Pakistan: Renewable Energy Development Sector Investment Program - Project I

Sovereign Project | 34339-023

Summary

To develop indigenous, nonpolluting, and renewable sources of energy to help meet Pakistan's power shortage and diversify the power sources. It will also improve the quality of the power system, specially in rural areas. Scope: Under the first set of subprojects North-West Frontier Porvince (NWFP) will develop a cluster of small hydropower from perennial high-head rivers that are abundant in the province. Punjab province will also develop a cluster of low-head, high-volume small hydropower stations that can be installed in the existing irrigation canal system with perennial water flows. The scope may get expanded to cover other renewable sources as well as other provinces in the future. An effort will also be made for capacity development of renewable energy sector related agencies.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Project Name Renewable Energy Development Sector Investment Program - Project I
Project Number 34339-023
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2286-PAK: Renewable Energy Development Sector Investment Program - Project I
Ordinary capital resources US$ 105.00 million
Loan 2287-PAK: Renewable Energy Development Sector Investment Program - Project I
Asian Development Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Energy sector development and institutional reform - Large hydropower generation - Renewable energy generation - small hydro
Gender Equity and Mainstreaming No gender elements
Description To develop indigenous, nonpolluting, and renewable sources of energy to help meet Pakistan's power shortage and diversify the power sources. It will also improve the quality of the power system, specially in rural areas. Scope: Under the first set of subprojects North-West Frontier Porvince (NWFP) will develop a cluster of small hydropower from perennial high-head rivers that are abundant in the province. Punjab province will also develop a cluster of low-head, high-volume small hydropower stations that can be installed in the existing irrigation canal system with perennial water flows. The scope may get expanded to cover other renewable sources as well as other provinces in the future. An effort will also be made for capacity development of renewable energy sector related agencies.
Project Rationale and Linkage to Country/Regional Strategy Pakistan's Medium Term Development Framework sets out a strategic vision and investment program for the sector for the period 2005-2010. The main objective of this program is to support a projected 6-8% growth in gross domestic product. Energy is essential to high and inclusive growth. The poverty reduction agenda depends on it.

The vision for the sector has four main components: (i) increased private sector investment in the entire production chain; (ii) reduced technical, non-technical and financial losses; (iii) improved sustainability and reduced level of government subsidies; and (iv) improved service delivery, efficiency, and governance in the energy utilities. The strategy will deliver various key outcomes: (i) basic sector reforms to create an enabling environment for private sector participation; (ii) better sector analysis and stronger capacity among the relevant sector organizations, including in such areas as financial management, governance, operational efficiency, clean development mechanisms, and project management; and (iii) promotion of infrastructure development projects in generation, distribution, and transmission, while including renewable energy development. The latter will target industry, as well as urban and rural communities.

Annual electricity demand growth is forecast to average 8.3% during 2005-2015. To cope with this demand growth, Pakistan needs annually an additional 2,000 megawatts (MW) of newly installed capacity. The estimated annual investment cost to deliver this capacity is about $6 billion. This additional generated power would need to be evacuated through the formal transmission network to consumers through the distribution system. The transmission system requires a major investment package. The National Transmission and Dispatch Company has developed a nationwide transmission development program for 2005-2012, out of which several priority schemes have already been approved by the Government. ADB will support this program.

Pakistan has considerable potential for developing a broad range of renewable energy resources (RE), principally wind, solar, biomass and small to medium-sized hydropower plants. RE resources can contribute to energy supply and security while helping change the mix. It also can contribute to both off-grid and grid-connected power supply. RE supports rural development and economic activity in remote areas while yielding positive environmental and social impacts. Pakistan has a total identified hydropower potential of more than 45,000 MW. The total installed capacity of hydropower generation in the country is 6,595 MW. Hydropower resources are located mainly in the north, northwest, and central parts of the country. Wind and solar resource potential is highest in the southern provinces of Sind and Balochistan, respectively.
Impact Reduction in CO2 emission
Project Outcome
Description of Outcome Increased production and use of clean energy
Progress Toward Outcome The civil works are on-going for all 6 sites (Ranolia, Machai, Marala, Pakpattan, Chianwali, and Deg Outfall) at various stages of completion. The physical progress is Ranolia 89.1%; Machai 79.3%; Marala 47.96%; Pakpattan 48.59%; Chainwali 7.95% and Deg Outfall 12.89%. All sites are expected to be completed within the extnded loan closing date.
Implementation Progress
Description of Project Outputs

Part A. Clean Energy Development

Small to medium-size hydropower stations are operational in KP and Punjab.

