Pakistan: Power Transmission Enhancement Investment Program Tranche 3

Sovereign Project | 37192-043

Summary

The Tranche 3 subprojects are part of Pakistan's integrated power transmission system development plan. The investments will enhance the efficiency of the overall power transmission system and provide an adequate and reliable power supply to a greater number of industrial, commercial and residential consumers.

The Tranche 3 subprojects will improve power transmission infrastructure through development of additional 500 kV transmission lines and grid substations facilities, and relieve the power system bottlenecks. Tranche 3 will specifically (i) increase interregional transmission capacity and (ii) evacuate power from new power stations to the load centers.

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Project Name Power Transmission Enhancement Investment Program Tranche 3
Project Number 37192-043
Country Pakistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2846-PAK: Power Transmission Enhancement Investment Program - Tranche 3
Ordinary capital resources US$ 243.24 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Energy - Electricity transmission and distribution
Gender Equity and Mainstreaming No gender elements
Description

The Tranche 3 subprojects are part of Pakistan's integrated power transmission system development plan. The investments will enhance the efficiency of the overall power transmission system and provide an adequate and reliable power supply to a greater number of industrial, commercial and residential consumers.

The Tranche 3 subprojects will improve power transmission infrastructure through development of additional 500 kV transmission lines and grid substations facilities, and relieve the power system bottlenecks. Tranche 3 will specifically (i) increase interregional transmission capacity and (ii) evacuate power from new power stations to the load centers.

The outputs of the subprojects in Tranche 3 include (i) addition of approximately 600 km 500 kV transmission lines, (ii) commission of one new 500 kV grid station and expansion of four existing 500 kV grid substations, (iii) improved security of supply to customers by moving towards compliance with regulatory security standards governing planning and operation, and (iv) improved reliability of the primary transmission system.

Project Rationale and Linkage to Country/Regional Strategy

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.

The Government has requested ADB to finance construction of a circuit of 500 kV transmission line of about 600 kilometer (km) and a new 500 kV Grid Substation at Moro, under Tranche 3. The proposed subprojects will increase transmission capacity and improve efficiency and security of supply in the Sindh and Punjab Provinces of Pakistan. The proposed subprojects will evacuate the power generated from the Independent Power Producers (IPPs) which are expected to be in commission by 2013-2015. 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 additions of generation capacity and energy to load centers.

Impact Enhanced power transmission operations and management.
Project Outcome
Description of Outcome Expanded and reliable transmission system
Progress Toward Outcome Five of seven contracts ongoing. Other contracts expected to be awarded in 2015.
Implementation Progress
Description of Project Outputs Transmission lines and substations commissioned
Status of Implementation Progress (Outputs, Activities, and Issues)

Three contracts for ADB-65 Package 1, Lots 1-3 ongoing. Due to rebidding, target end date revised to Dec 2016.

Contract for ADB-68 ongoing. Due to rebidding, target end date revised to Apr 2016.

Contract for ADB-65 Package 2 ongoing. Due to rebidding, target end date revised to May 2016. Contract signing for ADB-67 expected by Apr 2015.

Geographical Location Sindh and Punjab Provinces
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

Environmental assessment for all the subprojects was conducted in accordance with the Environmental Assessment Review Framework (EARF), prepared by the Government and agreed with ADB, and in compliance with ADB's Environment Policy (2002) and Environmental Assessment Guidelines (2003), and the Government's environmental assessment regulations and guidelines (Pakistan Environmental Protection Act 1997). All the subprojects under Tranche 3 have been categorized as B under ADB's environment guidelines. Environmental assessments have been carried out for each subproject. An initial environmental examination (IEE) report and an EMP with implementation budget have been prepared for all the subprojects.

Subproject components will be designed, wherever possible, to minimize adverse environmental impacts. To mitigate the potential adverse impacts of the construction stage, detailed EMPs will be updated as part of the IEEs. No component of any subproject falls in an environmentally sensitive or protected area. The subprojects are all a long way apart and therefore there is no significant potential for cumulative impacts in the design, construction, or operational phases. The objective of the Tranche 3 is to produce cumulative benefits to the transmission system in the operational phase.

NTDC will implement and monitor the submission and clearance of IEEs under statutory provisions. It will ensure that bidding documents and contracts include the mitigation measures required in the EMPs and that the mitigation measures are implemented by the contractors.

Involuntary Resettlement

The subprojects will involve the construction of transmission lines and grid stations. The processing of land acquisition and income rehabilitation tasks for Tranche 3 has been and will be based on the requirements of the ADB's Policy on Involuntary Resettlement and on the same stipulations set in the LARF prepared for the Program. The subprojects will not require permanent land acquisitions as the land for the proposed new substation is already the property of NTDC. There will be damages to crops and other assets lying in the Right of Way of the transmission line which have been quantified. The draft Land Acquisition and Resettlement Plans (LARP) has been prepared.

