Pakistan: MFF - Power Transmission Enhancement

Sovereign Project | 37192-013

Summary

The Investment Program will finance investments and accordingly support social and economic prosperity and growth. The inadequate supply of electricity has become a bottleneck for economic growth, affecting all consumer groups and social classes. The investment program will address current bottlenecks, improve future performance, and increase efficiency and effectiveness through technical and non-technical improvements.

Furthermore, the Investment Program will encourage energy efficiency improvements and developments, as well as provide institutional capacity for (i) implementation and monitoring support, and (ii) project preparatory activites for both the Investment Program's subprojects and other NTDC undertakings.

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Procurement Documents

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Project Name MFF - Power Transmission Enhancement
Project Number 37192-013
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
MFF Facility Concept 0007-PAK: MFF - Power Transmission Enhancement
Ordinary capital resources US$ 790.00 million
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description

The Investment Program will finance investments and accordingly support social and economic prosperity and growth. The inadequate supply of electricity has become a bottleneck for economic growth, affecting all consumer groups and social classes. The investment program will address current bottlenecks, improve future performance, and increase efficiency and effectiveness through technical and non-technical improvements.

Furthermore, the Investment Program will encourage energy efficiency improvements and developments, as well as provide institutional capacity for (i) implementation and monitoring support, and (ii) project preparatory activites for both the Investment Program's subprojects and other NTDC undertakings.

Project Rationale and Linkage to Country/Regional Strategy The power sector is currently undergoing reforms and restructuring, which are fully supported by ADB. In the transition phase, sector sustainability needs to be ensured. By providing liquidity for augmentation and expansion projects as well as for major maintenance work, the proposed project will contribute to sustainability of the sector and economic growth. To achieve the economic growth targets the Government has set, the power sector needs to increase its generation capacity, efficiency and coverage. The project will also increase the confidence of commercial financiers in financing long-term transmission assets in Pakistan during the transition from an integrated power utility to unbundled independent and eventually privatized entities.
Impact Improved power transmission infrastructure and management
Project Outcome
Description of Outcome Reliable and quality power transmitted in PAK and service coverage expanded
Progress Toward Outcome Overall MFF performance is On Track. Tranche 1 (Loan 2289) is closed. Tranches 2 (Loan 2396) is completed, except for two subprojects which are proposed to be continued under Tranche 3 (Loan 2846). Tranche 4 (Loan 3203) was declared effective on 6 March 2015.
Implementation Progress
Description of Project Outputs

Transmission networks improved through rehabilitation, augmenetation and expansion of systems

NTDC operations and management strengthened

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

Tranche 1 - Loan 2289 was financially closed in February 2013, with 18 of the 20 subprojects completed. The Bandala grid station and DG Khan-Loralai Transmission Line were energized in June and August 2014, respectively.

Loan 2290 remains open until loan closing or by 31 December 2016 to support the Program with project preparatory, project supervision, and safeguards consultants.

Tranche 2 - All of the grid stations and transmission lines under 9 of the 10 subprojects were energized. NTDC requested to finance the remaining expenditures for the pending subproject to install static var compensators (SVC) under Tranche 3.

Tranche 3 - Two of the four subprojects are ongoing. The remaining contracts are expected to be awarded in 2015.

Tranche 4 - Procurement for the 10 subprojects are ongoing. All contracts are expected to be awarded in 2015. NTDC committed to finance any expenditures incurred beyond loan closing (31 December 2016).

Geographical Location The whole country of Pakistan
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects NTDC has confirmed that all contracts for civil works have EMP as part of the project and are being monitored by the PMO.
Involuntary Resettlement NTDC has submitted the LARPs, DDRs, SRPs and external monitoring reports for most of the subprojects which were reviewed, commented and cleared for implementation by Social Safeguard Unit, PRM.
Indigenous Peoples Clause included in all bidding documents. NTDC has reported that there are no indigenous people in the Project area.
Stakeholder Communication, Participation, and Consultation
During Project Design All stakeholders participation during project design was ensured and consultations held.
During Project Implementation All stakeholders are participating during loan review missions.
Business Opportunities
Consulting Services Consulting Services are financed for, among others, (i) preparation of subprojects, (ii) detailed design, and (iii) construction supervision and contract management. Consulting firms are selected through international competition using the quality- and cost-based selection (QCBS) method. Individual consultants are recruited following Government procedures acceptable to ADB.
Procurement Procurement under the Investment Program follow ADB's Procurement Guidelines. International Competitive Bidding (ICB) is used for supply contracts estimated to cost $1 million and above, and works contracts estimated to cost $5 million and above.
Responsible ADB Officer Megan Wolf
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
National Transmission & Despatch Company LimitedMr. Muhammad Shabir Chaudhry, Chief Executiveceo@ntdc.com.pkWAPDA House Shahrah-e-Quaid-e-Azam Lahore, Pakistan
Timetable
Concept Clearance 08 Sep 2005
Fact Finding 01 Aug 2006 to 16 Aug 2006
MRM 14 Sep 2006
Approval 12 Dec 2006
Last Review Mission -
PDS Creation Date 16 Feb 2007
Last PDS Update 23 Mar 2015

MFF Facility Concept 0007-PAK

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1,965.00 Cumulative Contract Awards
ADB 800.00 - 0.00 0.00 %
Counterpart 1,165.00 Cumulative Disbursements
Cofinancing 0.00 - 0.00 0.00 %

Safeguard Documents

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Evaluation Documents

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