Part B. Due Diligence

Feasibility studies and other due diligence work on new RE schemes completed.

Part C. Capacity Development

Training needs assessment at the provincial and project levels conducted.

Status of Implementation Progress (Outputs, Activities, and Issues)

2 management and supervision consultancy awarded and on-going in KP

1 management and supervision consultancy awarded and on-going in Punjab

1 feasibility study (3 sites) contract awarded and completed in KP

1 feasibility study (5 sites) contract awarded and completed in Punjab

17 MW Ranolia HPP contract awarded and on-going

2.6 MW Machai HPP contract awarded and on-going

7.64 MW Marala HPP contract awarded and on-going

2.82 MW Pakpattan HPP contract awarded and on-going

5.38 MW Chianwali HPP contract awarded and on-going

4.04 MW Deg Outfall HPP contract awarded and on-going

Construction of PEDO (formerly SHYDO) building is complete.

Contract for consulting services for capacity building/development of PEDO and related entities is completed. The project completion report was already prepared. 23 trainings (international/national) were conducted; 8 courses were implemented; and 57 officials attended the national and international trainings.

The procurement of goods for PEDO building (capacity building) is complete.

In Punjab, the contract between PPDCL and the Clean Energy Development Mechanism (CDM) individual consultant has been signed and under implementation. PPDCL staff are envisaged to receive hands-on training with regards to registration and validation procedure related to CDM.

Geographical Location Punjab and Khyber Pakhtunkhwa (formerly NWFP)
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The subprojects will have very little adverse environmental impacts. The adverse impacts will be adequately mitigated as described in the environmental management plan (EMP) where the implementing agencies (IAs) are committed to implement. However, IAs will obtain maximum benefits from the capacity development component of the investment program. The IAs will improve their capacities to implement and monitor the measures in the EMP. Based on the review, ADB environment category B is appropriate and a full environmental impact assessment is not necessary.
Involuntary Resettlement Land acquistion and resettlement impacts of proposed subprojects under the first tranche have been examined. Part A: Clean Energy Development will require permanent acquisition of 11.78 hectares (ha) in KP, and temporary acquisition of 0.85 ha of 0.45 in KP, and 3.2 in Punjab. Part B: Feasibility Studies and Part C: Capacity Development will not require any acquisition of land or other property and therefore will not have any resettlement impacts. Land acquisition for Part A subprojects will affect 61 households, and 2 residential structures.
Indigenous Peoples Indigenous peoples (IP) are defined as those having a distinct social, cultural, economic, and political traditions and institutions compared with the mainstream or dominant society. In KP, all the affected people, apart for the Machai subproject, belong to sub-tribes. In fact, the great majority of KP population falls under ADB's definition of IP. Traditional decision making mechanisms were taken into account during consultation. In Punjab, none of the affected people (AP) fall under ADB's IP policy.
Stakeholder Communication, Participation, and Consultation
During Project Design

Stakeholder analysis has been undertaken. All stakeholders have been actively involved to reduce the likelihood of grievances and to ensure that benefits are distributed fairly. In addition, for the selection of unskilled labor in the project area, the contracts will consult with local township labor officials, local village leaders and jirgas and will also ensure that labor is hired on a nondiscriminatory basis.

Resource persons in different Government departments and representatives of the local communities were interviewed.

During Project Implementation Consultation with relevant Government departments and representatives of the local communities are conducted during implementation.
Business Opportunities
Consulting Services QCBS (80/20)
Procurement

International competitive bidding (ICB) will be used for turnkey contracts targeting the construction of hydropower plants and supply contracts estimated to cost $1 million or more.

Limited international bidding will be used for supply contracts estimated at $100,000 to $1 million.

National competitive bidding (NCB) will be used for contracts estimated to cost less than $100,000.

Civil works contracts estimated at less than $1.5 million also will be procured following NCB procedures.