The identification and layout of the site and a technical drawing showing line profile with complete tower spotting have been made for carrying out the resettlement field surveys. The original design of this proposed transmission line was prepared in mid-1990s, following which the construction of tower foundations which begun in 1996. But then the work was discontinued mid-way in 1997, reportedly because of non-availability of funds. Considering the subproject abandoned, the local people started constructing residential and commercial structures on their lands, right in the 50 meter wide Right-of-Way of the line route. To avoid the potential social impact, NTDC conducted a resurvey of the identified sections (6% of the total length) with existing structures and realigned the route to avoid those structures. Accordingly, the LARP will be updated.

Indigenous Peoples No subproject will affect people classified as Indigenous Peoples (IP) as defined by ADB's Safeguard Policy Statement (SPS).
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder analysis has been undertaken. All stakeholders have been actively involved, in order 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 contractors will consult with local township labor officials, local village leaders and jirgas and will also ensure that labor is hired on a nondiscriminatory basis.
During Project Implementation Forms of public consultation and participation (C&P) during project implementation are information sharing and consultations. A C&P plan was not prepared; but C&P will be carried out furing the implementation as becomes necessary.
Business Opportunities
Consulting Services Consulting services will be required for (i) initial route survey, (ii) bidding documents preparation and bid evaluation; (iii) construction supervision and contract management. To expedite the Project implementation, NTDC has recruited a project supervision consultant entirely from their own resources, and engaged the consultants in accordance with its procedures acceptable to ADB. NTDC confirmed that the consulting service contract was awarded in October 2009. During the first phase, the consultant is assisting NTDC in (i) initial route survey and (ii) bidding documents preparation, bid evaluation and contract award. Once the project is approved, the consultant will assist NTDC in (i) construction supervision and contract management and (ii) monitoring implementation of safeguard policies.
Procurement Procurement of goods and services will be implemented in accordance with ADB's Procurement Guidelines (2010, as amended from time to time). International competitive bidding will be used for the supply of goods and works being funded under Tranche 3. For international competitive bidding procurement mode, single stage, one envelope bidding procedure shall be used with prior review by ADB. The procurement plan and contract packages for the subprojects under Tranche 3 have been discussed and agreed with NTDC.
Responsible ADB Officer Joonho Hwang
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
National Transmission & Despatch Company LimitedMr. Mussadiq Ahmed KhanWAPDA House, Shahrah-e-Quaid-e-Azam
Lahore 54000, Pakistan
Timetable
Concept Clearance 08 Sep 2005
Fact Finding -
MRM 17 Nov 2011
Approval 22 Dec 2011
Last Review Mission -
PDS Creation Date 13 Jul 2009
Last PDS Update 23 Mar 2015

Loan 2846-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Dec 2011 18 Jan 2012 21 Feb 2012 30 Jun 2016 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 287.44 Cumulative Contract Awards
ADB 243.24 22 Dec 2011 179.67 0.00 74%
Counterpart 44.20 Cumulative Disbursements
Cofinancing 0.00 22 Dec 2011 20.48 0.00 8%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Power Transmission Enhancement Investment Program - Tranche 3: Transmission Line 3rd Circuit Project (Lot 2: Dadu-Moro-Qazi Mahar Section) - Final Land Acquisition and Resettlement Plan Resettlement Plans Jun 2015
Power Transmission Enhancement Investment Program - Tranche 3: Transmission Line 3rd Circuit Project (Lot 3: Goth Qazi Mahar-Rahim Yar Khan Section) - Final Land Acquisition and Resettlement Plan Resettlement Plans Jun 2015
Power Transmission Enhancement Investment Program - Tranche 3: Transmission Line 3rd Circuit Project (Lot 1: Jamshoro-Moro Section) - Final Land Acquisition and Resettlement Plan Resettlement Plans Jun 2015
Power Transmission Enhancement Investment Program - Tranche 3: 220 KV Transmission Line (Uch-II to Sibi), Balochistan Resettlement Plans Jul 2014
MFF-Power Transmission Enhancement Investment Program - Tranche 3: Updated Land Acquisition and Resettlement Plan Resettlement Plans Nov 2011
MFF - Power Transmission Enhancement Investment Program - Proposed Tranche 3 Environmental Assessment and Review Framework Nov 2011
MFF Power Transmission Enhancement Investment Program - Proposed Tranche 3: 220 kV Sub station Mansehra Environmental Assessment and Measures Nov 2011
MFF Power Transmission Enhancement Investment Program - Proposed Tranche 3: Third Circuit 500 kV Transmission Line Jamshoro to Rahmyar Khan and Moro GS Environmental Assessment and Measures Nov 2011
MFF Power Transmission Enhancement Investment Program - Proposed Tranche 3: Transmission Interconnection For Dispersal Of Power From UCH-II Power Project Environmental Assessment and Measures Nov 2011
MFF-Power Transmission Enhancement Investment Program - Tranche 3: Updated Land Acquisition and Resettlement Framework Resettlement Planning Documents Sep 2011
Power Transmission Enhancement Investment Program, Tranche 3: Volume 1, Main Report Resettlement Plans Sep 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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