuntary Resettlement DISCOM reported that there were no land acquisition and resettlement issues under this loan.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services No consultants will be required under the Project.
Procurement International competitive bidding (ICB) is used for supply and construction of the facilities being funded under the investment program (substations, distribution system, equipment, and transformers, etc.). ICB is being utilized for supply contracts estimated to cost the equivalent of or more than $1 million. Limited international bidding (LIB) or national competitive bidding (NCB) will be used for supply contracts estimated at $250,000-$1 million, and shopping for contracts estimated at less than $250,000. Contract packages are being prepared to ensure maximum competition under ICB.
Responsible ADB Officer Jyotirmoy Banerjee
Responsible ADB Department South Asia Department
Responsible ADB Division India Resident Mission
Executing Agencies
Madhya Pradesh Poorv Kshetra Vidyut Vitaran Co LtdMr. Pankaj Agarwalsky_24in@yahoo.com, cmdez_jabalpur@yahoo.co.inShakti Bhawan, Rampur, Jabalpur - 482008
Timetable
Concept Clearance 23 Nov 2005
Fact Finding 16 Oct 2006 to 24 Oct 2006
MRM 11 Dec 2006
Approval 04 Apr 2007
Last Review Mission -
PDS Creation Date 18 Apr 2007
Last PDS Update 21 Mar 2013

Loan 2324-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Apr 2007 12 Apr 2007 14 May 2007 30 Sep 2011 31 Dec 2012 15 Jul 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 65.70 Cumulative Contract Awards
ADB 45.00 04 Apr 2007 40.75 0.00 100%
Counterpart 20.70 Cumulative Disbursements
Cofinancing 0.00 04 Apr 2007 40.75 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory

Evaluation Documents

See also: Independent Evaluation

No documents found.


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