Responsible ADB Officer Ehtesham Zafar Khattak
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Pakistan Resident Mission
Executing Agencies
Alternative Energy Development BoardMujahid Sadiqmujahid@aedb.orgHouse 3, Street 8, F-8/3, Islamabad, Pakistan
Government of Khyber Pakhtunkhwa(KP)S. Ishtiaq ShahPROJECT@PES.COMSATS.NET.PK374-WAPDA House, Shami Road Government of NWFP, Peshawar
Government of PunjabMr. Mohammad Yaqubengrmmy@hotmail.com209-C, TECH Society, Canal Bank, Lahore, Pakistan
Government of PunjabMr. Liaqat Ali Iqbalpdppmu@punjab.gov.pk/pdppmu@gmail.com209-C, TECH Society, Canal Bank, Lahore, Pakistan
Alternative Energy Development BoardArif Alauddinalauddin@aedb.comHouse 3, Street 8, F-8/3, Islamabad, Pakistan
Government of Khyber Pakhtunkhwa(KP)Mr. Bahadur ShahPROJECT@PES.COMSATS.NET.PK374-WAPDA House, Shami Road Government of NWFP, Peshawar
Timetable
Concept Clearance -
Fact Finding -
MRM 16 May 2006
Approval 13 Dec 2006
Last Review Mission -
PDS Creation Date 03 Aug 2008
Last PDS Update 24 Mar 2015

Loan 2286-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2006 05 Oct 2007 29 Nov 2007 30 Jun 2012 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 135.00 Cumulative Contract Awards
ADB 105.00 13 Dec 2006 116.05 0.00 101%
Counterpart 30.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2006 76.44 0.00 66%

Loan 2287-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2006 05 Oct 2007 29 Nov 2007 30 Jun 2012 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 13 Dec 2006 3.11 0.00 60%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 13 Dec 2006 2.90 0.00 55%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Renewable Energy Development Sector Investment Program - Project I (Punjab): Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Renewable Energy Development Sector Investment Program - Project (Ranolia, Khyber Pakhtunkhwa Component): Biannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Renewable Energy Development Sector Investment Program - Project I: Punjab: Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Renewable Energy Development Sector Investment Program - Project I: Ranolia Hydropower Project, Khyber Pakhtunkhwa: Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Renewable Energy Development Sector Investment Program - Project I: Machai Hydropower Project, Khyber Pakhtunkhwa: Biannual Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Jan 2015
Renewable Energy Development Sector Investment Program - Project 1: Marala Hydropower Project (MHPP 7.64 MW) Due Diligence Report (December 2014) Safeguards Due Diligence Reports Dec 2014
Renewable Energy Development Sector Investment Program - Project 1: Deg Out Fall Hydro Power Project (4.04 MW) Biannual Social Monitoring Report (July 2014) Social Monitoring Reports Jul 2014
Renewable Energy Development Sector Investment Program - Project 1: Chianwali Hydro Power Project (5.38 MW) Biannual Social Monitoring Report (July 2014) Social Monitoring Reports Jul 2014
Renewable Energy Development Sector Investment Program - Project I: Machai Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Renewable Energy Development Sector Investment Program - Project I: Punjab: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Renewable Energy Development Sector Investment Program - Project I: Ranolia Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
Renewable Energy Development Sector Investment Program - Project I: Punjab: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Renewable Energy Development Sector Investment Program - Project I: Machai Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Renewable Energy Development Sector Investment Program - Project I: Ranolia Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
Renewable Energy Development Sector Investment Program - Project I: Ranolia Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Sep 2013
Renewable Energy Development Sector Investment Program - Project I: Pakpattan Hydro Power Project Final Internal Monitoring Report Social Monitoring Reports Jul 2013
Renewable Energy Development Sector Investment Program - Project I: Punjab: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Renewable Energy Development Sector Investment Program - Project I: Machai Hydropower Project, Khyber Pakhtunkhwa: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jun 2013
Renewable Energy Development Sector Investment Program - Project 1: Pakpattan (2.82 MW) Hydro Power Project Biannual Social Monitoring Report (June 2013) Social Monitoring Reports Jun 2013
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Marala Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Pakpattan Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Deg Outfall Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Okara Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Chianwali Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Ranolia Hydropower Project Initial Environmental Examination May 2006
Renewable Energy Development Sector Investment Program - Project I: Initial Environmental Examination for Machai Hydropower Project Initial Environmental Examination May 2006

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.