Pakistan: Power Transmission Enhancement Investment Program Tranche 2

Sovereign Project | 37192-033

Summary

Pakistan's power system continues to operate under stressed conditions. The transmission network, the power system's backbone, requires renovation and expansion in order to meet the objective to supply reliable and high-quality power and meet rising demand from industrial, commercial, agricultural, and domestic customers. Investments under the project will continue to address the immediate priorities of the primary transmission system improvement, dealing with the capacity shortfalls that currently result in regular system outages and supply interruptions to customers. These investments are consistent with the Government's strategy to achieve the following outcomes: (i) a more efficient power system; (ii) high-quality power supply through a more reliable and stable system; (iii) greater geographic coverage of power supply; and (iv) greater access to affordable electricity, by bringing hydroelectric and coal-fired thermal energy to load centers.

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Project Name Power Transmission Enhancement Investment Program Tranche 2
Project Number 37192-033
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2396-PAK: MFF-Power Transmission Enhancement Investment Program PFR2
Ordinary capital resources US$ 165.00 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 Pakistan's power system continues to operate under stressed conditions. The transmission network, the power system's backbone, requires renovation and expansion in order to meet the objective to supply reliable and high-quality power and meet rising demand from industrial, commercial, agricultural, and domestic customers. Investments under the project will continue to address the immediate priorities of the primary transmission system improvement, dealing with the capacity shortfalls that currently result in regular system outages and supply interruptions to customers. These investments are consistent with the Government's strategy to achieve the following outcomes: (i) a more efficient power system; (ii) high-quality power supply through a more reliable and stable system; (iii) greater geographic coverage of power supply; and (iv) greater access to affordable electricity, by bringing hydroelectric and coal-fired thermal energy to load centers.
Project Rationale and Linkage to Country/Regional Strategy Power is an essential commodity for growth and expansion and in turn for the economic and social development of Pakistan. Historically, power generation has received much more attention than transmission. This Investment Program seeks to (i) rehabilitate, augment, and expand parts of the system to meet current generation capacities; (ii) expand and augment the system to cope with future power generation stations; and (iii) ensure continued operation and maintenance in accordance with best international practices.
Impact Enhanced power transmission operations and management in Pakistan.
Project Outcome
Description of Outcome Primary transmission systems rehabilitated, augmented and expanded.
Progress Toward Outcome

Of the 10 subprojects, 9 subprojects were energized as of 31 December 2014. The outstanding expenditures are being considered for financing under Tranche 3 (Loan 2846).

The remaining lots under ADB-56 will be financed under Tranche 4 (Loan 3203).

Implementation Progress
Description of Project Outputs

Substation constructed and rehabilitated.

Transmission line commissioned.

Augmentation and system stabilization.

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

Substantially done. Loan extended twice at the Government's request. Installation of telecoms equipment for T.T. Singh and Okara substations expected to be completed in 2016. NTDC proposed to finance the outstanding expenditures under Tranche 3 (Loan 2846).

Done with delay. DG Khan substation commissioned in July 2014. Loan extended twice at the Government's request.

Commissioned on 24 June 2009.

Ongoing for SVC at Lahore (ADB-14). After a court case between the contractor and subcontractor stalled the works, completion is expected Dec 2015. NTDC proposed to finance the outstanding expenditures under Tranche 3 (Loan 2846).

Geographical Location All over Pakistan
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The 10 subprojects are far apart, and therefore, there is no significant potential for cumulative impacts in the design, construction, or operational phases. NTDC ensured that the (i) subprojects were constructed and operated following national and local environmental procedures and guidelines and ADB's Safeguard Policy; (ii) subprojects are designed, constructed, and operated following the environment management plans (EMPs) as reflected in the initial environment examinations and the Environment Assessment Review Framework; (iii) EMPs were incorporated in bidding documents and civil work contracts, and implemented; and (iv) environmental performance reports were submitted to ADB during construction. An independent monitoring agency acceptable to ADB conducted monitoring and evaluation of environmental and social safeguards.
Involuntary Resettlement Of the 10 subprojects, four were assessed to trigger ADB's Safeguard Policy. None of these subprojects, however, required housing relocation, or severely affected more than 200 people. A due diligence report documenting land acquisition modalities and circumstances was prepared. Under civil works contracts, all LARFs and RPs were complied with per ADB Policy and Government procedures. All payments were made prior to commencing civil works for all subprojects. NTDC submitted 7 due diligence reports which were approved by ADB. The contract for External Monitoring Consultants under Tranche 1 was extended to cover monitoring for Tranche 2.
Indigenous Peoples No indigenous peoples were affected in any of the subprojects.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder analysis was undertaken. All stakeholders have been actively involved to reduce grievances and to ensure that benefits are distributed fairly.
During Project Implementation The forms of public consultation and participation during implementation were information sharing and consultations.
Business Opportunities
Consulting Services All consulting services to be financed under the Facility shall be procured in accordance with the Guidelines on the Use of Consultants by Asian Development Bank and Its Borrowers, February 2007, as amended from time to time.
Procurement All goods and services to be financed will be procured in accordance with ADB's Procurement Guidelines, February 2007, as amended from time to time.
Responsible ADB Officer Tianhua Luo
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
National Transmission & Despatch Company Limited*Mr. Ameer-ur-RehmanCEO@NTDC.COM.PKRm. 414, WAPDA House, Shahrah-e-Quaid-e Azam, Lahore
Timetable
Concept Clearance 08 Sep 2005
Fact Finding -
MRM -
Approval 17 Dec 2007
Last Review Mission -
PDS Creation Date 11 Nov 2008
Last PDS Update 30 Mar 2015

Loan 2396-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2007 20 May 2008 17 Apr 2009 31 Dec 2013 29 Feb 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 221.00 Cumulative Contract Awards
ADB 165.00 17 Dec 2007 161.30 0.00 98%
Counterpart 56.00 Cumulative Disbursements
Cofinancing 0.00 17 Dec 2007 154.56 0.00 94%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
MFF-Power Transmission Enhancement Investment Program PFR2: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jun 2014
MFF-Power Transmission Enhancement Investment Program PFR2: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Dec 2013
MFF-Power Transmission Enhancement Investment Program PFR2: Environmental Monitoring Report (January-June 2013) Environmental Monitoring Reports Jul 2013
MFF Power Transmission Enhancement Investment Program Tranche 2: Mid Term Report on Social Safeguards Compliance Social Monitoring Reports Jul 2013
MFF-Power Transmission Enhancement Investment Program PFR2: Environmental Monitoring Report (July-December 2012) Environmental Monitoring Reports Mar 2013
Power Transmission Enhancement Investment Program, Tranche 2: Sub Project No. 21 Initial Environmental Examination Initial Environmental Examination Aug 2009
Power Transmission Enhancement Investment Program - Tranche 2: Subproject No. 8 Land Acquisition and Resettlement Plan for Jarwar Resettlement Plans Dec 2007
Power Transmission Enhancement Investment Program - Tranche 2: Subproject No. 01 Land Acquisition and Resettlement Plan for Okara Resettlement Plans Nov 2007
Power Transmission Enhancement Investment Program - Tranche 2: Subproject No. 7 Land Acquisition and Resettlement Plan for Rohri Resettlement Plans Nov 2007
Power Transmission Enhancement Investment Program - Tranche 2: Subproject No. 5 Land Acquisition and Resettlement Plan for D.G. Khan Resettlement Plans Nov 2007

Evaluation Documents

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