Philippines: Electricity Market and Transmission Development

Sovereign Project | 36018-013 Status: Closed

Latest Project Documents

Project Results



MW installed energy generation capacity using conventional and renewable energy sources



kilometers of transmission lines installed or upgraded

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Project Name Electricity Market and Transmission Development
Project Number 36018-013
Country Philippines
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1984-PHI: Electricity Market and Transmission Development
Ordinary capital resources US$ 40.00 million
Loan: Electricity Market and Transmission Development
Japan Bank for International Cooperation (non-ODA) US$ 45.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Energy - Electricity transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description 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.
Project Rationale and Linkage to Country/Regional Strategy

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.

Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Luzon and Mindanao
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services 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.
Procurement 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.
Responsible ADB Officer Rehan Kausar
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
National Transmission Corporation (TRANSCO)
Project Director
Diliman, Metro Manila
Concept Clearance 08 Mar 2002
Fact Finding 02 Apr 2002 to 26 Apr 2002
MRM 13 Jun 2002
Approval 19 Dec 2002
Last Review Mission -
PDS Creation Date 04 Dec 2006
Last PDS Update 06 Feb 2009

Loan 1984-PHI

Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2002 16 Dec 2003 09 Mar 2004 30 Jun 2009 - 03 Aug 2009
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 105.50 Cumulative Contract Awards
ADB 40.00 19 Dec 2002 32.18 0.00 90%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 45.50 19 Dec 2002 35.59 0.00 100%
Title Document Type Document Date
Electricity Market and Transmission Development Project Project/Program Completion Reports Jan 2012
Electricity Market and Transmission Development Project Reports and Recommendations of the President Nov 2002

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Philippines: Electricity Market and Transmission Development Project Validations of Project Completion Reports Jun 2014

Related Publications

None currently available.

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